Professional Documents
Culture Documents
DEVELOPMENT
Unit-IV: Negotiated Change: Change in the labor - management relations in the post-
liberalized India – collective bargaining strategy to the challenges of Globalization and the
restructuring of enterprises in India - Changes in the legal frame work of collective bargaining -
Negotiated flexibility, productivity bargaining, public sector bargaining and social security
Unit-V: Team Building: Nature and Importance of Teams – Team Vs Groups – Types of
teams – Characteristics of Virtual teams – High performance teams – self managing teams -
empowered teams -Team building life cycle – Team building skills – Building team
relationships –– leadership on teams – Managing cross cultural diversity in teams – Groupthink:
effective decision making techniques for teams and groups – role of change consultant-–
contemporary issues in managing teams
Text Books:
1. Cummings: ―Theory of Organisation Development and Change, Cengage Learning, New
Delhi, 2013.
2. Robert A Paton: Change Management, Sage Publications, New Delhi, 2011.
3. NilanjanSengupta: Managing Changing Organisations, PHI Learning, New Delhi, 2009
Reference Books:
1. Adrian Thornhill: Managing Change, Pearson Education, New Delhi,
2012. 2. Radha R Sharma: Change Management, TMH, New Delhi, 2012
3. C.S.VenkataRatnam negotiated change ,sage publications.
Nokia Networks
The merger of Nokia and Siemens created Nokia Siemens Networks. This merger is famous
for both failures and successes until the company finally became Nokia Networks.
In 2006, just after the merger, Nokia Siemens network was in a confused state. Senior
leadership had little idea of how the two cultures could work together. One of the Head of
Sales, Thomas Anderson explains:
“When the leadership team was initially brought together following the merger … each
person brought very different national and cultural backgrounds. Furthermore, two rather
different corporate and management cultures were in play as managers came from either
Nokia or Siemens.”
A major problem was that Nokia was used to having things centralised. But Siemens had
made decisions in a more decentralised way. This led to disagreement over how to manage
processes.
The company dealt with these differences in a novel way. They turned to people working on
the ground in all parts of the company to foster a new culture. Nokia Siemens set up a change
network of select individuals to lead change alongside senior management.
A manager who led a pilot project in Spain said: “We needed to get everyone to speak the
same language, breathe the change together and act as change leaders.”
Years after the merger, Nokia Siemens recovered its losses after a rocky start. A new culture
shaped employees’ experience and delivered results.
Virgin Money
Virgin Money became the 6th largest bank in 2020. Clydesdale Yorkshire Banking Group
(CYBG) purchased Virgin Money and took on the brand. The new bank was now providing
services to over 6 million customers in the UK.
As with all mergers, people had different strengths, weaknesses, and cultures. Paul Titterton,
Head of Distribution, explains: “We needed to engage our colleagues in new brand values.”
To do this, Virgin engaged frontline staff in conversations around brand and purpose. This
helped them to gain feedback on the change itself and make subtle adjustments as needed.
Then, instead of the Powerpoint route, a change network engaged their colleagues in 20-
minute sessions. Each session was linked to a specific KPI for the company. People had more
organic interactions with what it meant to work for Virgin.
An interesting part of Virgin Money’s approach is that it felt like personal development. One
colleague said it was the “first proper piece of personal development in all my 22 years.”
You can see how the leaders at Virgin were able to make company goals personal for people
(with a change network approach.) The outcome was a 118% growth in productivity.
Siobhan McHale joined ANZ as a change consultant in the early 2000s. She explains that
banking in Australia had become a joke. “Bank bashing had become a national sport with
politicians, community groups, unions, churches, media, and radio hosts.”
As one of the four major banks, ANZ’s reputation suffered with the rest. Around this time,
John McFarlane became CEO of the group and began a long process of culture change.
McFarlane began by listening to both staff and customers. Both felt let down in different
ways by the company. Customers were upset after years of bank closures and poor service.
Staff felt like order takers and dreaded coming to work.
This culture change would be a big project. But one thing ANZ did from the beginning was
change staff incentives so they could be different. The bank began rewarding staff for
providing great customer service. This led to some surprising actions, like staff organising
beach litter picks and community projects.
