ORGANISATIONAL CHANGE AND TRANSFORMATION

MODULE-5 (ORGANISATIONAL TRANSFORMATION)

5.1Transaction and transformation; First Degree and Second-Degree Changes

5.2 Transformation Leadership styles; Change cycles; Leadership patterns and

Transformational strategies

5.3 Resistance to Change; Forces for change-Overcoming Resistance

5.4 Model of Organizational Change; Kurt Lewin Model and Force Field
Analysis,7 Stage models, Burke-Litwin model, Porras and Robbortson, Kubler
roos, Growth model, Kotter Model

Study Material
1. What is organizational transformation?

“Organizational Transformation is a strategic method of getting your organization from where

you are now to where you will need to be in the future.”

2. key areas that organizational transformation impacts include:

• Performance improvement: How well is your company performing with outdated
hierarchies and processes? This is often the area of business that needs transformation
the most so that the company can live up to its potential. According to research from
Deloitte, “53% of leaders say that switching to team-based working has brought about
significant performance improvement.”
• Company culture: A cultural transformation can also help solve problem areas like
high employee turnover, low engagement, and dwindling quality of work — areas that
human resources can identify through tracking relevant HR metrics.
• Market impact: An organization that wants to thrive even in uncertain times needs to
focus on making a transformative impact on the market it serves. This can include
setting the bar high in terms of how the company embraces its social responsibility and
develops employees to take on a better future.
 • Competitive advantage: Every organization can look at transformation as contributing
towards its competitive advantage. Companies with strong brands, effective employee
management, and ethical ways of doing things will stand out in their industry. Regular
evaluations can provide insight into what needs to change and when.
• Organizational change management: How is change managed in your organization?
Human resources is in a unique position to guide others through organizational changes
because it comes with the territory. Use this knowledge to help employees overcome
their resistance to change as you change the organizational design to a new
organizational model.
3. Organizational transformation process
• Stage 1 – Unfreezing: In this stage, leadership creates the perception that a change is
needed in order to improve the organization. This occurs in two ways:

(1) Recognising the need for change, and

(2) Encouraging new behaviors to replace old ways of doing things.

At this point, human resources is pivotal for identifying and sharing data indicators of
transformational need. For example, low employee satisfaction and high turnover might signify
a need for culture transformation. When supported by management, this drives change based
on profitability and productivity.

• Stage 2 – Changing: At this long stage, the organization moves past any objections
towards transformation. New desired behaviors replace old undesired behaviors.
Hierarchies are broken down and organizations often undergo leadership changes and
departmental shifts. A specific change action takes place with role models, experts, and
mentors present to show employees the way. Training for new ideas and technology
often happens in this stage, encouraging everyone to learn new concepts and step into
the future. Human resources has a significant role in maintaining clarity,
communicating change, and managing any resistance.
• Stage 3 – Refreezing: Once the changes have stabilized and are accepted as the norm,
the organizational transformation process is complete. All leaders and employees
integrate changes in behavior with a new set of values and expectations. Managers and
human resources work together to coach employees if they have any difficulties. The
future looks bright for the new organization.
 4. Transactional Change: Transactional changes reform or eliminate a single barrier
within a structure to free groups to achieve the universal goal. Transactional change
largely works within an existing set of institutional and structural arrangements.
5. Transformational Change: Transformational change is a type of organizational change
that completely reshapes your organization. According to management experts
Cummings and Worley, transformational change occurs in response to, or anticipation
of, significant changes in an organization's environment or technology.
6. Transactional vs Transformational Leadership in Change Management:

Leaders play a crucial role in steering organizational change and inspire or stimulate people for
achieving excellence at work by realizing the pre-defined goals. Effective leadership provide a
direction and vision to the people from top to bottom, develops a conducive culture, climate
and values for enabling certain expected code of conduct or behaviour out of employees.
Leaders conceptualize and administer suitable strategies for driving continuous improvement
in the existing processes, motivating employees for superior performance and facilitating
change across various functionalities. Leaders play both transactional as well as
transformational roles depending upon the organizational context, environmental factors
and the long term objectives.

• Transactional Leadership: Transactional Leaders work in accordance with the

predefined modes of operation and are more concerned about ensuring a continuity in
the day to day functioning, ensuring seamless operations by establishing systems and
processes in place and focused towards achievement of set targets. Such leaders can
 enforce disciplinarian actions, establish a systemic framework and define a road map
of action, formulate & implement policies and motivate superior performance through
a systems of rewards and incentives. A Transactional Leader is not concerned about the
futuristic vision or strategies for acquiring market leadership, but is more concerned
about ensuring that the tasks assigned are completed on priority by meeting the quality
benchmarks.
• Transformational Leadership: It would be more appropriate to say that the
Transformational Leaders are the real champions of change. They are the visionaries
who influence or motivate teams for achieving excellence in business performance.
Transformational leaders give more importance to the development of cohesive teams
and facilitate an environment of collaboration for achieving the next best level of
performance, instead of ensuring the completion of day to day organizational
duties/tasks. The focus is more on team building, empowerment of employees,
alignment of individual-organizational goals and culture building for motivating
individuals to embrace the change for the better.

