603 –ORGANISATIONAL CHANGE AND DEVELOPMENT

What is organisational change?

The answer to 'What is organisational change?' can help you understand the concept better. Organisational change is the process through which a company undergoes
any transformation internally or externally. The change may occur after extensive internal planning, or rather suddenly, because of unanticipated external factors. It can
cause major shifts in the structure, culture, goals, operational processes, service offerings and technology policies of a business.

The implications of organisational change may depend on the type of change implemented, the extent of the transformation and whether the change was slow or
sudden. Depending on the nature of the change, employees may display active or passive resistance to it. Some changes may not affect the employees at all. How the
management executes the change may greatly impact how the employees receive it. Whether the changes are sudden or take place over a longer period of time, they can
require the management to adopt new policies and adjust to new differences within the organisation.

What are the benefits of organisational change?

Implementing periodic changes within an organisation is an effective way to ensure that the organisation can adapt to the changing world and keep up with its
competitors. As an employee, adapting to changes in the workplace may feel uncomfortable at the moment. But once you can overcome that challenge with a positive
attitude, you are likely to experience personal development and become a valuable asset to the company. Here are some benefits of organisational change for
employees:

• more opportunity for skill growth

• diversification of demographics and tasks
• improved communication
• increased opportunity for employee input and participation
• more scope for innovation
• opportunities for new roles and promotions

Here are some benefits of organisational change for a company:

• new business opportunities

• improved employee efficiency
• better management styles
• enhanced market relevance
• better staff morale
• more cohesive vision and values
• higher functioning teams
• improved processes

5 types of organisational change

While there are many types of organisational changes, they mainly come under these five categories:

1. Transformational

Changes that completely reshape business strategies and processes and redefine a business are called transformational changes. These are dramatic, large-scale
changes that fundamentally alter the organisation. They happen rarely and are usually implemented when businesses pursue entirely different products or markets,
experience radical changes in technology, try to revamp their business model because of extreme conditions or keep up with rising supply demand.

Some common reasons for transformational change are leadership change, unmatched competition, adverse market conditions, business growth and decline in revenue.
This type of change can affect all sections of a company, from staff to management. Some kinds of organisational changes brought about by transformational change are:

• Cultural change: It involves promoting new attitudes that better express the company's core values or
redefining its vision and mission altogether. This transforms the work environment of the organisation.
• Structural change: This refers to changes in hierarchies and job roles. Incorporating structural change may
involve reorganising departments, creating high-performing teams, adding employee positions, revising job
roles and assignments or promoting valuable employees.
• Personnel change: This happens when a company experiences massive growth or downsizing. This involves
mass hiring and layoffs that significantly impact employee engagement and retention.

Related: How To Be Flexible At Work: A Complete Guide

2. Transitional

In a transitional change, companies replace an existing procedure with a new one for increased efficiency and performance. This may involve switching from manual to
automated production methods, creating new products or services, implementing new technology and updating long-held, outdated policies. Companies make these
changes periodically to remain competitive in their marketplace.
Transitional changes may happen during mergers and acquisitions, policy changes and corporate restructuring. This type of change is substantially disruptive, as it may
impact relationships, job functions and culture and may involve substantial retraining. Transitional changes usually result in the following kinds of organisational changes:

• Technology change: This comprises adopting new technology to phase out old methods and keep up with
technological advancements. This may include automating jobs, introducing new software platforms and
designing new strategies for technological processes.
• Operational change: This might involve updating to a new process or streamlining the existing process.
Companies can implement operational changes by introducing new technologies or products, focusing on
team building and improving employee communication.

Related: How To Keep A Positive Attitude: A Complete Guide

3. Developmental

This type of change involves the enhancement and correction of existing systems without aiming for any radical changes. These are slow, small-scale changes that focus
on incremental improvement, detecting deficiencies and building upon prior success. Some examples of developmental changes can include updating payroll procedures,
improvement of existing billing and reporting methods and refocusing marketing and advertising strategies. These minor changes compound over time and produce
positive returns for the company, significantly increasing its market value.