One bank teller received a panicky call from a father whose daughter was giving birth. He
needed to buy a plane ticket to see her but had lost his card. Not only was this sorted for him,
but someone at the branch got him a taxi and convinced the pilot to delay the flight by a few
minutes.
McHale said the culture at the company was completely changed. ANZ found that staff
showed dedication to serving customers when given the chance.
McFarlane increased their success by trialling a customer-first scheme in one region. When
staff beat expectations in this region, he rolled it out nationwide.
Meaning of Change :
Change is basically a variation in the common way of doing things. Whenever people
perform a task in a certain way, they get accustomed to them. They develop methods which
they can implement routinely to achieve these tasks. Any variation in these methods is
nothing but change.
Change refers to any alteration that occurs in a total work environment Generally people are
accustomed to a well-established way of life and any variation or deviation from that life may
be called a change, Organisational changes are the changes of attitude, nature and interest of
employees, technological and environmental changes related to an organisation and changes
in rules and regulations affecting the organisation. It involves equilibrium in the situation and
environment in which the people and the group exist. Thus, change is the coping process of
moving from the present state to the desired state that people, groups and organisations
undertake in response to dynamic external and internal factors that change current realities,
2) Change Affects Whole Organisation: Any change may affect the whole organisation;
some elements of the organisation may be affected more, others less; some parts may be
affected directly or indirectly.
5) Change Affects Individuals in the Multiple Roles: Change affects individuals in the
multiple roles they assume in their lives- as individuals with personal goals and interests; as
members of workgroups, organisations, or both; and as members of families responsible for
the welfare of others. Human beings often respond negatively to change because they sense a
resultant loss of control over their jobs, routines, and lives.
6) Change is Natural: It is the rule, not the exception. Slow change, which does not
characterise many contemporary organisations, seems easier to adjust than rapid change,
which individuals often equate with disruption.
i) Technology: It is a major external force that calls for change. Computer technology and
automation have made a remarkable impact on the functioning of organisations in recent
times Technological advancement is thus a permanent fixture in the business world and it
continues to demand a manager's attention as a pressure for change.
ii) Marketing Conditions: Marketing conditions are not static in nature. They are in the
process of rapid change as the desires, needs, and expectations of the customers change
frequently. Moreover, there is tough competition between suppliers and manufacturers in the
market. New media of advertisement and advertising are being used for influencing buyers.
All these factors put great pressure on modern organisations to change their technologies and
marketing strategies.
iii) Social Changes: Because of the spread of education, knowledge explosion and
government's efforts, social changes are taking place at a fast speed. The aim for social
equality has posed new challenges for management. The management has to follow social
norms in shaping its marketing, employment, and other policies.
iv) Political Forces: Political forces that lie outside and inside the country have an important
influence on large business houses, particularly transnational corporations. The interference
of government in business has raised tremendously in most countries. Many laws have been
passed to control the movements of the corporate sector. The organisations have no control
over the political and legal forces, but they have to adapt to meet the pressure of these forces.
v) Globalisation: In today's open market economy, the power players are multinationals or
transactional in every country across the globe. This has undeniably raised the level of
competition for every concerned party. Now to survive and remain afloat, an organisation
will have to compete not only with orders in its own country but also with the best ones from
the world.
vi) Workforce Diversity: It is quite apparent that the composition of today's workforce has
changed significantly over the past few years. Today we find more females reporting to work
than before. All around, the level of education is higher. The average age of individuals
working also varies a great deal with more and more people joining the workforce after
retiring from their previous occupations as well as with a sizable portion coming from the
student's sections.
vii) Changing Economic Conditions: The constantly changing economy has been very
challenging for organisations in recent years. The worldwide recession in the 90s required the
laying of working in almost every organisation. Though for a brief period in the late nineties,
there was some improvement in the economy, the recent years are again experiencing a
downward trend. All these have forced organisations to change their ways of functioning.
i) Changes in Managerial Personnel: Changes in the organisations are quite fast when
executives at the top change. Ne two executives have the same philosophy and style. The new
executive will follow his style and will like to put into practice his ideas and philosophy. This
may lead to important changes in the organisation in terms of organisation design, allocation
of work to individuals, delegation of authority, installation of controls, etc.