7. Characteristics of a Transactional Leader

• Replace the wants of a leader for the wants of a follower

• Emphasize development in setting goals, directing them and striving to
control outcomes
• Can make important decisions
• Have a strong personality

8. Characteristics of a Transformational Leader

 • Idealized influence: Leaders hold, share and demonstrate core values
and trust.
• Inspirational motivation: Leaders motivate workers by conveying
confidence and a sense of purpose.
• Individualized consideration: Leaders are concerned with people’s
feelings and needs.
• Intellectual stimulation: Leaders provide opportunities for creativity
and innovation and allow people to learn, grow and try new things.

9. four elements of transformational leadership:

• Individualized Consideration – the degree to which the leader attends to each
follower's needs, acts as a mentor or coach to the follower and listens to the follower's
concerns and needs. The leader gives empathy and support, keeps communication open
and places challenges before the followers. This also encompasses the need for respect
and celebrates the individual contribution that each follower can make to the team. The
followers have a will and aspirations for self development and have intrinsic motivation
for their tasks.
• Intellectual Stimulation – the degree to which the leader challenges assumptions,
takes risks and solicits followers' ideas. Leaders with this style stimulate and encourage
creativity in their followers. They nurture and develop people who think independently.
For such a leader, learning is a value and unexpected situations are seen as opportunities
to learn. The followers ask questions, think deeply about things and figure out better
ways to execute their tasks.
• Inspirational Motivation – the degree to which the leader articulates a vision that is
appealing and inspiring to followers. Leaders with inspirational motivation challenge
followers with high standards, communicate optimism about future goals, and provide
meaning for the task at hand. Followers need to have a strong sense of purpose if they
are to be motivated to act. Purpose and meaning provide the energy that drives a group
forward. The visionary aspects of leadership are supported by communication skills
that make the vision understandable, precise, powerful and engaging. The followers are
willing to invest more effort in their tasks, they are encouraged and optimistic about the
future and believe in their abilities.
• Idealized Influence – Provides a role model for high ethical behavior, instills pride,
gains respect and trust. As a development tool, transformational leadership has spread
 already in all sectors of western societies, including governmental organizations. As an
example, the Finnish Defence Forces is using widely Deep Lead© Model as basic
solution of its leadership training and development. The Deep Lead© Model is based
on the theory of transformational leadership.
10. key functions performed by the Transformational Leaders:

▪ Creating a Vision: Transformation Leaders are responsible for envisioning and

ensuring that the vision is shared and communicated across all the levels to inspire and
motivate people for driving excellence at work.
▪ Setting Examples or Modelling: Transformational Leaders inspire employees through
Modelling or exemplification of good behaviour or a desirable code of conduct.
▪ Establishing Standards: Well defined standards and norms, guide the employees in
following a desirable pattern of behaviour and working towards the fulfilment of
common goals through a collaborative approach.
▪ Culture & Climate Building: Building a facilitating climate and a culture of
mutuality, interdependence and flexibility are the major functions of Transformational
Leaders. A conducive organizational culture can motivate individuals for delivering
performance excellence and exceed expectations by achieving newer milestones at
work.
▪ External Communication and Liaising: Transformational Leaders establish a
connect with the external world and are the main point of contact for communicating
with the key stakeholders for the resource support, technological assistance and acquire
knowledge regarding the best business practices of leading organizations. This function
essentially involves strengthening relationship with the stakeholders or business
partners.
▪ Team Building or Synergy: This is one of the most important functions of leaders who
follow transformational leadership style by building a motivational climate and creating
a positivity in the work environment for completing tasks collaboratively.
▪ Talent Acquisition & Development: This is the key responsibility of the
transformational leaders, which involves identification of the best of the talent pool and
nurturing them with adequate training & development support.

11. Transformational Leadership: Advantages and Disadvantages

Advantages:
 ▪ Transformational Leadership style encourages innovation and creativity in the
workplace by creating an enthusiastic and a challenging work environment. This kind
of leadership provides ample opportunities to the individuals for growth and achieving
newer performance milestones.
▪ New Leaders may evolve out of a several followers.
▪ Transformational Leaders are visionaries and they possess an extraordinary capability
of communicating the vision to the followers. Since, such leaders are more skilled in
visualizing the bigger picture, they can address challenges much efficiently.
▪ The team members work for the achievement of a common goal or vision by being
influenced or inspired by their leaders, thus driving excellence at work.
▪ Transformational leadership encourages mentor buddy relationship between the
leader and the follower, thus creating a conducive environment for innovation and
improves organizational preparedness for any kind of change process.
▪ Transformational Leadership brings reforms in the existing processes, creates higher
expectations in followers and motivates the followers to deliver beyond the pre-
defined expectations or the set framework.
▪ Transformational Leadership surely guarantees high performance of the teams as well
as superior productivity and growth.

Disadvantages:

▪ Though Transformational Leaders can see the bigger picture, but they lack detailed
orientation for which they require the support from the transactional oriented people
who are more organized and detailed oriented. Lack of detailed orientation may result
in a major oversight, which may ultimately affect the organizational interests in the
long term.
▪ Transformational Leaders rely too much on inspiration, passion and emotional aspects,
which may lead to a neglect of the facts or realities through research, investigation or
information gathering.

