EBUS1624/EFBM2625

General Management
Study pack

Chapter 8
Organisational
Change and Learning

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 SECTION A
PDF slides

These slides are a summary of the chapter. It

is highly recommended to read through the
chapter in the textbook.

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EBUS1624/EFBM2625
Chapter 8: Organisational change and learning
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 Learning outcomes

• Understand and explain the changing world of work.

• Discuss the concept of the organisation as a dynamic social
system.
• Diagnose various types or areas of change.
• Identify and discuss the triggers and forces of change within a
multi-dimensional environment.
• Describe and contrast three major models of planned change.
• Explore the nature of organisational change, and the reasons
for resistance to change at personal and organisational level.
• Outline the definition, evaluate the benefits, and discuss the
characteristics and relationship between organisational
learning and performance.
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 Introduction

• Organisations find themselves in an environment marked by

radical and intensive change.
• In order to survive and remain competitive, organisations are
compelled to change – to restructure the organisation.
• It has therefore become incumbent upon managers to be able
to manage change.
• Resistance is a normal human response to change – change is
managed both from an individual and an organisational
perspective.
• One way of becoming resilient, and change fit, is to strive
towards becoming a learning organisation.
• Learning organisations have specific, distinguishing features.
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 The changing world of work

• The rapid pace of technological, socio-economic, political, and

global development has resulted in change becoming an all-
encompassing, inevitable, and persistent distinguishing feature of
organisational life.
• The premise is that organisations:
– will have to acquire the capacity to anticipate and become responsive
to internal and external influences, in order to remain sustainable
over the long term;
– have to continually find ways of renewing themselves, in an attempt
to enhance productivity, contain operating costs, and to increase
their competitive agility;
– are influenced by internal and external forces in a unique way – see
figure 8.1; and
– are confronted by industry-specific technological advances and
change in demographics of the workforce.
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The changing world of work (cont.)

Figure 8.1 The

organisational
environment
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 The changing world of work (cont.)

• Large-scale change occurs as a result of the following disruptions:

– Industry discontinuities: revolutionary changes in political,
economic, or technological conditions.
– Product life cycle shifts: requiring different business strategies
or models.
– Internal company dynamics: changes in the size, strategy, or
turnover.

• A typical definition of an organisation is that it is a:

– social entity, that has
– a specific purpose, with a
– set boundary (inside vs. outside),
– governed by patterns of processes and activities, resulting in a
– recognisable structure. 8
The organisation as a dynamic social system

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 Forces for change

Volatile forces

• Unpredictable economic and

business environment.

• Challenges and opportunities

presented by globalisation.

• Governmental intervention in the

economy.

• Demanding labour union agendas.

• Divergent political interests.

• Fight for scarce, limited resources.

• Rapid advances in technology.

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 Forces for change (cont.)

General forces Systemic forces

• A variety of outsourcing models

• Consumers are becoming are available.
more knowledgeable.
• A consistent struggle of
• More flexible work determining the “core business” of
structures. the organisation.

• Change in the composition • Fragmentation of work and its

of the workforce. subsequent impact.

• Internal organisational • Managing the negative impact of

conflict. technology on employment.

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 Forces for change (cont.)

Internal organisational force

• The challenge of ageing

organisations.

• Inadequate human resource

planning.

• The temptation of “doing more

with less”.

• Change fatigue in the absence of

change flexibility.

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 Types of organisational change

• Strategic change – the changing market

conditions
• Structural change – e.g. downsizing or creating
department
• Technological change – new manufacturing
equipment or new computer system
• Behavioural or people change – optimising the
organisational talent
• An integrated approach
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 Approaches to managing the change process

Lewin model

• About the interaction of dynamic forces which result in stable systemic

behavior.
• Two sets of behavioral forces are always at play:
− Those working against change to maintain the status quo.
− Those working against the status quo to bring about change – a
“quasi-state equilibrium” is achieved when these forces are equal in
strength.
• Change is therefore effected by the following:
− Enhancing the forces pushing for change.
− Undermining the forces maintaining the status quo.
OR
− A combination of both.
• Assumption is that an increase in the pushing forces would result in
higher levels of resistance to change.
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Approaches to managing the change process (cont.)

Lewin model (cont.)

Lewin’s fundamental contribution to organisational change is his three-step

model:
• STEP 1: UNFREEZING
• Involves reducing the forces in favour of the current situation – current
way of operating is no longer viable.

• STEP 2: MOVING
• Alteration of organisational behaviour to new behaviours in line with the
desired state – unlearning and relearning new sets of thinking and
behaving.

