Organizational Change and Development

Organizational BehaviorOrganizational Behavior
Organizational Change and DevelopmentOrganizational Change and Development
Topics CoveredTopics Covered
What is Organizational Change?What is Organizational Change?
Reasons / Sources of Resistance to ChangeReasons / Sources of Resistance to Change
Overcoming Resistance to ChangeOvercoming Resistance to Change
Organization Development ProcessOrganization Development Process
Organizational DevelopmentOrganizational Development
 Employee Acceptance of ChangeEmployee Acceptance of Change
Management by ObjectivesManagement by Objectives
Survey FeedbackSurvey Feedback
Team BuildingTeam Building
T-GroupT-Group
Effectiveness of OrganizationalEffectiveness of Organizational
Development.Development. SMS Kabir, smskabir@psy.jnu.ac.bd;
smskabir218@gmail.com 1

WHAT IS ORGAINSATIONAL CHANGE?WHAT IS ORGAINSATIONAL CHANGE?
Change refers to any alteration thatChange refers to any alteration that
occurs in total work environment.occurs in total work environment.
Change occasionally results inChange occasionally results in
disequilibrium in the environmentdisequilibrium in the environment
conditions of the organization.conditions of the organization.
It is the duty of the management toIt is the duty of the management to
facilitate adjustment so that a new statefacilitate adjustment so that a new state
of equilibrium can be adapted quicklyof equilibrium can be adapted quickly
and chance of little or nonresistanceand chance of little or nonresistance
may be restored.may be restored.SMS Kabir, smskabir@psy.jnu.ac.bd;

WHAT IS ORGAINSATIONAL CHANGE?WHAT IS ORGAINSATIONAL CHANGE?
If management ignores thisIf management ignores this
fundamental fact of humanfundamental fact of human
behavior, and does nothing to helpbehavior, and does nothing to help
the people adjust, resistance willthe people adjust, resistance will
occur and disequilibrium will existoccur and disequilibrium will exist
in the environment.in the environment.
Change may affect an individual, aChange may affect an individual, a
group, and the whole organization.group, and the whole organization.
SMS Kabir, smskabir@psy.jnu.ac.bd;

REASONS/SOURCES OF RESISTANCE TO CHANGEREASONS/SOURCES OF RESISTANCE TO CHANGE
Individual resistance:Individual resistance: Individual sources ofIndividual sources of
resistance to change reside in basic humanresistance to change reside in basic human
characteristics such as perceptions,characteristics such as perceptions,
personalities and needs.personalities and needs.
1.1. HabitHabit: Human beings are creatures of habit: Human beings are creatures of habit
& life is complex enough. To cope with this& life is complex enough. To cope with this
complexity, all rely on habits or programmedcomplexity, all rely on habits or programmed
responses.responses.
2.2. SecuritySecurity: Peoples with a high need for: Peoples with a high need for
security are likely to resist change because itsecurity are likely to resist change because it
threatens their feelings of safety.threatens their feelings of safety.

3.3. Economic factorsEconomic factors: Another source of: Another source of
individual resistance is concern thatindividual resistance is concern that
changes will lower one's income.changes will lower one's income.
4.4. Fear of the unknownFear of the unknown: Changes: Changes
substitute ambiguity and uncertainty forsubstitute ambiguity and uncertainty for
the known. Employees in organizationsthe known. Employees in organizations
hold dislike for uncertainty.hold dislike for uncertainty.
5.5. Selective information processingSelective information processing::
Individuals shape their world throughIndividuals shape their world through
their perceptions. Once they have createdtheir perceptions. Once they have created
this world, it resists change.this world, it resists change.
Individual resistanceIndividual resistance

Organizational resistance:Organizational resistance: Six major sourcesSix major sources
of organizational resistance have beenof organizational resistance have been
identified:identified:
1.1. Structural inertiaStructural inertia: Organizations have built: Organizations have built
in mechanisms to produce stability.in mechanisms to produce stability.
2.2. Limited focus of changeLimited focus of change: Organizations are: Organizations are
made up of a number of interdependentmade up of a number of interdependent
sub systems.‑sub systems.‑
3.3. Group inertiaGroup inertia: If union norms dictate: If union norms dictate
resisting any unilateral change made byresisting any unilateral change made by
management, an individual union member ismanagement, an individual union member is
likely to resist.likely to resist.
REASONS/SOURCES OFREASONS/SOURCES OF
RESISTANCE TO CHANGERESISTANCE TO CHANGE

