MODULE-2

Planned Change
 Planned Change
 Planned change aims to prepare the total organization, or a major portion
of it, to adapt to significant changes in the organization’s goals and
direction.
 According to Thomas and Bennis planned change is as follows:
“Planned Change is the deliberate design and implementation of a
structural innovation, a new policy or goal, or a change in operating
philosophy, climate, or style.”
Factors in Planned
Change Structure

Technology Task

People
 Emergent Change

 At times and for many reasons, organizations opt for emergent

change. This is also known as unplanned changed.
 Any change based on unspoken, unconscious assumptions, the
external environment, and the future of the organization is regarded as
unplanned change.
 This is a change that is rather unpredictable and that takes place
naturally due to external factors.
 It is profound and traumatic for it is out of direct control and produces
a future state largely unknown.
 For example, currency devaluation/demonetization, over which it
has no control adversely affects the business of a computer
manufacturer that has to import its basic raw material.
 FORCE FIELD ANALYSIS
 This technique is based on assumption that there are two forces,
namely driving forces (or forces for change) and restraining forces (or
forces resisting change) that play a role in attaining a desired state of
equilibrium in an organization.
 This technique was developed by Kurt Lewin.
 According to him, social forces and events have major affect on
organizational phenomena such as productivity, morale of a team, etc.
 These organizational phenomena stabilize at the point of equilibrium.
 The point of equilibrium can be brought by bringing about certain changes
in the driving and restraining forces that govern the equilibrium.
 The force-field analysis includes the following steps:

Step 1- The first step involves identifying and defining the current problem
situation. The current situation and all its components are described
comprehensively as it is important to know precisely what the current
condition is and why it needs to be changed.
Step 2 - The desired condition is described completely and accurately with
all the minute details of the primary goal of change program and the
desired state of things in the future.
FORCE FIELD ANALYSIS
Step 3 – The driving forces and restraining forces operating in the
current state of things are identified. The analysis of these forces
helps management identify the causes of the problems and find ways to
correct the problems.
Step 4 - The strong and weak forces within the driving and restraining
forces are identified. The forces that are under the control of
management and can be influenced easily are identified and examined in
detail for further action.
Step 5 - An appropriate strategy is chosen to move from the current
condition to the desired condition is chalked out. The desired
condition can be achieved either by adding more driving forces or
removing the number of restraining forces.

Step 6 – Action plans are implemented and the activities of the team
members are closely monitored to ensure the stability of equilibrium.

Step 7 – The actions that are needed to sustain the new

equilibrium/desired state are planned and implemented.
 PROCESS OF PLANNED CHANGE
 Planned Change - Change may be either necessitated by the
pressure of external forces or brought by deliberate and conscious
efforts of management.

 Kurt Lewin’s Three - step Model:

 This model, proposed by Kurt Lewin (founder of modern social

psychology), suggests that organizations should use three steps to
introduce permanent change - Unfreezing, Changing and Re-freezing.
KURT LEWIN’S THREE - STEP MODEL
 PROCESS OF PLANNED CHANGE
 Unfreeze - Organizational change cannot occur till we unfreeze the
existing systems, and refreeze the same with new inputs.
 Process of unfreezing makes the existing systems redundant and in the
process encounters resistance from the members of the organization.
 Sometimes, people are content with existing work environment,
organizational rules and procedures and therefore are unwilling to
change.
 Such people or groups should be told about the benefits that change can
bring so that their level of satisfaction increases and level of satisfaction
with existing condition decreases.
 This will motivate employees to welcome change to enjoy the new
benefits.

 Movement to Change - Immediately after unfreezing, the organization

reaches the transition state from the present state.
 In the transition state organization adopts series of change initiatives, and
makes those transparent to people to embrace those through increased
communication and motivation.
 This involves doing away with old practices and adopting new methods.
 For example, as part of change program, advanced equipment is
installed, production process or layout is changed or job duties are
redefined.
 This stage involves implementing the change.

 Refreezing - Refreezing state is a process of stabilizing and integrating

the process of change.
 People develop new attitude and behavioral pattern to achieve the results
in the changed situation.
 For example, if the change process involved acquiring new skills, the
new skills and behaviors have to be made a permanent part of the
organization.
 To achieve this, employees are asked to demonstrate their new skills
before they return to their jobs.
 They may also asked to do role play and show how they would apply their
new skills at the workplace.
 Repetition and constant reinforcement of new work techniques is
essential to sustain change.
KOTTER’S EIGHT STEP MODEL- JOHN KOTTER (1996), A HARVARD BUSINESS
SCHOOL PROFESSOR AND A RENOWNED CHANGE EXPERT, IN HIS BOOK “LEADING CHANGE”,
INTRODUCED 8 STEP MODEL OF CHANGE WHICH HE DEVELOPED ON THE BASIS OF RESEARCH
OF 100 ORGANIZATIONS WHICH WERE GOING THROUGH A PROCESS OF CHANGE.
1. Creating an Urgency: This can be done in the following ways:
 Identifying and highlighting the potential threats and the repercussions
which might crop up in the future.
 Examining the opportunities which can be tapped through effective
interventions.
 Initiate honest dialogues and discussions to make people think over the
prevalent issues and give convincing reasons to them.
 Request the involvement and support of the industry people, key
stakeholders and customers on the issue of change.

