Robert E.

coffey define change as the coping process of moving from the present state to the desired state that individuals, groups and orgnizations undertake in response to dynamic internal and external factors. There are many factors that people change in organizations. 1. People:- Increase in Globalization has widened the diversity of workforce. People differ in their attitude towards work, expectations of rewards and methods of conducting interpersonal relations. Managers tend to be prejudiced against their colleagues and subordinates due to racial, regional, age, and gender differences. The organization structure, work relationship and job definitions are undergoing drastic changes to keep pace with increasing demands of the customers.

2.Technology:- Advancement in technology are reshaping jobs and industries. e.g. The telecommunication and entertainment industries are converging to form the multimedia industry. Technology developments are taking place at such a fast pace today that yesterdays technology becomes obsolete by tomorrow. This calls for a major structural and behavioral change in employees.

3. Competition:-A fall in the cost of transport and communication, coupled with an increase or orientation to exports have made markets global. Increased emphasis on global markets widens the scope of the company, but brings in new competition as well. WTO have also changed the economic relationship between the countries of the world. Organizations have to continuously look for new ways to produce newer, cheaper and higher quality products than their competitors to succeed in international markets.

Managing Planned Change

When organizations initiate change activities deliberately and consciously in order to accomplish certain organizational goals. It is known as planned change or managed change. There are two basic goals of planned change. To enhance the ability of organizations to adapt themselves to the changes in the external environment . To change the behavior of employees: Sometimes organizations may have to take up change activities aimed at changing attitudes or behavior.

First Order Change When the new state of things have the same basic nature as the old state of things, except for some moderate adjustments to the existing structure of the organization, the change is known as incremental or first order change. Second Order Change When the new state of things have a completely different nature from the old state of things, it is known as fundamental, quantum or second-order change. Secondorder change is revolutionary in nature and involves a major reinvention of the organization. The people responsible for managing change in the organization are called change agents. Change agents can be managers, non-managers, or outside consultants.

Resistance To Change
Resistance may come from individuals or from the

culture and structural elements of the organization. Advantage of Resistance:

Thorough analysis of the issue and throw light on

important points that were overlooked earlier. If employees are convinced that managers are right in introducing change, they will co-operate with the management.

Resistance may be explicit (Overt), implicit (Covert),

immediate or deferred.

 Explicit Resistance:
When employees are not satisfied with a new organization policy,

they may criticize the policy openly and immediately. The management may then adopt a conciliatory approach and resolve the conflict.

Implicit or deferred resistance:

It is much more complicated. When resistance is not open and

expressed in the form of rampant absenteeism, increase in errors, decline in quality and quantity of work.

Implicit Resistance - Employees may cease to identify themselves with the organization, lose their feeling of loyalty and feel themselves demotivated. Deferred resistance The management makes further changes in the organization, the resistance keeps accumulating and finally reaches the saturation point. Eventually, employees may react violently to a minor changes.

Remedy It is essential on the part of the management to establish formal

communication channels through which it can encourage employees to give their feedback on change initiatives.

Sources of Individual Resistance to Change

Individual Resistance to Change

Habit This Habits developed by an Individual are difficult to change

Economic Factors People tend to resist change that threatens their safety and security.

Security

Individuals resist change if it is likely to decrease their income or sources of earning

Fear of the Unknown

Selective Information Processing Individuals process information selectively to make it compatible with their perceptions.

Social Factors People resist change when they anticipate that the change might affect their status in the society adversely.

People fest the unknown and uncertainty associated with it and hence resist change.

Structural Inertia

Limited Focus of Changes

Group Inertia

Organizational Resistance

Organizational Resistance to change

Threat to Experience

Threat to Established Power Relationships

Threat to Established resources Allocations

Organizations always attempt to maintain a steady and balanced state that is conducive to employees. They have inbuilt mechanisms to achieve that state of equilibrium. Example :New and Old employee may find it difficult to work together because of differences in their cultural backgrounds and work behavior. Training and other socialization techniques are used to administer the required job skills and shape the behavior of the new incumbents in the desired way.

An organization consists of many sub-systems that are interrelated and interdependent. Change in one sub-system will affect other systems as well. Therefore one cannot introduce change in a subsystem without considering its impact on the rest of the system. Group norms may prevent an individual from adopting change. For example, an individual employee may favor a proposal of change from the management, he may not accept it until the union (of which he is a member) approves it.

The expertise of specialized groups may be threatened by changes in organizational patterns. Such a change takes away the power and authority which they enjoyed previously. Fear that change will bring an adverse impact on the pattern of resource allocation and will put him at a disadvantage.

How to overcome resistance to change??? Educating employees: The management must attempt to educate

employees about the benefits of change. Communication channels may also be improved to update employees about the latest happenings in the organization. Employee involvement: Employees are also invited to participate in the planning and implementation of change programs. Facilitation: Organization can take help from professional change agents and psychologists to train employees in new skills as well as counsel them to overcome their fear and anxiety. Negotiation: The management negotiates with employees or their representatives in the organization by providing additional concessions. Manipulation and co-optation: Management manipulates employees acceptance to change by distorting facts and manipulating information. Coercion: Coercive measures such as threats of demotion, reduction in benefits, or transfers are used as the last resort to get employees acceptance to change.

Approaches to managing organization change

Lewins Three-step Model: Three steps to introduce

permanent change unfreeze, movement to a new state and refreeze.

Unfreeze: Employees are educated about the external and

internal factors that make change imperative. Movement to change: After the resisting employees are convinced or prepared for change, the actual change process begins. This involves doing away with old practices and adopting new methods. Refreeze: The third step involves reinforcing change so that the organization does not revert to old state of things. Employees are asked to demonstrate their new skills before they return to their jobs.

