ORGANIZATIONAL CHANGE

INTRODUCTION

The objective of organizational change management is to enable

organization members and other stakeholders to adapt to a sponsor's new vision,
mission, and systems, as well as to identify sources of resistance to the changes
and minimize resistance to them. Organizations are almost always in a state of
change, whether the change is continuous or episodic. Change creates tension
and strain in a sponsor's social system that the sponsor must adapt to so that it
can evolve. Transformational planning and organizational change is the
coordinated management of change activities affecting users, as imposed by
new or altered business processes, policies, or procedures and related systems
implemented by the sponsor. The objectives are to effectively transfer knowledge
and skills that enable users to adopt the sponsor's new vision, mission, and
systems and to identify and minimize sources of resistance to the sponsor's
changes.

DEFINITION OF TERMS

 Organizational change – a process in which a large company or

organization changes its working methods or aims, for example in order to
develop and deal with new situations or markets:

Sometimes deep organizational change is necessary in order to maintain

a competitive edge.

 Change management – process for obtaining the enterprise (or business)

intelligence to perform transformation planning by assessing an organization’s
people and cultures to determine how changes in business strategies,
organizational design, organizational structures, processes and technology
systems will import the enterprise.
 Change agents – are involved in helping a team implement new
organizational systems to achieve a higher degree of output. They may be a
leader of a division, a full time organizational development professional or a
middle manager charged with the responsibility of bringing about a change in
his/her area.

 Unfreezing – involves producing disequilibrium between the driving and

restraining forces. This process may occur by increasing the driving forces,
reducing the restraining forces, or using a combination of both.

 Refreezing – occurs when the organization’s systems and structures are

aligned with the desire behaviors. They must support and reinforce the new role
patterns and prevent the organization in slipping back into the old way of doing
things.

 Resistance to change – is the act of opposing or struggling with

modifications or transformations that alter the status quo in the workplace.

 Creating urgency for change – typically occurs by informing employees

about competitors, changing consumer trends, impending government
regulations, and other forms of turbulence in the external environment.

 Appreciative inquiry – is often identified as one of several large group

organizational change interventions.
Force Field Analysis Model

 “The velocity of change is so rapid, so quick, that if you don’t accept the
change and move with the change, you’re going to be left behind”. This
statement by BHP Billiton Chairman (and former Ford CEO) Jacques
Nasser reflects the notion that organizations need to keep pace with
ongoing changes in their external environment. Organizations are, after
all, open systems that need to remain compatible with external
environments such as; consumer needs global competition, technology,
community expectations, government (de) regulation, and environmental
standards.

It is easy to see that environmental forces push companies to

change the way they operate. What is more difficult to see is the complex
interplay of these forces with the internal dynamics of organizations. Social
psychologist Kurt Lewin developed the force field analysis model to describe
this process using the metaphor of a force field. Although it was developed more
than 50 years ago, recent views affirm that Lewin’s force field analysis model
remains one of the most widely respected ways of viewing the change process.

Kurt Zadek Lewin - was a German- American psychologist, known as

one of the modern pioneers of social, is often called the father of modern social
psychology.

One side of the force field model represents the driving forces that push
organizations toward a new state of affairs. These might include new competitors
or technologies, evolving work force expectations, or a host of other
environmental changes. Corporate leaders also produce driving forces even
when external forces for change aren’t apparent.
. The other side of Lewin’s model represents the restraining forces that
maintain the status quo. These restraining forces are commonly called
“resistance to change” because they appear to block the change process.

Desired conditions

Current conditions

Before change After change

EXHIBIT 15.1

Lewin’s Force Field Analysis Model

Lewin’s force field model emphasizes that effective change occurs by

unfreezing the current situation, moving to a desire condition, and then
refreezing the system so it remains in the desire state. Unfreezing involves
producing disequilibrium between the driving and restraining forces. This process
may occur by increasing the driving forces, reducing the restraining forces, or
using a combination of both. Refreezing occurs when the organization’s systems
and structures are aligned with the desire behaviors. They must support and
reinforce the new role patterns and prevent the organization in slipping back into
the old way of doing things.