12. Examples of Best Practices of Transformational Leaders in Business

• Transformation in Technology: Various Technology giants like Apple, Microsoft,
Intel, IBM and many others, revolutionized the computing world through technological
innovation by introducing state of the art quality software applications and
 microprocessors. Even the world of internet has witnessed a change in the
contemporary scenario with Google enjoying its leadership as the most effective search
engine and Amazon & e-Bay leading the e-commerce platform.
• Transformation in Financial Services Industry: Due to the internet revolution, the
financial services industry is undergoing a sea change with the availability of online
platforms for the investors for planning their investments independently, researching,
trading stocks and investing in various financial products by being in any part of the
world. Pioneers like Peter Lynch, proponent of Mutual Funds and John Bogle,
proponent of Index Funds, changes the attitude and preference of the investors on
various financial portfolios. Today, Mutual Funds and Index Funds have become the
most preferred choices for the investors because of the low costs involved and
diversified benefits.
• Diversification: In the era of globalization and liberalization, the organizations follow
diversification strategy for business expansion across the globe and maintaining a
leadership edge in the competitive market. Leaders like Jack Welch, the CEO of
General Electric during 1980s, restructured the entire organization from the traditional
bureaucratic set up to a more agile and lean framework.
• Other Examples include Business Process Outsourcing and Knowledge Process
Outsourcing which has resulted in generation of cost advantages for the organizations
and enhanced business efficiencies, increased job opportunities for millions of people
across the world and revolutionized organizational functioning as a whole. Again
quality tools and processes like TQM, Kaizen, Six Sigma, etc have led to continuous
improvement in business operations and achievement of superior quality benchmarks
in manufacturing practices.
13.
14. Pre-Requisites for Transformational Change:

• Ensuring the commitment of the senior management towards the change, which should
even be visible to all the organizational members.
• Producing a written mission statement and the futuristic vision/direction of the
organization which may provide guidance on the objectives, policies and values.
• Building a shared awareness and change in the perception of the employees regarding
the need for change.
• Selecting a team of key managers and opinion formers who will be playing a crucial
role in gaining the commitment of the employees towards the change and in
disseminating the change widely across the organization.
• Generating an acceptance towards the overall process of change and the entire process
of transformation.
• Developing an understanding that resistance to change is inevitable and it needs to be
managed effectively.
• Educating and training the participants regarding the necessary competencies required
for effectively overcoming the resistance towards the change and winning their
commitment.
• Taking steps for avoiding the blames or any kind of negative behaviour which may
generate any kind of resistance towards the change.
• Using appropriate resources for facilitating this entire process of transformation or
change.
• Maintaining open channels of communication regarding the key processes, failures,
challenges and the learning from the new initiatives.