• STEP 3: REFREEZING
• Involves the stabilisation of the organisation at the new level –
management must set the example through their behaviour; recognising
and rewarding new behaviours.15
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Approaches to managing the change process (cont.)

Lewin model (cont.)

• Extension of Lewin’s three-step model is Kotter’s eight-step

process which involves the following:
• Establishing a sense of urgency
• Creating a guiding coalition Unfreezing
• Developing a vision and strategy
• Communicating the change vision
• Empowering broad-based action
Moving
• Generating short-term wins
• Consolidating gains and producing more change
Refreezing
• Anchoring new approaches in the culture
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Approaches to managing the change process (cont.)

Action research model

• It involves a collective, collaborative, yet iterative process with

all stakeholders – from data collection and analysis to action
planning, implementation, and evaluation.

• There are eight main steps to action research:

• STEP 1: PROBLEM IDENTIFICATION
• STEP 2: CONSULTATION WITH A RELEVANT EXPERT
• STEP 3: DATA COLLECTION AND INITIAL ASSESSMENT
• STEP 4: FEEDBACK TO CLIENT
• STEP 5: JOINT PROBLEM DIAGNOSIS
• STEP 6: JOINT ACTION PLANNING
• STEP 7: ACTION
• STEP 8: POST ACTION DATA COLLECTION
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Approaches to managing the change process (cont.)

The positive model

• Lewin’s model and the action research approach are primarily

deficit-based, i.e., they focus on what is wrong.
• The positive model emphasises what is going right in the
organisation.
• Appreciative Inquiry (AI) process is an application of the positive
model.
• The five phases of the AI process:
• PHASE 1: INITIATE THE INQUIRY
• PHASE 2: INQUIRE INTO BEST PRACTICES
• PHASE 3: DISCOVER THE THEMES
• PHASE 4: ENVISION A PREFERRED FUTURE
• PHASE 5: DESIGN AND DELIVER WAYS TO CREATE THE FUTURE
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 Criticism of planned approaches

• Planned approaches to change have been

criticised because of their questionable
application to organisations within a rapidly
changing environment.
• Newer perspectives on change, such as
continuous improvement and organisational
learning, have been suggested.
➢Table 8.1 lists some actions for effective
change.
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 Criticism of planned approaches
Actions to introduce effective change
1 Analyse the organisation and its need for change. Stakeholders need to understand the nature and
rationale for the change.
2 Create a shared vision and a common direction. A credible, competent team must provide
inspirational leadership in support of the change.
3 Separate from the past. Stakeholders need to move out of, and away from, their comfort zone. It
cannot be business as usual.
4 Create a sense of urgency. What is in it for me? What are the consequences of not changing?

5 Support a strong leader role.

6 Line up political sponsorship. One of the critical contributors to successful change is effective
sponsorship.
7 Craft an implementation plan. Adopt a project management approach to change.
8 Develop enabling structures. In the absence of structures to contain anxieties and support during
this uncertain phase, people will tend to return to the familiarity of the comfort zone.

9 Communicate, involve people, and be honest.

10 Reinforce and institutionalise change. Make
21 change stick, by celebrating successes and rewarding
positive behaviours.
 Resistance to change
Individual resistance

• Change uncertainty.

• Selective perception.

• Fear of the unknown.

• Attraction of habit and the

disruption of routine.

• Loss of freedom and other

benefits.

• Threat to power, social

networks, or security.
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 Resistance to change (cont.)

Organisational resistance

• Political resistance: threats

to power, influence, and
stability.

• Cultural resistance:
organisational norms and
culture.

• Technical resistance: mutual

trade, working
arrangements, and
agreements.

• Dynamic resistance: long-

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term investments.
 Overcoming resistance to change
• Resistance to change (i.e., the
thinking processes regarding the
impact of the change) has become a
common characteristic of
organisational life.

• How to manage resistance

• Motivate commitment.
• Understand the human response
to change.
• Show empathy and support.
• Ensure consistent
communication.
• Foster individual involvement.
• Management must play a
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containing role.
 Creating a learning organisation
“This imperative for continual change and improvement translates into
one key capability; the need for continuous organisational learning. It is
something every business needs to excel at, and the lessons come from
making mistakes, learning from industry leaders and competitors,
customers, suppliers, academic partners, and other sectors.”

• What is a learning organisation?

• Knowledge is continually created in the interest of the
organisational objectives – it is critical for managers to set the
tone by being active learners themselves.
• Entrenched in a learning organisation is that a “blaming culture”
is replaced with a “culture of ownership”, and a culture of
learning.
• Learning is organisational in so far as it is done to result in
organisational purpose and objectives.
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 Creating a learning organisation (cont.)