Understanding Resistance to Change:

Resistance to change is the act of opposing or struggling with

modifications or transformations that alter the status quo in the workplace.

When a change is introduced in this environment, with a lot of discussion

and employee involvement, resistance to change is minimized. Resistance is
also minimized if there is a wide-spread belief that a change is needed. Find out
more about how to reduce employee resistance to change.

Minimize Resistance to Change

In an organization that has a culture of trust; transparent communication;

involved, engaged employees; and positive interpersonal relationships,
resistance to change is easy to see - and also much less likely to occur.
Employees feel free to tell their boss what they think and to have open
exchanges with managers.

Managing resistance to change

This is challenging. Resistance to change can be covert or overt,

organized or individual. Employees can realize that they don't like or want a
change and resist publicly and verbally. Or, they can just feel uncomfortable and
resist, sometimes unknowingly, through the actions they take, the words they use
to describe the change, and the stories and conversations they share in the
workplace.
 However resistance to change happens, it threatens the success of your
venture. Resistance affects the speed at which an innovation is adopted. It
affects the feelings and opinions of employees at all stages of the adoption
process. It affects productivity, quality, and relationships.

Spotting Resistance to Change

How do you spot resistance to change? Listen to the gossip and observe
the actions of your employees. Note whether employees are missing meetings
related to the change. Late assignments, forgotten commitments, and
absenteeism can all be signs of resistance to change. Something as simple as
listening to how employees talk about the change in meetings and hall
conversations can tell you a lot about resistance.

Resistance to change can intensify if employees feel that they have been
involved in a series of changes that have had insufficient support to gain the
anticipated results. They become change weary when this year's flavor of the
month is quality. Last year's was continuous improvement and employee
involvement and teams. This year it's a focus on serving internal customers and
three years ago, employees were asked to adopt a new management structure.

Resistance is intensified because, not only do you need to gain support for the
current change, which employees may or may not see in their best interests, you
need to justify the former change and the need to change - again.

Why Employees Resist Change

  Change management experts have developed a long list of reasons
people do not embrace change. Some people resist change because of
their personality and values. Aside from these dispositional factors,
however, employees often lack the motivation or commitment to change
when they believe the change will fail, is the wrong action for the situation,
or will be costly to them personally. This cost will be in the form of lost
rewards and status, or might represent negative consequences if they
attempt to support the change.

 Another reason for resistance is the person’s inability (or perceived

inability) to change due to inadequate skills and knowledge.

 A third reason is that employees lack role clarity about the change. This
lack of role clarity occurs when people misunderstand or magnify what is
expected to them in the future.

 These 3 factors namely; motivation, ability and role (mis) perceptions are
the foundations of the 6 most commonly cited reasons people resist
change which are summarized here:

1. Direct Cost 2. Saving Face 3. Fear of the Unknown

4. Breaking Routines 5. Incongruent team dynamics

6. Incongruent Organizational Systems.

UNFREEZING, CHANGING AND REFREEZING:

 According to Lewin’s force analysis model, effective change occurs by

unfreezing the current situation, moving to a desired condition, and then
refreezing the system so it remains in this desired state. Unfreezing
occurs when the driving forces are stronger, weakening or removing the
 restraining forces or both. Increasing the driving forces creates urgency for
change, while reducing the restraining forces lessens motivation to
oppose the change and removes obstacles such as lack of ability or
situational constraints.

CREATING URGENCY FOR CHANGE

 This typically occurs by informing employees about competitors, changing

consumer trends, impending government regulations, and other forms of
turbulence in the external environment. These are the main forces in
Lewin’s model. They push people out of their comfort zones, energizing
them to face the risks that change creates.

Making Change Happen: How to Create Urgency BY TOM SEARCY

Moving people to action can be a challenge. Their calendars and to-do lists
are full. The immediate overwhelms the important. That means even what you
think is critical for a client, prospect or even your own direct reports can fall off the
priority list.

