Unit 2

Driving Forces and

Levels of Change

An Experiential Approach to Organization Development 7th edition Chapter 2

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 A Four-Tier Model
 This model utilises a holistic view in understanding
the various internal and external forces to change.
 Global arena
 Regional and subregional arena
 National context
 Organisation: Individual, Group/ Team and
Organisation level

An Experiential Approach to Organization Development 7th edition Chapter 2

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 Globalisation

 Globalisation is intertwined with the rise of

technology and the existence of permeable
boundaries,exposing countries such as South Africa
to international competition.
 The global arena also brings about international
diversity, changing the nature of workand its
workforce.
 Political environment has a great influence on
change of legislation and regulations

An Experiential Approach to Organization Development 7th edition Chapter 2

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 FORCES OF CHANGE – NATURE OF
WORKFORCE
Force of Change Implications
• Greater degree of cultural Effective management
diversity in Organisations of cultural diversity
• Increase in professionals Intellectual capital
management
• Many new entrants and Strategic human
many with resource management
inadequate skills

An Experiential Approach to Organization Development 7th edition Chapter 2

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FORCE OF CHANGE – TECHNOLOGY
Force of Change Implications

Faster and cheaper Effective technology and

computers relationship Management of
TQM

Total Quality Management Effective implementation of

(TQM) the principles

• Re-engineering programmes Effective knowledge

management

An Experiential Approach to Organization Development 7th edition Chapter 2

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 FORCES OF CHANGE – ECONOMIC
Forces of Change Implications
Increased oil prices

Increased petrol prices

Volatility of the South African

Need for sustainable
rand and high inflation rates
development
Electricity shortages

Attacks in the US

An Experiential Approach to Organization Development 7th edition Chapter 2

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FORCES OF CHANGE – COMPETITION

Forces of Change Implications

Global competitors Need for strategic
Mergers and acquisitions planning and
Management
Growth of Internet
Commerce
Need to attain Business
Excellence

An Experiential Approach to Organization Development 7th edition Chapter 2

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 FORCES OF CHANGE – SOCIAL TRENDS
Forces of Change Implications
Delayed marriages by young
people
Increased divorce rates
Smaller families
Need for early
Quality of life and increased
focus on leisure
recognition of market
opportunity
Popularity of sport utility vehicles
Attitude towards smokers
HIV/ AIDS

An Experiential Approach to Organization Development 7th edition Chapter 2

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 FORCES OF CHANGE – WORLD POLITICS
Forces of Change Implications
Opening of markets in
China Need to identify, sustain
and exploit a
competitive advantage
Post-apartheid entry into
the global arena

An Experiential Approach to Organization Development 7th edition Chapter 2

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 FORCES OF CHANGE – REGIONAL
ARENA
 A marginalised political level
 Poor social indicators – High levels of
malnutrition, illiteracy, unemployment, low life
expectancy, etc.
 Regional economy

An Experiential Approach to Organization Development 7th edition Chapter 2

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 FORCES OF CHANGE – NATIONAL
CONTEXT
 Demographic profile consists of differences in age
distribution, official languages,
 education levels and unemployment rates

An Experiential Approach to Organization Development 7th edition Chapter 2

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 INTERNAL FORCES OF CHANGE
 The Individual Level – Individuals differ in terms
of personality, values, interests, etc. which creates
a complex situation in understanding how each
individual behaves and operates in an
organisation.
 Individuals accumulate knowledge and
 experience, creating a workforce with diverse
thinking and insights.
An Experiential Approach to Organization Development 7th edition Chapter 2
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 INTERNAL FORCES OF CHANGE
 Group Level – teams and groups in organisations
can be constituted in a number of ways that allows
for an array of teams and groups to exist and
function differently in the workplace.
 “Task and project teams allow an organisation to
operate in a more flexible way and, as a
consequence, an organisation can be more
responsive to its business environment.
An Experiential Approach to Organization Development 7th edition Chapter 2
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 INTERNAL FORCES OF CHANGE
Organisational Level – At this level, changes at a
strategic level or changes influenced by internal or
external forces can impact on the entire system of
the organisation. Changes in this level can focus
onorganisational design, culture, structure or
operations

An Experiential Approach to Organization Development 7th edition Chapter 2

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 Contingency Approach

Considers organization and environment.

Identifies “if-then” relationships.
Suggests change directions.

An Experiential Approach to Organization Development 7th edition Chapter 2

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 Future Shock and Change

Too much change in too short a time.

Inability to adapt to accelerating rates of
change.
Management reaction to change strained.
Managers must be adaptable and flexible.

An Experiential Approach to Organization Development 7th edition Chapter 2

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 Table 2.2
Millennial Megatrends: Gateways to Twenty-first
Century

An Experiential Approach to Organization Development 7th edition Chapter 2

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 Key Words and Concepts

 Client System - organization employing a

practitioner to assist them in planning
change.
 Closed systems - self-contained and isolated
from environment.
 Content - task of the group.

An Experiential Approach to Organization Development 7th edition Chapter 2

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 Contingency approach - attempt to determine
proper management technique to employ.
 Dynamic equilibrium - steady state, reacting
with environment.
 Entropy - movement toward disorder and
eventual termination.

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