Unit - V

Key Issues in Organizational Behavior

Organization Culture
Organizational culture reIers to the general culture within a company or organization, and is
oIten also reIerred to as corporate culture, though that isn't the best description since a large non-
proIit organization or charity could also have its own organizational culture even though they are
deIinitely not corporations.
Definitions -
Gareth Morgan has described organizational culture as: "The set oI belieIs, values, and norms,
together with symbols like dramatized events and personalities that represents the unique
character oI an organization, and provides the context Ior action in it and by it."
Edgar Schein, another oI the most Iamous and most respected theorists dealing with
organizational culture says that the deIinition oI organizational culture has to be general, or else
you start to eliminate Iactors that actually are part oI corporate culture.
Schein's deIinition oI organizational culture is: "A pattern oI shared basic assumptions that the
group learned as it solved its problems that has worked well enough to be considered valid and is
passed on to new members as the correct way to perceive, think, and Ieel in relation to those
problems." Although the words are diIIerent, the two deIinitions are nearly the same in terms oI
content.
Another more simple way oI looking at organizational culture is to view it as a group's general
reaction to stimulus. An organizational culture is a group oI people who have been trained, or
who simply have learned by those around them, how to act in any given situation. In this way,
corporate culture Iunctions just as any social learning does.
Primary Characteristics of Organizational Culture
These are very general characteristics that every organization would have to look into, otherwise
the culture would seem incomplete. Although all these characteristics are at some level a part oI
every company, the importance and individual interpretation oI each diIIers Irom business to
business, thus making each business unique in its own way. Following are some oI the important
characteristics oI organization culture:
1. Innovation and Risk Taking - Risk and returns go hand in hand. Same goes Ior
innovation. Organization could either be a Iollower or a pioneer. Pioneering has its share oI risks,
but at times it can also have a breakthrough outcome Ior the organization. Thus, innovation and
risk taking is one oI the main characteristics oI organizational culture deIining how much room
the business allows Ior innovation.
2. Attention to Detail - Attention to detail deIines how much importance a company allots to
precision and detail in the workplace. This is also a universal value as the degree oI attention the
employees are expected to give is crucial to the success oI any business. The management
deIines the degree oI attention to be given to details.
3. Outcome Orientation - Some organizations pay more attention to results rather than
processes. It is really the business model oI each business that deIines whether the Iocus should
be on the outcome or the processes. This deIines the outcome orientation oI the business.
4. People Orientation - This is still one oI the most contentious issues in organizational
culture today. How much should be the management Iocus on the people? Some organizations
are Iamous Ior being employee oriented as they Iocus more on creating a better work
environment Ior its 'associates' to work in. Others still are Ieudal in nature, treating employees no
better than work-machines.
5. Team Orientation - It is a well established Iact today that synergistic teams help give
better results as compared to individual eIIorts. Each organization makes its eIIorts to create
teams that will have complementary skills and will eIIectively work together.
6. Aggressiveness - Every organization also lays down the level oI aggressiveness with
which their employees work. Some businesses like MicrosoIt are known Ior their aggression and
market dominating strategies.
7. Stability - While some organizations believe that constant change and innovation is the
key to their growth, others are more Iocused on making themselves and their operations stable.
The managements oI these organizations are looking at ensuring stability oI the company rather
than looking at indiscriminate growth.
$ocialization: Familiarization with organization culture
It is a process oI Iamiliarizing new employees into organization culture. It socializes new
employees and moulds them to accept its standards and norms. Employees are able to understand
basic values, norms and customs Ior becoming accepted members oI organization and assuming
organizational roles. People who do not adjust according to culture oI organization are labeled as
rebels` and may ever turn out oI organization.
Socialization Performs 2 functions:-
I) It creates uniIorm behaviour in members, increases understanding, reduces conIlicts etc.
II) It reduces role oI employees as they will come to know what is expected oI them.
aanen and Schein" have conceptualized 3 Stages in process of socialization:-
(1) Pre-arrival Stage. This stage is the period oI learning stage that occurs beIore a new
employee joins the organization. The new worker has a set oI values, belieIs, attitudes &
expectations. Such Iactors must be taken care oI at selection stage. Those types oI people should
be selected who might be able to Iit in to organization`s culture. The candidate must be made
aware oI organization`s expectations & values during selection process so that chances oI wrong
selection are reduced to minimum.
(2) Encounter Stage. The new employee enters this stage when he joins the organizations. He
comes to know what organization really like and may Iind diIIerence between his expectations &
those oI organization. II employee is not able to change his expectations according to
requirements oI organization, he might have to leave the organization.
(3) Transformation Stage. Under this stage, employee becomes comIortable with organization &
his job. He Ieels committed to organization & his productivity will increases. His search Ior job
elsewhere will also come to an end. II in any case, employee is not able to adopt himselI to
organization culture, the result will be less productivity, lack oI commitment & even leaving the
organization.
