UNIT I

Organisational Change – Meaning

In general sense, change is to make difference or become different. For instance, post-war
recovery of Japan to its present state of supremacy is a significant change, though influenced
to a great extent by American openness, generosity and leadership in the process of change.
Today, Americans are learning from the Japanese as to how to retain competitiveness in the
global markets a classic example of what change is all about. Even Dr. P.E. Drucker
wondered as to whether he is writing for American economy or Japanese. Change also means
dissatisfaction with the old and the belief in the new. Dissatisfaction can arise out of a
perceived deficiency in an existing system which may be inherent deficiency gone unnoticed
or one perceived in comparative evaluation with better system. Deficiency is also the inability
of a system to respond to environmental pressures and technological impacts. Change
underlines qualitatively different way of perceiving, thinking and behaving to improve over
the past and the present.

Definition
Change is the alteration of status quo or making things different than before. Change is the
disturbance of equilibrium presently prevailing. It is any alternation that occurs in the overall
work environment of an organisation.
Mr. John Bull defines organisational change as “When an organisational system is disturbed
by some internal or external force, change frequently occurs. Change as a process, is simply
modification of the structure or process of a system. It may be good or bad, the concept is
disruptive only”.
Organisational change refers to the process of growth, decline and transformation within the
organisation. Though one thinks that organisations are enduring structures in a changing
society. However, the truth is that organisations are changing all the time. Organisational
change takes different forms.
Organisations may change their strategy or purpose, introduce new products or services,
change the way they produce and sell, change their technology, enter new markets, close
down departments or plants, hire new employees, acquire other organisations become
acquired by other organisations and what not ! In doing so, they may turn larger, smaller or
stay the same in terms of size.
Sometimes, organisations change quite radically yet retaining their name; the new
organisation may be nothing like the old one except in the name. All this makes
organisational change a complex and confusing phenomenon or a process. It is much more
complex than normal human behaviour.
The rapidity of change taking place in the social, political and economic environment is
creating marked impact on organisations as well as individuals. Though the change has been
coeval with human existence, the pace of it has varied in recent times—most of the
developments we witness now have been taking place in the last 100 years and is likely to
accelerate in the present century.
What is different now is that pace of change. The present day changes have been more rapid,
more complex, more turbulent and more un- predictable than ever before and have effected
the very traditions of human existence. In his insightful book future shock Mr. Alvin Toffler
argued that humanity is now a part of an environment so unfamiliar and complex that it is
threatening teeming millions with ‘future shock’.
Future shock occurs when the type of changes and the speed of their introduction over
powers the individual’s ability to adapt to them with the result that one can no longer absorb
change without displaying dysfunctional behaviour. The problem arises not from a particular
change one cannot handle but from the fact that society itself is in a state of flux.
Since so much is changing, new ways of dealing with this ‘temporary society’ are needed.
This society in which we live is characterised by the temporary nature of housing, jobs,
friendship and neighbourhoods. Change is so frequent that there is no long-term stability and
even values may come to reflect this.

Nature/Characteristics of Organisational Change

Change is characterised by the following features:

1. Movement from one state of balance to another:
Change involves moving from the existing state of balance to a new level of equilibrium. It
disturbs the old equilibrium and develops a new equilibrium where new ways of working
become part of the system.

2. In whole or parts:

It may involve change in some parts of the organisation (technology, structure or people) or
the organisation as a whole. Even if change is introduced in part of the organisation, it affects
the entire organisation. Change in one part, for example, technology requires change in
learning of people and may be structure to adopt that technology.

3. Pervasive:
The process of change is not restricted to one organisation or one country. It is a worldwide
phenomenon. The whole world, all countries, every organisation, its members and all
individuals change their pattern of working. However, the nature and magnitude of change is
different for different organisations.

4. Responsive to environmental factors:

Change is affected by factors external and internal to the organisations.

5. Continuous process:
Change is not a one-time process. Organisations keep changing their policies to survive and
grow in the competitive markets. While some changes are minor and get absorbed in the
system through internal adjustments, major changes are introduced through change agents.

6. Essential activity:
Change is not a force that organisations may or may not respond to. If organisations want to
survive, change has to be accepted by them. They can, however, plan the change or react to
change. The former approach to change is conducive to organisational development and
growth.

7. Change agents:
Change is initiated by change agents. Change agents can be internal or external to the
organisation. Internal change agents can be top executives of the organisation. External
agents are outside experts or advisors appointed by executives to initiate the change process.