ii) Changes in Operative Personnel: The profile of the workforce is changing fast. The new
generations of workers have better educational qualifications, place greater emphasis on
human values and question the authority of managers. Their behaviour is very complex and
leading them to organisational goals is a challenge.
iii) Deficiencies in Existing Structure: Changes may be needed to make up deficiencies in the
present organisational setup. These deficiencies may be in the form of the unmanageable span
of management, a larger number of managerial levels, lack of coordination among various
departments, obstacles in communication, lack of uniformity in policy decisions, and so on.
v) Changes in Work Climate: Changes in the work climate in an organisation also stimulate
change. A workforce that seems unmotivated, lethargic, and dissatisfied is a symptom that
must be addressed. This kind of symptom is common in organisations that have experienced
layoffs. Employees who have escaped a lay-off may grieve for those who have lost their jobs
and may find it challenging to continue to be productive. They may worry that they will be
laid-off as well and may feel insecure in their jobs.
Significance of change:
Organizational change is necessary for companies to succeed and grow. Change management
drives the successful adoption and usage of change within the business. It allows employees
to understand and commit to the shift and work effectively during it.
Build up Competition:
Change can be big or small, easy or complex in an organization. Change does not necessarily
indicate a major transformation every time. But it can seriously help to build competition,
which can help organizations progress and develop themselves. Without change,
organizations would struggle to lift up themselves to face the competition put forward by
their competitors. Example- When a particular organization changes its way of working and
if it attracts more customers, the neighboring competitor will definitely observe the same and
would try to bring a change in his usual form of working. Thus, here change plays a very
positive role in building up competition which leads to a desire among organizations to
develop themselves more than their competitors.
Technology plays a vital role in development of an organization. Change that results from the
adoption of new technology is common in most organizations and while it can be disruptive
at first, ultimately the change tends to increase productivity and service. To beat the
competition, organizations can make use of new technologies. The same, old, obsolete ways
of doing things would not work out when the competitors would be moving fast forward with
new technologies. It also enables employees to adopt the new technology and indirectly
helps in growth of organization. For Example Toyota – the company to emulate in the
automobile industry, it has emerged to become one of the most successful organizations in
terms of establishing change management.
Types of Change:
Happened Change
This kind of change is unpredictable in nature and is usually takes place due to the impact of
the external factors. Happened change is profound and can be traumatic as it’s consequences
are unknown and out of direct control. This kind of a change happens when an organization
reaches the plateau stage in its life cycle and gets victimized by the environmental pressures
or demands. For example, currency devaluation may adversely affect the business of those
organizations who have to depend upon importing of raw materials largely. In certain cases,
some political, as well as social changes, are unpredictable and uncontrollable.
Reactive Change
Changes which take place in response to an event or a chain of various events can be termed
as Reactive Change. Most of the organizations indulge in reactive change. This kind of
change usually occurs when there is an increase or decrease in the demand for company’s
products or services. It can also be a response to a problematic situation or a crisis which an
organization may be faced with. For example, due to the advancements in technology or
growing technological changes, an organization may be forced to invest more in technology
to stay ahead to face the stiff competition. Recreation can also be regarded as a reactive
change, which involves the entire organization and occurs during the stage when an
organization is undergoing a serious crisis.
Anticipatory Change
Planned change is also regarded as the developmental change which is implemented with the
objective of improving the present ways of operation and to achieve the pre-defined goals.
Planned change is calculated and is not threatening as in this the future state is being chosen
consciously. 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.
Incremental Change
Change which is implemented at the micro level, units or subunits can be regarded as
incremental change. Incremental changes are introduced or implemented gradually and are
adaptive in nature. It is based on the assumption that these small changes will ultimately
result in a large change and establish the basis for forming a much healthier and a robust
system. It even offers an opportunity to an organization to learn from its very own
experiences and create the adaptive mechanisms for meeting the ultimate organizational
vision. The extent of damage due to a failed incremental change effort is expected to be much
lesser than the change which is implemented on a large scale or introduced universally.
