MANAGING CHANGE

ORGANIZATIONAL CHANGE
Planned Unplanned
change - change -
change change that
resulting from is imposed
a deliberate on the
decision organization
to alter the The Organization and is often
organization unforeseen

Managers must be prepared to handle both

DR. P. DAVID JAWAHAR 2
EXTERNAL FORCES FOR
CHANGE
Workforce
Globalization Diversity

Changing Ethical
Technology Behavior
DR. P. DAVID JAWAHAR 3
 Globalization
Organizations must rethink
the most efficient ways to
Use resources Majority of
Disseminate/gather information new workers
Develop people will be female
Workforce will
grow in diversity -
Structural &Mental more Hispanics &
Change Change African-Americans
Workforce is aging -
less young workers, more
middle-aged

Workforce Diversity DR. P. DAVID JAWAHAR 4

 Ethical Behavior
Other Organizations

Ethical Customers

Changes
Treatment Environment in work
relationships

Society

Changes in
Technological organizational
Change structure
Changing Technology DR. P. DAVID JAWAHAR 5
INTERNAL FORCES FOR
CHANGE

Declining Company
Effectiveness Crisis

Changing
Changing
Employee
Work Climate
Expectations

DR. P. DAVID JAWAHAR 6

SCOPE OF CHANGE
Incremental change - change of a relatively small
scope, such as making small improvements
Strategic change - change of a larger scale, such as
organizational restructuring
Transformational change - change in which the
organization moves to a radically different, and
sometimes unknown, future state

DR. P. DAVID JAWAHAR 7

THE CHANGE AGENT’S ROLE
Change agent - the individual or group who undertakes the task of
introducing and managing a change in an organization

The change agent can be internal or external

DR. P. DAVID JAWAHAR 8

INTERNAL CHANGE AGENTS
Advantages
know past history, political
system, and culture
must live with results of
change so will move carefully
Disadvantages
may be associated with
factions, accused of favoritism
may be too close to the
situation to be objective
DR. P. DAVID JAWAHAR 9
EXTERNAL CHANGE AGENTS
Advantages
outsider’s objective view
impartiality
Disadvantages
limited knowledge of
organization’s history
may be viewed with suspicion

To succeed, they must be perceived as trustworthy,

be experts with proven track records, be similar to
those they are working with
DR. P. DAVID JAWAHAR 10
RESISTANCE TO CHANGE
Fear of the unknown
Fear of loss
Fear of failure
Disruption of interpersonal relationships
Personality conflicts
Politics
Cultural assumptions and values
DR. P. DAVID JAWAHAR 11
 DEALING WITH
RESISTANCE TO CHANGE

Communication
 details
 rationale
Participation in the process
 ownership
 commitment
Empathy and support

DR. P. DAVID JAWAHAR 12

 Reactions to Change & Managerial Interventions
Reaction Expression Managerial
Intervention
Disengagement Withdrawal Confront, identify
psychological withdrawal
from change
Dis-identification Sadness, worry Explore, transfer
feeling that one’s
identity is being
threatened by change
Disenchantment Anger Neutralize,
feeling negativity or acknowledge
anger toward a change
Disorientation Confusion Explain, plan
feelings of loss and
confusion due to change
DR. P.
Table adapted from H. Woodward and S. Buchholz. Aftershock: Helping People through DAVID
corporate JAWAHAR
Change, p. 15. 13
Copyright © 1987 John Wiley & Sons, Inc. Reprinted by Permission of John Wiley & Sons, Inc.
LEWIN’S THREE STEP CHANGE
MODEL
1. Unfreezing - involves encouraging individuals to
discard old behaviors by shaking up the equilibrium
state that maintains the status quo
2. Moving - new attitudes, values, and behaviors are
substituted for old ones
3. Refreezing - involves the establishment of new
attitudes, values, and behaviors as the new status quo

DR. P. DAVID JAWAHAR 14

 FORCE FIELD ANALYSIS OF
DECISION TO ENGAGE IN
EXERCISE
Forces for change Forces for status quo
Weight gain Lack of time
Minimally passing No exercise facility at work
treadmill test Spouse/partner hates to
Feel lethargic; exercise
have no energy Equilibrium No interest in physical
activity or sports
Family history of
Made a grade of D in
cardiovascular disease
physical education class
New, physically
demanding job

