Models of planned change, change interventions

1. ORGANIZATION CHANGE
AND DEVELOPMENT
BY:
KARISHMA GANJOO

2. ORGANIZATIONAL CHANGE
TimeA A’
Organizational change involves movement from the present state of the organization
to some future or target state
Future state can include a new strategy, new technology, or changes in the
organization’s culture

3. UNPLANNED AND PLANNED
ORGANIZATIONAL CHANGE
 Unplanned organizational change: forces for change overwhelm resistance to change. Two
such forces of unplanned organizational change are the changes in the demographic
composition of the workforce and performance gaps.
 Usually unexpected.
 Planned organizational change: A deliberate, systematic change effort.
 Change organizational design, information systems, job design, and people’s behavior.

4. PROCESS OF PLANNED CHANGE
Adapted from Exhibit 14-3: Process of Planned Change
Unfreezing RefreezingMoving
• Reminding individuals they
have successfully changed in
the past
• Communicating to individuals
that managers and associates
in other organizations in similar
circumstances have
successfully changed
• Letting individuals know that
support and training will be
available for the specific
changes to be made.
• A phase in the change
process in which
leaders help to
implement new
approaches by
providing information
that supports
proposed changes
and by providing
resources and training
to bring about actual
shifts in behavior.
Kurt Lewin
• A phase in the change
process in which leaders
lock in new approaches by
implementing evaluation
systems that track
expected behaviors, by
creating reward systems
that reinforce expected
behaviors.

5. THE EVOLUTION OF STARBUCKS
Howard Schultz
Dave Olsen
Dawn Pinaud
 In the beginning they had only just a shop that
sold some selected coffee beans.
 As Starbucks grew, they realized that the informal
techniques were not sufficient and needed to have
a more formalized process in place.
 They adopted the Italian culture and make some
important changes in organization.
 Starbucks is faced with new challenges today. It
has dominated the marketplace. Now Starbucks is
the biggest coffee chain network in the world with
more than 15000 shops in over 44 countries and
they grow too fast.

6. NOKIA
As mobile phones became popular, the Finnish company Nokia dominated
the market. However, the company exited the market in 2014 because it
was no longer profitable. It was a major decision for the firm, although this
isn’t the first time Nokia has reinvented itself.

7. Nokia’s executives decided to sell the device business to Microsoft.

8.  Nokia’s new core business is now networking equipment.
 This wasn’t a decision executives made lightly; Nokia was already in a
partnership with networking equipment manufacturer Siemens.
 The company’s leadership realized networking equipment is a better business
strategy.
 To that end, they bought out Siemens and put a new portfolio strategy, corporate
structure, business plan, capital structure, and management team into place.
 Since transitioning from manufacturer of mobile devices to one of networking
equipment, Nokia has:
 had a steadily growing share price
 an enterprise value which has grown 12-fold since July 2012
 returned billions of dollars in cash to its shareholders
 became the most valuable company in Finland yet again.

9. CHANGE MANAGEMENT
 Change management is a structured approach to shifting individuals, teams and organizations from a current
state to a desired future state.
 It is an organizational process aimed at helping employees to accept and embrace changes in their current
business environment.
CHANGE AGENTS:
They are responsible for managing change activities.
Change agents can be:
 Internal Change Agent (often an HRD professional)
 Managers or non-managers,
 Current or new employees
 External Change Agent (consultant)
.

10. PORRAS & SILVERS MODEL:
1) Change intervention:
Organization transformation
Organization development
It distinguishes two types of intervention strategies – OD and OT. OT should be a separate
entity because the underlying theories and concepts are not well defined as OD.
2) Organizational target variables:
 Vision (beliefs, purpose, mission)
 Work setting (organizing arrangements ,social factors, technology, physical setting)

11. Fig. Porras & Silvers Model

12. 3) Individual organizational member:
Cognitive change : as the alteration of a person’s perception of some existing organizational
variable or paradigm. An organizational paradigm can be accepted as a generally accepted view
or belief that is based on unexamined assumptions. It can occur at four levels:
 Alpha change: are possible when individuals perceive change in the levels of variables(e.g.
a perceived improvement in skills)within a paradigm without altering the configuration(e.g.
Job analysis).
 Example- Clerk attends a training program to improve his reading skills, skills improved.
 Beta change: are possible when individuals perceive change in the value of variables(e.g. a
change in work standards)within an existing paradigm without altering their configuration.
 Improve productivity by reduce the standard for effective order processing- 48 to 24 hrs.

13.  Gamma (A) change and Gamma (B) change refer to the changes occurring at
organizational level.
 Gamma (A) change: are possible when individuals perceive change in the configuration of an
existing paradigm without the addition of new variables(e.g. changing the central value of a
product driven paradigm from cost-containment to total-quality focus).
 They are directed at the manner in which operation’s mission or strategy is accomplished, but where
the core values remains intact.
 Gamma (B) change: are possible when individuals perceive a replacement of one paradigm
with another that contains new variables (e.g. replacing a product-driven paradigm with a
customer-responsive paradigm)
 They are directed at the core mission or philosophy.

