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Organizational Change

 Organizational change is the process by which

organization move from their present 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.

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 CHARACTERSTICS OF O.C.
 Change happen for the pressure of both internal and
external forces in the organization.
 Change in any part of the organization affect the whole
organization.
 Change may affect people , structure, technology, and
other element of the organization.
 Change also affect the rate of speed and degree of
significance of the organization.
 Change may be reactive or proactive.

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 The Evolution of Starbucks
In the beginning they had only just a shop that
sold some selected coffee beans.
As Starbucks growing, they realized that the
informal techniques were not sufficient and Howard Schultz
needed to have a more formalized with people
and places.
Now Starbucks was the biggest coffee chain
network in the world with more than 15000 shops Dave Olsen
in over 44 countries. And they grown too fast.
They adopting the Italian culture and make some
important changes in organization.

Exploring Behavior in Action Dawn Pinaud

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 Change Forces

INTETRNAL External
FORCES Forces

Work force Technology

Change
Managerial Marketing
forces
personnel conditions
Management Social changes
structure Political forces
Avoid developing
inertia

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Internal Pressures for Change

Work force Avoid developing

inertia

Managerial Management
personnel structure

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External Pressures for Change
Technological Political
advances Forces

Marketing Social
conditions changes

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 Companies’ Responses
Managerial
to Pressures for “Green”
Advice
Policies and Practices
Taking as it positive way:

It create a healthy image in customers.

It help in cost cutting.
Energy saving in the office.
Help in reducing carbon in environment.

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 Change Agents

• A Persons in organization responsible for

managing change activities.

• Can be managers or non managers, current

employees, newly hired employees or outside
consultants.

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 Process of Planned Change
Kurt Lewin

Unfreezing Moving Refreezing

• Provide rationale • Provide information • Implement new

for change that suspects evaluation systems
• Create minor proposed changes • Implement new
levels of • Bring about actual hiring and promotion
guilt/anxiety about shifts in behavior systems
not changing
• Create sense of
psychological
safety concerning
change

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 Coca-Cola Is Finding a New Fizz

Experiencing
Strategic OB

Neville Isdell Sandy Douglas

Coca-Cola is changing its culture,

and
also enhance its product line to better
satisfy the demand of customers.

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 Speed of Change

Urgency

Degree of support

Criteria to Amount and complexity of change

Consider Competitive environment

Knowledge and skills available

Financial and other resources

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 Resistance to Change
Effort to block new
ways of doing things

Four Factors

Individual
Resistance

Group
Resistance
Organizational
Resistance
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 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
•Extend of change
•Psychological factors
•Social factors

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 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.

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 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
•Sunk costs 14-16
Minimizing Resistance to Change
Communication • Highest priority and first
strategy for change
• Improves urgency to
change
• Reduces uncertainty
(fear of unknown)
• Problems -- time
consuming and costly

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Minimizing Resistance to Change
Communication • Provides new
knowledge and skills
Training
• Includes coaching and
action learning
• Helps break old routines
and adopt new roles
• Problems -- potentially
time consuming and
costly

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Minimizing Resistance to Change
Communication • Increases ownership of
change
Training
• Helps saving face and
Employee reducing fear of
Involvement unknown
• Includes task forces,
search conferences
• Problems -- time-
consuming, potential
conflict

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Minimizing Resistance to Change
Communication • When communication,
training, and
Training involvement do not
resolve stress
Employee
Involvement • Potential benefits
Stress
• More motivation to
Management change
• Less fear of unknown
• Fewer direct costs
• Problems -- time-
consuming, expensive,
doesn’t help everyone
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Minimizing Resistance to Change
Communication

Training • When people clearly

lose something and
Employee won’t otherwise support
Involvement change
Stress
Management
• Influence by exchange--
reduces direct costs
Negotiation • Problems
• Expensive
• Increases compliance,
not commitment
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Minimizing Resistance to Change
Communication

Training
• When all else fails
Employee
Involvement • Assertive influence
Stress • Firing people -- radical
Management form of “unlearning”

Negotiation
• Problems
• Reduces trust
Coercion
• May create more subtle
resistance
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Organization Development (OD)
A planned, organization-wide,
continuous process designed to
improve communication, problem
solving, and learning through the
application of behavioral science
knowledge

• Planned change
• Long range change
• Problem solving
• Team building
• Feedback 14-23
Basic Organization Development
Model
Diagnosis of
Situation

Introduction of
Feedback
interventions

Progress
Monitoring
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 Organization Development
Interventions
Organization
Development

Relationship Techniques Structural Techniques

Job Redesign
T-group Training
Management by Objectives
Team Building
Supplemental Organizational
Survey Feedback
Processes

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Relationship Techniques

T-group Training

Team Building

Survey Feedback

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 Structural
Job Redesign
Techniques

Management by
Objectives (MBO)

Supplemental
Organizational
Processes
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