Developmental changes are a sign that the company is committed to improving itself to meet market demands and grow revenues. These changes are easy to adapt to
and happen most frequently. Developmental change can be of the following types:

• Anticipatory change: An organisation may take up this type of change to better prepare for future
shortcomings or opportunities. This is a strategy-oriented change, often involving prior data analysis, surveys
and customer outreach.
• Remedial change: A company implements this type of change when it identifies an unanticipated problem and
executes a quick solution. This can relate to a loss of talent, addressing customer communication issues,
introducing an employee training program or creating a position to fix a recurring problem in the company.

Related: What Is Strategic Planning And How To Do It In 6 Steps

4. Proactive

Proactive changes are pre-planned changes that the company undergoes to avoid a potential future threat or to capitalise on a potential future opportunity. These are
active attempts to alter the workplace and its practices. This kind of change coordinates the various parts of the system as a whole and addresses the underlying forces
creating symptoms.

Examples may include increasing production volume due to the expected rise in customer demand or introducing employee benefit schemes to improve employee
retention. Any kind of transformation, transition or development requires pre-meditation and extensive planning. These are organised changes that are economically
feasible and allow the company ample time to prepare.

Related: How To Conduct Organisational Planning (With Types)

5. Reactive

Reactive changes are unplanned transformations undertaken in response to unexpected external factors when some threat or opportunity has already occurred. Factors
like a market crash or boom, political shifts, war, disease outbreaks such as an epidemic or pandemic, product or technological obsolescence, natural disasters and
accidents trigger reactive changes. These types of changes cover a limited part of the system and only respond to immediate symptoms.

This can involve scenarios such as controversy concerning the lack of diversity in employee demographics or new business laws implemented by the government. The
only example of reactive change is remedial change undertaken spontaneously to solve an unforeseen problem. It is often chaotic and expensive and prompts the
company to act within a limited time.

Here are the steps for successful change management123:

Identify opportunities for improvement and secure approval from stakeholders.

Identify the goals and develop a strategy.

Determine how the change will impact the organization.

Assemble your change management team.

Develop your strategy.

Implement your plan.

Communicate the changes.

Monitor progress.

Continue to assess any risks.

Perform a post-transition review

Implementing successful organizational change requires careful planning, effective communication, and strong leadership. Here are steps to guide you through the process
of successful change in an organization:

1. **Clearly Define Objectives:**

- Clearly articulate the reasons for the change and the objectives you aim to achieve. Ensure that everyone understands the purpose and potential benefits of the change.

2. **Create a Guiding Coalition:**

- Assemble a group of influential and committed leaders within the organization to champion the change. This coalition can help drive the change initiative and gain
support from different levels of the organization.

3. **Communicate Effectively:**

- Develop a comprehensive communication plan to inform employees about the upcoming changes. Clearly articulate the reasons behind the change, the expected
benefits, and how it will impact individuals within the organization.

4. **Involve Employees:**

- Involve employees in the change process from the beginning. Seek their input, address concerns, and make them feel part of the decision-making process. This can help
build ownership and commitment to the change.

5. **Assess Readiness and Capacity:**

- Evaluate the organization's readiness and capacity for change. Identify potential obstacles and address any barriers that may impede the successful implementation of
the change.

6. **Develop a Detailed Plan:**

- Create a detailed and realistic implementation plan. Break down the change into manageable steps, allocate resources appropriately, and establish timelines for each
phase of the change initiative.

7. **Provide Training and Support:**

- Offer training programs to equip employees with the skills and knowledge needed to adapt to the changes. Provide ongoing support and resources to help them navigate
through the transition.

8. **Monitor Progress:**

- Establish key performance indicators (KPIs) and regularly monitor progress. This allows you to identify and address any issues promptly and measure the success of the
change initiative.

9. **Adaptability and Flexibility:**

- Remain adaptable and flexible throughout the change process. Be open to adjustments in the plan based on feedback and unexpected challenges that may arise.