Operational Change
This kind of change becomes a requirement or the need when an organization is faced with
competitive pressures as a result of which the focus is laid more on quality improvement or
improvement in the delivery of services for an edge over the competitors. Similarly, changes
in the customer’s buying patterns or demands or the internal dynamics of an organization
equally necessitate the implementation of operational change. Operational change as the
name implies means introducing changes in the existing operations for realizing the intended
goals. This may include bringing in changes in the current technology, improving/re-
engineering the existing work processes, improving the distribution framework or the product
delivery, better quality management and improving the coordination at an inter-departmental
level.
Strategic Change
Strategic Change is usually implemented at the organizational level, which may affect the
various components of an organization and also the organizational strategy. A change in the
management style in an organization could be considered as an example of strategic change.
A multinational organization like Toyota has taken a step ahead in bringing in a change in the
overall organizational philosophy for availing the advantages of being a leaner organization
structurally, flexibility, decentralized decision making and functioning of organizations and
equally allows a greater extent of freedom or autonomy in implementing proactive decisions.
This kind of change is expected to have a cascading effect on the entire organization and
accordingly would be having an influence on the overall performance.
Directional Change
Directional change may become a necessity due to the increasing competitive pressures or
due to rapid changes in the governmental control or policies, which may include changes in
the import/export policies, pricing structure and taxation policies, etc. Directional change can
also become imperative when an organization lacks the capability of implementing/executing
the current strategy effectively or during the circumstances when a strategic change is
required.
Fundamental Change
Total Change
A Total Change involves change in the organizational vision and striking a harmonious
alignment with the organizational strategy, employee morale and commitment as well as with
the business performance. Total Change becomes a requirement during those circumstances
when an organization is faced with many criticalities such as long-term business failure,
incongruence between the employee and organizational values, failure of
leaders/management in anticipating the realities of business environment or the growing
competitive pressures and concentration of power in the hands of few. A new organizational
vision along with major strategic changes as well as complete organizational surgery can be
the only solution at this point of time.
Process of Change:
Lewin‘s Model of Change
Kurt Lewin’s Three Stages model or the Planned Approach to Organizational is one of the
cornerstone models which is relevant in the present scenario even. Lewin, a social scientist
and a physicist, during early 1950s propounded a simple framework for understanding the
process of organizational change known as the Three-Stage Theory which he referred as
Unfreeze, Change (Transition) and Freeze (Refreeze).
For explaining the process of organizational change, he used the analogy of how an ice block
changes its shape to transform into a cone of ice through the process of unfreezing.
Source: www.strategies-for-managing-change.com
Stage 1 - Unfreezing: This is the first stage of transition and one of the most critical stages in
the entire process of change management. It involves improving the readiness as well as the
willingness of people to change by fostering a realization for moving from the existing
comfort zone to a transformed situation. It involves making people aware of the need for
change and improving their motivation for accepting the new ways of working for better
results. During this stage, effective communication plays a vital role in getting the desired
support and involvement of the people in the change process.
Stage 2 - Change: This stage can also be regarded as the stage of Transition or the stage of
actual implementation of change. It involves the acceptance of the new ways of doing things.
This is the stage in which the people are unfrozen, and the actual change is implemented.
During this stage, careful planning, effective communication and encouraging the
involvement of individuals for endorsing the change is necessary. It is believed that this stage
of transition is not that easy due to the uncertainties or people are fearful of the consequences
of adopting a change process.
Stage 3 - Freeze (Refreezing): During this stage, the people move from the stage of
transition (change) to a much more stable state which we can regard as the state of
equilibrium. The stage of Refreezing is the ultimate stage in which people accept or
internalize the new ways of working or change, accept it as a part of their life and establish
new relationships. For strengthening and reinforcing the new behaviour or changes in the way
of working, the employees should be rewarded, recognized and provided positive
reinforcements, supporting policies or structures can help in reinforcing the transformed ways
of working.
Mckincey 7s model
The McKinsey 7S Framework is a management model developed by business consultants
Robert H. Waterman, Jr. and Tom Peters in the 1980s. This was a strategic vision for groups,
to include businesses, business units, and teams. The 7 S's are structure, strategy, systems,
skills, style, staff and shared values.
Strategy: this is your organization's plan for building and maintaining a competitive
advantage over its competitors.
Structure: this is how your company is organized (how departments and teams are
structured, including who reports to whom).
Systems: the daily activities and procedures that staff use to get the job done.