4.4. Threat to expertiseThreat to expertise: Changes in: Changes in
organizational patterns may threaten theorganizational patterns may threaten the
expertise of specialized groups.expertise of specialized groups.
5.5. Threat to established power relationshipsThreat to established power relationships::
Any redistribution of decision makingAny redistribution of decision making
authority can threaten long established powerauthority can threaten long established power
relationships within the organization.relationships within the organization.
6.6. Threat to established resource allocationThreat to established resource allocation::
Those that most benefit from the currentThose that most benefit from the current
allocation of resources often feel threatened byallocation of resources often feel threatened by
the changes that many affect futurethe changes that many affect future
allocations.allocations.
Organizational resistanceOrganizational resistance

OVERCOMING RESISTANCE TO CHANGEOVERCOMING RESISTANCE TO CHANGE
11.. Education & communicationEducation & communication: Resistance: Resistance
can be reduced through communicatingcan be reduced through communicating
with employees to help them see the logicwith employees to help them see the logic
of a change.of a change.
2.2. ParticipationParticipation: It is difficult for: It is difficult for
individuals to resist a change decision inindividuals to resist a change decision in
which they participated. Prior to making awhich they participated. Prior to making a
change, those opposed can be brought intochange, those opposed can be brought into
the decision process.the decision process.

33.. Facilitation & supportFacilitation & support: Change agents: Change agents
can offer a range of supportive efforts tocan offer a range of supportive efforts to
reduce resistance. When employee fear &reduce resistance. When employee fear &
anxiety are high, employee counseling andanxiety are high, employee counseling and
therapy, new skills training, leave oftherapy, new skills training, leave of
absence may facilitate adjustment.absence may facilitate adjustment.
4.4. NegotiationNegotiation: Another way for change: Another way for change
agent to deal with potential resistance toagent to deal with potential resistance to
change is to exchange something of valuechange is to exchange something of value
for a lessening of the resistance.for a lessening of the resistance.

5.5. Manipulation and cooptationManipulation and cooptation: Twisting and: Twisting and
distorting factors to make them appear moredistorting factors to make them appear more
attractive, withholding undesirableattractive, withholding undesirable
information and creating false rumors to getinformation and creating false rumors to get
employees to accept a change are all examplesemployees to accept a change are all examples
of manipulation. Cooptation is to “buy off” theof manipulation. Cooptation is to “buy off” the
leaders of a resistance group by giving them aleaders of a resistance group by giving them a
key role in the change decision.key role in the change decision.
6.6. CoercionCoercion: Coercion is the application of: Coercion is the application of
direct threats or force upon the resisters.direct threats or force upon the resisters.
Some examples of coercion are threats ofSome examples of coercion are threats of
transfer, loss of promotion, negativetransfer, loss of promotion, negative
performance evaluation etc.performance evaluation etc.

ORGANIZATION DEVELOPMENTORGANIZATION DEVELOPMENT
PROCESSPROCESS
A typical complete OB program includes the following steps:A typical complete OB program includes the following steps:
Initial DiagnosisInitial Diagnosis
Data CollectionData Collection
Data Feedback and ConfrontationData Feedback and Confrontation
Action Planning and Problem SolvingAction Planning and Problem Solving
Use of InterventionsUse of Interventions
Evaluation and Followup

1.. Initial DiagnosisInitial Diagnosis: The consultant meets with: The consultant meets with
top management to determine the nature of thetop management to determine the nature of the
firm's problem to develop the approaches mostfirm's problem to develop the approaches most
likely to be successful.likely to be successful.
2.2. Data CollectionData Collection: Surveys may be made to: Surveys may be made to
determine organizational climate anddetermine organizational climate and
behavioral problems.behavioral problems.
3.3. Data Feedback and confrontationData Feedback and confrontation: Work: Work
groups are assigned to review the datagroups are assigned to review the data
collected, mediate areas of disagreement and tocollected, mediate areas of disagreement and to
establish priorities for change.establish priorities for change.
ORGANIZATION DEVELOPMENT PROCESSORGANIZATION DEVELOPMENT PROCESS

4.4. Action Planning and Problem SolvingAction Planning and Problem Solving::
Groups use the data to develop specificGroups use the data to develop specific
recommendations for change.recommendations for change.
5.5. Use of InterventionsUse of Interventions: Once the action: Once the action
planning is completed, the consultant helps theplanning is completed, the consultant helps the
participants select and use appropriate ODparticipants select and use appropriate OD
interventions.interventions.
6.6. Evaluation and Follow-upEvaluation and Follow-up: Finally the: Finally the
consultant helps the organization evaluate theconsultant helps the organization evaluate the
results of its 0D efforts and develop additionalresults of its 0D efforts and develop additional
programs in areas where additional results areprograms in areas where additional results are
needed.needed.
ORGANIZATION DEVELOPMENT PROCESSORGANIZATION DEVELOPMENT PROCESS