15. First- and Second-Order Change

• First-order change is doing more – or less – of something we are already doing. First-
order change is always reversible.
• Second-order change is deciding – or being forced – to do something significantly or
fundamentally different from what we have done before. The process is irreversible:
once you begin, it is impossible to return to the way you were doing before.
16. The characteristics of first- and second-order change
• First-order change
• Adjustments within the existing structure
 • Doing more or less of something
• Reversible
• Restoration of balance (homeostasis)
• Non-transformational
• New learning is not required
• Old story can still be told
• Second-order change
• New way of seeing things
• Shifting gears
• Irreversible
• Often begins through the informal system
• Transformation to something quite different
• Requires new learning
• New story is told
17. Change Cycle
it's a circle, and it represents the true cyclical nature of each change we experience. In the
outside ring are the six sequential and predictable stages of change. The names of the stages:
Loss, Doubt, Discomfort, Discovery, Understanding and Integration, indicate the primary
experience of that stage. The inside pie pieces list the thoughts, feelings and behaviors most
associated with the stage. The Change Cycle uses the colors of a traffic light to signal that the
stages mirror the actions we take at traffic lights. The Change Cycle model is a map that depicts
our human experience of each stage of change - in all changes, big or small, good or bad.
Change comes in all shapes, sizes, and intensities. It happens to all of us. Sometimes it sneaks
up on us, sometimes it hits us over the head, sometimes we are lucky enough to choose when
and how it happens. But it always happens. By integrating basic, positive attitudes and beliefs
about change and combining them with the right skills (or tools), any of us can learn to adapt
and grow in changing environments and situations. Is it easy? Not usually. Like any new
activity or function, it takes a while to get used to it, but over time, we learn and integrate, and
then do it without thinking. By understanding The Change Cycle™, you can learn to better
manage your life by managing the changes.
• Stage 1- Loss to safety: You arrive in Stage 1, Loss because something has become
different. Maybe something is lost --a job, a relationship, an opportunity. Maybe
something is new --a boss, a project, a diagnosis. The primary experience of Stage 1 is
loss of control. And either consciously or non-consciously, your thoughts are cautious;
you experience feelings of fear, or maybe worry or concern. Your behavior becomes
paralyzed. Even a perceived “good” change, can evoke these responses. This first stage
can be a difficult, because like driving in fog, you don't know what is ahead, but for
your own safety, you must keep moving. It is important to acknowledge, not ignore or
deny, your losses and concerns. Your priority in Stage 1 is to find personal safety --to
regain some sense of control.
• Stage 2- Doubt to reality: Stage 2 finds you experiencing doubt and a sense of
uncertainty. Doubt is the brain's way of slowing you down, even stopping you from
taking action, until more relevant information is gathered. This doubt often creates
defensive behavior as a way of maintaining control. This creates feelings of resentment,
thoughts that are skeptical and behavior that is resistant. Unfortunately, many people
just get angry, blame others and are willing to fight to prove that “their way” or the “old
way” is still better. Stage 2 can cause you to ignore the obvious and only see the picture
your way. The main thing is to move past the fiction and gather accurate, valid
information about the change to get as clear a picture of your reality as possible.
• Stage 3- Discomfort to motivation: In Stage 3, Discomfort, you know what's going
on, yet you are stuck while the brain works to organize, categorize and put language on
your change experience. This leads to feelings of anxiety, thoughts that are confused,
and behavior that is unproductive. It is easy to become overwhelmed. It is difficult to
get things done and lethargy often rules. To move through Stage 3, you need to focus
on the present and be deliberate about motivating yourself to take the next best action
steps. If you don't, you risk having your anxiety turn to fear, which is the experience of
The Danger Zone. This sends you back to Stage 1 to start again. Avoid it.
• Stage 4- Discovery to perspective: In Stage 4 you experience feelings of anticipation,
thoughts that are resourceful and behavior that is energized - finally! Your perception
of the change situation has shifted - you have perspective and insight - you see the light
at the end of the tunnel. It's not that you like or dislike the change, it's that you are
starting to feel back in control. You are now ready and able to create options and make
decisions. The challenge of this stage is to make the necessary choices and as important,
act immediately on your next best steps.
• Stage 5- Understanding to awareness: Stage 5 is about a deeper level of
Understanding. You'll feel confident and competent, thoughts are pragmatic, and
productivity increases significantly. Are you “happy” in Stage 5? You might be. It
depends on the change. And of course, some changes will never be completely
reconciled, neatly packaged, or fully accepted. At times, crisis, chance, or nature force
us to endure events that cannot be “managed well” --in any way --by anybody. Yet,
you'll be able to apply or implement what you have learned about the change - and
yourself --whether you like it or not. Life is a messy, mysterious, serious business, yet
in Stage 5, we accept and understand that, like it or not, somehow, we go on.
• Stage 6- Integration to flexibility: In the final stage, Stage 6, Integration, the change
no longer seems different or unfamiliar. You have insight into the ramifications,
consequences, and rewards of the change --and you can clearly assess past, present and
future. You will experience a sense of satisfaction, your thoughts are more focused and
behavior is generous. It is important to avoid becoming complacent or arrogant. When
you can consistently move to Stage 6, you deepen your change resiliency, you're
flexible through uncertainty. Integrating a change will create a sense of personal
accomplishment and satisfaction.
18. Leadership Styles:
 • Authoritarian Leadership: Authoritarian leadership styles allow a leader to impose
expectations and define outcomes. A one-person show can turn out to be successful in
situations when a leader is the most knowledgeable in the team. Although this is an
efficient strategy in time-constrained periods, creativity will be sacrificed since input
from the team is limited. The authoritarian leadership style is also used when team
members need clear guidelines.

Advantages:

❖ Time spent on making crucial decisions can be reduced.

❖ Chain of command can be clearly emphasized.
❖ Mistakes in the implementation of plans can be reduced.
❖ Using authoritarian leadership style creates consistent results.

Disadvantages:

❖ A very strict leadership style can sometimes lead to employee rebellion.

❖ It kills employee creativity and innovation.
❖ It reduces group synergy & collaboration.
❖ Group input is reduced dramatically.
❖ Authoritarian leadership increases employee turnover rate.
• Participative Leadership: Participative leadership styles are rooted in democratic
theory. The essence is to involve team members in the decision making process. Team
members thus feel included, engaged and motivated to contribute. The leader will
normally have the last word in the decision-making processes. However, if there are
disagreements within a group, it can be a time-consuming process to reach a consensus.

Advantages:

❖ It increases employee motivation and job satisfaction.

❖ It encourages use of employee creativity.
❖ A participative leadership style helps in the creation of a strong team.
❖ High level of productivity can be achieved.
Disadvantages:

❖ Decision-making processes become time-consuming.

 ❖ Leaders have a high probability of being apologetic to employees.
❖ Communication failures can sometimes happen.
❖ Security issues can arise because of transparency in information sharing.
❖ Poor decisions can be made if the employees are unskilled.
• Delegative leadership: Also known as "laissez-faire leadership", a delegative
leadership style focuses on delegating initiative to team members. This can be a
successful strategy if team members are competent, take responsibility and prefer
engaging in individual work. However, disagreements among the members may split
and divide a group, leading to poor motivation and low morale.

Advantages:

❖ Experienced employees can take advantage of their competence and experience.

❖ Innovation & creativity is highly valued.
❖ Delegative leadership creates a positive work environment.
Disadvantages:

❖ Command responsibility is not properly defined.

❖ Delegative leadership creates difficulty in adapting to change.
• Transactional leadership: Transactional leadership styles use "transactions" between
a leader and his or her followers - rewards, punishments and other exchanges - to get
the job done. The leader sets clear goals, and team members know how they'll be
rewarded for their compliance. This "give and take" leadership style is more concerned
with following established routines and procedures in an efficient manner, than with
making any transformational changes to an organization.