%ypes of Organizational Culture
Organization culture can be diIIerentiated into the Iollowing types:
1. Alienated Culture:
It indicates that conIlicts are present; however participants Iollow the principles and Iormalization oI
the organization, but reluctantly. The basic assumption oI such a culture is that the Iormal rules and
regulations are more important than showing and resolving underlying conIlicts. It does not matter
iI conIlicts are resolved or not, but it is expected that participants must IulIill their Iormal and basic
duties so that they can keep their positions. In this type oI culture, employees have two strategies
either does not raise voice or leave the system. Alienated culture nourishes generally in rational but
autocratic type oI organizational structures. The rational structure Iosters non-accommodative
behaviour which leads to rational type oI inIormal grouping. Thus interaction between groups and
individuals will be more calculative. Alienated culture reduces voice action and demands Iorced
loyalty to the system.
2. Democratic Cultures
The basic assumption behind democratic culture is that conIlicts should be brought into the surIace
so that they can be analyzed and solved amicably. The democratic culture gives provision to voice
action which means that participants can disagree without developing hard Ieelings Ior each other. It
relies more on accommodative behaviour which leads to collaborating style oI resolving conIlicts.
The collaborating attitude Iavours democratic type oI inIormal grouping which emphasizes on
moral commitment. The groups are interactive in inIormal settings. Since it provides participants`
outlets to channel their energies through voice action thereIore decisions are made by convincing
each other which not only reduces cognitive dissonance but increases conIidence and Iriendship
between individuals and groups in the organizations.
. Antagonistic Culture
Antagonistic culture paradigm is based on "what I am saying, is correct and should be accepted".
This choice oI "should be" is the key Iactor in raising antagonistic culture in the organization.
Participants are not open in their dealing and they develop an assumption in the long run which says
"you do what you like; I`ll do what I like". Participants` threats to each other are a common Ieature
during interaction. In such kind oI culture, participants are aIraid oI each other's presence, hence "no
contact or less contact" is considered a solution to avoid cognitive disturbance.
Barriers to Organizational Culture
The need Ior rapid organizational change is a Iact oI liIe in today's business environment. The
key to successIul change is in the planning and the implementation. The three greatest barriers to
organizational change are most oIten the Iollowing.
1. Inadequate Culture-shift Planning - Most companies are good at planning changes in
reporting structure, work area placement, job responsibilities, and administrative structure.
Organizational charts are commonly revised again and again. Timelines are established,
benchmarks are set, transition teams are appointed, etc. Failure to Ioresee and plan Ior resultant
cultural change, however, is also common. When the planning team is too narrowly deIined or
too Iocused on objective analysis and critical thinking, it becomes too easy to lose sight oI the
Iact that the planned change will aIIect people.
2. Lack of Employee Involvement - People have an inherent Iear oI change. In most strategic
organizational change, at least some employees will be asked to assume diIIerent responsibilities
or Iocus on diIIerent aspects oI their knowledge or skill. The greater the change a person is asked
to make, the more persistent that person's Iear will be. There will be Iear oI change. More
important, however, there will be Iear oI Iailure in the new role.
3. Flawed Communication Strategies - Ideal communication strategies in situations oI signiIicant
organizational change must attend to the message, the method oI delivery, the timing, and the
importance oI inIormation shared with various parts oI the organization. Many leaders believe
that iI they tell people what they the leaders) Ieel they need to know about the change, then
everyone will be on board and ready to move Iorward. In reality, people need to understand why
the change is being made, but more importantly, how the change is likely to aIIect them.
There are other barriers, to be sure, but the three outlined above are extremely common and
highly likely to create havoc in the organization.
Impact of organization culture
Organization culture is unique, distinctive and prescribes some speciIic modes oI behavior Ior its
members. All these ultimately create impact on objective setting, work ethic, motivated pattern
and organizational processes.
Objective setting Culture moulds people and people are the basic unit oI the organizations.
Thus culture reIlects the objectives oI members, particularly those who are the key decision
makers. Thus Ior one organization objective may be the proIit maximization but Ior another
same objective may be unworthy.
2 Work ethic Ethics relates to the conIormity to the principles oI human conduct. Work ethic
in an organization is derived Irom its culture. Thus, corporate culture determines the ethical
standards Ior the organization as a whole and its individual members.
3 otivational pattern Culture interacts to develop in each person a motivational pattern.
Culture determines the way people approach their jobs and even liIe in general. II an
organization culture is geared towards the achievement, people will Iind it quite motivating. On
the other hand in its absence people will develop Irustration and leave the organization.
ThereIore, organization culture should be achievement oriented.
4 Organizational processes Organizational Processes like planning, organizing, controlling,
directing etc. are determined by the organization culture because these activities are carried out
by the people in the organization.
Communicating organizational Culture
Every organization has a 'culture. Culture is deIined by the way people interact, how
inIormation is shared and how decisions are made. A key element oI culture is 'communication
and how inIormation is shared and exchanged within the organization. Good communication is
what keeps internal processes running smoothly and helps to create good relations with people
both inside and outside the organization. SuccessIul communication is a two-way street, allowing
Ior exchange oI ideas.
