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Managing Change in Organizations Behavior

Your Perception of Change
What are your reactions when you hear the word ³change?´

‡Negative perceptions«. ‡Positive perceptions«.

« Incremental « Strategic . « Reactive changes: changes made in response to unexpected situations. changes: altering the overall shape or direction of the organization.TYPES OF ORGANIZATIONAL CHANGE « Anticipatory changes: planned changes based on expected situations. changes: subsystem adjustments required to keep the organization on course.

FORCES OF CHANGE ´ External Forces « « « « « ´ Internal Forces « Market Place Govt Laws and Regulations Technology Labor market Economic Change « « « Changes in Organisational Strategies Workforce change New Equipment Employee Attitude .

Anger and Resistance Chaos Learning Acceptance. Experimentatio n and Discovery . Commitment Looking Forwar d Enquiry.A Journey Through Change: Stability Comfort and control Lookin g Back Fear.

INDIVIDUAL REACTIONS TO CHANGE ´ How People Respond to Changes They Like? « Three-stage ² Unrealistic process optimism ² Reality shock ² Constructive direction .

INDIVIDUAL REACTIONS TO CHANGE (CONT¶D) ´ How People Respond to Changes They Fear and Dislike? « Stages ² Getting off on the wrong track ² Laughing it off ² Growing self-doubt ² Destructive direction .

² Key is to actively anticipate and avoid problems rather than waiting for something to go wrong. . ´ Adaptation « Incremental changes that are in reaction to external problems.CHANGE: ORGANIZATIONAL AND INDIVIDUAL PERSPECTIVES (CONT¶D) ´ Tuning « The most common. or pressures. ² Also known as preventive maintenance and kaizen (continuous improvement). least intense. events. and least risky type of change.

CHANGE: ORGANIZATIONAL AND INDIVIDUAL PERSPECTIVES (CONT¶D) ´ Re-Orientation « Change that is anticipatory and strategic in scope and causes the organization to be significantly redirected. called ´frame breakingµ (Nadler and Tushman). ² Also called ´frame bendingµ(Nadler and Tushman). ´ Re-Creation « Intense ² Also and risky decisive change that reinvents the organization. .

Without introductory or remedial training. Other events can conspire to create resentment about a particular change. change may be perceived negatively.´ WHY DO EMPLOYEES Surprise RESIST CHANGE? « Unannounced significant changes threaten employees· sense of balance in the workplace. ´ Inertia « Employees have a desire to maintain a safe. ´ Misunderstanding and lack of skills « ´ Poor Timing « . and predictable status quo. secure.

. simply. and the right mix of skills and levels.JOHN P KOTTER'S EIGHT STEPS TO SUCCESSFUL CHANGE ´ ´ ´ ´ ´ Increase urgency . De-clutter communications. Build the guiding team . Get the vision right . and to appeal and respond to people's needs. communicate the essentials. Empower action . focus on emotional and creative aspects necessary to drive service and efficiency. Communicate for buy-in .get the team to establish a simple vision and strategy. enable constructive feedback and lots of support from leaders .Involve as many people as possible. make objectives real and relevant.reward and recognise progress and achievements.inspire people to move.get the right people in place with the right emotional commitment.Remove obstacles.

and passive resistance to change. anger.WHY DO EMPLOYEES RESIST CHANGE? (CONT¶D) ´ Emotional Side Effects « Forced acceptance of change can create a sense of powerlessness. Promises of improvement mean nothing if employees do not trust management. ´ Lack of Trust « ´ Fear of Failure « ´ Personality Conflicts « . Managers who are disliked by their managers are poor conduits for change. Employees are intimidated by change and doubt their abilities to meet new challenges.

can disrupt employees in their pursuit of other goals. can tear apart established on-the-job social relationships.WHY DO EMPLOYEES RESIST CHANGE? (CONT¶D) ´ Threat to Job Status/Security « Employees worry that any change may threaten their job or security. ´ Breakup of Work Group « Changes ´ Competing Commitments « Change .