10. **Celebrate Achievements:**

- Acknowledge and celebrate milestones and achievements during the change process. Recognize the efforts of individuals and teams involved, reinforcing a positive and
supportive organizational culture.

11. **Feedback and Continuous Improvement:**

- Encourage open communication and feedback from employees. Use this feedback to make necessary adjustments and continuously improve the change process.
12. **Leadership Commitment:**

- Leadership commitment is crucial. Leaders must demonstrate a strong commitment to the change, model the desired behaviors, and actively support employees
throughout the transition.

13. **Sustain the Change:**

- Develop strategies to ensure that the changes become ingrained in the organizational culture. This may involve updating policies, reinforcing new behaviors, and
integrating the changes into everyday practices.

14. **Evaluate and Learn:**

- After the change has been implemented, conduct a thorough evaluation to assess the overall effectiveness. Identify lessons learned and apply them to future change
initiatives.

Successful organizational change requires a strategic and systematic approach, along with a focus on people, communication, and continuous improvement. By following
these steps, organizations can increase the likelihood of a smooth and successful change process.

In organizational diagnosis, both qualitative and quantitative methods are commonly used to gather information, analyze data, and identify areas for improvement. These
methods provide a comprehensive understanding of organizational dynamics, challenges, and opportunities. Here's an overview of qualitative and quantitative methods in
organizational diagnosis:

Qualitative and quantative methods of diagnosis in organisation

In organizational diagnosis, both qualitative and quantitative methods are commonly used to gather information, analyze data, and identify areas for improvement. These
methods provide a comprehensive understanding of organizational dynamics, challenges, and opportunities. Here's an overview of qualitative and quantitative methods in
organizational diagnosis:

Qualitative Methods:

1. **Interviews:**

- **Description:** In-depth interviews with key stakeholders, including employees, managers, and leaders.

- **Purpose:** Collect rich, narrative data about perceptions, attitudes, and experiences related to the organization.

2. **Focus Groups:**

- **Description:** Group discussions led by a facilitator to explore specific topics or issues.

- **Purpose:** Encourage open dialogue, uncover shared perspectives, and identify patterns in perceptions.

3. **Observation:**

- **Description:** Direct observation of organizational processes, interactions, and behaviors.

- **Purpose:** Gain insights into actual practices, culture, and informal dynamics within the organization.

4. **Document Analysis:**

- **Description:** Examination of organizational documents such as policies, reports, and communications.

- **Purpose:** Understand formal structures, procedures, and historical context.

5. **Surveys/Open-Ended Questions:**

- **Description:** Use of open-ended questions in surveys to gather qualitative responses.

- **Purpose:** Allow participants to express their views in their own words, providing depth and nuance to quantitative data.

6. **Case Studies:**

- **Description:** In-depth analysis of a specific organizational unit or situation.

- **Purpose:** Provide a detailed understanding of unique challenges and solutions in a specific context.
### Quantitative Methods:

1. **Surveys/Closed-Ended Questions:**

- **Description:** Use of structured surveys with closed-ended questions and predefined response options.

- **Purpose:** Collect numerical data on a large scale to measure attitudes, opinions, and perceptions.

2. **Organizational Metrics:**

- **Description:** Tracking quantitative metrics such as productivity, turnover rates, and financial performance.

- **Purpose:** Provide objective and measurable indicators of organizational health and performance.

3. **Benchmarking:**

- **Description:** Comparing organizational performance metrics with industry standards or best practices.

- **Purpose:** Identify areas where the organization may lag or excel in comparison to others.

4. **Statistical Analysis:**

- **Description:** Applying statistical methods to analyze quantitative data sets.

- **Purpose:** Uncover correlations, patterns, and trends within large datasets.

5. **Employee Feedback Scores:**

- **Description:** Use of numerical scores from employee feedback surveys.

- **Purpose:** Quantify employee satisfaction, engagement, and perceptions.

6. **Performance Appraisals:**

- **Description:** Evaluation of employee performance against predetermined objectives.

- **Purpose:** Assess individual and team contributions to organizational goals.

