Organizational Change

1. Organizational Change
By:
Eshant Jain
Sarang Bharadwaj
Yash Mehta
Dushyant Chourey

2. Definition:
• Organizational change is the process by which organization move
from their present state to some desired future state to some
desired future state to increase effectiveness.
• When an organization system is disturbed by some internal or
external forces change frequently occur or any alteration which
occur in the overall work environment of an organization.

3. Characteristics Of Organizational Change
• Changes happen for the pressure of both internal & external
forces in the organization.
• Change in any part of the organization affect the whole
organization.
• Change may affect people, structure, technology & other element
of the organization.
• Change may be reactive or proactive.

4. Forces for Change
• INTERNAL FORCES:
• Organizational Objective: With a change in organizational objectives, it’s structure too
needs to be changed. Ex: ITC Ltd
• Work Force: With new procedures & methods, the standards of work performance have
charged with a new sense of expectations both on part of the individual and
the organization.
• Machinery & Equipment Management: There may be machinery and technological
upliftment which requires the workforce to change
and adapt.
• Managerial Behavior: Inappropriate leader behavior may result in employee problems
requiring change.

5. Forces for Change
• EXTERNAL FORCES:
• Technology: Organizations are increasingly using technology as a means to improve productivity
and market competitiveness
• Marketing conditions: Organizations are forging new partnerships & alliances aimed at creating
new products & services.
• Social changes: Society & its legislative bodies can put pressure on organizations to change the
way they do business- Ex- Tobacco industry
• Competition: Change in policy of the global competitors may force a company to change it own
working. The policies may include mergers & growth of e-commerce

6. The Evolution Of Starbucks
• In the beginning they had only just a shop that sold some selected
coffee beans.
• Now Starbucks was the biggest coffee chain network in the world
with more than 15000 shops in over 44 countries.

7. Change Agents
• A person in organization responsible for managing change
activities.
• Can be managers or non managers, current employees, newly
hired employees or outside consultants.

8. Lewin’s Three-Step Model
Unfreezing Moving Refreezing Kurt Lewin

9. Coca-Cola Is Finding a New Fizz
Experiencing
Strategic OB
Coca-Cola is changing its culture, and
also enhance its product line to better
satisfy the demand of customers.

10. Speed of Change
Criteria to
Consider

11. Resistance to Change
Effort to block new
ways of doing things
1) Individual Resistance
2) Group Resistance
3) Organizational Resistance

12. Individual Resistance
Below are stated some reasons why people resists changes.
Some of these appear to be rational or emotional. These reasons
are:-
• Economic factors
• Habits
• Insecurity
• Lack of communication
• Psychological factors
• Social factors

13. Group Resistance
Most organizational changes have impact on formal
groups in the organization the main reason why the
groups resists change is that they fear that their
cohesiveness or existence is threatened by it.

14. Organizational Resistance
Organizational resistance means the change is resisted at the
level of the organization itself. Some organization are so
designed that they resist new ideas, this is specifically true in
case of organization which are conservative in nature. Majority
of the business firm are also resistance to changes. The major
reason for organizational resistance are:-
• Threat to power
• Group inertia
• Organizational structure
• Threat to specialization
• Resource constants

15. Minimizing Resistance to Change
• Communication
• Training
• Employee involvement
• Stress management
• Negotiation
• Coercion

16. Communication
• Resistance can be reduced through communicating with employees to help
them see the logic of change
• Highest priority and first strategy for change, i.e. the source of resistance
lies in misinformation or poor communication
• Improves urgency to change
• Reduces uncertainty (fear of unknown)
• Problems -- time consuming and costly

17. Training
• Provides new knowledge and skills
• Includes coaching and action learning
• Helps break old routines and adopt new roles
• Problems -- potentially time consuming and costly

18. Employee Involvement
• When employees are involved in the change effort, they are more
likely to buy into change rather than resist it.
• Increases ownership of change
• Helps saving face and reducing fear of unknown
• Includes task forces, search conferences
• Problems -- time-consuming, potential conflict

19. Stress Management
• When communication, training, and involvement do not resolve
stress, stress management techniques are used
• Potential benefits
• More motivation to change
• Less fear of unknown
• Problems -- time-consuming, expensive, doesn’t help everyone

20. Negotiation
• Managers can combat resistance by offering incentives to
employees not to resist change.
• When people clearly lose something and won’t otherwise
support change
• Influence by exchange-- reduces direct costs
• Problems
• Expensive
• Possibility of being blackmailed

21. Coercion
• Last on the list is Coercion; that is, the application of direct
threats or force upon the resistors
• Assertive influence
• Firing people, threats of transfer, loss of promotions, negative
performance evaluation -- radical form of “unlearning”
• Problems
• Reduces trust
• May create more strong resistance

22. Organizational Development
• Organizational development is a collection of change, methods
that try to improve organizational effectiveness & employee well
being.
• Following are the values in most OD efforts
• Respect for people
• Trust and support
• Power equalization
• Confrontation
• Participation

23. Sensitivity Training
• An early method of changing behavior through unstructured group
interaction.
• Members were brought together in free or open environment in which
participants discussed themselves and their interactive process.
• Directed by a professional behavioral scientist who create the opportunity
to express idea, belief and attitude without taking any leadership role.

24. Survey Feedback
• Survey feedback is completely a questionnaire about employee
perception and attitude on a range of topics, including decision
making practices, coordination among units, satisfaction with the
organization

25. Process Consultation
• A meeting in which a consultant assist a client in understanding
process events with which he or she must deal and identify
process that needed improved

26. Team Building
• Typically includes goal settings, development of interpersonal
relations among team members, role analysis to clarify each
members role and responsibility

27. Intergroup Development
• Intergroup Development seeks to change group’s attitude,
stereotypes and perception about each other.
• Here training sessions closely resemble diversity training.
• They focus on difference among occupations, departments or
divisions within an organization.

28. Appreciative Inquiry
• An approach that seeks to identify the unique qualities and special
strength of an organization which can then be built on to improve
performance.
• AI focuses on an organization’s successes rather than its problem

29. THANK YOU!!!