When there are communication breakdowns within an organization, it can lead to conIlict in the
workplace. This conIlict is caused Irom lack oI communication or distorted or inaccurate
inIormation. OIten these breakdowns are caused Irom ineIIective communication channels
within an organization. When inIormation is not shared or not shared in a structured way, it
causes those who need the inIormation to Iill in the blanks.
Organizational leadership needs to be aware oI what inIormation needs to be shared, when it
should be shared and what process should be used to share inIormation. When employees don`t
have all the inIormation, they tend to 'Iill in the blanks and oIten are not correct in their
assumptions. Being proactive in communicating minimizes the productivity stoppage when
employees try to Iigure it out.

Managing Organization Culture
Organization culture can Iacilitate or inhibit change in an organization.
A Iirm attempts to change organizational culture because the current culture hinders the
attainment oI corporate goals. It is important to manage organizational culture because
companies can use this to their advantage when trying to maintain competitive advantage. For
example, organizational culture can be managed by ensuring that the recruitment and selection
process enhance the organization culture. This will go a long way in strengthening the prevailing
organizational culture and iI it was appropriate in the Iirst place, then there will be better results
in the end.
Organizational culture should also be managed in the training level provided within any
particular company. For example career development strategies adopted by certain companies
should be such that they reIlect a speciIic company`s strategy. In line with this management oI
organizational culture will also be achieved through the use oI proper communication especially
when members oI the company have to work on teams. This will be very instrumental in the
determination oI bringing together diIIerent members oI the company regardless oI their personal
cultural backgrounds. Consequently, more work will get done by people who understand the
organization and there will be better eIIiciency.
Companies that wish to manage cultures should encourage participation oI other members oI the
organization in the development activities, decision making and input to the organization. This
will make the employees Ieel as though they are valuable members oI the organization and they
will be motivated to work harder.

Creating and $ustaining Organization Culture
According to Schein, culture is the most diIIicult organizational attribute to change, outlasting
organizational products, services, Iounders and leadership and all other physical attributes oI the
organization. In deIining organizational culture, Schein describes three Iundamental levels at
which culture maniIests:
1. artiIacts;
2. espoused belieIs and values; and,
3. underlying assumptions
Artifacts - At the Iirst and most cursory level oI Schein's model is organizational attributes
that can be seen, Ielt and heard by the uninitiated observer - collectively known as artiIacts.
Included are the Iacilities, oIIices, Iurnishings, visible awards and recognition, the way that its
members dress, how each person visibly interacts with each other and with organizational
outsiders, and even company slogans, mission statements and other operational creeds.
2 Espoused beliefs and values - It deals with the proIessed culture oI an organization's members
- the values. At this level, local and personal values are widely expressed within the organization.
Organizational behavior at this level usually can be studied by interviewing the organization's
membership and using questionnaires to gather attitudes about organizational membership.
3 Underlying assumptions - At the third and deepest level, the organization's unspoken
assumptions are Iound. These are the elements oI culture that are unseen and not easily identiIied
in everyday interactions between organizational members. Many oI these 'unspoken rules' exist
without the conscious knowledge oI the membership. Those with suIIicient experience to
understand this deepest level oI organizational culture usually become acclimatized to its
attributes over time, thus reinIorcing the invisibility oI their existence.
This insight oIIers an understanding oI the diIIiculty that organizational newcomers have in
assimilating organizational culture and why it takes time to become acclimatized. It also explains
why organizational change agents usually Iail to achieve their goals: underlying unspoken
cultural norms are generally not understood beIore would-be change agents begin their actions.

Employees Learning Organizational Culture
Culture is transmitted to employees in a number oI way, Iew oI the most important ways are
stories, rituals, material symbols, and language:
Stories Stories typically contain a narrative oI events about the organizations Iounders, rule
breaking, rag to riches success, reductions in the workIorce, relocation oI employees, reactions to
past mistakes and organizational coping. These stories anchors the present in the past and
provide explanation and legitimacy Ior current practices.
2 Rituals Rituals are repetitive sequences oI activities that express and reinIorce the key
values oI the organization- what goals are most important, which people are important, and
which people are expandable.
3 aterial Symbols The layout oI the corporate headquarter, the types oI automobiles top
executives are given, presence oI corporate aircraIt, size oI the oIIices, the elegance oI
Iurnishings, executive perks etc. are Iew examples oI material symbols. These material symbols
convey to employees who is important, the degree oI egalitarianism desired by top management
and the kind oI behavior that are appropriate.
4 Language - Many organizations and units within an organization use language as a way to
identiIy number oI cultures or subcultures. By learning this language, members attest to their
acceptance oI the culture. Organizations, over time, oIten develop unique terms to describe
equipment, oIIices, key personnel suppliers, customers, or products that relate to its business.
Like BOLD Boeing Online Data), POP Purchased Outside Production), SLO Service Level
Objectives) etc.