Whether you are selling, serving or leading, you'll need to changes a

person's sense of urgency in order to move a person from understanding to action.
Most people have a sense of urgency; they are in fact working with speed and
purpose. But often their urgency centers on their issues, not yours.
 Here are a few ways to change your approach to help reset other people's
priorities:

1. Clarify the consequences of inaction.

Classic movies and comics often showed a canoe heading downriver
toward a waterfall that the boat's inhabitants don't see. We in the audience know of
the impending danger.

When you lay out the upcoming issues, be clear that these are external
threats--not yours. The challenge could come from the market, a competitor,
technology changes or upcoming events.

2. Set a deadline for action.

You don't build a boat once it is already raining, and you can't paddle back
up a waterfall once you have gone past the point of no return.

If you want to change someone's activity now to avoid a future event, that
person needs to understand the speed with which trouble is approaching.

3. Provide a road map.

Sometimes a person seeing a formidable problem will shift to denial and
avoidance. You need that person to be engaged, however. Provide manageable
initial steps--preferably just the first one or two. This can help get a person unstuck
and moving toward progress.

4. Offer help.
Who wants one more problem placed on top of the list of priorities? No one.
When the problem feels like a drive-by drop and run, the resistance is higher. If
you have confidence that the person--employee, partner, customer--has the full
picture and sees the need for immediate action, offer to help. He or she may not
choose to use your resources you offer, but just knowing that there is a safety net
can help spur action.

5. Encourage, don't nag.

 Sales people leave voicemails. Managers send "status request updates";
other executives demand reports. But they all can make a person feel pushed.

If you want to keep the communication honest and open, your check-ins
needs to feel just a little different. Try offers of help, recommendations, or
resources, rather than status requests. Bring something to the table when you
connect.

You can use this strategy to spur action from busy people with multiple
priorities--which is to say, almost everyone.

REDUCING THE RESTRAINING FORCES:

 Employee resistance should be viewed as a resource, but its underlying

causes—the restraining forces—still need to be addressed. Increasing the
driving forces alone will not bring about change, because employees often
push back harder to offset the opposing forces. Instead, change agents’
needs to address each of the sources of resistance.

SIX MAIN STRATEGIES REQUIRED FOR ANY ORGANIZATIONAL CHANGE:

1. Communication – is the highest priority and first strategy required for

organizational change. According to a recent survey, communication
(together with involvement) is considered the top strategy for engaging
employees in the change process.

Communication improves the change process by:

a. generating an urgency to change; b. minimizes resistance to

change is by illuminating the future and thereby reducing fear of the
unknown.
 2. Learning - it is an important process in most change initiatives because
employees require new knowledge and skills to fit the organization’s
evolving requirements.
3. Employee Involvement – unless the change must occur quickly or
employee interests are highly incompatible with the organization’s needs,
employee involvement is almost an essential part of the change process.
Employees who participate in decisions about a change tend to feel more
personal responsibility for its successful implementation, rather than being
disinterested agents of someone else decisions.
4. Stress Management – organizational change is stressful experience for
many people because it threatens self-esteem and creates uncertainty
about the future. Communication, learning and employee involvement can
reduce some of the stressors. That is companies introduce stress
management practice to help employees cope with changes. So minimizing
stress potentially increases employee motivation to support the change
process.
5. Negotiation – As long as people resist change, organizational change
strategies will require a variety of influence tactics. It is a form of influence
that involves the premise of benefits or resources in exchange for the target
person’s compliance with the influencer’s request.
6. Coercion – If all else fails, leaders rely on coercion to change organization.
It can include persistently reminding people of their obligations, frequently
monitoring behavior to ensure compliance, confronting people who do not
change, and using threats of sanctions to force compliance.

FOUR APPROACHES TO ORGNIZATIONAL CHANGE:

1. Action Research 3.Large Group Interventions

2. Appreciative Inquiry 4. Parallel Learning Structures

Action Research Approach-- the philosophy of action research is that

meaningful change is a combination of action orientation (changing attitudes and
behavior) and research orientation (testing theory).
The Action Research Process
Diagnose need Introduce Evaluate and
for change intervention stabilize change
Form
Client-
Analyze data Implement the Determine the Disengage
Consultant
change consultant’s
relationshi Gather data desired
p effectiveness
Appreciative
Decide Inquiry Approach – tries
incremental or to break out of the problem-solving
services
objectives quantum
mentality of traditional change management practices by reframing
Refreeze new relationships
change
conditions
around the positive and the possible.