Reasons for Changes

Following are some of the causes of organizational changes which lead to disequilibrium end
resistance:
i. Change in Tools, Machines and Equipment:
Technological or mechanical changes in machines, tools and equipments may bring change in
the organization. For example, installation of an automatic machinery in place of old
machinery, may result in displacement or re- placement of people or loss of job to people and
may create disequilibrium.
ii. Change in Methods and Procedures:
Man is a creature of habits. He feels irritated when change occurs in methods and procedures
of work of which he is accustomed to. As it takes time to adjust to the new environment, it
creates disequilibrium till the complete adjustment to the new environment.
iii. Change in Business Conditions:
Changes in business conditions such as change in the quality of the product, change in the
marketing system or practices, business cycles, change in industrial policy etc. all create
disequilibrium in the work-environment and it needs adjustment accordingly.
iv. Change in Managerial Personal:
Change in the managerial personal in the organization may result in disequilibrium. A
personnel may retire or change place or may be appointed afresh, this will all affect the
policies, practices, procedures and programmes of the organization and the people are to
adjust themselves accordingly.
v. Change in Formal Organization Structure:
The formal organization structure establish a form and line of command of authority and re-
sponsibility in an organization. Along with these lines, channels of communication and
interpersonal relations are established. If there is a change in this formal organizational
structure, there will be a change in the formal relationship which creates disequilibrium.
vi. Change in Informal Organization:
Informal organization is a must in every formal organization and is a very important part of
our existence because many of our motivational forces find satisfaction in this relationship.
Consequently when management likes to introduce any change that disturbs the informal
relationship established among people there is bound to be a state of imbalance.
A short list of some of the changes which affected almost all organization in the past few
decades is given here:
1. Technological innovations have multiplied, products and knowhow are fast becoming
obsolete.
2. Basic resources have progressively become more expensive.
3. Competition has sharply increased.
4. Environmental and consumer interest groups have become highly influential.
5. The drive for social equity has gained momentum.
6. The economic inter-dependence among countries has become more apparent.
7. Challenges of growth, especially global markets
8. Changes in strategy
9. Technological changes
10. Competitive pressures
11. Customer pressure, particularly shifting markets
12. To learn new organisational behaviour and skills
13. Government legislation/initiatives.
14. Change in organisational structure 
15. Change in managerial personnel.
Research indicates that organisations are undergoing major change approximately once in
every three years, whilst smaller changes are occurring almost continuously. There are no
signs that this pace of change will slow down.
Hence, organisations have to modify and change to adapt to the changing internal and
external environment

Forces of Change

a. External Reasons:
A number of changes in the external environment may cause change in the organization.
Here, we are mentioning some of the most common and obvious external reasons of
organizational change-
1. Government Rules and Regulations:
One can catalogue a long list of the Government’s rules and regulations necessitating changes
in organizations. For example, the recent slashing of grants by the University Grants
Commission (UGC) to the Universities have forced them to strengthen their revenue
generating functions, such as training programmes, consultancy, offering self-financing
courses, etc.
Likewise, the Government’s policy to privatise the power sector encouraged Jayprakash and
the DLF to diversify into the power sector.
2. Competition:
The present time is the survival of the fittest. Organizations need to come up the challenges
posed by the competitors to sustain and survive. In 1993, Mudra Communication decided to
reorganise itself to counter the threats from its competitors Lintas and HTA.
3. Technological Advances:
Technology has become the buzzword of the time. Rapid changes in technology has posed a
question before the organization – either run or ruin. The revolutionary change in
communication technology, i.e., communication satellite, cable networking, dish antenna,
etc., compelled the Doordarshan to restructure itself by segmenting its services to different
categories of viewers and become more competitive.
4. Change in People Requirements:
Customers dictate organization what they actually require. With changing requirements of
customers, the five-star-hotels have, of late, started to offer new services, such as business
centres, conference hall facilities, secretarial services, etc.