Advantages:

❖ Leaders create specific, measurable and time-bound goals that are achievable for
employees.
❖ Employee motivation and productivity is increased.
❖ Transactional leadership eliminates or minimizes confusion in the chain of command.
❖ It creates a system that is easy to implement for leaders and easy to follow by
employees.
❖ Employees can choose reward systems.
Disadvantages:

❖ Innovation & creativity is minimized.

❖ Empathy is not valued.
❖ Transactional leadership creates more followers than leaders among employees.
• Transformational Leadership: In transformational leadership styles, the leader
inspires his or her followers with a vision and then encourages and empowers them to
achieve it. The leader also serves as a role model for the vision.

Advantages:

❖ It leads to a lower employee turnover rate.

❖ Transformational leadership places high value on corporate vision.
❖ High morale of employees is often experienced.
❖ It uses motivation and inspiration to gain the support of employees.
❖ It is not a coercive approach to leadership.
❖ It places high value on relationships.
Disadvantages:

❖ Leaders can deceive employees.

❖ Consistent motivation and constant feedback may be required.
❖ Tasks can’t be pushed through without the agreement of employees.
❖ Transformational leadership can sometimes lead to the deviation of protocols and
regulations.
19. What is a Transformational Strategy?
A transformational business strategy refers to big changes that need to be made in order to
ensure long-term success. These changes involve an organisation’s existing products, services
and overall business model, as well as what processes, equipment and infrastructure are used.
Companies need to think about how they do business, what they bring to market and the people
they work with. There is no single strategy that can be considered transformational – it varies
company by company based on the type of industry the firm is in and its core competencies,
among other factors. In essence, a transformational strategy requires companies to rethink what
they do and how they do it. Organisations that adopt a transformational strategy look for ways
to improve their capabilities, differentiate themselves from the competition and provide more
value and benefits to their customers. A transformational strategy should be built up from
specific goals and objectives created to help you achieve a specific vision of what the
organisation should look like and achieve. Transformational strategy involves open
communication and agreed objectives between all the stakeholders, which includes employees,
managers, board members and other vital third parties like vendors, suppliers and core
consumers.

20. How to Create a Transformational Strategy

• Understand Your Company Vision & Business Objectives: Firstly, you should
define a clear vision and objective for your company. What do you hope to accomplish
with your transformation initiative, and what benefits do you hope to gain from it?
These questions should guide everything that follows in the transformation process, so
take care to answer them as fully and completely as possible.
• Review Current & Alternative Strategies: Conduct an in-depth analysis of your
current business model and define the key areas where you need change to occur. Look
at every aspect of how your company does business, from your customers and their
needs to what products or services are offered by you, who works with you on what
tasks, and what your workflow is like.
• Identify Key Changes Needed: Identify the key changes you hope to make and
prioritise them in order of importance. Don’t assume that every change needs to be
made at once. Think about how each proposed change will impact your business and
the ways in which it will improve operations or generate more revenue.
• Formulate Your Transformational Strategy: Create a roadmap for transformation
and determine the exact steps required in order to achieve your vision and objectives.
Your transformational strategy should be comprehensive, down to individual roles and
how the company works together on a wider scale. It may be necessary to set up a
dedicated working group in order to look at every aspect of your business, then work
with that team to develop the exact action plan for implementing all identified changes.
• Execute and Monitor Your Transformational Strategy: Now it’s time to implement
and incorporate all identified changes and steps into your overall business planning
process, making sure that you are prepared to continually monitor the progress of your
transformation initiatives. This means you can measure the success and progress of
your transformational strategy.
 21. What is resistance to change?

Resistance to change is unwillingness to adapt to new circumstances or ways of doing things.

It can happen with individuals, relationships, or within organizations. There are many reasons
for resistance, but at its heart, resistance is rooted in fear of the unknown.

22. Three factors of resistance to change

• Individual resistance
• Group resistance
• Organisational resistance
23. forces for resistance to change
• Reasons for Individual resistance
❖ Economic reason
❖ Fear of technological unemployment
❖ Fear of less pay
❖ Fear of demotion
❖ Fear of loss
❖ Security
❖ Status quo
❖ Peer pressure
❖ Disruption of interpersonal relation
❖ Social displacement
 • Reasons for Group resistance
❖ Resource constraints
❖ Structural inertia
• Reasons for Organisational resistance
❖ Threat to power
❖ Group inertia
❖ Organizational structure
❖ Threat to specialization
❖ Resource constants
❖ Sunk costs

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24. How to overcome resistance to change:

• Communicate early and often: Let employees know about changes to the status quo
as soon as possible. Do you have an employee that others gravitate to, or whose opinions
seem to carry more weight with their colleagues? Get buy-in from them and help them
lead the changes you are hoping for. This helps to build a bridge between employees
and management. Involving key stakeholders as part of the change, especially those that
are trusted by colleagues, can help others adapt more readily. Share whatever
information you have with employees that you are free to share. If you are not sure of
an answer or cannot answer, it is okay to state that. You can say something like, “I don’t
have that information” or “I’ll have to look into that” or even, “As soon as I can share
that information with you I will”. When there is a lack of communication, people tend
to fill the void with speculation. The more open and honest in your communication with
them, the less likely this is to happen.
• Listen to employees: Listen to employees’ concerns, as there is a good chance that
they are more in tune with a plan’s potential blind spots given their day-to-day work.
This also lets them know their opinions are valued by the company. While you do not
have to incorporate all their ideas, listening will help you identify what sources of
resistance are coming up and address the root causes. For example, perhaps employees
are concerned about the timeline of the proposed changes. This is often a valid concern.
If you can, explain your decision-making processes. Looking at ways to address this
 with their buy-in, or more clearly articulating the rationale for that timeline, can save
time and money in the long run.
• Educate employees on the value of the change: Organizations are generally trying to
make things better, not worse, for their employees. Perhaps the old way of doing things
presented a potential safety issue, was ineffective or inefficient. Building a case for why
change is necessary can help employees adapt to it more readily, even in cases where
they may not like it. How will this change impact them directly? Will the change effort
make something easier, better, or more efficient in the long run?
• Name emotions: When we name emotions, we move the emotional response from an
internal state (which is harder to address) to something outside the individual. Once
feelings are out in the open they can be worked through. In the case of organizational
change, naming the fear, frustration, or anxiety that might be present can help
employees work through them faster. Try saying something like, “I’m noticing there
might be some anxiety or concern about this change,” to help open up the conversation.
This gives permission to employees to also name their feelings about the change, which
ultimately helps to give those emotions less power to affect them. Leaders do not need
to spend endless hours processing emotions, but it is good practice to address the
elephant in the room. It can also provide valuable insights to leadership on what they
need to address more proactively with employees.
• Timing is everything: Things are always constantly changing and evolving with the
passing of time. That said, within an organization, the timing of change can be
important. It isn't always possible, but sometimes it is best for organizations to
methodically introduce change and wait until that has stabilized before introducing
further change. Even companies that are "good at change" sometimes need a pause.
Having a strategic plan in place that looks at the rollout of all known upcoming changes
can help determine if any don’t have enough time between them. Build in time leading
up to the change, during the change, and following the change — asking for ample
feedback from employees along the way.
• Provide ongoing support: Once a change has been made, make sure to follow up with
employees as those changes roll out. Let them know that they continue to be important
partners in making effective changes that will stand the test of time. Provide training
for any new skills needed to make the change successful. Recognizing both privately
 and publicly those that are helping facilitate the change or adapting to it, even in small
ways, can further create employee satisfaction with the changes.
25. Models of organisational change:
I. Force Field Analysis - Kurt Lewin’s model
• Force field Analysis:

Sociologist Kurt Lewin developed a 'force field analysis' model (1951) which describes any
current level of performance or being as a state of equilibrium between the driving forces that
encourage upward movement and the restraining forces that discourage it. Essentially this
means that a current equilibrium exists because the forces acting for change are balanced by
the forces acting against change.

❖ The driving forces are (usually) positive, reasonable, logical, conscious and economic.
❖ The restraining forces are (usually) negative, emotional, illogical, unconscious and
social/psychological.

Both sets of forces are very real and need to be taken into account when dealing with change,
or managing change, or reacting to change.

Force field Analysis

restraining forces (against change)

current equilibrium

driving forces (for change)

Increasing the driving forces is not enough for change, as the restraining forces remain in place,
and as long as they remain in place it becomes harder to use the driving forces. An analogy is
when you push against a spring; the more you push, the harder it becomes and as soon as you
stop pushing the spring reverts to its previous position (after having sprung past that point).
Therefore unless both the driving and restraining forces are balanced a kind of yo-yo effect
results; a change and then a reversion back, and then a change, and then a reversion back, and
then a change, et cetera, et cetera. It’s important to note that the restraining forces may not be
conscious – i.e. they should not be regarded as being deliberate attempts to subvert change
(although they may be). Lewin suggested that change would be easier and longer lasting if the
forces against change were reduced, rather than the forces for change being increased.

Lewin suggested that modifying the forces which maintain the status quo may be easier than
increasing the forces for change.

• Lewin’s change management model: Lewin’s change management model is named

after its originator, Kurt Lewin, who developed it in the 1950s. It’s divides the change
process into three steps:
❖ Unfreeze This is the preparation stage. Analyze how things work now, so you
accurately understand what needs to change to get the intended results. In this stage,
you also make your case to employees and communicate what to expect so everyone
impacted is prepared.
❖ Change This is the implementation phase. Put the change into practice, and keep
communicating and providing support for all employees involved.
❖ Refreeze To avoid falling back into the old way of doing things, develop a strategy to
check in and make sure the change sticks. Review how the new processes work and
measure how well you’ve reached your goals.

I. The McKinsey 7-S model (7 Stage Models): Developed by McKinsey & Company
consultants the McKinsey 7-S model involves breaking a change program into seven
components to focus on:
❖ Change strategy
❖ Structure of your company
❖ Business systems and processes
❖ Shared company values and culture
❖ Style or manner of the work
 ❖ Staff involved
❖ Skills your staff have

Breaking organizational change down into these core components helps to avoid overlooking
any important factors.