Creating an Ethical Organization Culture
The content and strength oI a culture inIluences an organization`s ethical climate and the ethical
behavior oI its members. An organization culture that shapes high ethical standards is high in
risk tolerance, low to moderate in aggressiveness and Iocuses on means as well as outcomes.
Management can create ethical culture by Iollowing the practices mentioned below:
Be a visible role model - Employees will look to top management behavior as a benchmark
Ior deIining appropriate behavior. ThereIore senior management`s ethical comport provides a
positive message Ior all the employees.
2 Communicate ethical expectations Ethical ambiguities can be minimized by creating and
disseminating an organizational code oI ethics. Ethical codes should state values oI organization;
ethical rules that employees are expected to Iollow.
3 Provide ethical training Ethical training could be provided through seminars, workshops
and ethical training programs. These training sessions reinIorce the organizations standards oI
conduct; clariIy what practices are permissible; and addresses possible ethical dilemmas.
4 Jisibly reward ethical act and punish unethical ones PerIormance appraisal oI managers
should include evaluation oI their decisions made up Ior organization code oI ethics. People who
act ethically should be rewarded and unethical act should be conspicuously punished.
5 Provide protective mechanisms The organization needs to provide Iormal mechanism so
that employees can discuss ethical dilemmas and report unethical behavior without a Iear oI
reprimand.
Creating Customer Responsive Culture
Customer responsive culture has employees who exhibit organizational citizenship behavior.
They are cautious in their desire to please the customer. Employees are willing to take initiative,
even when it`s outside their normal job requirements, to satisIy a customer`s need. Customer
responsive cultures hire service oriented employees with good listening skills and the willingness
to go beyond the constraints oI their job description to do what`s necessary to please the
customer. Many actions are designed by the management to create customer responsive culture.
Few oI the managerial actions are:
Selection - Customer-responsive culture starts with hiring people with personality and
attitudes consistent with a high service orientation. Friendliness, enthusiasm and attentiveness in
service employees positively aIIect customers` perceptions oI service quality.
2 1raining and Socialization Organizations that are becoming more customers responsive and
the management is Iaced with the challenge oI making its current employees more customers
Iocused. In such cases emphasis will be on training rather than hiring. The content oI these
training programs will vary widely but should Iocus on improving product knowledge, active
listening, showing patience, and displaying emotions.
3 Structural Design Employees are better able to satisIy customers when they have some
control over the service encounter. Management must set such organization structure so as to
allow employees to adjust their behavior to the changing needs and requests oI the customers.
4 Empowerment Empowerment is a necessary component oI customer-responsive culture
because it allows service employees to make on the spot decisions to satisIy customers
completely.
5 Leadership Leaders convey the organization culture. EIIective leaders in customer-
responsive cultures convey a customer Iocused vision and demonstrate their continual behavior
that they are committed to customers.
Performance Evaluation Behavior based evaluations appraise employees on the basis oI
how they behave or act on criteria such as eIIort, commitment, teamwork, Iriendliness, and the
ability to solve customer problems rather than on the measurable outcomes achieve. This
provides employees incentive to engage in behaviors that are Iavorable to improved service
quality.
7 Reward Systems II management wants employees to give good service, it has to reward
good service. It needs to provide ongoing recognition to employees who have demonstrated
extraordinary eIIort to please customers and who have been singled out by customers.
Organization Change
Organizational change occurs when an organization restructures resources to increase the ability
to create value and improve eIIectiveness. A declining company seeks way to regain customers;
a growing organization designs new products. Change is prevalent. In the past 10 years, over 50
percent oI all Fortune 500 companies have undergone signiIicant restructuring. Today, teams and
organizations Iace rapid change like never beIore. Globalization has increased the markets and
opportunities Ior more growth and revenue. However, increasingly diverse markets have a wide
variety oI needs and expectations that must be understood iI they are to become strong customers
and collaborators. Concurrently, scrutiny oI stakeholders has increased as some executives have
been convicted oI illegal actions in their companies, and the compensation oI executives seems
to be increasing while wages oI others seems to be decreasing or leveling oII. Thus, the ability to
manage change, while continuing to meet the needs oI stakeholders, is a very important skill
required by today's leaders and managers
Nature of Organizational Change
Organization change is an alteration oI work environment in organization. It implies a new
equilibrium between diIIerent components oI the organization- technology, structural
arrangement, job design and people. Nature oI organizational change can be explained by the
Iollowing points:
1. The organization change takes place because oI internal and external Iorces. The internal
Iorces may create instant change, whereas the external Iorces may results in the gradual change.
2. The eIIect oI change in any one part oI the organization creates about the Iundamental change
in the entire organization.
3. The eIIect oI change on various parts takes place in varying degree and rates.
4. The means the eIIect oI change will not be similar in every part oI an organization.
Change Management Principles
Adopting a principled approach displays integrity, openness and trust through the hard times.
Adopting these principles in both spirit and practice will enhance signiIicantly chances oI
success. There are Iour key principles underlying organizational change best practices.
Principle : Business processes must support business needs Every process should increase
organizational value by supporting the business vision and supporting strategies. To do otherwise
would lower the utility oI a change eIIort and would place it at risk because it probably would
not gain the necessary organizational support to make it successIul.