b. Internal Reasons:
Though there may be a host of internal factors that may also cause change in organizations,
some of the illustrative ones are listed here:
1. Change in Leadership:
Leadership changes culture and values in the organizations. V. Krishnamurty of SAIL, Tapan
Mitra of INDAL, Ratan Tata of Tata Sons are the examples how the change in leadership led
to internal changes in these organizations.
2. Introducing New Technology:
Introduction of new technology in an organization is bound to have consequences for other
functions as well. For examples, the computerisation of the Examination Division of the
M.K. University affected other aspects as well, such as reporting relationships, span of
control, co-ordination mechanism and so on.
3. The Domino Effect:
The source of change is change itself. The domino effect means one change triggers off a
series of related changes. For example, establishing a new department, e.g., the Department
of Business Administration may cause the creation of teaching and non-teaching positions,
budgeting allocation, building construction etc. Ignoring domino effect leads to the problems
of co-ordination and control.
4. For Meeting Crises:
Just like human life, some unforeseen happening, say, crisis in the organization makes
continuation of the status quo unthinkable and difficult. Sudden death of a CEO, the
resignation of the executives holding key positions, loss of major suppliers, a drastic cutback
in budget and civil disturbances are the examples of unforeseen crises.
These make the organizational condition unstable and this instability becomes the stimulus
for thorough self-assessment and reform to change the organization to overcome the crisis
before it.
5. Organizational Life-Cycle:
As human beings pass through certain sequential stages of life-cycle, so do the organizations
also. As an organization grows from tiny sized to giant sized or from young to mature stage,
according to Larry Greiner, it passes through five stages.
Each stage creates new demands for adjustment for the organization and so, act as a potent
sources of organizational change. Each stage culminates in a crisis (which Greiner calls
‘revolution’), which the organization must overcome before graduating to the next stage.

Planned Vs Unplanned Changes

Change is constant, and the best companies embrace change. Not every change can be
planned, change can be unplanned also. Sometimes organizations face certain situations in
which they have to adapt to the change instantly.

Planned Change

Planned change is defined as the process of preparing the entire organization or at least a
significant part of it for new goals or new direction. The direction can be culture, internal
structures, metrics and records, processes, or any other relevant and related aspect. It is also
called Proactive change. Proactive changes occur when some factors make realize
organization think over and finally decide that implementation of a particular change is
necessary. Then, the change is introduced in a planned manner. For initiating planned
change, the manager needs to constantly watch the changes taking place in the
external and internal environment of the business so that corrective measures are
taken accordingly and the changes could be effected successfully.
The introduction of employee welfare measures, changes in the incentive system,
introduction of new products and technologies, organizational restructuring, team building,
enhancing employee communication as well as technical expertise fall under the category of
Planned Change.

Steps in planned change

Once an organization is committed to planned change, it should create a logical and stepwise
approach to reach those objectives.

1. Identification of the need

The need for recognition happens at a higher level of the organization, which involves senior
management. They are the ones who recognize that there is a need to change. The change
may be necessitated due to external or internal forces, and the senior management determines
it.

2. Develop goals of change

Goals that change are necessary to be defined before the starting of the planned change.
Evaluation of both threats as well as opportunities should be done, and the required changes
in specific terms should be determined like the changes required for the product, culture, etc.
Specific goals should be designed for them.

3. Change agent

The change agent, as the name suggests, is the one who drives change in the organization. He
may be internal or external. The change agent should realize the things which need a change,
be it a product, culture, or other things in the organization. He is expected to be open to
suggestions and ideas and also should support the execution of the suggestions into daily
practice.

4. Analysis of the current situation

In this step, an analysis of the existing situation is performed. The change agent, which is
selected, gathers data about the organization’s current situation. This data gathering has only
one intention, which is to help the existing employees prepare. To push the employees to
adopt the change, the negative feedback of the existing situation must be imparted on them.
This will motivate them to shun the existing situation and go to adopt the new change, which
is planned.

5. Select the implementation method

Now that the current method is analyzed and evaluated, different possible methods of
implementation would be presented. Once all the queries are solved, the chosen plan is
selected for the implementation.

Managers ensure that they are self-motivated towards the change. They visit organizations
that have implemented new ideas, talk to people who have different views and ideas, and do
everything needed to stay motivated for the change since they are the ones who will drive the
change in their respective teams.

6. Developing a plan

As the name suggests, in this step, planning takes place. Specifics of the plan such as what,
where, and how is determined in this step, and the plan is expected to act like a GPS map
providing direction for the organization.
If there are any events or activities which would drive the change, then such events should be
timed to integrate the change process. Department-wise or person-wise responsibility is
delegated to accomplish their respective objectives.

7. Implementation of the selected plan

There could be multiple plans in the process, some of which may be rejected and is one of
which will be selected. After all the queries are answered, the plan is put into effect.
Everyday problems faced by employees during the implementation of change can dilute the
excitement of the change.

It is the responsibility of the managers to maintain the excitement for the change by providing
the required resources to their employees.

They can also ask employees to develop new skills, and reiterate the change by having a
strong support system for those employees who drive the change in their teams or
themselves.

8. Follow-up and evaluation

The goals which were defined before the initiation of the change process are compared to the
results which are obtained and changes if any, are done in the implementation process to
obtain the desired results. If necessary, a follow up should be done to determine the
completion since a positive result is expected by implementing the planned change.