Shared Values: these are the core values of the organization and reflect its general
work ethic. They were called "superordinate goals" when the model was first
developed.
Shared Values
Strategy Skills
Structure Style
Systems Staff
Strategy.
These elements are relatively easy to identify, and management can influence them directly.
The four "soft" elements, on the other hand, can be harder to describe, and are less tangible,
and more influenced by your company culture. But they're just as important as the hard
elements if the organization is going to be successful.
For example, it can help you to improve the performance of your organization, or to
determine the best way to implement a proposed strategy.
The framework can be used to examine the likely effects of future changes in the
organization, or to align departments and processes during a merger or acquisition. You can
also apply the McKinsey 7-S model to elements of a team or a project.
The 8 steps in the process of change include: creating a sense of urgency, forming powerful
guiding coalitions, developing a vision and a strategy, communicating the vision, removing
obstacles and empowering employees for action, creating short-term wins, consolidating
gains and strengthening change by anchoring change in the culture. Kotter’s 8 step model can
be explained with the help of the illustration given below:
1. Creating an Urgency: This can be done in the following ways:
Identifying and highlighting the potential threats and the repercussions which
might crop up in the future.
Initiate honest dialogues and discussions to make people think over the prevalent
issues and give convincing reasons to them.
Request the involvement and support of the industry people, key stakeholders and
customers on the issue of change.
Identifying the effective change leaders in your organizations and also the key
stakeholders, requesting their involvement and commitment towards the entire
process.
Identify the weak areas in the coalition teams and ensure that the team involves
many influential people from various cross functional departments and working in
different levels in the company.
Determining the core values, defining the ultimate vision and the strategies for
realizing a change in an organization.
Ensure that the change leaders can describe the vision effectively and in a manner
that people can easily understand and follow.
Communicate the change in the vision very often powerfully and convincingly.
Connect the vision with all the crucial aspects like performance reviews, training,
etc.
Handle the concerns and issues of people honestly and with involvement.
5. Removing Obstacles
Ensure that the organizational processes and structure are in place and aligned
with the overall organizational vision.
Continuously check for barriers or people who are resisting change. Implement
proactive actions to remove the obstacles involved in the process of change.
By creating short term wins early in the change process, you can give a feel of
victory in the early stages of change.
Create many short term targets instead of one long-term goal, which are
achievable and less expensive and have lesser possibilities of failure.
Reward the contributions of people who are involved in meeting the targets.
7. Consolidating Gains
Ensure that the change becomes an integral part in your organizational culture and
is visible in every organizational aspect.
Ensure that the support of the existing company leaders as well as the new leaders
continue to extend their support towards the change.
It is an easy step by step model which provides a clear description and guidance on
the entire process of change and is relatively easy for being implemented.
Emphasis is on the involvement and acceptability of the employees for the success in
the overall process.
Major emphasis is on preparing and building acceptability for change instead of the
actual change process.
Since it is a step by step model, skipping even a single step might result in serious
problems.
The process is quite time consuming (Rose 2002).
The model is essentially top-down and discourages any scope for participation or co-
creation.
Can build frustration and dissatisfaction among the employees if the individual
requirements are given due attention
Change levers:
The Five Levers Of Change Management
While some people might view change management as just communication or training,
Prosci’s research has shown that change management is most effective when it is a holistic
set of tools aimed at supporting individuals through change. In Prosci’s change management
methodology, that set of tools is called the five levers:
Communication plan
Sponsorship roadmap
Coaching plan
Training plan
Resistance management plan
We use the term “lever” because these plans allow us to put effort in one direction to achieve
more success in another direction. When we are working on these plans and activities, our
goal is not completing activities but leveraging them to drive towards employee adoption and
usage.
These five levers are the core of Phase 2 (managing change) in Prosci’s 3-Phase Process. To
be effective, each plan is customized for a project based on the assessments and strategy
developed in Phase 1 (preparing change). Customization occurs based on the size and type of
change, as well as the nature of the groups impacted by the change. Below is a definition of
each lever and description of how it supports the successful transition of individuals.
1. COMMUNICATION PLAN
People often mistakenly equate change management with communication. While many
organizations have communication departments and many project teams build
communication plans, there is often a missing component: recognizing how communication
fits into the larger change process. Communication is a critical component of implementing
change, but it is by no means the only requirement for successful change.