Principle 2: Staff an organization with people that can successfully support and execute the
business processes The support oI management personnel at multiple levels oI an organization
is critical to the success oI a change eIIort. This is because their positions give them the ability to
motivate others to adopt change, through various mechanisms, and lead their staII in accepting
change.
Principle 3: Plan change efforts to maximize return on investment and minimize risk
SuccessIul change is the direct result oI planning. The planning process must identiIy the eIIects
oI a change, the beneIits oI a change, the barriers to change, and alternatives Ior inIusing change
within an organization.
Principle 4: easure process and product quality The measurement oI process and product
quality permits an organization to determine its rate oI change, which it can use to evaluate the
success oI a change eIIort. It also permits an organization to compare the rate oI actual change
against its planned change, and to allocate resources based on the gaps between actual and
expected progress.
Characteristics of organization change
1. It is deliberate, systematic and well thought oI.
2. Velocity oI change depends on the degree or level oI signiIicance.
3. Status quo existing state oI aIIairs) is challenged.
4. Reaction can be both positive and negative
5. Focuses on long-term change
Forces for Change
Organizations encounter Iorces Irom outside and inside the organization, creating a need Ior
change. Awareness oI these Iorces can help in determining when organizational change needs to
be implemented. Change initiatives can be placed in the Iollowing categories: 1) strategic
changeseeing the organization as Iunctional parts mergers, acquisitions, consolidations); 2)
leadership change; 3) cultural changeprograms that Iocus on human aspects relationship
between managers and employees); 4) cost cuttingeliminating non-essential activities and
operations; and 5) process changeIocusing on how things get done.
Forces can be categorized into two major categories as below:
External forces - Forces outside the organization may have global eIIects, causing the
organization to question the value oI the business it is in and the products and services it
produces. There are Iour major external Iorces Ior change:
emographic Characteristics: The workIorce may be becoming more diverse. The business
must manage that diversity eIIectively iI it wants to receive maximum contribution and
commitment Irom employees.
Technological Advancements: Organizations are increasingly using technological advancement
to improve their competitiveness and productivity. Many organizations have automated
operations with robotics and computer-aided design. OIIices have been automated with computer
technologies used to obtain, store, analyze, retrieve, and communicate inIormation. Use oI the
Internet has dramatically changed communications and marketing.
arket Changes: The global economy has Iorced many companies to change the way they do
business
Social and Political Pressures: Social and political events may Iorce organizations to change.
Managerial style may need to be adjusted because oI changing employee values. Organizations
may hire lobbyists and consultants to help in detecting and responding to social and political
changes.
2 Internal Forces - Internal Iorces come Irom within the organization. These Iorces may be low
morale, low productivity, or conIlict. The Iorces come Irom both human resources problems and
managerial decisions/behaviors.
uman Resource Problems: These problems may stem Irom employees` perceptions oI the way
they are treated at work and whether the organization`s and the employees` needs and desires
match. Employee dissatisIaction and unusual or high levels oI absenteeism and turnover may
represent a need Ior change.
anagerial ecisions/Behavior; Change may be indicated by excessive interpersonal conIlict
between managers and employees, inappropriate leader behaviors, or inequitable reward
systems.
Reasons for Organizational Change
1. %echnology: Technological changes are responsible Ior changing the nature oI jobs perIormed
at all levels in the organization. As the technological process changes, organizations must also
change to accommodate new and emerging technology to survive.
2. Market behavior: Competition is constantly increasing due to new innovations, customer`s
needs are also changing with these emerging technologies, consumer taste and preIerences are
what organizations must respond to by reviewing their approach and change accordingly.
. $ocial and Political change: The demand Ior social equality is changing and mangers need to
respond to these changing Iactors. New tax policies among other changes are emerging and
organization must continuously be on the lookout to adhere with them
5. Changes in managerial personnel: The proIile oI managers has changed substantially in
recent times Irom old circuit managers to young dynamic, better and eIIicient and well trained
managers. This has inheritably caused the organizations to change the way they do business
6. Changes as a result oI employees seeking new ventures and scrutinizing their education to
make them become competitive in the market, they constantly look Ior high paying jobs with a
better working environment.
Planned Change
Organization can deal with these changes through a planned change. When an organization needs
a conscious eIIort to change, it is called planned change. In order to bring about a successIul
change in an individual or organization certain logical steps need to be Iollowed namely:
O Recognize the need Ior change that seeks to answers iI the change is necessary? Changes
should not be eIIected Ior the sake oI change and the rationale Ior change must be clearly
understood.
O IdentiIying the change method. Several techniques Ior introducing change in an
organization are available. The technique chosen should meet the needs oI the organization in
reaction to the external environment oI the identiIication oI the type oI culture that will provide
Ior the integrated productivity in the organization.
O UnIreezing the status quo. For individual to change their present attitudes and belieIs
must be altered or Irozen. Resistance to change must be reduced iI the change is to be eIIected.