Theories of Planned Change / Models of Planned Change

1. Lewin’s change model (Phases of planned change)

Lewin’s model is the basis for comprehending organizational change. It was developed by
Kurt Lewin and had three steps in it.

Lewin’s change model suggests increasing the factors which push for change in the
organization and reduce the forces or factors which promote to maintain the existing state in
the organization. This produces reduced tension and also less resistance to change

There are three primary steps in this model which are as follows:

Unfreezing
Before you can cook a meal that has been frozen, you need to defrost or thaw it out. The
same can be said of change. Before a change can be implemented, it must go through the
initial step of unfreezing. Because many people will naturally resist change, the goal during
the unfreezing stage is to create an awareness of how the status quo, or current level of
acceptability, is hindering the organization in some way. Old behaviors, ways of thinking,
processes, people and organizational structures must all be carefully examined to show
employees how necessary a change is for the organization to create or maintain a competitive
advantage in the marketplace. Communication is especially important during the unfreezing
stage so that employees can become informed about the imminent change, the logic behind it
and how it will benefit each employee. The idea is that the more we know about a change and
the more we feel it is necessary and urgent, the more motivated we are to accept the change.

Changing
Now that the people are 'unfrozen' they can begin to move. Lewin recognized that change is a
process where the organization must transition or move into this new state of being.
This changing step, also referred to as 'transitioning' or 'moving,' is marked by the
implementation of the change. This is when the change becomes real. It's also, consequently,
the time that most people struggle with the new reality. It is a time marked with uncertainty
and fear, making it the hardest step to overcome. During the changing step people begin to
learn the new behaviors, processes and ways of thinking. The more prepared they are for this
step, the easier it is to complete. For this reason, education, communication, support and time
are critical for employees as they become familiar with the change. Again, change is a
process that must be carefully planned and executed. Throughout this process, employees
should be reminded of the reasons for the change and how it will benefit them once fully
implemented.

Refreezing
Lewin called the final stage of his change model freezing, but many refer to it
as refreezing to symbolize the act of reinforcing, stabilizing and solidifying the new state
after the change. The changes made to organizational processes, goals, structure, offerings or
people are accepted and refrozen as the new norm or status quo. Lewin found the refreezing
step to be especially important to ensure that people do not revert back to their old ways of
thinking or doing prior to the implementation of the change. Efforts must be made to
guarantee the change is not lost; rather, it needs to be cemented into the organization's culture
and maintained as the acceptable way of thinking or doing. Positive rewards and
acknowledgment of individualized efforts are often used to reinforce the new state because it
is believed that positively reinforced behavior will likely be repeated.
Some argue that the refreezing step is outdated in contemporary business due to the
continuous need for change. They find it unnecessary to spend time freezing a new state
when chances are it will need to be reevaluated and possibly changed again in the immediate
future. However - as I previously mentioned - without the refreezing step, there is a high
chance that people will revert back to the old way of doing things. Taking one step forward
and two steps back can be a common theme when organizations overlook the refreezing step
in anticipation of future change.
Kurt Lewin’s model (1951) originates from Force Field Analysis (or the Force Field Model),
a means by which to understand change processes in organizations. In force field analysis,
change-related problems are characterized by an imbalance between so-called driving
forces – e.g., new personnel, changing markets, new technology – and restraining
forces – e.g., fear of failure, not invented here syndrome, and organizational inertia.
To thrive, an organization must unfreeze the driving and restraining forces, introduce an
imbalance (increase the drivers, reduce the restraints – or both), and, finally, refreeze the
forces. This final step brings an organization back into "quasi-equilibrium." 

2. Action research model

Also known as participatory action research, action learning, action science, or self-design
model, the action research model is also prominent among organizational change
specialists. Action research activities are typically top-down and happen in iterative cycles of
research and action. Consequently, they require considerable collaboration between staff and
externals.

Some other important features of the model include:

 Heavy emphasis on data gathering and diagnosis before action and planning –
e.g., using big data to solve (big) problems

 Used to enact change at the unit level and even the organizational level; it is also a
popular model in developing nations (applied to international settings); used to
promote social change and innovation

8 main steps of the action research model:

1. Problem identification – typically by an executive

2. Consultation with behavioral science expert – like Dan Ariely

3. Data gathering (interviews, observation, questionnaire, performance data) and

preliminary diagnosis

4. Feedback to key client/group

5. Joint diagnosis of a problem

6. Joint action planning

7. Action (the actual "moving" from one state to another)

8. Data gathering after action (often leads to re-diagnosis and new action)

3. Positive model

A third important model is the positive model. This model represents a notable departure

from both Lewin’s model and the specifics of action research. While the latter are "deficit"-
based (they focus on problems/scarcity), the positive model focuses on what the organization
is doing right and how existing capabilities can be used to help the organization reach new
heights.
The positive model is also about:

 Positive expectations that create anticipation that directs behavior towards making
things happen (see Tesla and SpaceX)

 Applying a process called appreciative inquiry. This process infuses a positive value

orientation into analyzing and changing organizations

 Promoting member involvement and creating a shared vision; the shared appreciation
acts as a guide of what the organization could be

5 main steps of the positive model:

1. Initiating the inquiry – i.e., the issues the organization has the most energy to address

2. Inquiring into existing best practices – here, members of the organizations

conduct interviews

3. Telling "innovation stories"

4. Discovering the themes (common dimension of peoples’ experiences)

5. Envisioning the preferred future via possibility propositions and relevant stakeholders
and delivering ways to create the future ("the action" itself)

Managing Planned Change

Managing organizational change is complicated. Leaders must align people to the reason for
the change, often working against long-standing habits and beliefs. Organizations are more
likely to succeed when they plan change initiatives proactively and engage employees before,
during and after the change. Below are the seven ways leaders can effectively manage change
in their organizations.
1. Put people first
Successful change management prioritizes people. People fuel change and sustain its
momentum. Change initiatives fail when the people involved don’t understand, believe in or
engage in the change.

Leaders make change easier when they engage employees in the change. Leaders accomplish
this through proactive change management communication that creates a desire to change
across the workforce.
This aligns with the Prosci change methodology, Beehive’s change model of choice. Prosci’s
methodology is based on more than 20 years of research, with 45,000 people trained and
certified globally, making it a strong option for global businesses.

Change initiatives will fail if people don’t believe in the change and aren’t mobilized by
others to act.
2. Work with a change management model
Leaders are up against company culture, organizational momentum and human psychology
when enacting change. To make change happen, they need the right tools to guide them.
Change management models help leaders connect business strategy to action, which increases
the likelihood of success.

There are a variety of change management models from which to choose (e.g., Prosci’s
ADKAR model, Lewin’s Change Management Model, Kotter’s Change Management
Model). Each model varies, but all follow similar core tenants of identifying needs and
planning for and implementing change. Prosci’s methodology is Beehive’s change
management model of choice because it: 1) blends the psychology of individual change with
organizational change, 2) is globally backed with more than 20 years of research and 3)
clearly addresses the role of communication in change.
3. Empower employees through communication
Communication is an essential part of effectively managing organizational change. A vision
for change is only as powerful as the communication that supports it. Effective change
management communication provides clarity for why the change is needed and mobilizes
employees with a sense of urgency for the change. Companies fail to drive meaningful
change when they fail to communicate.
Change management communication isn’t a one-time transfer of information. It requires
commitment, clarity and consistency. It should engage employees through two-way
communication methods like surveys, focus groups and informal feedback collection. When
leadership involves employees, they feel valued. When employees feel valued, they are more
likely to embrace change and participate in making it happen.

Two-way communication also helps leaders identify barriers to change before they become a
problem. Proactively identifying barriers can enable the organization to respond to and
dissolve issues that create change resistance.
 4. Activate leadership
A recent Prosci survey cited “active and visible executive sponsorship” as the top reason
change initiatives succeed. Leadership’s impact on change is well-understood. The problem
is that many leaders don’t understand the vital role they play in change. Educate leaders on
their roles, and you’ll enable them to advance change successfully.
Leaders:
 are responsible for achieving change goals from start to finish.

 help the organization understand and interpret what the change means for their teams, the
organization and the marketplace.

 ensure those who enable organizational change stay actively involved.

 keep the train on the tracks and are ready to switch directions, choose a new path or create a
new approach if necessary.
 
5. Make change compelling and exciting
Employees can better understand the rationale behind a change when organizations prioritize
purposeful, clear and consistent communication. This targeted communication strategy
provides the context to understand the why, what and so what of the change. Effective
communication answers the most important question people are thinking: What does this
mean to me; how will it impact my work? With a deeper, clearer understanding of the
change, employees are much more likely to ask, “How can I help?”

The shift from rote compliance to true engagement and belief is powerful. Strong employee
support deters change resistance that could hold the organization back.

6. Pay attention to high and low points in momentum

There will be both high and low points during change initiatives. Leaders can proactively
manage and leverage these points in time. During the high points of change, leaders should
celebrate wins to fuel momentum. At the low points, leaders can reset communication
strategies to listen to employee input and build trust and support. Being proactive helps
leaders manage momentum for the greatest success.
7. Don’t ignore resistance
Change resistance is poisonous to an organization’s transformation. Resistance is much easier
to counter when it’s identified early. Leaders should pay attention to the signs of change
resistance, including inaction, procrastination, withholding information and the spread of
rumors. Communication is the key to identifying resistance. Create feedback loops with
employees, like surveys, feedback channels and input sessions to proactively identify signs of
resistance, then take fast action.