2. SPONSORSHIP ROADMAP
Effective sponsorship was cited as the number-one contributor to project success in all
Prosci’s change management benchmarking studies over the last two decades. Best practices
show three high-level roles of the sponsor:
Actively and visibly participating in the change
Building the coalition of support with other senior leaders and managers
Communicating directly with employees about the business reasons and nature of the
change
3. COACHING PLAN
Coaching takes place between an employee and their direct supervisor. The managers and
supervisors in an organization play a critical role in successful change:
They communicate messages about the change and how it directly impacts employees
Their attitudes toward the change filter directly and immediately to how their
employees react to the change
They identify and manage resistance
They provide recognition and reinforcement during an implementation
4. TRAINING PLAN
Resistance to change has been one of the top obstacles to successful change throughout
Prosci’s research. While resistance to any change is a natural reaction, there are steps that
organizations and managers can take to prevent and mitigate the impact of resistance. Some
might be surprised to see resistance management planning on the same level as
communication and training. You may view dealing with resistance as primarily reactive, but
there are some significant and meaningful steps that you can take early in a project to address
resistance. This is what Prosci calls proactive resistance management.
Levels of Change:
The various levels of organizational change programs may be classified into individual level
changes, group level changes and organisational level changes.
Individual Level Change Programs
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.
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 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:
Organizations are composed of numerous interrelated systems and subsystems, which in turn
may be subdivided into components and ultimately into individual elements. These systems
are designed to ensure the accomplishment of organizational goals and must, if the goals are
to be achieved, operate in harmony. Machinery, technology, procedures, policies, operatives,
supervisors and management are, depending on the view being taken, either systems,
components or elements. Once a change impacts upon the equilibrium of a system, it, along
with any interrelated systems, will be disrupted and their performance impaired.
Diagramming tools assist in defining, analyzing and manipulating the systems environment.
A review of basic flow diagramming techniques
System Diagramming
System Mapping
Influence Charts
Multiple Cause Diagram
System Mapping
Their basic function is to present a pictorial representation of the system undergoing the
change and can if necessary incorporate relevant interrelationships.
The systems map identifies the systems and any subsystems associated with the problem and
the relationship map analyses the nature of the linkages between the systems, their
components and their elements.
A system consists of component parts, or indeed subsystems, which in turn may be further
broken down. Subdivision ceases once the element level has been reached, an element being
incapable of further division.
Influence Charts
The systems map is, in many ways, only of use when it is followed by the production of
influence charts. Such charts illustrate influencing factors.
Influence diagrams connect the systems associated with the change and indicate lines of
influence. Often, depending on complexity, both systems and influence diagrams can be
shown as one.
Multiple Cause Diagram
A means of further developing the influence chart is to consider the causes associated with a
change situation or problem. Multiple cause diagrams examine the causes behind particular
events or activities and express them diagrammatically.
Such diagrams are of great value in determining the driving forces or factors behind a
particular change event. They identify ‘cause chains’ and assist in identifying the key
elements.
Implementing Change:
The Systems Model of Change or Organization-Wide Change lays more emphasis on the fact
that a change must be implemented organization-wide instead of implementing it in
piecemeal.
This model provides a whole new dimension to the concept of organizational change and
describes the role played by six interconnected or interdependent variables like people, task,
strategy, culture, technology and design. All these 6 variables are the key focus of planned
change. The model has been represented in the diagram below:
1. People: This variable involves the individuals who work in an organization. This
would take into consideration the individual differences in the form of personalities,
goals, perceptions, attitudes, attributions and their needs/motives.
3. Design: This variable refers to the organizational structure itself and also the system
of communication, authority and control, the delegation of responsibilities and
accountabilities.
4. Strategy: The organizational strategy is the road map of action for realizing the future
goals both short term and long term in nature. Strategic Planning involves
identification of existing resources, a careful assessment of internal strengths and
weaknesses, identifying the opportunities in the environment and threats as well for a
competitive advantage.
6. Culture: It takes into consideration the shared beliefs, practices, values, norms and
expectations of the members of the organization.
