ORGANIZATIONAL

CHANGE
 INFLUENCE OF CULTURE

• Do people believe change is possible?

• Is resistance to change greater in some cultures?
• Does culture influence how efforts will be implemented?
• Do successful idea champions do things differently in
different cultures?
• WHAT IS CHANGE ??

• Why do organizations need to change ??

• Do you know of organizations that have
collapsed because they did not change?
• WHAT DO THEY NEED TO CHANGE ??
 PLANNED CHANGE
Planned change is not an accidental occurrence. It is
purposeful, proactive and goal oriented.

Goals of Planned Change:

1) To improve the ability of the organisation to adapt
to changes in the environment
2) To change employee behaviour
 FORCES OF CHANGE

 Competitive forces
 Nature of the workforce
 Technology
 Social and demographic forces
 Economic and Political forces
 World politics
 The Politics of Change

– Change threatens the status quo, making it an inherently

political activity.
– Politics suggests the impetus for change is more likely to
come from:
• Outside change agents.
• Employees new to the organization who have less
invested in the status quo.
• Managers slightly removed from the main power
structure.
 RESISTANCE TO CHANGE

INDIVIDUAL SOURCES
 Habit
 Security
 Fear of the unknown
 Economic reasons-
 Selective information processing
 Status quo
 RESISTANCE TO CHANGE

ORGANIZATIONAL SOURCES
 Limited focus of change/culture
 Resource constraints
 Group norms, Group Think
 Power and conflict/Politics
 Structural inertia
 Threat to expertise
 Overcoming Resistance to Change

• Overcoming Resistance to Change

– Communication
– Participation
– Building support and commitment
– Develop positive relationships
– Implementing changes fairly
– Manipulation and cooptation
– Selecting people who accept change
– Coercion
 Approaches to Managing Organizational Change

Lewin’s Three-Step Change Model

 Approaches to Managing Organizational
Change
Unfreezing the Status Quo
 Levin's Force-Field
Theory of Change

• This theory of change argues that two sets of opposing

forces within an organization determine how change
will take place
– Forces for change and forces making organizations resistant
to change
– When forces for and against change are equal, the
organization is in a state of inertia
– To change an organization, managers must increase forces
for change and/or decrease forces resisting change