Action Research
A change process based on the systematic collection of data and then

selection of change action based on what the analyzed data indicate. Action research includes the following five steps:

Diagnosis: In this step the change agent attempts to determine the

underlying causes of an organizations problems. Analysis: The change agent analyzes the information collected in the diagnostic stage. Feedback: The change agent shares his observations and conclusions from diagnosis and analysis of information. He then seeks their active participation in developing action plans for bringing the desired change in organization. Action: The employees and the change agent work together to implement the measures that they consider solutions to the organizations problems. Evaluations: The change agent evaluates the effectiveness of the actions taken by measuring the outcomes of those actions.

Action research model has the following advantages

It finds and implements solution which is specific to

the problems faced by the organization in question instead of trying to implement a generic solution.
Employee resistance to change is also minimized

because employees are closely involved throughout the process of change.

Organization development
The objective of OD is to improve the performance of individuals

and groups in organizations.

1. 2.

OD deals with a range of People Problems in organization such as poor morale. Apart from this, OD helps individual, teams and organization to realize their full potential.

The characteristics of OD may be summarized as follows: OD is a system of planned change. OD takes a holistic or system wide approach to change. OD targets organizational processes, rather than content. OD is problem oriented. OD focuses on relationships, human, social as well as structural. Conceptual material relating to communication skills, interpersonal

relation, individual personality and group dynamism is part of program.

Sensitivity Training
T-group training. Ten to Twelve members and a professional trainer called facilitator. The purpose of sensitivity training is to sensitize people to

perceptions and the behavior related aspects of themselves and others.

1.

2. 3. 4. 5.

As the members interact with each other, the facilitator moderates the discussions and provides and opportunity for each participant to express his/her opinions, beliefs and ideas. He also takes a note of the expressions provides them feedback on their behavior. The feedback helps members of the group to know more about themselves as well as of others. Tells about group dynamics (such as how a group comes into existence, forms its norms and grows.) This kind of training helps them to improve their listening skills, learn to talk openly and accept individual differences.

Survey Feedback
In survey feedback technique, data is collected

systematically from a large sample of employees at all levels of the organization or an organizational unit. Collection of data is usually in the form of attitude or (organizational) climate surveys, which reveal critical information about the organization and the problems faced by it.

Process Consultation Intervention

It has a very specific goal of improving a particular

process of the organization whereas sensitivity training has broader scope but no specific goals. The process include flow of work, flow of communication, roles and responsibilities of employees, group problem solving and decision-making, cooperation and competition among groups etc.

Team Interventions
Team building interventions cover four substantive

areas in the working of organizational teams, namely, problem diagnosis, task accomplishment, maintaining team relationships, and improving team and organization process.
The formal group diagnostic methods:-

The main purpose of the formal group diagnostic methods is to analyze the reasons for the existence or the team and how the team plans to accomplish those objectives.

Organizational Development Techniques (contd)

Team Building High interaction among team members to increase trust and openness.
Team Building Activities: Goal and priority setting. Developing interpersonal relations.

Role analysis to each members role and responsibilities.

Team process analysis.
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Organizational Development Techniques (contd)

Intergroup Development OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other.
Intergroup Problem Solving: Groups independently develop lists of perceptions. Share and discuss lists.

Look for causes of misperceptions.

Work to develop integrative solutions.
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Organizational Development Techniques (contd)

Appreciative Inquiry Seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance.
Appreciative Inquiry (AI): Discovery: recalling the strengths of the organization. Dreaming: speculation on the future of the organization. Design: finding a common vision. Destiny: deciding how to fulfill the dream.
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Contemporary Change Issues For Todays Managers

How are changes in technology affecting the work

lives of employees?
What can managers do to help their organizations

become more innovative?

How do managers create organizations that

continually learn and adapt?

Is managing change culture-bound?

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Technology in the Workplace

Continuous Improvement Processes
Good isnt good enough. Focus is on constantly reducing the variability in the

organizational processes to produce more uniform products and services.

Lowers costs and raises quality. Increases customer satisfaction.

Organizational impact

Additional stress on employees to constantly excel. Requires constant change in organization. 1826

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Technology in the Workplace

Process Reengineering
Starting all over Rethinking and redesigning organizational processes to

produce more uniform products and services.

Identifying the organizations distinctive competencieswhat it does best. Assessing core processes that add value to the organizations distinctive competencies. Reorganizing horizontally by process using cross-functional and self-managed teams.
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Contemporary Change Issues for Todays Managers: Stimulating Innovation

Innovation
A new idea applied to initiating or improving a product, process, or service.
Sources of Innovation: Structural variables Organic structures Long-tenured management Slack resources Interunit communication Organizations culture Human resources

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Contemporary Change Issues for Todays Managers: Stimulating Innovation (contd

Idea Champions
Individuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented.

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Creating a Learning Organization

Single-Loop Learning Errors are corrected using past routines and present policies.

Double-Loop Learning
Errors are corrected by modifying the organizations objectives, policies, and standard routines.

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Creating a Learning Organization

Fundamental Problems in Traditional Organizations: Fragmentation based on specialization.

Overemphasis on competition.
Reactiveness that misdirects attention to problem-solving rather than creation.

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Managing a Learning Organization

Establish a strategy

Managing Learning

Redesign the organizations structure

Reshape the organizations culture

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Mastering Change: Its CultureBound

Questions for culture-bound organizations:
1. Do people believe change is even possible?
2. How long will it take to bring about change in the organization? 3. Is resistance to change greater in this organization due to the culture of the society in which it operates? 4. How will the societal culture affect efforts to implement change?

5. How will idea champions in this organization go about gathering support for innovation efforts?

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