Change is the lifeblood of successful, growing organizations, and the heart of change is
people. Leaders position themselves and their companies for managing organizational change
effectively when they proactively engage employees and ensure communication is clear,
consistent and transparent.

Directive change strategy. This strategy highlights the manager’s right to manage change
and the use of authority to impose change with little or no involvement of other people. This
approach may lead to valuable information and ideas being missed and there is usually strong
resentment from staff when changes are imposed rather than discussed and agreed.
Expert change strategy. This approach sees the management of change as a problem solving
process that needs to be resolved by an ‘expert’. This approach is mainly applied to more
technical problems and will normally be led by a specialist project team or senior manager.
There is likely to be little involvement with those affected by the change.
Negotiated change strategy. This approach highlights the willingness on the part of senior
managers to negotiate and bargain in order to effect change. Senior managers must also
accept that adjustments and concessions may need to be made in order to implement change.
This approach acknowledges that those affected by change have the right to have a say in
what changes are made, how they are implemented and the expected outcomes.
Educative change strategy. This approach involves changing people’s values and beliefs in
order for them to fully support the changes being made and move toward the development of
a shared set of organizational values that individuals are willing, and able to support. A
mixture of activities will be used: education, persuasion, training and selection, led by
consultants, specialists and in-house experts.
Participative change strategy. This strategy stresses the full involvement of all of those
involved, and affected by, the anticipated changes. Although driven by senior managers the
process will be less management dominated and driven more by groups or individuals within
the organization. The views of all will be taken into account before changes are made.
Outside consultants and experts can be used to facilitate the process but they will not make
any decisions as to the outcomes.
Which one is the best and how is that change strategy deployed?
Well, you might want to ask yourself, which advantages and disadvantages do you want to
have? It is quite clear that in this imperfect world there is no perfect change strategy
available. However, the participative change strategy seems quite compelling especially
because some of the disadvantages found by Thurley and Wirdenius can be overcome with
recent methods such as the CEM Method. The benefits of this approach are that any changes
made are more likely to be supported due to the involvement of all those affected, the
commitment of individuals and groups within the organization will increase as those
individuals and groups feel ownership over the changes being implemented. The organization
and individuals also have the opportunity to learn from this experience and will know more
about the organization and how it functions, thus increasing their skills, knowledge and
effectiveness to the organization.

Force-Coercion Strategy

This change strategy uses bases of legitimacy, rewards, and punishments as primary ways of
implementing change. A change agent who is suppose to implement the change believes that
the workers are guided by self interest and the situation they are in which refers to their own
personal gain or loss. People change only in response to situations that refer to personal gain
or loss. In a direct forcing strategy, the change agent directs the change and commands the
workers to abide by the change. The change agent utilizes the legitimate power in order to
command workers to follow the change. In political manoeuvring, the change agent tries to
get advantage over the other persons and tries to influence them to change. Most workers
abide by the force-coercion method easily in hope for a reward or in fear of a punishment.
 Force-coercion usually brings change for a short period of time but is not successful for a
longer period of time. Force Coercion is usually best used as an unfreezing device which
allows the workers to break old patterns and introduce them to new change. Force coercion
should be used in cases where strictness is required to assure employee discipline. Force
coercion should be avoided to use unless it is really required in severe cases where nothing
else works.

Empirical-rational Strategy

Managers who act as change agents might subscribe to the belief that people are rational and
if they understand that the change to be introduced will benefit them, their self-interest will
guide them to accept the change. In other words, the rational human being who is motivated
by self-interest will react positively to change if the benefits of the change to the individual or
the group are properly understood. So, if the manager explains the benefits of change to the
employees and then introduces it, it is likely to be a success.

Normative Re-educative strategy

Normative-reeducative strategy holds that a program for social change based only on rational
appeal is inadequate because behavioral patterns are largely determined by traditional
attitudes and cultural norms.

Unplanned Change

Organizational changes that are not foreseen prior to the need to change, often made
necessary by shifts in the organizational environment. Examples of unplanned change in an
organization include unexpected developments such as a new product’s failure, a key
executive quitting or a public relations disaster.

How do you deal with unplanned change?

