CHAPTER 8

CHANGE
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 Subtopic
Overview of change

Forces of change

Change process

Resistance to change

Managing resistance to change

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 8.0
Overview of change
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 What is Change?
The act, process, or result of changing
from alteration, transformation, or
substitution

What is Organizational Change?

The activities taken by a firm or business to modify a
significant aspect of its structure, such as its culture,
the operational infrastructure or supporting
technologies, or its internal procedures
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 There are two
types of
organizational
Planned change which
change! are:
Unplanned
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change!
 Forms of Change
There are two forms of change in organization:
 Planned change: Change resulting from a
deliberate decision to alter the organization
 Unplanned change: Change that imposed on
organization and is often unforeseen

Change is targeted on individual

(performance and attitude), groups
(innovation and interdependent) and
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organization as a whole
 8.1
Forces of change
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 Internal forces of External forces of
change change

Forces of Nature of the

workforce
Technology

change Change in
Economic
managerial
shocks
personnel

Failure to
achieve the Competition
expected results

Social trends
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World politics
 Forces of Change
Pressures for change can be influenced by:
• Internal – Dissatisfaction due to current
performance or characteristics of
organizational members

• External – Environment, size of

organization, ownership, technology,
competition, change in ownership,
social trends and world politics
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 Internal forces of change
💡 Nature of the workforce
Changes in employees’ behaviour due to current trend (Gen
X vs Gen Y) e.g. Child care and elder care available, in
order to cater the needs of dual career couple

💡 Change in managerial personnel

Change in managerial personnel (leaders) bring new ideas,
policies and approaches
Employee’s expectation that constantly change towards the
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management (job satisfaction)

 Internal forces of change

💡 Failure to achieve the expected results

A corporation is clearly motivated to take action
when it is losing money or not getting the
intended results. Some businesses respond to this
situation by drastically lowering expenses by
implementing downsizing and drastic cost-
reduction measures
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 External forces of change
💡 Technology
Smart and multitasking employees will replace people
who perform repetitive, specialized and limited tasks.
Management invests in staff education and training

💡 Economic shocks
Economic instability or escalating competitive
pressures might create possibilities for an
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organization’s change management plan

 External forces of change

i.e. inflation, changes in interest rates, economic

recession, changes in economic policies and tax
structures, changes in the price of oil globally, etc.

💡 Competition
Moving production and assembly operations to other
country to gain a competitive edge through lower
labour costs and economies of scale
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 External forces of change

💡 Social trends
The trend of environmentally concerned consumers
has caused fast food restaurants to switch from
Styrofoam to paper containers

💡 World politics
USA-China conflict have influenced businesses
around the world
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 8.2
Change process
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 Change process

Unfreezing Movement Refreezing

Lewin’s three step change model

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 How does change happen??
LEWIN CHANGE MODEL
💡 Kurt Lewin’s change model emphasizes that effective change
occurs by: (3 steps)

Changing Refreezing
Unfreezing
Unfreezing the current situation
Changing towards the desired situation
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Refreezing the changed situation so that it remains in this desired

state
 LEWIN CHANGE MODEL

STEP 1: Unfreezing
 Phase where preparation to change is made
 It is the first step in which involve encouraging
individual to discard (abandon/remove) old behaviour
by shaking up the equilibrium of maintaining the
status quo
 To discard the old behaviour, either by:
1) Increase driving forces  Create urgency
2) Reduce/remove restraining forces  Minimize
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resistance
 LEWIN CHANGE MODEL
 Involves unlearning old habits in the form of attitudes
or behaviours to create something new
 However, it is preferred to increase driving forces
AND remove restraining forces

STEP 2: Changing
 Phase where actual modification in people involving
new attitudes, values and behaviours are substituted
for old ones
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 It can also involves in task, structure and technology

 LEWIN CHANGE MODEL
 Organizations accomplish change by initiating new options
and explaining the rationale to have the changes and
providing training to help employees developing new skills
they need

 Enough time should be allocated at this stage to ensure old

ways to be unfrozen

 Some may end up with resistance to change if they cannot

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adapt with the change targets

 LEWIN CHANGE MODEL

STEP 3: Refreezing
 Final stage in the change process
 This step involve the establishment of new attitude,
values and behaviours as the new status quo
 To maintain the change momentum
 In other words, refreeze the behaviour so that
employees do not slip back into their old work
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practices (to make it permanent)

 8.3
Resistance to change
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 Logical
resistance

Resistance to Psychological
change resistance

Sociological
resistance
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 LOGICAL RESISTANCE
 Reasons based on rational and scientific evaluation
i) Time taken to suit the new environment
ii) More effort in learning something new
iii) The possibility new situation being unaccepted
iv) Economic cost of change
v) The feasibility of technical change
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 PSYCHOLOGICAL RESISTANCE
 Reasons based on emotion sentiments and attitudes in
human
i) Afraid of things that they don’t understand
ii) Low tolerance toward change
iii) Dislike management
iv) Mistrust others
v) Need to maintain status quo
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 SOCIOLOGICAL RESISTANCE
 Reasons based on interest of group and group values
e.g. political coalition, contradiction of group values
and need to maintain friendship among existing
members
i) Contradiction of group values
ii) Need to maintain friendship among existing group
member
iii) Fixed group interest
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 8.4
Managing resistance to change
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 Managing resistance to change

💡 Education and communication

💡 Participation and involvement
💡 Facilitation and support
💡 Negotiation and agreement
💡 Manipulation and cooptation
💡 Explicit and implicit coercion
💡 Selecting people who accept change
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 APPROACHES TO CHANGE RESISTANCE

Education and communication

 Face-to-face discussion and use mass presentation such as
memos, notices, report, group presentation and demonstration to
educate them see the logic
 Employees are able to understand the reasons behind the change
effort through good communication

Participation and involvement

 Let the workers participate in designing and implementing the
change process by encouraging them to contribute more idea, so
they will be more committed
 Employees are more likely to accept change than to oppose it
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when they are actively participating in the change process

 APPROACHES TO CHANGE RESISTANCE

Facilitation and support

 Management should be supportive, tolerance and good listener to
the workers’ problems or complaints by providing assistance &
appropriate training
 When employee feel fearful and anxious, counseling and
therapy, new-skills training and short-paid leave of absence may
help them adjust to change

Negotiation and Agreement

 Discuss actual and potential resistors regarding extra incentives
and working out some kind assurance from them so that the
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proposed changes are not blocked

 APPROACHES TO CHANGE RESISTANCE

Manipulation and Cooptation

 Management could influence the selected resistors by providing
the wrongful information and organize events to get the
maximum support for the proposed change
 Targets might backfire if they aware that they are being fooled or
used
Explicit and Implicit Coercion
 Last option where management could use force to get people
accept change either through explicit and implicit threat to
resistors
 The potential to lower morale and the sense of self-worth among
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those participating in or impacted by the change process

Thank You!
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