OVERCOMING RESISTANCE TO CHANGE ´ Strategies for Overcoming Resistance to Change and communication « Participation and involvement « Facilitation and support « Negotiation and agreement « Manipulation and co-optation « Explicit and implicit coercion « Education .

Anger and Resistance change Chaos Enquiry. Experimentatio n and Discovery . Acceptance & Commitment Looking Forward Comfort and control Lookin g Back 1 Create a felt need of change 4 Stabilize and Sustain the change 2 Introduce the 3 Revise and finalize the change plan Fear.LEADER ACTION: Stability Learning.

MAKING CHANGE HAPPEN ´ Two Approaches to Organization Change « Organization ² Formal Development (OD) top-down approach « Grassroots ² An Change unofficial and informal bottom-up approach .

as opposed to fixing a problem or improving a procedure. ² Applying behavioral science principles. « OD programs generally are facilitated by hired consultants. . methods. ² OD creates fundamental change in the organization. and theories to create and cope with change.PLANNED CHANGE THROUGH ORGANIZATION DEVELOPMENT (OD) ´ Organization development (OD) « Planned change programs intended to help people and organizations function more effectively.

« Supplement formal authority with knowledge and skillbased authority. « Develop a satisfying work experience. « Encourage willingness to change. « Strengthen interpersonal trust.PLANNED CHANGE THROUGH ORGANIZATION DEVELOPMENT (OD) (CONT¶D) ´ Objectives of OD Deepen the sense of organizational purpose. « . « Increase personal responsibility for planning and implementing. « Encourage problem solving rather than avoidance.

changing. ² Changing: implementing the planned change ² Refreezing: systematically following a change program for lasting results. and refreezing social systems neutralizing resistance by preparing people ² Unfreezing: for change.PLANNED CHANGE THROUGH ORGANIZATION DEVELOPMENT (OD) (CONT¶D) ´ The OD Process (Kurt Lewin) « Unfreezing. .

who quietly try to change the dominant organizational culture in line with their convictions. .UNOFFICIAL AND INFORMAL GRASSROOTS CHANGE ´ Grassroots Change « Change that is spontaneous. ¹ Translate. informal. ¹ Don·t go it alone. experimental. ¹ Be authentic. and driven from within. ² Guidelines ¹ ´ Tempered Radicals « People for tempered radicals Think small for big results.

Managing Change Structure Work specialization. Formalization. Perception and Behavior .Departmentalization. Methods and Equipments Technology People Attitude. Expectations.Job Redesign Work Process. Chain of Command Span of Control.

C R E A T I V I T Y Innovation .

services. or work methods.STIMULATING INNOVATION ´ Creativity « The ability to combine ideas in a unique way or to make an unusual association. . ´ Innovation « Turning the outcomes of the creation process into useful products.

SYSTEM VIEW OF INNOVATION Inputs Transformation Creative Environment. Process and Situation Outputs Creative Individuals. Work Methods . Groups and Organizations Innovative Products.

INNOVATION VARIABLES Structural Variables ‡Organic structure ‡Communication ‡Abundant resources ‡High interunit stimulate ‡Work and network support HR Variables ‡High commitment to T & D ‡High job security ‡Creative people Innovative Variables Cultural variables ‡Acceptance of ambiguity ‡Positive feedback ‡Low external control ‡Tolerance of risks ‡Tolerance of conflicts ‡Focus on ends ‡Open system focus .

STRUCTURAL VARIABLES Adopt an organic structure ´ Make available plentiful resources ´ Engage in frequent inherent communication ´ Minimize extreme time pressures on creative activities ´ Provide explicit support for creativity ´ .

have low external control ´ Tolerant impractical ´ Tolerant risk taking ´ Tolerate conflict ´ Focus on ends rather than means ´ Develop an open system focus ´ Provide positive feedback ´ .CULTURAL VARIABLES Accept Ambiguity.

HUMAN RESOURCES VARIABLES Actively promote T & D to keep employee·s skills updated ´ Offer high job security to encourage risk taking ´ Encourage individual to be ´Championµ to change ´ .

2/9/2012 THANK YOU .