Core values and norms

• It supports the firm belief that every member in the organisation

has untapped human potential.
• It values the diverse forms of knowledge and learning styles.
• It supports explicit development of creative thinking.
• It adopts a non-judgemental approach to others and their ideas.
• It actively breaks down traditional barriers.
• It reduces distinctions made between organisations and
members (leaders versus followers).
• It encourages dialogue between stakeholders with different
perspectives.
• It supports the firm belief that everyone is a leader. Lead from
where you stand. 26
 Creating a learning organisation (cont.)
Core processes

• The relationship between organisational learning and

performance also reflects the interrelated activities that are at
the core of organisational learning.
• These activities are:
– Discovery is when a discrepancy between the actual and the
desired state is detected.
– An invention (intervention) is then devised to address this
discrepancy.
– Solutions are implemented through the process of production.
– The beauty of learning organisations is that lessons learnt from
specific initiatives are reflected upon and applied to similar
situations in other areas throughout the organisation – known
as generalisation. 27
 Creating a learning organisation (cont.)

Distinguishing features of learning organisations

• There is consistent, deliberate collaboration throughout the
organisation and across all boundaries.
• There is constant action and structured reflection, and modifications
are made, informed by evaluations.
• There is active thinking, collective contribution, and improvised
implementation.
• There is access to real-time data and, therefore, the best possible
knowledge, to effect relevant changes.
• There is continuous planning, re-examination of planning, and the
changing of plans, which is made known to all throughout the
organisation.
• There is value in learning, so all employees are encouraged to learn.
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 Summary

• The dynamic intricacies of the modern world of work were

presented.

• Internal and external forces pushing organisations to change

were discussed, as well as the approaches to manage planned
organisational change. Notable are Lewin’s three-step model,
the action research approach, and the more recent positive
model.

• In creatures of habit, change evokes individual and

organisational resistance.

• The importance of creating and nurturing learning organisations

was emphasised.
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 SECTION B
Work activities

These activities will assist you when you work

through the chapter and to make your own
summary of the content

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Chapter Synopsis and Activities

Chapter 8: ORGANISATIONAL CHANGE AND LEARNING

OUTCOMES
After studying this chapter, you should be able to:

 Understand and explain the changing world of work;

 Discuss the concept of the organisation as a dynamic social system;
 Diagnose various types or areas of change;
 Identify and discuss the triggers and forces of change within a multi-dimensional
environment;
 Describe and contrast three major models of planned change;
 Explore the nature of organisational change and the reasons for resistance to change at
personal and organisational level;
 Outline the definition, evaluate the benefits and discuss the characteristics and
relationship between organisational learning and performance.

8.1 The Changing World of Work + the Organisation as a Dynamic Social System

Exercise You already know that the business world changes continuously. It is important
for businesses to adapt to change in order to survive. You need to understand the
sources and effects of change and how the organisation fits into the changing business
landscape.

Step 1: Review the theory on the changes (Section 8.2 in the text book). Make notes to
explain the concepts in this section. There is some space for notes below.

Step 2: Define the concept of an organisation.

Step 3: Study the figure that describes the organisation as a dynamic social system. Can
you explain this to a friend?

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8.2 Forces of Change
Indicate and describe the four forces for change. Make sure you include all detail.

Force of change Description

1.

2.

3.

4.

8.3 Types of Change

Change is all around, and we all know this due to Covid 19. What types of organisational change are
organisations exposed to? Create a mindmap to explain this.

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8.4 Models of Change
In this section we explore 3 major models which can be used by organisations to cope with external
changes and make change happen within the organisation itself.

Exercise: Use the following pages to make short notes on these 3 models.

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8.5 Organisational Change + Resistance

By this time you are used to online learning and teaching. You suddenly receive an email from the UFS to
indicate that you need to return to campus next week.

Questions:

1. How has the status quo changed?

2. How do you feel and react?
3. How do the other students feel and react?
4. Do you think that there was resistance to change?

Exercise: Think of yourself in this fictitious scenario. What was your own reaction to the
change that was announced by the UFS?

Step 1: Now, refer to the 6 elements of Individual Resistance in your text book.

Step 2: Measure and compare each of these elements to the scenario and write notes on
each.

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Remember that change does not only affect an individual, but it also creates a ripple effect which
spreads throughout the entire organisation.

List the 4 reasons for organisational change. Ensure that you know what each of them is.

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How to Overcome Resistance to Change?

Exercise: Refer back to the fictitious scenario of the change in contact session day and
time.

Step 1: Now, refer to the 6 elements in your text book on how resistance to change can
be managed.

Step 2: Using these elements, write recommendations to your facilitator on how he/she
could have managed the change better. Be sure to explore and write notes on all 6.

