Revision Sheet

ORGANIZATIONAL
CHANGE
Management Revision Notes

for RBI Grade B Exam

Organizational Change Management Revision Sheets

RBI GRADE B REVISION SHEETS

MANAGEMENT SECTION
ORGANIZATIONAL CHANGE

INTRODUCTION:

Organisational change: The process by which organisations move from their present
state to some desired future state to increase their effectiveness.

Factors Necessitating Organizational Change:

External Factors can be Technological changes, Changes in market conditions, social
changes, and Political and legal changes
Internal Factors can be change in managerial personnel and inefficiency in existing
Organizational practices

CHARACTERISTICS OF EFFECTIVE CHANGE PROGRAMMES

Effective planned change efforts are often characterised by some common
characteristics. For example, effective change programme may involve:
• Motivating change by creating a readiness for the change among employees and
attempting to overcome resistance to change
• Creating a shared vision of the desired future state of the organisation
• Developing political support for the needed changes
• Managing the transition from the current state to the desired future state
• Sustaining momentum for change so that it will be carried to its completion
Organizational Change Management Revision Sheets

SYSTEMS MODEL OF CHANGE

Organisation-wide Change: Meeting the challenge posed by the organisation

change often means not doing things piecemeal. To be successful, change usually
must be organisation-wide.
Organizational Change Management Revision Sheets

• The Systems Model of Change describes the organisation as six interacting

variables that could serve as the focus of planned change: people, culture, task,
technology, design, and strategy.
• The people variable applies to individuals working for the organisation, including
their individual differences- personalities, attitudes, perceptions, attributions,
needs and motives.
• The culture variable reflects the shared beliefs, values, expectations, and norms
of organisational members.
• The task variable involves the nature of work itself— whether jobs are simple or
complex, novel or repetitive, standardised or unique.
• The technology variable encompasses the problem solving methods and
techniques used and the application of knowledge to various organisational
processes.
• It includes such things as the use of information technology, robots, and other
automation, manufacturing process tools and techniques. The design variable is
the formal organisational structure and its system of communication, control,
authority, and responsibility.
• Finally, the strategy variable comprises the organisation’s planning process and
includes decisions about how the organisation chooses to compete. It typically
consists of activities undertaken to identify organisational goals and prepare
specific plans to acquire, allocate, and use resources in order to accomplish
those.

LEWIN’S FORCE FIELD ANALYSIS MODEL

• Psychologist Kutt Lewin developed the Force Field Analysis model to help us
understand how the change process works.
• Lewin’s Force Field Analysis model remains the prominent way of viewing this
Organizational Change Management Revision Sheets

process.
• Kurt Lewin suggests that efforts to bring about planned change in an organisation
should approach change as a multistage process. His model of planned change is
made up of three steps— unfreezing, change, and refreezing

• Unfreezing is the process by which people become aware of the need for change.
If people are satisfied with current practices and procedures, they may have little
or no interest in making employees understand the importance of a change and
how their jobs will be affected by it.
• Refreezing makes new behaviour relatively permanent and resistant to further
change.
• Examples of refreezing techniques include repeating newly learned skills in a
training session and role-playing to teach how the new skills can be used in a
real-life wok situation.

ORGANISATION CHANGE AND STRATEGIES

There is large number of strategies for organisation change but action research seems to
be appropriate.

1. Action research
• Action research refers to a change process based on the systematic collection of
data and then selection of a change action based on what the analyzed data
indicate.

2. Diagnosis:
• The change agent, often an outside consultant in action research, begins by
gathering information.

3. Analysis:
• The information gathered during the diagnostic stage is then analyzed.
Organizational Change Management Revision Sheets

4. Feedback:
• Action research includes extensive involvement of the change targets.

5. Action:
• Now the ‘action’ part of action research is set in motion. The employees
and the change agent carry out the specific actions to correct the problems
that have been identified.

6. Evaluation:
• Finally, consistent with the scientific underpinnings of action research, the
change agent evaluates the effectiveness of the action plans. Using the
initial data gathered as a benchmark, any subsequent changes can be
compared and evaluated

Planned Change
Planned change or developmental change is undertaken to improve the current way of
operating. It is a calculated change, initiated to achieve a certain desirable
output/performance and to make the organization more responsive to internal and
external demands.

Theories of Planned Change:

KURT LEVIN’S Kurt Lewin’s Three Stages model or the Planned Approach to
THREE STAGE Organizational is one of the cornerstone models which is relevant in the
MODEL:
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).
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According to Lewin, Change for any individual or an organization is a complicated

journey which may not be very simple and mostly involves several stages of transitions
or misunderstandings before attaining the stage of equilibrium or stability.

Action Research is a useful method for facilitating organizational change

2. Action
by collaborating and involving the client in the entire process of
Research
Model: diagnostic, problem identification, experiential learning, and problem-
solving process.
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The positive model focuses on what the organization is doing right. It

POSITIVE helps members understand their organization when it is working at its
MODEL: best and builds off those capabilities to achieve even better results.

5 Stages of Positive Model are:

1. Initiate the Inquiry

2. Inquire into Best Practices
3. Discover the Themes
4. Envision a Preferred Future
5. Design and Deliver Ways to Create the Future
Organizational Change Management Revision Sheets

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