Managing Change & Organizational Effectiveness

Managing Change &
Organizational Effectiveness
Prof. Anita Singh

Order of Change
• “first-order” involves changes to technology only
• “second-order” involves changes to technology
and business processes
• “third order change” or “Enterprise change” is
change that includes organizational structures,
business processes, roles and responsibilities,
and technology at the enterprise level; an
enterprise wide ERP implementation is a good
example
• “fourth-order change” extends change to
external enterprises as well (e.g., suppliers,
customers, regulators).
Key concepts
•Planned versus emergent
Plan change is deliberate taken by conscious
decision, reasoning and actions while emergent
change is due to external factors or internal features
influence the change outside the control of
Management.
•Radical versus Continuous Change

Radical change involve replacement of one
programme with another, it is intentional,
discontinuous and second order while Continuous
change refer to first order or incremental change.
Developmental, Transitional and
Transformational Change
– Developmental can be either Planned or emergent, it is first order or
incremental. It is change that enhance existing aspects of
organization focusing on improvement of skill or process
– Transitional is a known desired change different from the existing

one. It is a radical, planned and second order. It involved three
stages : unfreezing, neutral zone and freezing
Unfreezing is the existing organization equilibrium,

Neutral zone is moving to new position through restructuring
Refreezing is when new point of view is integrated into
personality, concept of self and through significant relationship.
– Transformational is radical or second order in nature. It requires a

shift in assumptions made by the organization and its members.
Transformation can result in an organization that differs significantly
in terms of structure, processes, culture and strategy. It may,
therefore, result in the creation of an organization that operates in
developmental mode – one that continuously learns, adapts and
improves.
FORCES FOR CHANGE (EXTERNAL)
FORCE EXAMPLES
Nature of the - More cultural diversity
workforce - Increase in professionals
- Many new entrants with
inadequate skills
Technology - Faster & cheaper computers

- TQM programs
- Reengineering Programs
Economic - Asian real estate collapse

Shocks - Russian devaluation of the
Ruble
- Change in oil prices
FORCES FOR CHANGE (EXTERNAL)
FORCE EXAMPLES
Competition - Global Competitors
- Mergers & Consolidations
- Growth of E-Commerce
Social Trends - Attitude towards smokers

- Delayed marriages by young
people
- Popularity of sport-utility vehicle
World Politics - Collapse of Soviet Union

- Opening of markets in China
- Black rule of South Africa
INTERNAL FORCES FOR CHANGE
FORCE EXAMPLES
Efficiency : Drive for minimalism
organization – Cost reduction
in
Fashion : Change for the sake of change

leading edge.
Control : New managers frequently
make changes simply to
demonstrate that the previous
incumbent has gone.
.
Internal : From various stake holder

groups e.g. changes to the
Pressure wage structure and working
practices.
WHAT CAN CHANGE AGENTS CHANGE
What are the

change options?
Structure Technology Physical Setting People
Change Options
RESISTANCE TO CHANGE
Organizations and their members resist change.

In a sense this is positive – It provide a degree
of stability and predictability to behaviour.
SOURCES OF RESISTANCE:
 Individual
 Organizational
INDIVIDUAL RESISTANCE
Selective Habit
information
processing Individual
Resistance
Security
Fear of the
unknown Economic
factors
FIG: Sources of Individual Resistance of Change

ORGANIZATIONAL RESISTANCE
Threat to Structural
established inertia
resource Organizational
allocations Resistance Limited
focus of
Threat to
change
established
power
relationships Threat to Group
Expertise inertia
FIG: Sources of Organizational Resistance of Change

Strategies for dealing with
resistance to change
• Communication
• Training
• Employee involvement
• Stress management
• Negotiation
• Coercion
Managing Planned Change
Change:
Making things different
Planned Change:
Change activities that are Intentional and goal oriented.
What are the goals of planned change?