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8.6 What is a Learning Organisation?

Provide a definition here:

* For the rest of the chapter, do your own summary/notes. This will enhance
your understanding of the work.*

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CHAPTER SUMMARY

• The dynamic intricacies of the modern world of work

were presented.
• Internal and external forces pushing organisations to
change were discussed, as well as the approaches to
manage planned organisational change. Notable are
Lewin’s three-step model, the action research
approach, and the more recent positive model.
• In creatures of habit, change evokes individual and
organisational resistance.
• The importance of creating and nurturing learning
organisations was emphasised.

VIDEOS
= Lewin Model.
 No Questions are asked on this video, it’s for knowledge enhancement.

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 SECTION C

Practice questions and answers

These questions and answers were taken

from previous tests and exams. Sometimes
special exercise questions are also included
to help you reflect and master the content.

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Practice Questions

Questions

1. Name the types of organisational changes an organisation can implement in attempt to

enhance organisational efficiencies.

2. Business management theory states that ‘individuals in organisations are likely to

experience individual resistance to change’. Name any four (4) of these

3. Name and discuss any three (3) reasons that an organisation may resist change.

4. Discuss the forces pushing for organisational change within the South African context.
Provide relevant examples.

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Answers

Question 1

 Structural change 
 Structural changes 
 Technological change 
 Behavioral change 
 An integrated approach 

Question 2

Any 4 of the following*

 Change uncertainty 
 Selective perception 
 Fear of the unknown 
 Attraction of habit and the disruption of routine 
 Loss of freedom and other benefits 
 Threat to power, social networks or security 

Question 3

• Political resistance: Threats to power, influence and stability  – Groups of people

become comfortable in the way they operate and may perceive changes as a threat
to their power and influence. 
• Cultural resistance: Organisational norms and culture – Organisational culture “the
way things are done here” is hard to change overnight as it has been built over time
subgroups in organisation prefer to keep the status quo. 
• Technical resistance: Mutual trade, working arrangements and agreements  – enter
into contracts with other stakeholders and it may be very costly to teams to stop and
suspend the trouble agreements. 

• Dynamic resistance: Long-term investments  – investments and technology that could

serve as an inhibitor of change. 

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Question 4

Students must try to provide relevant examples. The forces are:

 Volatile forces  – these forces are primarily external to the organisation and
create ever-changing conditions. 
 General forces – like consumers who are becoming more knowledgeable,
demanding and quality conscious. 
 Systemic forces – like a consistent struggle to determine the “core business”
of the organisation and the fragmentation of work. 
 Internal organisational forces – like the challenge of an ageing organistaion,
inadequate human resource planning, etc. 

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 SECTION D
Questions to ask your academic
partner*

These questions will either be discussed in

the collaboration session or were included to
stretch your mind. Feel free to ask your
academic partner if you have trouble
answering them.

* “Academic partner” could be anyone who is part of the teaching team.

This includes lecturers, facilitators, tutors, etc.

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Tutorial discussion questions
Question 1

1.1 Organisational change is not always successful. Identify reasons that can cause
resistance to change, make an example and motivate your answer.

1.2 Discuss the forces pushing for organisational change within the South African
context, provide relevant examples.
1.3 What will the impact of the fourth industrial Revolution on employees,
management and the workplace? How could management help employees to
cope with the demand and seize the opportunities presented by the new era?

Question 2

Read the short case study below and the answer the question that follows:
STS is a transporting unit initiated by KPM and works as an intermediary between KPM and
Transporters. Its main task is to arrange the trucks at a reasonable cost and then follow the clients
of KPM until the consignment is reached at the destination. On the other hand, when raw
material arrives at a port, it arranges the containers and follows the service providers until the
consignment reaches its base station in Kempton Park. STS has a large number of employees who
work in different departments. Recently it has to undergo a number of changes with respect to
its functionality so that the work may be finished with greater speed. New technologies had been
adopted especially in the field of Information Technology and other departments.

2.1 Explain the positive model (appreciative inquiry) and discuss how the five phases
of this model can be applied to the case study. Motivate your answers.

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 SECTION E
Videos

Videos are uploaded separately on

Blackboard. Have a look at these videos to
enrich your understanding of the work.

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One video is available on Blackboard for chapter 8.

Video 1: Lewin’s Change Model

We hope you enjoy watching the video!

Reference list:

Video 1: Lewin’s Change Model

Teaching. (2014). Lewin, Stage Model of Change, Unfreezing Changing Refreezing, Animated
Part 5. Available at: https://www.youtube.com/watch?v=kerDFvln7hU (Accessed: 28 September
2020)

End of the study pack ☺

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