II. Burke Litwin Model:

The Burke Litwin Model of Organisational Change is all about defining and establishing a
cause-and-effect relationship. The model assumes 12 organisational elements that determine a
change within an organisation. The model derives its name from two organisational change
consultants and was developed in the 60’s by W. Warner Burke and George H. Litwin. It is a
useful change management tool to better understand all aspects of an organisation and to view
them from a perspective of change. In many cases, the various facets are taken too little into
account, as a result of which a change can have negative consequences for both the organisation
and employees. In addition, the change model shows that the different elements are
interconnected and influence each other. It is an ‘open system theory’ that assumes changes
come from external influences.
 • Burke Litwin Model: 12 elements

The 12 elements are grouped according to the element groups and are connected to each other.
Due to them being connected, the 12 elements can also influence each other. Below is a brief
summary of all 12 dimensions from the Burke Litwin model:

1. External Environment: According to the model, it is especially external influences that are
important for organisational changes. Think of the economy, competition, customer behaviour
and politics and legislation. When the influences from the external environment can be
identified, this helps organisations to better understand the direct or indirect impact and act
accordingly. An organisation has no control over external influences.

2. Mission and Strategy: This describes the organisation’s goal and the processes that ensure
the goal and course can be realised. The vision, mission and accompanying strategy are defined
by the highest level of management. It is recommended that the organisation always checks
whether these suit the position of the employees.

3. Leadership: This concerns the responsible positions that give direction to the rest of the
organisation. Managers are responsible for developing a vision and motivating employees. By
having insight into key positions, this can be addressed in the event of a change.

4. Organisational Culture: Every organisations has its own values. This is less formal than
the Mission and Strategy element, but is present across the entire organisation. An
organisation’s culture includes both explicit and implicit rules, including regulations, practices,
principles and manners.

5. Structure: This concerns the hierarchical structure of the organisation, recognisable

departments and formal communication channels. It also includes the position-oriented
structure, such as responsibilities, authority, communication, decision-making and control.

6. Systems: This is about policy and procedures; mechanisms that are in place to help and
support employees. Think of IT services, facility departments and internal customer support. It
covers both employees and the organisation’s activities.

7. Management Practice: This is about the behaviour and activities of managers, which are
generally aimed at implementing the overall strategy. How well do managers comply with the
strategy and how do they deal with the resources at their disposal? How is their relationship
with the employees? These are all questions that arise when discussing management practice.

8. Working Climate: This relates to employees’ experiences when it comes to the work
environment. How do they experience mutual cooperation, how comfortable do they feel, and
do they feel sufficiently rewarded for their effort? The mutual relationship with colleagues and
the extent to which an organisation makes employees happy are very important when
discussing the working climate.

9. Tasks and skills: This is about the (individual) task requirements and the alignment of the
job description with employees’ expertise. What are the requirements of a specific job, and
does this fit with the skills and knowledge of an individual employee? It is all about linking the
right positions to the right employees.

10. Individual values and needs: This relates to the demands and expectations that employees
have, including their remuneration, work-life balance, their role within the organisation and
their responsibilities. It is about the opinion employees have about the quality of their work
and aims to discover their needs. In some cases, this may result in task expansion or even job
enrichment, meaning the employee is given more responsibility.

11. Motivational Level: Motivation is about setting goals and inspiring and stimulating
employees. The more motivated employees are, the more willing they are to dedicate
themselves to the organisation.
12. Individual and General Performance: This dimension considers the performance level
of both the individual employee and on a departmental and organisational level. As mentioned
earlier, this can be measured on the basis of turnover, productivity, quality requirements,
efficiency and customer satisfaction.

III. Porras & Robertson Model

Porras & Robertson outline four types of organizational change based on the category of
change (planned or unplanned) and its order (first or second).

❖ Planned change originates with a decision made by the organization itself with the
deliberate purpose of improving its functioning. It is also common to engage an outside
resource to help in the processes of making these improvements. Planned change is
typically initiated to respond to new external demands imposed upon the organization.
Planned change will often affect many unforeseen segments of the organization.
❖ Unplanned change is change that originates outside of the organizational system and
to which the organization must respond. This adaptive response is often focused on the
alteration of relatively clearly defined and narrow segments of the organization. It is
spontaneous, evolutionary, fortuitous, or accidental.
❖ First-order change, linear and continuous in nature, involves alterations in system
characteristics without any shift in either fundamental assumptions about key
organizational cause-and- effect relationships or in the basic paradigm used by the
system to guide its functioning.
 ❖ Second-order change is a multi-dimensional, multi- level, qualitative, discontinuous,
radical organizational change involving a paradigmatic shift.
IV. Kotter’s change management theory (Kotter model): Harvard professor and change
management expert John Kotter created a theory called Kotter’s change management
theory, which focused primarily on the people involved in a change process and their
psychology. He divides it into eight steps:
❖ Create a sense of urgency to motivate people
❖ Build your change team with leaders and change agents of various skills and
departments
❖ Define your strategic vision for what you want to accomplish
❖ Communicate with everyone involved in the change management process to get them
on board and make sure they know their role
❖ Identify roadblocks and address anything causing friction
❖ Create short-term goals to break your change management plan into achievable steps
❖ Keep up the momentum throughout the process of implementation
❖ Maintain the changes after the initial project is complete
V. ADKAR change management model: The ADKAR model, developed by Jeff Hiatt,
the founder of Prosci, formulates five main goals to base your change management
process on.
❖ Awareness Ensure everyone in your organization understands the need for change
❖ Desire Make your case so that everyone involved wants the change
❖ Knowledge Provide the information each person needs on how to accomplish their part
of the change process
❖ Ability Make sure all employees have the skills and training they need to successfully
do their part
❖ Reinforcement Continue to work with employees and stakeholders after the change is
accomplished, to make sure they stay on top of doing things the new way
VI. Kübler-Ross change management framework (Kubler Roos): The Kübler-Ross
change management framework, created by Elisabeth Kübler-Ross, will be familiar to
many as the model used to describe the experience of grief. It can be applied to many
experiences of change, so understanding these stages can help you better address
employees’ response to an organizational change.
❖ Denial–Refusal to believe is a common knee-jerk response to information a person
doesn’t want to hear.
❖ Anger–When an unwanted change feels forced on a person, anger is natural.
❖ Bargaining–People may try to push for a compromise to avoid having to accept the
change entirely.
❖ Depression–If employees are upset about the change and feel hopeless about it, they
may enter a stage of depression.
❖ Acceptance–When people realize there’s no other option, they eventually reach the
point of acceptance.

