Chapter 10 Organizational Change and Development

Organizational Change and
Development
Unit 10
Organizational change
Concept
Change is making things different.
Change may be reactive or proactive.
Change in any part of the organization affect the whole
Organization.
“Change is any alternative in the work environment that affects
the ways in which employees must act”-Newstrom and Davis
Organizational change refers to a modification or transformation
of the organization’s structure, processes or goods.
Organizational change is the process by which organization move
from their present state to some desired future state to increase
effectiveness.
“Organizational change is any substantive modification to some
part of the organization”- Ricky W. Griffin
Forces of change
A. Internal forces B. External forces
i. General ii. Task

1. Change in Goals, forces forces
Policies, Strategies
2. Change in
administration system 1. Change in 1. Customer
3. Change in economic forces 2. Suppliers
Organizational 2. Change in political 3. Competitors
resources forces 4. Financial
4. Change in 3. Change in legal Institutions
organizational structure forces 5. Government
5. Change in work 4. Change in socio- 6. Pressure
environment culture forces Groups
6. Change in job 5. Change in 7. Strategic
technology technological forces alliance
Forces of change
Resistance to Change
Resistance consists of employee behavior designed to
delay or prevent the implementation of change.
Employees resist change.
Sources of Resistance to Change
Individual Resistance Organizational Resistance

1. Habit 1. Structural inertia
2. Security 2. Limited focus on change
3. Economic factors 3. Group inertia ( lack of
change)
4. Fear of unknown
4. Threat to expertise
5. Selective information
5. Threat to established
processing power relationship
6. Threat to established
resource allocation
Overcoming Resistance to Change
1. Education and communication
2. Participation
3. Facilitation and support
4. Negotiation
5. Manipulation and cooptation ( use for own
purpose)
6. Explicit and implicit coercion
Approaches to Managing Organizational
Change
OD Interventions
Lewin’s
Three Steps
1. Survey feedback
Model Action Research 2. Process consultation
3. Sensitivity training
1.Unfreezing 1. Diagnosing 4. Team building
2. Changing 2. Analysis 5.Counseling and
3. Refreezing 3. Taking action coaching
4. Evaluation 6. Inter-group
relationship
1. Lewin’s Three Steps Model of change
 This model was developed by psychologist Kurt Lewin.
 This model argues that change in organization should
follow three steps of unfreezing, changing, and refreezing.
1. Unfreezing
 It refers to the situation of status quo (current level of
acceptability).
 It is the initial stage of change process.
 In this stage, situation is prepared for change.
 It create awareness among employees for necessity of
change in the organization.
 Unfreezing stage provides awareness among
employees to accept change.
2. Changing (moving)
 Change is a process where the organization must
move into new state of activities.
 This step is marked by the implementation of the
change.
 All the employees consider that change is reality.
 During the changing period, people begin to learn
the new behaviors, processes and ways of thinking.
 The attitudes and practices are learnt.
 This step designs and implements actual change.
3. Refreezing
 This is permanent stage in which change
interventions are stabilized.
 All employees accept new changes in the
organization and change can be implemented
effectively.
2. Action research
 Action research is also known as participatory research. The
action research process is known as on-the-job research. This
process consists of four steps in the cycle.
a. Diagnosing
 In this step, the actual problem is identified to promote the
starting of the action research.
 For problem identification, researchers make employees’
interview, review records, and carefully listen the concern of
employees.
b. Analysis
 After diagnosis, action research is forwarded to analysis.
 For analyzing information, it is essential to consider actual
problem areas in change, pattern of change, and possible actions.
c. Taking action
 The third step is taking action, where a specific alternative is
selected to solve the issue.
 For selection of a course of action, it is essential to study the
impact of such action on employees motivation and
productivity.
d. Evaluation
 The final step of action research is to evaluate the impact of
change implementation.
3. Organization development interventions
a. Survey feedback
 In survey feedback intervention, researchers collects
information of impact of change of employees and such
data and information provide to managers.
 In survey feedback, information of attitudes of employees
about wage level, hours of work, structure, working
conditions and relations with co-workers are collected and
the results are supplied to the top executive teams.
b. Process consultation
 In the process consultation, they observe the activities of
work group and realize deficiency in behavior. Finally,
they provide proper information and guidance to the
management for improving working process.
c. Sensitivity training
 It refers to a method of changing behavior through
unstructured group interaction.
d. Team building
 Team building activities are designed to enhance the
effectiveness and satisfaction of individuals who work in
groups in order to improve group effectiveness.
 It facilitates to manage change through mutual interaction and
understanding among group member.
e. Counseling and coaching
 Counseling and coaching of manager or expert facilitates to
change on attitude, perception, belief and value of employees.
 It encourages employees to accept the change for achieving
organizational goals and to meet their personal objectives.
f. inter-group relationship
 Inter-group relationship tries to minimize the dysfunctional
conflict between the groups.
Organizational Development
Concept
It is the process of improving organizational efficiency through
planned change.
Organizational development is a collection of change method
that try to improve organizational effectiveness and employee
well –being.
“Organizational development is a systematic means for planned
change that involves the entire organization and is intended to
increase organizational effectiveness.”- Middlemist and Hitt
“Organizational development is the process of planned change
and improvement of the organization through application of
knowledge of the behavioral science”. –Ricky W. Griffin
Characteristics of Organizational
Development
1. Long –term plan

2. Broad based
3. Dynamic process
4. System perspective
5. Focus on behavior
6. Research based
7. Empowered process
8. Team work
Organizational Development Values
1. Respect for people

2. Trust and support
3. Power equalization
4. Confrontation
5. Participation
Organizational Development Interventions
Individual Organizational Level

Level
1.Goal setting & planning
1.Survey Group Level
2.Organizational
feedback restructuring
2. Sensitivity 1.Process
3. Technological changes
3. Counseling consultation
4. Quality of work life
and coaching 2. Team building
3. Inter-group
development

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Organizational Change and

A. Internal forces B. External forces

i. General ii. Task

Individual Resistance Organizational Resistance

1. Long –term plan

1. Respect for people

Individual Organizational Level

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