2. Forming Powerful Guiding Coalitions

 This can be achieved in the following ways:
 Identifying the effective change leaders in your organizations and also the
key stakeholders, requesting their involvement and commitment towards
the entire process.
 Form a powerful change coalition who would be working as a team.
 Identify the weak areas in the coalition teams and ensure that the team
involves many influential people from various cross functional
departments and working in different levels in the company.
3. Developing a Vision and a Strategy
 This can be achieved by:
 Determining the core values, defining the ultimate vision and the strategies for
realizing a change in an organization.
 Ensure that the change leaders can describe the vision effectively and in a
manner that people can easily understand and follow.

4. Communicating the Vision

 Communicate the change in the vision very often powerfully and
convincingly. Connect the vision with all the crucial aspects like
performance reviews, training, etc.
 Handle the concerns and issues of people honestly and with involvement.

5. Removing Obstacles
 Ensure that the organizational processes and structure are in place and
aligned with the overall organizational vision.
 Continuously check for barriers or people who are resisting change.
Implement proactive actions to remove the obstacles involved in the
process of change.
 Reward people for endorsing change and supporting in the process.
6. Creating Short-Term Wins
 By creating short term wins early in the change process, you can give a
feel of victory in the early stages of change.
 Create many short term targets instead of one long-term goal, which are
achievable and less expensive and have lesser possibilities of failure.
 Reward the contributions of people who are involved in meeting the
targets.

7. Consolidating Gains
 Achieve continuous improvement by analysing the success stories individually
and improving from those individual experiences.

8. Anchoring Change in the Corporate Culture

 Discuss the successful stories related to change initiatives on every given
opportunity.
 Ensure that the change becomes an integral part in your organizational culture
and is visible in every organizational aspect.
 Ensure that the support of the existing company leaders as well as the new
leaders continue to extend their support towards the change.
 BUSINESS PROCESS RE-ENGINEERING

 BPR is described as a radical redesign of strategic, value-added,

business processes to achieve breakthrough performance
improvements.

 BPR is a large-scale overhaul of basic business processes and

involves replacing old structures and practices with something new.

 BPR is a comprehensive, one-step turnaround that takes more time

and effort and often needs considerable support from systems
analysis and information technology.

 Michael Hammer and James Champy defined reengineering as

“the fundamental rethinking and radical redesign of business
processes to achieve dramatic improvement in critical, contemporary
measures of performance such as cost, quality, service and speed.”
 BPR only eliminates unwanted work. It does not aim at getting rid of
people.
 BPR is primarily meant for:
1. Total customer satisfaction – today customers are well informed, they
have knowledge, they are demanding more, they know their needs and
they give written and precise specifications of the product required.
2. Meeting keen competition – competition is not local and gentle but
global and intense cut-throat competition.
3. Introducing planned change – change is unsteady. What was
unthinkable yesterday is routine or usual toady.

Achieving best-in-
class
Competitive Focus

Process
Improvement Break Point
Cost Reduction Rewriting the
Focus Rules

BPR
 ACTION RESEARCH
 Action Research is a process model for OD interventions.
 Steps in Action Research:

1. Entry – initial step requires marketing, which means finding the

need for change within the organization to make people quickly
understand the nature of the organization, identify the right
decision-maker and build trustworthy relationships.

2. Start-up and Contracting – this step identifies critical success

factors and relates them to culture and process of the
organization, clarifying the roles of the change agents (both
internal and external) and employees.
 At this phase, the mechanism to tackle the resistance of change
within the organization is drawn.

3. Assessment and Diagnosis – data is collected to understand the

problems and opportunities within the organization.
4. Feedback – this is two-way process to communicate what has
been observed based on the data analysis.
 Feedback gives all those who have contributed an opportunity to
learn about the findings of the assessment process.
 This encourages them to be more involved in the change process,
develops their capabilities to understand and relate how their
actions concern the organization and makes them more committed
to participate in selecting appropriate change interventions.

5. Action Planning – this is the step when recommendations are

extracted from the assessment and feedback and adoption of
appropriate actions and interventions to bring positive change in
the organization are considered.

6. Intervention – is the stage where the change process is actually

carried out in conformity with the sequence of action plans.
 Intervention needs to be flexible enough so that intermediate
changes, depending on the new information required, if any, can
be made to modify the process.
7. Evaluation – this stage helps in understanding the extent to which the
OD process can bring a meaningful change in the efficiency and
effectiveness of people and the organization as whole.
 a good evaluation process not only ensures verification of success,
duly identifying needs for new or ongoing OD activities, but also
facilitates the improvement of the intervention process for achieving
better efficiency and effectiveness in the future.

8. Adoption – after the evaluation step, the stage of adoption

institutionalizes the OD interventions with the provision for follow-up of
implementation processes, making it an ongoing organizational
improvement activity.

9. Separation – although ongoing OD activities are recommended for

continuous organizational improvement, it may be necessary at times
to discontinue the use of external expertise as too much consultation
on the same issue may make the process counter-productive.