### Integrated Approaches:

- **Mixed-Methods Research:**

- **Description:** Combining both qualitative and quantitative data collection and analysis methods.

- **Purpose:** Provide a comprehensive understanding by triangulating findings from different perspectives.

- **Action Research:**

- **Description:** Collaborative approach involving ongoing cycles of diagnosis, intervention, and evaluation.

- **Purpose:** Facilitate continuous improvement through a combination of qualitative and quantitative feedback.

The choice between qualitative and quantitative methods often depends on the nature of the organizational issue, the depth of understanding required, and the available
resources. Combining both methods can offer a more holistic and nuanced view of organizational dynamics.

What are OD Interventions?

In order to become adaptable, organizations should create, enhance, and consolidate strategies, structures, and procedures. T his
is accomplished through organizational development, a scientific method based on empirical research.

The varied outcomes of OD interventions can include financial performance, employee engagement, customer satisfaction, and
general change management because OD interventions aim to increase organizational effectiveness.
However, it is important to emphasize that although OD and HRM (human resource management) are both people -centric
strategies and are sometimes used similarly, they are different.

Meaning of OD Interventions

“OD interventions are actions and events that help a company perform better and work more efficiently.”

–Rober Zawacki
“An OD intervention refers to a variety of planned activities that clients and consultants undertake throughout the program.”

– French & Bell

Goals of OD Interventions

Each organization has different objectives. Increasing revenues, profit margins, market share, moral and/or cultural values, and
the organization’s overall adaptability (or agility) are just a few examples of goals.

Increasing the organization’s competitiveness would be the main objective if there were one.

The concept of competitiveness holds that each company has special assets and techniques that allow it to succeed in the
market. Innovative technologies (SpaceX), first-class customer service (Four Seasons Hotels), corporate executives like Elon
Musk, or a business culture (Zappos). It might also depend on how responsive the company is to changing consumer needs.

For example, being the first to take advantage of an opportunity could guarantee your revenue for the following five years.
These qualities can enhance the company’s success in the marketplace; thus, OD interventions intend to develop them.

This shows that the process of incidental change is different from organizational development. OD interventions focus on
enhancing an organization’s capacity to evaluate how it is currently operating and make adjustments to meet its objectives. A s a
result, it is a continuous process as compared to change processes, which are often temporary.

OD intervention is therefore of even greater importance. Change is becoming a constant in this VUCA environment. OD
intervention is a strategic component for guaranteeing this ongoing transition.

Types of OD Interventions

The OD interventions are also lengthy and complex. Cummings and Worley (2009) contend that it is impossible to know the
precise number of different types of interventions. But broadly speaking, there are four types of OD interventions:

1. Human Resource Management Interventions

Even though an HR department and organizational development are not the same things, they do coordinate. Within a business,
difficulties with “talent development,” performance management, child care, and even diversity may be identified that demand
the HR department to create an intervention strategy.

Today, diversity is a prominent cultural and business issue. Gender, sexual preference, age, race, disability, and even cultu re are
factors that enter the business world and affect an organization’s capabilities to implement its objectives.

Employee wellness is another area of intervention. For employees and other organization members, this involves boosting activ e
lifestyles and stress management, among other health -related issues.

There are three ways to look at all of these interventions. They can bring about transformational change, which implies the
organization is “rewired” completely. They can also take the form of ongoing change, whereby policies and culture are used to
progressively reform and adapt the company.

Trans organizational change is the final lens through which adjustments take place through networking, mergers, and
acquisitions.

2. Strategic change interventions

Through mergers, restructurings, and transformational changes, strategic change interventions combine two or more
organizations.

3. Human process interventions

These interventions focus on the dynamics of group performance and interpersonal relationships.

They can be implemented to modify how an individual, such as a manager, communicates with staff members or even how staff
members communicate with one another. They can be used to eliminate unproductive habits, develop productive actions, and
boost general self-esteem.
Group interventions analyze how groups are created and how they function to achieve their desired goals. The use of team -
building strategies to change group dynamics or a diagnosis and management of intergroup communication are examples of OD
interventions.