Organizational DevelopmentOrganizational Development
Organizational development (OD)Organizational development (OD) is a family ofis a family of
techniques designed to help organizations change fortechniques designed to help organizations change for
the better by applying behavioral science principlesthe better by applying behavioral science principles
that help employees improve performance or interactthat help employees improve performance or interact
more effectively.more effectively.
Can involve reorganization (i.e., new departmentsCan involve reorganization (i.e., new departments
created, others eliminated; functions can be shifted tocreated, others eliminated; functions can be shifted to
a different area or a different person). Usuallya different area or a different person). Usually
involves changing how people work, communicate,involves changing how people work, communicate,
and coordinate efforts.and coordinate efforts.
Change is implemented by a change agent, an expertChange is implemented by a change agent, an expert
in working with organizations to improve theirin working with organizations to improve their
functioning.functioning. SMS Kabir, smskabir@psy.jnu.ac.bd;

Specific techniques for changeSpecific techniques for change
Management by objectivesManagement by objectives
Survey feedbackSurvey feedback
Team buildingTeam building
T groups‑T groups‑

Employee Acceptance of ChangeEmployee Acceptance of Change
•Employees must be willing to acceptEmployees must be willing to accept
change and commit to make it successful.change and commit to make it successful.
•Individual characteristics positively affectIndividual characteristics positively affect
acceptance of change -acceptance of change -
a. Willingness to accept change is aa. Willingness to accept change is a
personality characteristic.personality characteristic.
b. Self-efficacy or the belief that one canb. Self-efficacy or the belief that one can
adjust to change successfully.adjust to change successfully.
c. Positive experiences with change inc. Positive experiences with change in
the past.the past.SMS Kabir, smskabir@psy.jnu.ac.bd;

Employee Acceptance of ChangeEmployee Acceptance of Change
•Organizational characteristicsOrganizational characteristics
positively affecting acceptance ofpositively affecting acceptance of
change -change -
a. sufficient information abouta. sufficient information about
change.change.
b. participation by employees.b. participation by employees.
c. financial resources.c. financial resources.
d. support from management.d. support from management.

Management By ObjectivesManagement By Objectives
Based on goal settingBased on goal setting
Interlocking goals across levels ofInterlocking goals across levels of
organizationorganization
Top officials set organization-wide goalsTop officials set organization-wide goals
Each level sets goals to achieve higher levelEach level sets goals to achieve higher level
goalsgoals
Research suggests it leads to productivityResearch suggests it leads to productivity
gainsgains
Requires full management commitmentRequires full management commitment

Survey FeedbackSurvey Feedback
Survey employees of organization on attitudes andSurvey employees of organization on attitudes and
opinionsopinions
Results shared with employees as basis for changeResults shared with employees as basis for change
StepsSteps
Design and conduct surveyDesign and conduct survey
Produces reportProduces report
Presents results to organizationPresents results to organization
Holds meetings to discuss possible actionsHolds meetings to discuss possible actions
Implement changeImplement change
Resurvey about reactionsResurvey about reactions
Studies suggest increased job satisfactionStudies suggest increased job satisfaction

Team BuildingTeam Building
Many techniques designed to enhance teamMany techniques designed to enhance team
functioningfunctioning
Enhance performanceEnhance performance
Improve communicationImprove communication
Reduce conflictReduce conflict
Meetings of team with facilitator or trainerMeetings of team with facilitator or trainer
Team exercises to improve working togetherTeam exercises to improve working together
Results of team building are inconsistent acrossResults of team building are inconsistent across
studiesstudies
Some have positive effectsSome have positive effects
Some have no effectsSome have no effects

T-GroupT-Group
The T-group or training group is designed to enhanceThe T-group or training group is designed to enhance
communication and interpersonal skills of individualcommunication and interpersonal skills of individual
employees through group exercises.employees through group exercises.
a.a.Most happen away from work, take 3 days to 2 weeks,Most happen away from work, take 3 days to 2 weeks,
and involve people who don’t know each other.and involve people who don’t know each other.
b.b.Participants experience a series of interpersonal skillsParticipants experience a series of interpersonal skills
exercises with a trainer or facilitator. They’reexercises with a trainer or facilitator. They’re
encouraged to experiment with interpersonalencouraged to experiment with interpersonal
behavior in a situation of nonjudgmental feedback.behavior in a situation of nonjudgmental feedback.
c.c. Participants should gain insights into their effects onParticipants should gain insights into their effects on
others; the point is to increase interpersonal skills,others; the point is to increase interpersonal skills,
which should in turn increase effectiveness on the job.which should in turn increase effectiveness on the job.

Organizational Change and Development

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