Five Principles of Appreciative Inquiry

APPRECIATIVE INQUIRY DESCRIPTION

PRINCIPLE

Positive Principle Focusing on positive events and potential

produces more positive, effective, and
enduring change.

Constructionist principle How we perceive and understand the change

process depends on the questions we ask and
language we use throughout that process

Simultaneity principle Inquiry and change are simultaneous, not

sequential.

Poetic principle Organizations are open books, so we have

choices in how they may be perceived, framed
and described.

Anticipatory principle People are motivated and guided by the vision

they see and believe in for the future.

Four-D Model of Appreciative Inquiry

1. Discovery 3. Designing

 Identifying the best of “what is” - Engaging in dialogue about

“what should be”
2. Dreaming 4. Delivering

 Envisioning “what might be” - Developing objectives about

“what will be”

Large Group Intervention Approach

Appreciative inquiry is often identified as one of several large group

organizational change interventions. Another large group intervention, known as
future search (and its variations- search conference and open-space technology,
puts the entire system in the room, meaning that the process tries to involve as
many employees and other stakeholders as possible who are associated with the
organizational system.

Parallel Learning Structure Approach

Are highly participative arrangements composed of people from most levels

of the organization who follow the action research model to produce meaningful
organizational change.

REFREEZING THE DESIRED CONDITIONS:

 Unfreezing and changing behavior won’t produce lasting change. People

are creatures of habit, so they easily slip back into past patterns. Therefore,
leaders need to refreeze the new behaviors by realigning organizational
systems and team dynamics with the desired changes. Organizational
rewards are also powerful systems that refreeze behaviors.

CHANGE AGENTS:

A person whose presence or thought processes cause a change from the

traditional way of handling or thinking about a problem. Management consultants
are often hired as change agents for corporate organization development
retreats.

What is the Role of a Change Agent?

The role of a change agent is to bring about change in his/her area.
Change agents are involved in helping a team implement new organizational
systems to achieve a higher degree of output. The result expected of a change
agent is to enable people to do more and find a better perspective on life.

A change agent may be a leader of a division, a full time organizational

development professional or a middle manager charged with the responsibility of
bringing about a change in his/her area. A change agent may perform many
roles, depending on the type of change he/she is tasked with. These include the
desired future ideal state, dreams, goals and values of the key stakeholders
within the organization, organization's future strategy or the organization's
values.

Cross – Cultural and Ethical Issues in Organizational Change:

 Throughout this chapter, we have emphasized that change is an inevitable

and often continuous phenomenon because organizations need to remain
aligned with the dynamic external environment. Yet we also need to be
aware of cross-cultural and ethical issues with any change process. Many
organizational change practices are built around Western cultural
assumptions and values in other cultures. Other cultures have more of an
interconnected view of change., whereby one change leads to another
(often unplanned) change, which leads to another change, and so on,
until the change objective is ultimately achieved in a more circuitous way.
 Organizational change is usually more difficult than it initially seems. Yet
the dilemma is that most organizations operate in hyperfast environments
that demand continuous and rapid adaption. Organizations survive and
gain competitive advantage by mastering the complex dynamics of moving
 people through the continuous process of change as quickly as the
external environment is changing.
 One significant concern is that organizational change theories developed
with a Western cultural orientation potentially conflict with cultural values
in some other countries. Also, organizational change practices can raise
one or more ethical concerns, including increasing management’s power
over employees, threatening individual privacy rights, and undermining
individual self-esteem.

GUIDE QUESTIONS:

1. What is the objective of organizational change?

2. How do you spot resistance to change?
3. Why do employees resist change?
4. What is the role of a change agent?

REFERENCES:

http://www.ask.com person that acts as a catalyst for

http://www.inc.com
en.wikipedia.org/wiki/Change_management

www.kotterinternational.com/our-principles/changesteps/changesteps person
chosen to, a change agent is a person chosen to
bring about