Five Ways a Leader Can Prepare Their Team for an Unplanned Change

1. Bringing clarity. Teams can face unexpected challenges better when they have clarity.
2. Collaborating and embracing diversity.
3. Reimagining the ecosystem.
4. Generating a competitive advantage.
5. Thinking critically and strategically.

Unplanned Changes Vs Planned Changes

In the organizational setting, planned change is intentional, while unplanned change is
spontaneous. The results of planned change are expected, while unplanned change brings
unexpected results. While many organizations are ready to deal with the challenges of
planned change, unplanned change can often be chaotic.

One of the major differentiating traits of planned and unplanned change is the source of the

change. Planned change emanates from within the company, usually from the management,

while unplanned change is influenced by external factors outside of the organization’s

control.

Planned change occurs when the management makes a conscious decision to implement new

ideas in the organization. Economic and market fluctuations, political changes, weather

changes and competition can lead to unplanned change as can internal problems such as

sudden resignations and machine failure.

Organizations deal with planned and unplanned change in different ways. In planned change,

organizations anticipate any challenges that may occur and have a list of solutions to address

them. If unplanned change occurs, organizations must improvise and devise solutions —

often within a short period of time. Unplanned change brings more upheaval to the structure

of an organization than planned change. It may take longer for an organization to deal with

the effects of unplanned change than planned change.

Planned Change Unplanned Change

 More or less certain outcome
 Comparatively lesser time to deal
with change
 Proactive
 Occur due to conscious decision to
implement new ideas
 Source of change is most internal
 It is intentional
 The results are expected
 Organisations are ready to deal with
challenges of planned changes
 Completely Uncertain
 Longer time to deal with change
 Reactive
 Occur due to a sudden change in
external or internal factors
 Source of change is mostly external
 It is spontaneous
 The results bring unexpected changes
 Unplanned changes can often be
chaotic
What are the different types of changes?

Happened Change: This kind of change is unpredictable in nature and is usually takes place
due to the impact of the external factors.

Reactive Change: Reactive changes occur when forces compel organization to implement
change without delay. In other words, when demands made by the forces are compiled in a
passive manner, such a change is called reactive change.

Proactive changes occur when some factors make realize organization think over and finally
decide that implementation of a particular change is necessary. Then, the change is
introduced in a planned manner.

Anticipatory Change: If a change is implemented with prior anticipation of the happening of

an event or a chain of events, it is called as anticipatory change. Organizations may either
tune in or reorient themselves as an anticipatory measure to face the environmental pressures.

Continuous or Incremental change means you'll approach change with a preference for

gradual, incremental improvement and development. Taking something that exists and
innovating with it is your preferred method, rather than making sweeping, radical changes or
creating entirely new ideas all the time.

Discontinuous or Radical Change: Radical change refers to a significant shift behind the

fundamentals of a company's practices, products, culture, norms, and so on.
Radical change will occur when any of the following conditions are met alone or in
combination:

 The gap between the current state of affairs and future ones (the planned changes) is
great in any number of ways.

 There is a transformational shift behind a company's fundamental processes.

 There is a move toward a completely novel state of affairs.

This is why radical change is sometimes called transformation change, fundamental change,
or even quantum change. Radical change is often expensive and very time-consuming.

Participate Change: Participation is believed to have a number of positive effects on the

strategy process. Most notably, it is assumed that involvement of those affected by a change
in strategy will reduce organizational resistance and to create a higher level of psychological
commitment among employees towards the proposed changes.

Operational Change means a change to any Process which affects the procedures, scheduled
operations activities, output and/or functioning of the Service Delivery Model, but which is
not determined to be a Project, and does not require an adjustment to the Agreement
Strategic Change: Strategic change is the implementing of changes to important
characteristics of a business. Example of strategic change through branding is Intel's
1991"Intel Inside" brand campaign to differentiate itself from the other microprocessor
manufacturers. Until Intel's campaign, consumers hardly regarded the brand of
microprocessor in their computers as important.

Developmental Change

A developmental change occurs when a business wishes to improve a process or procedure,

such as updating the payroll system or refocusing its marketing strategy. These changes are
small and incremental – you aren't redesigning the entire workflow, but are simply refining
it to make it better. Developmental change usually occurs in response to technology
upgrades or internal cost drives that aim to improve the efficiency of a work process. As
long as you give staff the training they need to implement the changes, there should be
minimal upheaval associated with this type of change.

Transitional Change

A transitional change is an act of replacing major processes with new ones, such as
automating your manual production line or adopting a new ERP installation. It also
includes mergers and acquisitions and other such courses of action. Transitional changes
are frequently driven by a desire to remain competitive in the marketplace. The business is
not exactly charting unknown waters when executing a transitional change, but it likely will
have to reconsider its job functions, processes, culture and relationships to manage the
change effectively. Management must proceed cautiously to minimize fear, doubt and
insecurity in staff.