DR. P. DAVID JAWAHAR 15

 APPLYING LEWIN’S MODEL
TO THE ORGANIZATION

Unfreezing: the organization eliminates rewards for

current behavior
Moving: the organization initiates new options and
explains their rationale
Refreezing: organizational culture & formal reward
systems encourage the new behaviors

DR. P. DAVID JAWAHAR 16

 ORGANIZATIONAL
DEVELOPMENT (OD)
Organizational Development (OD) - A systematic approach to
organizational improvement that applies behavioral science theory
and research in order to increase individual and organizational
well-being and effectiveness

DR. P. DAVID JAWAHAR 17

DIAGNOSIS & NEEDS
ANALYSIS
Diagnosis and Intervention
needs analysis

Follow-up

Ask
• What are the forces for change?
• What are the forces preserving the status quo
• What are the most likely sources of resistance
• What are the goals to be accomplished by change
DR. P. DAVID JAWAHAR 18
OD INTERVENTION METHODS:
ORGANIZATIONAL/GROUP
TECHNIQUES
Survey feedback - a widely
Anonymous
used method of intervention
Group reporting format
whereby employee attitudes
are solicited by questionnaire No repercussions
Management by Objective Follow-up
an organization-wide Initial objectives
intervention technique of Periodic progress reviews
joint goal setting between Problem-solving to
remove obstacles to
employees and managers
goal-achievement

DR. P. DAVID JAWAHAR 19

OD INTERVENTION METHODS:
ORGANIZATIONAL/GROUP
TECHNIQUES
Quality Program - a program that
embeds product and service quality
excellence into the organizational
culture
Team Building - an intervention
designed to improve the
effectiveness of a work group
Raise aspirations about
product/service quality
Embed product/service
quality excellence in the
organizational culture
Communication
Member interaction
Emphasis on team
goals
Examples of effective/
ineffective teamwork
DR. P. DAVID JAWAHAR 20
OD INTERVENTION METHODS:
ORGANIZATIONAL/GROUP
TECHNIQUES
Large Group Interventions -
events that bring all of the key
members of a group together in one
room for an extended period of
time
Process Consultation - an OD
method that helps managers and
employers improve the processes
that are used in organizations
Outside consultant
determines participants
Participants=critical mass
supporting change
Outside consultant:
Enters organization
Defines the relationship
Chooses an approach
Gathers data
Diagnoses problem
Intervenes
Leaves organization
DR. P. DAVID JAWAHAR 21
OD INTERVENTION METHODS:
INDIVIDUAL-FOCUSED
TECHNIQUES
Skills Training - increasing
the job knowledge, skills,
and abilities that are necessary (Continual updating)
to do a job effectively
Sensitivity Training - an
intervention designed to
help individuals under-
stand how their behavior
affects others
In formal classroom
settings
On the job
Outside trainer who
intervenes only to move
the group forward.
Training can:
• help employees
understand each other
•recognize their own feelings
•improve communication
DR. P. DAVID JAWAHAR 22
OD INTERVENTION METHODS:
INDIVIDUAL-FOCUSED
TECHNIQUES
Management Development Verbal information
Training - a host of techniques Intellectual skills
for enhancing Attitudes
managers’ skills in an Development
organization
Role Negotiation - a technique Outcomes
whereby individuals meet and • Better understanding of
clarify their psychological what each can be
contract expected to give & receive
• Less ambiguity
DR. P. DAVID JAWAHAR 23
OD INTERVENTION METHODS:
INDIVIDUAL-FOCUSED
TECHNIQUES
Job Redesign - an OD Realign task demands and
intervention method that alters individual capabilities
jobs to improve the fit between Redesign jobs to fit new
individual skills and the
techniques or organization
demands of the job
structures

Health Promotion Programs Ex. Stress reduction

education, assistance

Career Planning Match individual’s career

aspirations with
organizational opportunities
DR. P. DAVID JAWAHAR 24
 ETHICAL CONSIDERATIONS
IN ORGANIZATIONAL
DEVELOPMENT
Selection of the OD method
Voluntary participation
Confidentiality
Potential for Manipulation by the change agent

DR. P. DAVID JAWAHAR 25