The idea is to create selI doubt and provide Ior recovering the situation
O Moving to the new situation. The starting oI change can come Irom an order, a
recommendation or selI directed. However, change is more important in a person iI they want
change. There should be a two way relationship by the implementers oI change and those
aIIected by the change.
O ReIreezing to create a new status quo. Very oIten things which are introduced do not last.
II change is to take eIIect both parties must be convinced that it`s Ior their own or the
organization`s interest. One oI the best ways is to collect the objectives everyday oI the success
oI the change. Methods oI implement change in an organization could vary examples includes
Iorce, compromise, manipulation,
%ypes of Change
1. Individual Level Change
Individual level changes may take place due to changes in job assignment, transIer oI an
employee to a diIIerent location or the changes in the maturity level oI a person which occurs
over a passage oI time. The general opinion is that change at the individual will not have the
signiIicant implications Ior the organization. But this is not correct because individual level
changes will have impact on the group which in turn will inIluence the whole organization.
ThereIore, a manager should never treat the employees in isolation but he must understand that
the individual level change will have eIIect beyond the individual.
2. Group Level Change
Management must consider group Iactors while implementing any change, because most oI the
organizational changes have their major eIIects at the group level. The groups in the organization
can be Iormal groups or inIormal groups. Formal groups can always resist change Ior example;
the trade unions can very strongly resist the changes proposed by the management. InIormal
groups can pose a major barrier to change because oI the inherent strength they contain. Changes
at the group level can aIIect the work Ilows, job design, social organization, inIluence and status
systems and communication patterns. The groups, particularly the inIormal groups have a lot oI
inIluence on the individual members oI the group. As such by eIIective implementing change at
the group level, resistance at the individual level can be Irequently overcome.
. Organizational Level Change
The organizational change involves major programmes which aIIect both the individuals and the
groups. Decisions regarding such changes are made by the senior management. These changes
occur over long periods oI time and require considerable planning Ior implementation. A Iew
diIIerent types oI organization level changes are:
O $trategic change - Strategic change is the change in the very basic objectives or mission
oI the organization. A simple objective may have to be changed to multiple objectives. For
example, a lot oI Indian companies are being modiIied to accommodate various aspects oI global
culture brought in by the multinational or transnational corporations.
O $tructural change - Organizational structure is the pattern oI relationships among
various positions and among various position holders. Structural change involves changing the
internal structure oI the organization. This change may be in the whole set oI relationships, work
assignments and authority structure.
O Process oriented change - These changes relate to the recent technological
developments, inIormation processing and automation. This will involve replacing or retraining
personnel, heavy capital equipment investment and operational changes. All this will aIIect the
organizational culture and as a result the behaviour pattern oI the individuals.
O People oriented change - People oriented changes are directed towards perIormance
improvement, group cohesion, dedication, and loyalty to the organizations as well as developing
a sense oI selI-actualization among members. This can be made possible by closer interaction
with employees and by special behavioral training and modiIication sessions.
Models of Change/Change Process
Several individuals have tried to identiIy effective ways to manage change within organizations.
Kurt Lewin`s Change Model
In the 1950s, Kurt Lewin developed a technique Ior changing behavior, skills, and attitudes, and
it is still used today. According to Lewin, change has to happen at three levels. The individuals
who work Ior a company must be convinced that a change is essential. Systems oI the
organization need to be changed, speciIically, work design, the inIormation system, and/or
compensation plans. The organi:ational climate must be adjusted.
Lewin`s change model contains three steps:
Unfreezing: In the group-change process, individual`s habits, attitudes, and positions have to
change. UnIreezing may even involve promotions or letting individuals go. The Iocus oI the
change eIIort may the redesign oI the organization. The process may begin by disconIirming the
useIulness or appropriateness oI individuals` present behaviors or attitudes. Techniques Ior
unIreezing may take several Iorms:
Inspire individuals to achieve remarkable things
Present evidence; hard Iacts are diIIicult to ignore
Move people out oI their comIort zone
Use Management by Objectives MBO): tell people what to do, but not how to do it
Redesign the organization to Iorce behavior change
Set goals to give individuals a Iormal objective
Get everyone involved in planning
oving to another condition (1ransition): The actual changes are made. This stage may
involve providing new inIormation, new behavioral models, or new ways oI looking at things.
Employees may be developing new skills required Ior the change. Transitioning requires time.