Transformational Change

Transformational change is the most disruptive since it requires a fundamental shift in the
way a company operates. For example, a company might embark on a completely new
mission or restructure the whole product line using new, proprietary operating systems, as
Apple did when Steve Jobs took over the company in 1997. Because of the upheaval, these
types of changes happen only rarely. Navigating a transformation is complex, requiring
significant skill from the management team and outside help from change specialists. When
the change process is complete, the organization is unrecognizable from what it was before.

Evolutionary and Revolutionary Change

Evolutionary change is gradual and incremental. The stages of change are often so small that
those affected don’t even recognize the shift, or they do and they’re able to adjust their work
and processes a little at a time. Evolutionary change can be planned or unplanned. An
example of unplanned evolutionary change is Avon adapting to women entering the 9-to-5
workforce. It didn’t happen overnight, just a little at a time, until Avon realized they had a
shortage of “Avon ladies” and needed to find new ways to reach consumers.
Planned evolutionary change, or convergent change, is the result of specific and conscious
action to make changes in an organization. For instance, an organization might decide that
their customer service department could operate more efficiently with 10 percent less staff.
They may opt to arrive at that smaller number of customer service representatives by attrition
rather than by layoff, knowing that turnover in the department is relatively high and they’ll be
at their desired staffing levels within 18 months.

Convergent change happens all the time within organizations, as managers tweak and adjust
processes to make their departments and the company more profitable. Often during
convergent change, managers look to ensure employees continue to follow the existing
mission and core values of the organization. This, unfortunately, can lead to complacency.
For example, IBM fell victim to complacency as their managers dictated the norms of
competition. They found out quickly that their fine tuning couldn’t keep them competitive
when personal computing started to take off and other organizations had a better handle on
the consumer and the market.

Revolutionary change, or frame-breaking change, is rapid and dramatic. It, too, can be
planned or unplanned. A planned revolutionary change might mean dramatic changes to an
organization’s staffing, structure, or procedures.

Levels of Changes

Individual Level Change

Individual level changes may take place due to changes in job  assignment, transfer of an
employee to a different location or the changes in the  maturity level of a person which
occurs over a passage of time. The general  opinion is that change at the individual level will
not have significant  implications for the organisation. But this is not correct because
individual level  changes will have impact on the group which in turn will influence the
whole  organisation. Therefore, a manager should never treat the employees in  isolation but
he must understand that the individual level change will have  repercussions beyond the
individual.

Group Level Change

Management must consider group factors while implementing any  change, because most of
the organisational changes have their major effects at  the group level. The groups in the
organisation can be formal groups or  informal groups. Formal groups can always resist
change for example, the trade  unions can very strongly resist the changes proposed by the
management.  Informal groups can pose a major barrier to change because of the inherent
strength they contain. Changes at the group level can affect the work flows, job  design,
social organisation, influence and status systems and communication  patterns.
 The groups, particularly the informal groups have a lot of influence on  the individual
members on the group. As such by effectively implementing change at the group level,
resistance at the individual level can be frequently  overcome.

Organization Level Change

The organisational level change involves major programs which  affect both the individuals
and the groups. Decisions regarding such changes  are made by the senior management.
These changes occur over long periods of  time and require considerable planning for
implementation. A few different  types of organisation level changes are:

1. Strategic Change: Strategic change is the change in the very basic objectives  or

missions of the organisation. A single objective may have to be changed to  multiple
objectives. For example, a lot of Indian companies are being modified  to accommodate
various aspect of global culture brought in by the multinational  or transnational corporations.
2. Structural Change: Organisational structure is the pattern of relationships  among various
positions and among various position holders. Structural change  involves changing the
internal structure of the organisation. This change may be  in the whole set of relationships,
work assignment and authority structure.  Change in organisation structure is required
because old relationships and  interactions no longer remain valid and useful in the changed
circumstances.
3. Process Oriented Change: These changes relate to the recent technological  developments,
information processing and automation. This will involve  replacing or retraining personnel,
heavy capital equipment investment and  operational changes. All this will affect the
organisational culture and as a result  the behavior pattern of the individuals.
4. People Oriented Change: People oriented changes are directed towards  performance
improvement, group cohesion, dedication and loyalty to the  organisation as well as
developing a sense of self actualization among members.  This can be made possible by
closer interaction with employees and by special  behavioral training and modification
sessions. To conclude, we can say that  changes at any level affect the other levels. The
strength of the effect will  depend on the level or source of change.