All the six variables as per the Systems Model of Organizational Change are interrelated and
interdependent. A change in a single variable will result in the one or more variables. For
example, a change in the organization’s strategy will lead to a change in the organizational
structure, devolution of power and authority. This will ultimately be having an affect on the
people of the organization in terms of changes in their behaviours or attitudes. Moreover,
organizational redesign may result in a cultural change by either modifying or reinforcing the
existing culture.
The Systems Approach of Change Management is a useful model, which helps the managers
or employees in understanding that a change can never be implemented partly, rather it must
be wholistic in nature by taking into consideration all the interrelated variables and their
influence on each other.
This Model of Change views the entire process of change from the top management
perspective and considers change to be a continuous process. The Continuous Change
process model is a more complex and a refined model than the Kurt Lewin’s Model of
Change. This model equally covers Lewin’s concept of change during the Implementation
stage.
According to this model, certain forces trigger a need for organizational change and the
top management is involved in a problem solving and a decision making process for
identifying the alternatives or solutions to the problems.
The top management clearly defines their goals or objectives, reforms in the processes or
change in the output which is expected to be attained at the end of the process of change.
During the early stages of change management, the top management may seek the support of
a change agent, who will be responsible for driving the entire change effort. The change
agent may help the management in identifying and defining the problems, or the change
agent may also help in generating the alternative plans of action or solutions to the problem.
The change agent may be an insider, or an outsider may be an external consultant or a
representative from the Head Quarter who might not be known to the employees of the
organization experiencing the process of change. With the direction and guidance of a
Change agent, an organization administers the change by following the Lewin’s process of
Unfreezing, Change and Refreezing.
Measurement, evaluation and control is the last step. During this stage, the change agent as
well as the top management, evaluate the degree to which a change has been effectively
implemented in an organization and how far it has yielded the desired outcomes. The change
agent may play the role of a “Collaborator” or a “Facilitator”, who works with the members
of the organization in the direction of defining and resolving the problems.
The Change Agent works along with the individuals, groups, departments and various levels
of management through the various phases of change process. The Change agent implements
new ideas and provides alternative approaches to the organizational members for dealing with
the problems. During the phase of measurement, evaluation and control, the top management
evaluates the effectiveness of change against the pre-defined indicators.
The process of transition management ensures that the business should continue while the
change is taking place. The representatives of the management team act as the transition
managers and coordinate in the process of change management along with the change agent.
During this period of transition, interim management structures or interim positions may be
designed or created for ensuring proper control and continuity of business. Effective
communication with all the key stakeholders plays a crucial role in the entire process.
In change management, the systems approach is the term given to the analysis of change
situations that is based on a systems view of the problem.
The intervention strategy model (ISM), which forms the basis of this chapter, is based on the
premise that messy change situations may be effectively managed through the application of
systems thinking (Ackoff, 1999).
The application of the systems approach is not limited to the ‘hard’ end of the change
spectrum. All management processes and structures may be described in systems terms.
Therefore a systems analysis of the change situation, no matter how complex and people-
oriented the transition may be, will provide meaningful results for the problem owner(s).
What is a system?
From the perspective of managing change, a system may be defined as being an organized
assembly of components, which are related in such a way that the behaviour of any individual
component will influence the overall status of the system. It is impossible to think of any
physical mechanism or process that cannot be described in systems terms. Most managerial
processes and functions may also be described in a systematic manner. All systems, physical
or ‘soft’ must have a predetermined objective that the interrelated components strive to
achieve.
In change management, the systems approach is the term given to the analysis of change
situations that is based on a systems view of the problem. The intervention strategy model
(ISM), which forms the basis of system approach to change, is based on the premise that
messy change situations may be effectively managed through the application of systems
thinking.
The application of the systems approach is not limited to the ‘hard’ end of the change
spectrum. All management processes and structures may be described in systems terms.
A number of important points must be noted relating to the effective and efficient use of the
model prior to investigating each of the individual stages. They are as follows:
Iterations may be required at any point, within or between phases, owing to the
inherent dynamic nature of change events. Once the desired position has been
reached, further environmental developments may cause the transition process to be
re-entered at some later date.
Problem owners and any other associated change agents should be involved
throughout. It is essential that they be committed to the initiative, as they are the
driving forces.