Some Iorm oI support Ior employees may be needed. It is oItentimes essential to think oI
unIreezing as a journey rather than a step. Techniques to Iacilitate the transition include
Acknowledge that incremental changes may well not be noticed
Use psychological support
Tell them what to do
Teach them, one step at a time
Use a Iacilitator to guide team meetings
Make it easy to perIorm the Iirst steps and get going
Give individuals an important role
Provide individuals spaces to talk about what concerns them
Train the people you have in new knowledge/skills
Redesign the organization to Iorce behavior change
Break things down into smaller units
Get everyone involved in planning
Refreezing: It is necessary to do something to the organization so that the change becomes a
permanent part oI its operation. During this step, new behaviors become new norms or standards
Ior the organization. The change needs to be cemented into the organization`s culture, into the
way things are done in the organization. Individuals are taken Irom a state oI transition to a
stable state. Techniques to reIreeze include
Burn bridges; ensure there is no way back
Show individuals repeatedly that the change is real
Put rewards in their Iuture
Build change into the organization`s Iormal systems and structures
Lead individuals to look toward the Iuture
Align rewards with desired behaviors
Use Iormal rituals to conIirm change
Build the change into the social Iabric oI the organization
Robert Lussier`s Change Model
Kurt Lewin`s model provides a general Iramework Ior understanding organizational change.
Because the steps are broad, Robert Lussier developed a more speciIic model consisting oI Iive
steps.
1. efine the change. Clearly state what the change will be.
2. Identify possible resistance to change. Determine intensity, source, and Iocus oI resistance.
3. Plan the change. How will the change be implemented?
4. Implement the change.
A. Give the Iacts.
B. Involve employees.
C. Provide support.
5. Control the change.
ohn Kotter`s Eight-$tage Change Model
ohn Kotter has described a successIul model Ior understanding and managing change.
According to Kotter, a general lesson learned Irom successIul cases oI organizational change is
that the change process goes through a series oI phases that, taken together, require a length oI
time. Skipping steps will only create the illusion oI speed and never produce satisIactory results,
according to Kotter. Kotter`s eight step change model can be summarized as Iollows:
1. Establish a sense of urgency--inspire people to move, making objectives real and relevant. A
threat oI losing ground in some way sparks people into action, and they in turn will communicate
a sense oI urgency to others.
2. Build the guiding team--get the right people in place with the right emotional commitment,
and the right mix oI skills and levels. EIIorts Ior change may begin with one or two people.
Regardless oI the size oI the organization, this beginning group Ior change needs to have three to
Iive individuals leading the eIIort.
3. Get the vision right--get the team to establish a simple vision and strategy and Iocus on
emotional and creative aspects necessary to drive service and eIIiciency. SuccessIul
transIormation rests on a vision oI the Iuture that is relatively easy to communicate and appeals
to customers, stockholders, and employees. The vision will clariIy the direction in which the
organization needs to go.
4. Communicate for buy-in--involve as many people as possible and communicate the
essentials simply to appeal and respond to people`s needs. Kotter suggests that leadership
estimate how much communication oI the vision is needed and multiply that eIIort by ten. Use
every existing communication channel and opportunity.
5. Empower action--Remove obstacles, enable constructive Ieedback and lots oI support Irom
leaders, and reward and recognize progress and achievements. Organization members need to be
allowed to make changes in their areas oI involvement. Budget money needs to be allocated to
the new initiative. Remove any obstacles there may be to get on with the change.
6. Create short-term wins--set aims in bite-size chunks that are easy to achieve. Create a
manageable number oI initiatives. Finish current stages beIore starting new ones. Commitments
to produce short-term wins will keep the urgency level up.
7. Don`t let up; consolidate improvements and sustain momentum for change--Ioster and
encourage determination and persistence, ongoing change, and ongoing progress reporting,
highlighting achieved and Iuture milestones. However, premature declaration oI victory may kill
momentum and allow the old system to regain ground. Leaders oI successIul eIIorts use the
Ieeling oI victory as motivation to explore their organization more deeply, moving people
committed to new ways into key roles.
8. Make change stick; institutionalize the new approaches--reinIorce the value oI successIul
change via recruitment, promotion, and new change leaders. Weave change into culture. Change
sticks when it becomes 'the way we do things around here. Two Iactors are particularly
important Ior institutionalizing new changes: a conscious attempt to show how the new
approaches, behaviors, and attitudes helped improve the organization, and ensuring that the next
generation oI leaders believes in and embodies the changes.
Factors %hat Causes Resistance to Organizational Change
1. %hreat of power on an individual level. Managers resist change that decreases their
power and transIer that power to their subordinates;
2. %hreat of power on an organizational level. With organizational change some groups,
departments or sectors in organization become more powerIul, it aIIects appearing resistance to
change oI those that lose some part oI that power;
3. Losing the control by employees. Organizational change can make a decrease level oI
control that needs to conduct managers, and it aIIects appearing resistance to change oI those that
has taken common law on control;
4. Increasing the control of employees. Organizational change can increase control oI
employees, and it aIIects appearing resistance to change;
5. Economic factors. Organizational change may see in an eye oI employees simply as
decreasing or increasing oI payment and others economic privileges that bring some
workplace. This will inIluence on appearing resistance oI those that will be covered with this
change;
6. Image, prestige and reputation. Every workplace brings adequate image, prestige and
reputation that are important to every employee. Organizational changes shiIt this convenience
oI employees. This will inIluence on appearing resistance oI those that will be covered with this
change;
7. %hreat of comfort. Organizational change results to personal discomIort and make
employee liIe more diIIicult. They represent transIer oI comIort oI status quo to discomIort to
new situation. Employees have skills to do an old job without some especially attention to
accomplish that job.