Large groups, such as one consisting of management, employees, and stakeholders, could also be the focus of these
interventions.

4. Techno-structural interventions
These interventions were developed in response to the organization systems’ successful implementation of innovations. To do
that, it is necessary to assess which technologies should be used as well as to ensure that staff members are qualified to us e
them.

The interventions also deal with issues with organizational structure. Particularly if the organizational structure and funct ion are
effective because it allows the organization to adapt to change. For example, the central authority model is one that certa in
design organizations use.

This assumes that all administrative decisions are made autonomously by a single individual or small group. Employees are
subject to strict control and have little to no input. Decentralized management is a different mindset that gives everyone,
including employees, a say in decision-making.

Evaluation of organizational change programmes

Evaluation of organizational change programmesEvaluating organizational change programs is crucial to understanding their
effectiveness, identifying areas for improvement, and ensuring that the intended outcomes are achieved. The evaluation proces s
involves systematically assessing the impact, implementation, and sustainability of the change initiatives. Here are key steps and
criteria for evaluating organizational change programs:

### 1. **Define Evaluation Criteria:**

- Clearly outline the criteria against which the success of the change program will be measured. Criteria may include improved
performance, increased employee satisfaction, cost -effectiveness, etc.

### 2. **Establish Key Performance Indicators (KPIs):**

- Identify specific, measurable KPIs that align with the objectives of the change initiative. KPIs may vary based on the nature of
the change but could include metrics such as productivity, employee engagement, turnover rates, and financial performance.

### 3. **Collect Data:**

- Use a combination of qualitative and quantitative data collection methods. This may involve surveys, interviews, focus
groups, observations, and analysis of relevant organizational metrics.

### 4. **Assess Implementation Process:**

- Evaluate how well the change program was implemented. Consider factors such as adherence to the planned timeline,
resource allocation, and the effectiveness of communication strategies.

### 5. **Employee Feedback:**

- Gather feedback from employees at various levels. Assess their perceptions of the change, including their understanding of
the purpose, their involvement in the process, and their overall satisfaction.

### 6. **Comparative Analysis:**

 - Compare pre-change and post-change data to identify any significant improvements or setbacks. Benchmarking against
industry standards or best practices can provide additional context.

### 7. **Cost-Benefit Analysis:**

- Conduct a cost-benefit analysis to determine the financial impact of the change program. Assess whether the benefits
outweigh the costs and if the return on investment (ROI) aligns with expectations.

### 8. **Leadership and Communication Evaluation:**

- Evaluate the role of leadership in driving and supporting the change. Assess the effectiveness of communication strategies in
keeping employees informed and engaged throughout the process.

### 9. **Sustainability:**

- Assess the extent to which the changes have become embedded in the organizational culture and practices. Evaluate the
organization's capacity to sustain the improvements over the long term.

### 10. **Feedback from Stakeholders:**

- Collect feedback from various stakeholders, including customers, suppliers, and external partners. Assess the impact of the
changes on these external relationships and the overall perception of the organization.

### 11. **Learning and Adaptation:**

- Identify lessons learned from the change process. Evaluate the organization's ability to adapt and learn from both successes
and challenges encountered during the implementation.

### 12. **Documentation and Reporting:**

- Ensure that the evaluation process is well-documented. Prepare a comprehensive report outlining the findings,
recommendations, and areas for future improvement.

### 13. **Continuous Improvement:**

- Use the evaluation results to inform continuous improvement efforts. Adjust strategies, policies, or processes based on the
insights gained from the evaluation.

### 14. **Celebrate Successes:**

- Acknowledge and celebrate the achievements and positive outcomes resulting from the change program. Recognize the
efforts of individuals and teams who contributed to the success.