There is a tendency to rush through the diagnostic phase, with problem owners basing
assumptions on their own brand of ‘common sense’. Time spent getting it right first
time is seldom wasted. Specification and description are crucial to the
understanding of a change situation.
It is always advisable to attempt to produce quantifiable performance indicators in
stage 3, as they will simplify the evaluation process in stage 6.
It is virtually impossible not to start thinking about solution options during the
diagnostic phase, especially on a ‘live’ problem. There is no harm in this, but do not
skip stages. Put the options aside until stage 4.
The key idea behind total project management (TPM) consists in providing a project-thinking
organization with an enterprise-wide approach to establishing an efficient project
management system. Such a system paves the way for developing total project management
solutions (TPM solutions) through creating a project-based culture in which every project is
performed in line with the organization’s corporate strategy, and therefore every project
participant and team member can get necessary support from managers at all levels. The
system will be the foundation for implementing TPM effort and starting the project
management process.
A macro-level model of total project management includes 5 steps (see the picture below).
Taking each of the steps builds an infrastructure for implementing TPM solutions. Here are
these steps:
Communication
Assessment
Recommendation
Implementation
Validation
Because a model of total project management encompasses all of the listed steps, a project-
thinking organization needs to incorporate collaborative methods, tools, and appropriate
technologies to create a synchronized and highly productive infrastructure that tends to be
stable and flexible in a rapidly changing project environment.
Once the steps of TPM model are taken along with the standards of best practices (incl.
communication protocols, employee competency assessments, project portfolio analysis,
project methodology planning, process scheduling and mapping, application-based working
environments, team training and development), the infrastructure for achieving efficient total
project management solutions will be established.
Learning organization: The relevance of a learning organization
learning organization fosters learning at all levels with all members, and together as a
collective. Learning organizations describe the ideal context in which to embed learning
initiatives, whether mobile, online, or onsite. They become part of how learning is fostered
individually and collectively across the organization, and because they are aligned to
organizational, team, and individual goals, they are more likely to be effective.
In 1990, Senge in his seminal book “The Fifth Discipline”, provided an elaborate coverage
on the core disciplines which contribute towards building a learning organization and those
are shared vision, learning of teams, systemic approach, personal mastery and mental models.
Organizational Learning can be interpreted in terms of a continuum from progresses from the
stage of no learning to the complete learning stage. No learning stage is characterized by
rigidities, insensitive approaches or closed attitude towards sharing of realities and
experiences. While, on the other hand, full learning stage characterizes openness, flexibility
and adaptability towards the changing events or experiences. There are several forces or
mechanisms which contribute towards establishment of learning organizations.
3. Laboratory training methods based on experienced behaviour are primarily used to bring
change.
4. O.D. uses change agent (or consultant) to guide and affect the change. The role of change
agent is to guide groups towards more effective group processes rather than telling them what
to do. Change agents simply assist the group in problem solving processes and the groups
solve the problems themselves.
5. There is a close working relationship between change agents and the people who are being
changed.
6. O.D. seeks to build problem-solving capacity by improving group dynamics and problem
confrontation.
7. O.D. reaches into all aspects of the organization culture in order to make it more humanly
responsive.
8. O.D. is a long term approach (of 3 to 5 years period) and is meant to elevate the
organization to a higher level of functioning by improving the performance and satisfaction
of organization members.
10. O.D. is a dynamic process. It recognises that the goals of the organization change and
hence the methods of attaining them should also change.
11. O.D. utilizes systems thinking. It is based on open, adaptive systems concept. The
organization is treated as an interrelated whole and no part of the organization can be
changed without affecting other parts.
12. O.D. is research based. Change agents conduct surveys, collect data, evaluate and then
decisions are taken.
13. O.D. uses group processes rather than individual process. It makes efforts to improve
group performance.
1. Problem identification—Diagnosis:
O.D. program starts with the identification of the problem in the organisation. Correct
diagnosis of the problem will provide its causes and determine the future action needed.
4. Evaluation:
OD is a long-term process. So there is a great need for careful monitoring to get process
feedback whether the O.D. programme is going on well after its implementation or not. This
will help in making suitable modifications, if necessary. For evaluation of O.D. programme,
the use of critic sessions, appraisal of change efforts and comparison of pre- and post-training
behavioural patterns are quite effective.