Organizational Change

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 Quote

If you can’t fly, then run,

If you can’t run, then walk,
If you can’t walk, then crawl,
But whatever you do,
You have to keep moving forward.

Martin Luther King Jr.

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What Got Us Where We Are Now
Is Not Very Likely to Get Us
Where We Want to Go!

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Definition of Change
 Change is the process of alteration or
transformation that individuals, groups and
organizations undergo in response to internal and
external factors.
Organizational Change refers to "the movement of
an organization away from its present state towards
some desired future state to increase its
effectiveness” (Broome: 1998).
Prese
nt
How? Future

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 Purpose of Change
Why change is necessary or important to
organizations?
 Environmental change: to adapt to environmental
change, organizations must develop new products,
services, modify their structure, introduce new
technology, or change work methods and change
employee’s behavior
 To meet changing customer needs
 To meet changing market conditions
 To respond to internal pressures
 To take advantages of new opportunities
 Motivational - Rebirth of an Eagle - YouTube[via to
rchbrowser.com].mp4
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Why Change programs fail?
 Change programs are common but
research indicates that two-thirds of all
organizational changes fail
 Several of the most common reasons for
failed change programs include:
– lack of commitment from the top
– change overload
– lack of incentives tied to the change
initiative
– lack of training

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Cont’d…
 Communication breakdown
 lack of space and support

 unclear objectives

 lack of performance measures, and

 underestimating emotions

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Targets for Organizational Change

The five major areas of change include:

– Strategy – develop new visions, missions, strategic plans
– Structure – add a new department or division, or consolidate
two existing ones
– People – replace a person or change knowledge, skills,
attitudes, or behaviors
– Technology – upgrade a data processing system
– Management –encourage participation by those involved in
solution of problems
Models of Change
 Kurt Lewin has proposed two models of change in
1951. These are:
- Force field analysis
- A three step change process
1. Force field analysis
 By force field analysis, we have three step change
process which involves an interplay of multiple
opposing forces.

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Models of Change…
 These forces are driving forces, restraining forces
and the role of change manager in the interaction
between these two forces (interaction
management).
Driving g Forces
Forces Interactio
Restrainin
n Mgt.

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Models of Change…
 The steps of change as put forward in the Force
field analysis are:
 The first step is identifying and analyzing driving
& restraining forces.
 The second step is assessing which forces are
critical.
- Not all forces are equally important in driving or
holding the change back.
 The third and foremost important step is
increasing the critical driving forces and
decreasing the critical restraining forces.

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Models of Change…
 Force field analysis: Example

Driving Forces Restraining

e.g., forces
• Experienced e.g.,
workforce • Fear of unknown
• Committed work (fear of loss of job)
force • Unskilled, obsolete
• Flexible human resource
organizational • Loss of influence
culture (may be from top
management)

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Models of Change…
2. Three phases (steps) of change theory
 This theory is about unfreezing, changing and
refreezing.
 What do we unfreeze? What do we change?
What do we refreeze?
 Lewin thinks that any change suffers from
three problems.
1)unwillingness to change
2)Inability to change
3)Inability to sustain the change

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Models of Change…
 Lewins 3 Phases Change Theory

Unfreeze Change
Raised State of •Change Refreeze
advocated and Behavior
Tension •

implementatio stabilized
Climate
n begins
adapted •Desired
to minimize Changes Attitudes
resistance tested and •Values
Dissatisfaction adapted for internalized
with status desired & reinforced
results
quo

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 a) Unfreezing
Unfreezing involves the following:
 Awakening
 Energizing
 Initiating
 Acknowledging that status quo is not viable.
 Disengaging from the past

b) Changing
Changing involves the following:
 Mobilizing
 Envisioning
 Implementing
 Creating and adopting a new direction 16
c) Refreezing
Refreezing involves the following:

 Reinforcing

 Enabling

 Institutionalizing

 Absorbing the new behaviors, attitudes and practices

into the organizational culture so that new ways
become acceptable practice.

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KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 1

CREATE URGENCY

Helping others see the need for change &

the importance of acting quickly
Slide 19
KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 2

BUILD A GUIDING TEAM

Ensuring there is a powerful group, with the

appropriate leadership skills, credibility &
authority to guide the change process

Slide 20
KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 3

CREATE A VISION FOR CHANGE

Creating a picture of the future & how it

will be different from the past

Slide 21
KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 4

COMMUNICATE THE CHANGE VISION

Ensuring everyone understands

& accepts the vision

Slide 22
KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 5

REMOVE OBSTACLES

Removing the barriers to making change successful

Slide 23
KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 6

CREATE ‘SHORT TERM WINS’

Create clear, visible success stories early in the

process

Slide 24
KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 7

CONSOLIDATE GAINS &

PRODUCE MORE CHANGE – DON’T LET UP

Recognise more change opportunities following the

‘quick wins’ to take full advantage of the momentum
for change

Slide 25
KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 8

ANCHOR THE NEW APPROACHES

IN THE CULTURE

Ensure the new ways of behaving are recognised &

rewarded to embed the change into the
organisational culture
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Kotter’s Eight-Step Plan
 Builds from Lewin’s Model

 To implement change:
1. Establish a sense of urgency
2. Form a coalition
Unfreezing
3. Create a new vision
4. Communicate the vision
5. Empower others by removing barriers
6. Create and reward short-term “wins” Movement
7. Consolidate, reassess, and adjust
8. Reinforce the changes Refreezing

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 Resistance to change

☞It is very important that the change

manager anticipate, and plan strategies
for dealing with resistance.

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☞Research with more than 320 projects showed
the primary reason for failure in major change
initiatives was lack of change management
☞Failing to manage the human side of change
results in inefficient and unsuccessful change
projects and an inability to realize new business
strategies and objectives.
.
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Why people resist change?

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Resistance to Change Cont…

Effort to block new

ways of doing things

Individual
Resistance

Group
Resistance
Organizational
Resistance
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Reasons for Resistance to Change
Fear of failure
Comfort
Habit
Lack of knowledge/Fear of the unknown
Lack of trust
Group inertia
Structural inertia
Bad experience
Economic factors

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Ways to Overcome Resistance to Change

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☞ Communication
☞ Education and training
☞ Participation and involvement
☞ Building Support and Commitment
☞ Negotiation
☞ Co-opting
☞Manipulation
☞Coercion:- implicit and explicit

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Management of Complex Change Cont…

+ + + + ACTION
VISION KSA INCENTIVES RESOURCES PLAN =CHANGE

ACTION
+ KSA + INCENTIVES + RESOURCES +
PLAN =CONFUSION

+ + +
+ ACTION
VISION INCENTIVES RESOURCES PLAN =ANXIETY

ACTION
VISION + KSA + + RESOURCES +
PLAN =GRADUAL
CHANGE
ACTION
VISION + KSA + INCENTIVES + +
PLAN =FRUSTRA-
TION
VISION + KSA + INCENTIVES + RESOURCES =FALSE
STARTS
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People Usually Support change, but They Don’t Like to be
part of change

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 Thank for your kind attention

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 19-37