8. ob`s security. Organizational change may eliminate some work places, may produce
technological excess, layoIIs and so on. ob`s security has inIluence on appearing resistance oI
those that will be covered with this change;
9. Reallocation of resources. With organizational change some groups, department or
sector in organization obtains more resources on damage on others; it aIIects on appearing
resistance on those who are devoid resources;
10. Acquired interest of some groups. Organizational change can make new groups more
signiIicant oI success, and it represents a threat on old coalition that will inIluence on appearing
resistance on those groups that arise more insigniIicant;
11. Implication on personal plans. Organizational change can stop other plans, projects or
other personal or Iamily activities that again this lead to appearing resistance to change oI those
that will be covered with this change;
12. %oo much dependence of others. In an organization may exist employees that are too
much depended oI others. This dependence is based on deIense oI powerIul individuals. II the
changes represent threat oI that deIense it will aIIect on appearing resistance to change oI those
that will be covered with this change;
13. Misunderstanding of changes. Peoples resist change when they not understand purposes
oI change. When employees not understand change they assume something bad and that lead to
appearing resistance to organizational change;
14. Mistrust to initiators of change. When employees do not have trust to initiators oI
organizational change, every change will accept negatively and will aIIect on appearing
resistance;
15. Different evaluation and perception. DiIIerent evaluation and perception eIIect on
organizational changes to employees that consider changes as a bad idea. Because oI that they
are resistant to that changes
16. Fear of unknown. Organizational changes lead to uncertainty and some dose oI Iear. It is
normal people to Ieeling Iear oI uncertainty. This uncertainty aIIects it to organizational member
resist change;
17. abits. Employees work is based on habits, and work tasks perIorm in certain way.
Organizational changes require shiIts oI that habits that aIIect appearing resistance;
18. Experience of organizational change. All employees already have some experience oI
previous organizational change and known that this process is not easy. Experience indicates that
more programs oI organizational change have been unsuccessIul, and it aIIects appearing
resistance to organizational change;
19. %hreat to interpersonal relations. Employees are oIten mutually Iriends that have
strong social and interpersonal relationship. II an organizational change represents as threat this
strength social networks in an organization, the aIIected employees oIten resist to that change;
20. eakness of the proposed changes. Sometimes proposed change might have weakness
that employees can recognize. This has an eIIect to that employees resist change and to require
surpass oI weaknesses yet beIore beginning on implementation;
21. Limited resources. A normal problem in every organization is limited resources. When
resources are limited and with organizational change that resources are threatened resistance to
change is likely;
22. Bureaucratic inertia. Every organization has built mechanisms across rules, policies,
and procedures. Even though individuals want to change their behavior these mechanisms can
resist to that change;
23. $elective information processing. Individuals usually doing selective inIormation
processing, or hear that they want to hear. They simply ignore inIormation that is opposite oI
current situation, and with this, they are preventing to accept important aspects oI proposed
changes, and it aIIects appearing resistance to organizational change;
24. Uninformed. OIten employees are not provided with adequate inIormation about
organizational change that must implement. This can aIIect on appearing resistance to that
change;
25. Peer pressure. We oIten are exerting inIormal punishment on colleagues that supports
change that others not support. This can aIIect on appearing and increasing resistance to change;
26. $kepticism about the need of change. II the problem is not personal thing oI employees,
they do not see the need have changed. Those that not can to see the need oI change shows low
readiness to change;
27. Increasing workload. In the process oI organizational change employees barring with
normal work activities will be loaded with activities oI a change process. These increasing
workloads, has eIIect on appearing resistance to change;
28. $hort time to performing change. Because organizational systems are open systems and
are interactive with their environment, the need oI change oIten comes Irom outside and
perIorming rates are dictating Irom exterior oI an organization. These situations to have short
time to perIorming organizational change that has inIluence on appearing resistance to change
$trategies for overcoming resistance to change
Many theories attempt to explain why employees resist change even when it is obvious that
change is necessary Ior an organization's survival. Resistance to change can be averted via:
O Commitment. From the CEO to the janitor, every employee must be committed to the
change plan. That commitment begins at the top; hence the organization's leadership must be
especially attuned to successIul implementation. One naysayer on the leadership team can ruin
the entire process.
O A change mandate. Change cannot be a choice. With gentle respect it must be made clear
that change is not an option, it is a requirement.
O Input. Anyone who will be aIIected by the impending changes must be given the
opportunity to voice his or her opinion in a respectIul and collegial setting.
O Accountability. Every person aIIected by the change program must be held responsible
Ior implementing his or her individual change activity. Not meeting that responsibility must
carry consequences.
O Rewards and celebration. SuccessIul implementation should be acknowledged via
compensation and/or recognition. The organization as a whole should commemorate the
successIul implementation oI the change program as well.
O Evaluation. Examining the success oI the implementation at planned intervals is a
strategic decision designed to gauge success over time and make corrections Ior unanticipated
consequences.