14. 4) Organizational outcomes:
Individual behavior changes can lead to 2 possible outcomes:
 Improved organizational performance
 Enhanced individual development

15. ORGANIZATION DEVELOPMENT
 Organization Development is the systematic application of behavioral science
knowledge at various levels, such as group, inter-group, organization, etc., to
bring about planned change.
 Its objectives is a higher quality of work-life, productivity, adaptability and
effectiveness.

16. STEPS FOR DESIGNING AN INTERVENTION
STRATEGY
1) Diagnose the Environment
 Determining the readiness of the target group to accept change.
 If group is not ready, their would be resistance.
 One way is to conduct force field analysis.
 LEWIN’S FORCE-FIELD ANALYSIS
Force field analysis provides an overview of the change problems that need to be tackled by a business,
spilling factors into forces for and against change.
Forces for change Forces resisting change
Driving forces Restraining forces

17. DRIVING FORCES FOR CHANGE
 External forces for change
 Uncertain economic conditions
 Greater competition
 Higher cost of inputs
 Legislation & taxes
 Political interests
 Ethics & social values
 Technological change
 Globalization
 Scarcity of natural resources
 Internal forces for change
 High dissatisfaction
 Felt stress
 Loss of control of processes
 Slow decision making
 High turnover and absenteeism
 Communication dysfunctions

18. RESTRAINIG FORCES FOR CHANGE
Despite the potential positive outcomes, change is nearly always resisted.
 Habit
 Misunderstanding of the need for or purpose of change.
 Different assessment of the situation
 Low tolerance of change
 Economic implications
 Fear of the unknown

19. Change manager , change agent and possibly a change committee or task force would diagnose the
environment to determine possible forces both for and against change.
These forces are called FORCE- LINES.
The length of the line indicates the relative force- the longer the line, the greater the force. (exceed)
2) Develop an Action Plan
 Objectives of each change activity, who will be involved, who is responsible and when the activity
will be completed.
 This may require at least as much as energy and commitment of the change manager and change
agent to ensure that all the steps are followed, that tasks are completed, and that deadlines are met.
3) Evaluate the Results of the Intervention
To determine whether behavior has changed.

20. TYPES OF INTERVENTIONS:
HUMAN PROCESS-BASED
These were directed at improving interpersonal, intragroup and intergroup relations.
1) Survey Feedback
 It involves two basic activities:
 collecting data about the organization through the use of surveys of questionnaires, and
 conducting feedback meetings and workshops in which the data are presented to organizational
members.
 During the final step of the process, questionnaire results are discussed, problems are identified,
and corrective strategies are developed and stimulating motivation for change.

21. 2) Team Building
 Team building is a process of diagnosing and improving the effectiveness of a work group.
 The basic assumption of team building is that increasing the effectiveness of teams will improve the
organization’s overall effectiveness.
 For both kinds of groups, team building activities aim at diagnosing barriers to effective team
performance; improving task accomplishments; improving relationships among team members; and
improving processes operative in the team such as communication and task assignment.

22. TYPES OF INTERVENTION : TECHNOSTRUCTURAL
 The main purpose of techno structural interventions is to:
 Improve work content, work method.
 Lower costs by replacing inefficient materials, methods and replacing costly unnecessary labor with
efficient technology.
 JOB ENLARGEMENT
 Increasing the scope of job quantitatively by adding up more tasks.
 Taking charge of more duties and responsibilities which are not mentioned in the job description.
 JOB ENRICHMENT
 Job enrichment means improvement in the quality of job such that employees are more satisfied and
fulfilled.
 Job enrichment gives more control and managerial access to perform tasks and responsibilities.
 ALTERNATE WORK SCHEDULES
 COMPRESSED WORKWEEK(reducing the no. of workdays from 5 to 4)
 FLEXIBLE WORK SCHEDULE

23. TYPES OF INTERVENTION :
SOCIOTECHNICAL SYSTEMS
STS interventions focus on the combination of organizational structural demands(e.g. work flow, task
accomplishment and performance) and social demands(e.g. relationship among workers).
 Quality Circles:
 Employees are involved in making useful work decisions including, but not limited to job-related problems.
 3 roles: Steering committee(Key managers and employees), facilitator, and the circle leaders(supervisors)
 Total quality Management:
 TQM is defined as a set of concepts and tools for getting all employees focused on continuous
improvement.
Supervisors must be able to:
 Specify current performance standards.
 Identify where outputs are at variance with standards.
 Determine the cause of variance.

24.  Identify and initiate actions to correct causes.
 Specify Desired performance.
 Compare the desired standards to current standards and identify gap.
 Develop alternatives to close the gaps.
 Institutionalize new standards.

25. TYPES OF INTERVENTIONS:
ORGANIZATIONAL TRANSFORMATION
1) Cultural Interventions :
 Organizational Culture is defined as a system of shared values , beliefs, and norms .
 It is not something that is mentioned in the mission or a corporate policy manual.
 Cultural changes involve a complex process of replacing an existing paradigm or way of
thinking with another.
2) Strategic Changes :
 It is defined as any fundamental change in the organizational purpose or mission requiring
system-wide changes.
 System-wide changes can have 3 dimensions: size, depth and pervasiveness.

26. THANK YOU!!