ORGANIZATIONAL

CHANGE

Forces of Change [by Kreitner and Kinicki (2004)]

External Forces

changes that originate outside the organization.

Demographic

Characteristics: Identifying the demographic characteristics and

managing effectively the diversity would enable one to get total contribution and
commitment from people at work.
Age
Education
Skill

level

Gender
Immigration

Forces of Change

Technological Advancements: Developing technology knowledge and skills of

the workers would mean increased productivity and market competitiveness.
Acquiring information communication and technology is the largest force for
change.

Manufacturing Automation

Information Technology

Market Forces: Changes that emerge from globalization are requiring

organizations for trading competitions.

Mergers and Acquisitions

Domestic and International Competition

Recession

Forces of Change

Social and Political Pressures: Changes are made as regards social and
political influence. The pressure is being exerted through legislative bodies on
Expanded Value Added Tax (EVAT).

War

Values

Leadership

Forces of Change

Internal Forces

Changes that originate inside the organization.

Human Resource Problems or Prospects: Arising problems from peoples

perceptions on the manner they are treated at work and the congruent needs and
wants between employee and organization.

Unmet Needs

Job Dissatisfaction

Absenteeism and Turnover

Productivity

Participation/Suggestions

Forces of Change

Managerial Behavior or Decisions: Existing interpersonal conflict between

superiors and subordinates is a cue for a change. Both parties therefore,
require interpersonal skills training.

Conflict

Leadership

Reward System

Structural Reorganization

External Forces

Internal Changes

Demographic Characteristics
Age
Education
Skill level
Gender
Immigration

Technological Advancements
Manufacturing automation
Information technology
Market Changes
Mergers and acquisitions
Domestic and International Competition
Recession
Social and Political Pressures
War
Values
Leadership

The Need
for Change

Human Resource Problems/Prospects

Unmet needs
Job dissatisfaction
Absenteeism and turnover
Productivity
Participation and suggestions

Managerial Behavior/Decisions
Conflict
Leadership
Reward system
Structural reorganization

Forces of Change [by Robbins (2003)]

1.
2.
3.
4.
5.
6.

Nature of the workforce.

Technology.
Economic Shocks.
Competition.
Social Trends.
World politics.

Moorhead and Griffin (2004) stressed that an organization is vulnerable to pressures

for change from various complex events thus, the rapid change dramatically
increases.
4 Areas:
1. People
2. Technology
3. Information Processing and Communication
4. Competition

Types of Changes identified by Lussier (2005)

1.

Technological Change a change that increases productivity to gain

competitive leverage.
- Machines.
- Process.
- Automation.

2.

3.

4.

Structural Change a change that is important to coordinate structure with

technology.
Task Change a change that describe the daily operations that employees do
to perform their jobs in both technological & structural.
People Change a change that people create, manage, and employ
technology.

Stages in the Change Process presented by Huy (2001)

First Stage Denial. Employees usually deny that change in the department will
happen resulting in adverse reaction.

Second Stage Resistance. When employees overcome the initial shock and
experience that change is implementing in the department would tend to resist
the change.

Third Stage Exploration. Understanding resistance to change so that to

overcome it would explore the change via training and learning process.

Fourth Stage Commitment. Employees then would identify their capacity to

commit in accepting the change a success.

Resistance to Change explained by Lussier (2005)

Intensity the resistance to change has intensity in terms of level of acceptance,

tolerance, and denial. The resistance intensity will describe in continuum from strong to
weak.

Sources Employees try to understand the sources of resistance so that they can accept
the change, if it is of significance for them, they considerably may have lower resistance
to change.
1. Facts.
2. Beliefs.
3. Values.

Focus
1. Self.
2. Others
3. Work Enviroment.

Sources of Resistance (facts-beliefs-values)

1. Facts about self

4.Beliefs about self

7. Values pertaining to
self

2. Facts about others

5. Beliefs about others

8. Values pertaining to
others

3. Facts about the work

environment

6. Beliefs about the work

environment

9. Values pertaining to
the work environment

Hultmans Resistance Matrix (Source: Lussier, 2005)

Overcoming Resistance to Change

1.

Develop a positive climate for change.

2.

Encourage interests in improvement.

3.

Planning.

4.

Give facts.

5.

Clearly state Why the Change is Needed and How it will affect employees.

6.

Create a Win-Win situation.

7.

Involve employees.

8.

Provide support,

9.

Stay calm.

10.

Avoid direct confrontation.

11.

Use power and ethical politics.

Responding to Change

The Blocker. I dont want to do it that way.

The Roller. What do want me to do?

The Staller. Ill do it when I can.

The reverser. Thats a good idea.

The Sidestepper. Why dont you have XYZ do it?

The Threatener. Ill do it but you guys upstairs will not like it.

The Politician. You owe me one: let me slide.

The Traditionalist. Thats not the way we do things around here.

The Assaulter. Youre a(pick a word).

Lewins Change Models (Lussier, 2005)

1.
2.
3.

Unfreezing
Moving
Refreezing

General Framework for understanding Organizational Change

1.

Define the change.

2.

Identify possible resistance to the change.

3.

Plan the change.

4.

Implement the change.

- State facts.
- Involve employees.
- Show encourage and support.

5. Control the change.

Kotters Eight Steps of Organizational Change

1.
2.
3.
4.
5.
6.
7.
8.

Establish a sense of urgency.

Create a guiding coalition.
Develop a vision and strategy.
Communicate the change vision.
Empower broad-based action.
Generate short-term wins.
Consolidate gains and produce more change.
Anchor new approaches in the culture.