DR. MRS.

ABIGAIL OPOKU MENSAH

LECTURE 9
ORGANISATIONAL CHANGE AND DEVELOPMENT
Nature of organizational change
 Nature and definition of Leadership
Organisational change is an alteration of an organisation’s environment,
structure, culture, technology, or people.
Organisational change refers to any change that occurs in the work
environment. The change could be minor or major.
Nature of organizational change
• Changes at the individual level can be facilitated by offering special
training to particular employees to handle a new assignment.

• At group level, team building efforts can be initiated to operate

interactively in a smooth and harmonious fashion so as to increase
their effectiveness.

• Changes can be brought at the technological level through

implementation of sophisticated and more effective machines or by
better ways of doing things.

• At the structural level, job can be redesigned or new policies

initiated which serve the needs of both employees and the
organisation.
External factors
• Technological developments; to retain and advance in competitive
market, it is very important for organisations to keep themselves up
to date with technological advancements, which are taking place at
very fast rate.
• Competitive environment; Competitors are not from only local area
but from throughout the world. This compels every business
organisation to retain quality, lower prices, and customer
satisfaction, in order to survive the competition.

• Social and political pressure; ethical principles, values and priorities

of customers and political circumstances change from society to
society. Managers are also expected to adjust their management
External factors

• Changes in workforce diversity; there is now increase in diversity of the

workforce, probably as a result of more women entering the labour market.
Moreover, gender based shifts are now occurring in the organisation. Increasing
diversity of workers has brought in a wide array of differing values, perspectives and
expectations among workers. Employees are more educated and consequently
expect more involvement and interesting work.

• `Economic environment; the general macroeconomic outlook of a country has

implications for business organisations operating in that environment. High interest
rates, increasing inflation, high government budgets deficits and deteriorating
exchange rates create conditions that may force organisations to change.
Internal factors
• Inter-relationship; dissatisfaction among employees regarding about the
working conditions and individual and organisational needs may lead to conflict
between management and employees. Excessive interpersonal conflict is often a
clear sign that change is needed.
• Human resource problems/prospects; these problems stem from employee
perceptions about how they are treated at work and the match between individual
and organisation needs and desires. Organisations might respond to these problems
by using the various approaches to job design, by implementing realistic job
previews, by reducing employees' role conflict, overload, and ambiguity.
• Employee attitudes; employee attitudes such as increased job satisfaction may
lead to increased absenteeism, more voluntary resignations, and even labour strikes.
Such events will often lead to changes in management policies and practices.
Internal factors

• Managerial behaviour/decisions; excessive interpersonal conflict between

managers and their subordinates is a sign that change is needed. Both the manager
and the employee may need interpersonal skills training, or the two individuals may
simply need to be separated. Leadership training is one potential solution for this
problem. Inequitable reward systems are additional forces for change.

• Strategy; a redefinition or modification of an organisation’s strategy often

introduces a host of change.
Types of organizational change

Unplanned versus planned change

Unplanned change usually occurs because of a major, sudden
surprise to the organisation, which causes its members to respond
in a highly reactive and disorganised fashion.

Planned change occurs when leaders in the organisation recognise

the need for a major change and proactively organise a plan to
accomplish the change. Planned change occurs with successful
implementation of a Strategic Plan, plan for reorganisation, or
other implementation of a change of this magnitude.
Types of organizational change

Transformational Versus Incremental Change

An example of transformational (or radical, fundamental) change
might be changing an organisation’s structure and culture from
the traditional top-down, hierarchical structure to a large amount
of self-directing teams. Transformational change is sometimes
referred to as quantum change.

Examples of incremental change might include continuous

improvement as a quality management process or
implementation of new computer system to increase efficiencies.
Many times, organisations experience incremental change and its
leaders do not recognise the change as such.
Types of organizational change

Organisation-wide versus subsystem change

Usually, organisations must undertake organisation-wide change
to evolve to a different level in their life cycle, for example, going
from a highly reactive, entrepreneurial organisation to one that
has a more stable and planned development.

Examples of a change in a subsystem might include addition or

removal of a product or service, reorganisation of a certain
department, or implementation of a new process to deliver
products or services.
 What do organizations change?
• Structure
• Technology and work processes
• Organisational culture
• People (attitude, expectations, perceptions and behaviour)
Approaches to managing organizational change

Lewin’s Change Model

Most theories of organisational change originated from the landmark

work of social psychologist Kurt Lewin. Lewin developed a three‑stage
model of planned change which explained how to initiate, manage,
and stabilise the change process.

The three stages are unfreezing, changing, and refreezing.

 Implementing successful change

In order to implement a successful change, due care musts be taken for the
following factors;

• Pressure for Change: pressure for change is necessary otherwise employees will
never place a high priority on the desired change.
• A clear, shared vision: this helps the employees to understand the purpose for the
change and to gain a commitment to it.
• Actionable first steps: this facilitates the employees to start the change process
immediately. Even a small wins attained by the employees will be encouraged and
allows employees to feel a positive sense of achievement and the beginning of the
problem.
• Capacity for change: this refers to the resources and skills necessary to
implement the change adequately.
Resistance to Change
Resistance to Change
Reducing Resistance to Change

• Education and Communication

• Participation and Involvement

• Facilitation and Support

• Negotiation and Agreement

• Manipulation and Cooptation

• Stress management
Organisational Development
Organisational Development
Organisational development (OD) is an application of behavioural science to
organisational change. It encompasses a wide array of theories, processes, and
activities, all of which are oriented toward the goal of improving individual
organisations.

OD stresses carefully on planned approaches to changing or improving

organisational structures and processes, in an attempt to minimise negative
side effects and maximise organisational effectiveness.

OD differs from traditional organisational change techniques in that it typically

embraces a more holistic approach that is aimed at transforming thought and
behaviour throughout an entity. However, OD initiatives are usually
distinguished by the use of "action research," change agents, and "interventions.
"
Implementing OD programmes

OD efforts basically entail two groups of activities;

• Action research
• Interventions

Action Research
It is a process of systematically collecting data on a specific organisation, feeding
it back for action planning, and evaluating results by collecting and reflecting on
more data.

Data gathering techniques include everything from surveys and questionnaires

to interviews, collages, drawings, and tests. The data is often evaluated and
interpreted using advanced statistical analysis techniques.
Action research can be thought of as the diagnostic component of the OD process.
Interventio
ns
OD interventions are plans or programs comprised of specific activities
designed to effect change in some facet of an organisation.

Numerous interventions have been developed over the years to address

different problems or create various results. However, they are all geared
toward the goal of improving the entire organisation through change.

In general, organisations that wish to achieve a high degree of organisational

change will employ a full range of interventions, including those designed to
transform individual and group behaviour and attitudes.

Entities attempting smaller changes will stop short of those goals, applying
interventions targeted primarily toward operating policies, management
structures, worker skills, and personnel policies.