A thorough evaluation process provides valuable insights for refining future change initiatives and contributes to the
organization's overall learning and development. Regular reviews and assessments help build a culture of continuous
improvement and adaptability within the organization.
Managers as change Agents

Managers who have difficulty with change often suffer pusillanimity. To initiate, encourage
or maintain change, a manager needs the courage to fail. They also need interpersonal
courage, particularly in the delivery of bad news and confronting poor performers. In
addition, managers need moral courage to confront ethical dilemmas and corruption. Most
importantly, change is a psychological issue in that managers need to challenge and support
those who have to learn to behave differently. Perhaps managing the customer-facing
employee in times of internal and external change is the most important task facing all
managers. The paper concludes with an example of a bank that is trying to use 360°
feedback to measure and encourage managerial courage.

Managers play a crucial role as change agents within organizations. A change agent is an individual who takes on the responsibility of driving and facilitating change within
an organization. Managers, at various levels, are often at the forefront of organizational change efforts. Here's how managers can effectively act as change agents:

1. **Visionary Leadership:**

- Managers should articulate a clear and compelling vision for the change. This vision helps employees understand the purpose and direction of the change initiative.

2. **Communication Skills:**

- Effective communication is key. Managers must communicate the reasons behind the change, the expected benefits, and the steps involved. Open and transparent
communication fosters trust among employees.

3. **Build a Coalition:**

- Managers need to build a coalition of support for the change. This involves gaining buy-in from key stakeholders and influential individuals within the organization.

4. **Empower and Involve Employees:**

- Empower employees by involving them in the change process. Seek their input, address concerns, and make them feel like active participants in the change rather than
passive recipients.

5. **Lead by Example:**

- Managers should embody the desired behaviors and attitudes associated with the change. Leading by example reinforces the credibility of the change initiative.

6. **Facilitate Training and Development:**

- Ensure that employees have the necessary skills and knowledge to adapt to the changes. This may involve providing training programs and resources.

7. **Adaptability:**

- Managers should be adaptable and open to feedback. The change process is dynamic, and adjustments may be necessary. Being flexible allows for a more responsive
approach.

8. **Overcome Resistance:**

- Resistance to change is common. Managers must proactively address resistance, whether it is due to fear, uncertainty, or concerns about the impact on job roles.
Understanding and mitigating resistance is critical.

9. **Monitor and Assess:**

- Managers need to continuously monitor the progress of the change initiative. Regular assessments and feedback mechanisms help identify areas that require attention
and adjustments.
10. **Problem-Solving:**

- Managers should be effective problem-solvers. Addressing challenges and obstacles promptly helps maintain momentum and keeps the change initiative on track.

11. **Celebrate Milestones:**

- Acknowledge and celebrate small victories and milestones. Recognizing progress helps boost morale and reinforces the positive aspects of the change.

12. **Provide Support:**

- Managers should offer support to employees experiencing challenges during the change. This support can be emotional, professional, or logistical, depending on the
needs of the individuals involved.

13. **Create a Positive Culture:**

- Foster a positive and supportive organizational culture that embraces change. A culture that values innovation and continuous improvement contributes to the success
of change initiatives.

14. **Evaluate and Learn:**

- After the change has been implemented, managers should participate in a thorough evaluation process. Learn from the experience and apply insights to future change
initiatives.

15. **Strategic Alignment:**

- Ensure that the change aligns with the overall strategic goals of the organization. Managers play a pivotal role in connecting the change to the broader strategic vision.

By assuming the role of change agents, managers can effectively guide their teams and organizations through periods of transition, contributing to the successful
implementation of change initiatives.

5.5 DIFFERENCES BETWEEN INTERNAL AND EXTERNAL CHANGE AGENTS

External Change Agent Internal Change Agent

1. He is the outside

consultant hired by any

organisation. 1. He is the inside consultant who is an employee of the organisation.

2. He is always a

professional. 2. He is not always a professional.

3. He works for a limited

period of time for any

organisation. 3. His working period is not limited.

4. Hiring external change

agent is expensive. 4. Working with an internal change agent is economical for an organisation.
 External Change Agent Internal Change Agent

5. External change agent only 5. An internal change agent works for the implementation of the change process as

outlines the change process. well.