Ideally, you want to design your change approach to address these potential feelings head-on
and keep employees from experiencing the worst of them.

VII. Growth Model (Greiner’s Model of organizational growth): A very useful model of
organizational growth has been developed by Larry E. Greiner. In his 1998 Harvard
Business Review article entitled “Evolution and Revolution as Organizations Grow,”
Greiner outlined five phases of growth punctuated by what he termed “revolutions” that
shook up the status quo and ushered in the successive stage. Greiner’s Model of
organizational growth is based on certain assumptions about the organization which are
as under: First assumption is organisations are rigid, bureaucratic, control-centric, and
centralized entities. Second, organisations fail to see that the future success of an
 organisation lie within their own organisation, and also fail to assess their evolving
states of development. Therefore, inability of a management to understand its
organisation development problems can result in organisation becoming frozen in its
present stage of evolution (failure to evolve) regardless of market opportunities

There are five phases in Greiner’s Model of organizational growth — creativity, direction,
delegation, coordination and collaboration followed by a particular crisis and management
problems. It can be argued that growing organizations move through five relatively calm
periods of evolution, each of which ends with a period of crisis and revolution.

• Creativity Stage. Growth through creativity is the first phase. This phase is dominated
by the entrepreneurs of the organizations and the emphasis is on creating both a product
and a market. However, as the organization grows in size and complexity, the need for
greater efficiency cannot be achieved through informal channels of communication.
Thus, many managerial problems occur which the entrepreneur may not solve
effectively because they may not be suited for the kind of job or they may not be willing
to handle such problems. Thus, a crisis of leadership emerges and the first revolutionary
period begins. Such questions as ‘who is going to lead the organisation out of confusion
and solve the management problems confronting the organisation; who is acceptable to
the entrepreneurs and who can pull the organisation together arise. In order to solve the
problems a new evolutionary phase — growth through direction — begins.
• Direction Stage. When leadership crisis leads to the entrepreneurs relinquishing some
of their power to a professional manager, organizational growth is achieved through
direction. During this phase, the professional manager and key staff take most of the
responsibility for instituting direction, while lower-level supervisors are treated more
as functional specialists than autonomous decision-making managers. Thus, directive
management techniques enable the organisation to grow, but they may become
ineffective as the organisation becomes more complex and diverse. Since lower-level
supervisors are most knowledgeable and demand more autonomy in decision making,
a next period of crisis — crisis of autonomy begins. In order to overcome this crisis,
the third phase of growth — growth through delegation — emerges.
• Delegation Stage. Resolution of crisis for autonomy may be through powerful top
managers relinquishing some of their authority and a certain amount of power
equalization. However, with decentralization of authority to managers, top executives
may sense that they are losing control over a highly diversified operation. Field
managers want to run their own show without coordinating plans, money, technology
or manpower with the rest of the organisation and a crisis of control emerges. This crisis
can be draft with the next evolutionary phase — the coordination stage.
• Coordination Stage. Coordination becomes the effective method for overcoming crisis
of control. The coordination phase is characterized by the use of formal systems for
achieving greater coordination with top management as the watch dog. The new
coordination system proves useful for achieving growth and more coordinated efforts
by line managers, but result in a task of conflict between line and staff, between
headquarters and field. Line becomes resentful to staff, staff complains about un-
cooperative line managers, and everyone gets bogged down in the bureaucratic paper
system. Procedure takes precedence over problem solving; the organisation becomes
too large and complex to be managed through formal programmes and rigid systems.
Thus, crisis of red — tape begins. In order to overcome the crisis of red-tape, the
organisation must move to the next evolutionary stage — the collaboration stage.
• Collaboration Stage. The Collaboration stage involves more flexible and behavioural
approaches to the problems of managing a large organisation. While the coordination
stage was managed through formal systems and procedures, the collaboration stage
emphasizes greater spontaneity in management action through teams and skilful
confrontation of interpersonal differences. Social control and self — discipline take
over from formal control. Though Greiner is not certain what will be the next crisis
because of collaboration stage, he feels that some problems may emerge as it will center
round the psychological saturation of employees who grow emotionally and physically
exhausted by the intensity of team work and of the heavy pressure for innovating
solutions.