 It seeks to improve the ability of the organization to
adapt to changes in its environment.
 It seeks to change employee behavior.
Approaches for Managing Changes
• Lewins Classic Three-step Model
• Action Research
• Organisational Development
Process for Planned Change
Lewin’s Process Model:
Unfreeze Change Refreeze

(Awareness (Assurance
Old of need for (Movement of New
State change) from old permanent State
status quo state to new change)
state)
Continuous Change Process Model
1. Forces 2. Recognize 3. Problem-
for Change and Define Solving
Problem Process
Change
Agent
5. Measure 4. Implement
Evaluate the Change
Control
Transition
Management
Action Research
• A change process based on the collection
of data and then selection of a change
action based on what the analyzed data
indicate.
• It’s a scientific methodology for managing
planned change
5-Steps
• Diagnosis
• Analysis
• Feedback
• Action
• Evaluation
Organisational Development
• Collection of planned change
interventions, built on humanistic-
democratic values, that seeks to improve
organizational effectiveness and employee
well being
Effective Planning and Implementation of Change
Step 1: Select the problem where change is desired.
Step 2: Define the problem clearly. Who is involved in it? How

big is the problem? What factors have some bearing
on it?
Step 3: How do you want the situation to be changed? Is it

quantifiable? If yes, then set a target.
Step 4: Defining the pushing forces and the restraining forces.
Step 5: Determine which forces are low, medium and higher

power, both pushing and restraining.
Effective Planning and Implementation of Change
Step 6: Draw a diagram of the situation.
Step 7: Use the diagram to suggest and develop strategy for

taking the desired change ahead with minimum
resistance.
Step 8: Implement the change in the organization.
Step9: Evaluate the change through qualitative or

quantitative measures.
Change Management : Four Basic Strategies
Strategy Description
Rational : People are rational and will follow their
self interest once it is revealed to
Empirical them. Change is based on the
communication of information and
offering of incentives.
Normative : People are social beings and will
adhere to cultural norms and values.
Re- Change is based on redefining and
educative reinterpreting existing norms & values
and developing commitments to new
ones.
Power : People are basically compliant and will
generally do what they are told or can
Coercive be made to do. Change is based on the
exercise of authority and imposition of
sanctions
Change Management : Four Basic Strategies
Strategy Description
Environment : People oppose loss and disruption
but they adapt reality to new
al Adaptive circumstances. Change is based on
building new organization and
gradually transferring people from
the old to the new one.
Bennis, Benne and Chin & Fred
Reference : Nickols
Thank You

Managing Change & Organizational Effectiveness

Uploaded by

Copyright:

Available Formats

Managing Change & Organizational Effectiveness

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Managing Change & Organizational Effectiveness

Uploaded by

Copyright:

Available Formats

What are the different orders of change discussed?

What are the different orders of change discussed?

What are the three types of planned change discussed?

What are the three types of planned change discussed?

Managing Change &

Prof. Anita Singh

•Radical versus Continuous Change

– Transitional is a known desired change different from the existing

Unfreezing is the existing organization equilibrium,

– Transformational is radical or second order in nature. It requires a

Technology - Faster & cheaper computers

Economic - Asian real estate collapse

Social Trends - Attitude towards smokers

World Politics - Collapse of Soviet Union

Fashion : Change for the sake of change

Internal : From various stake holder

What are the

Structure Technology Physical Setting People

Organizations and their members resist change.

FIG: Sources of Individual Resistance of Change

FIG: Sources of Organizational Resistance of Change

What are the goals of planned change?

Lewin’s Process Model:

Unfreeze Change Refreeze

Step 1: Select the problem where change is desired.

Step 2: Define the problem clearly. Who is involved in it? How

Step 3: How do you want the situation to be changed? Is it

Step 4: Defining the pushing forces and the restraining forces.

Step 5: Determine which forces are low, medium and higher

Step 6: Draw a diagram of the situation.

Step 7: Use the diagram to suggest and develop strategy for

Step 8: Implement the change in the organization.

Step9: Evaluate the change through qualitative or

You might also like