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Introduction The organisation and the forces of change. The nature of the change Factors influencing the change Barriers and means of overcoming them Change agents & managing changes Conclusion Questions & answers

All is flux, nothing stays still; Nothing endures but change ~Heraclitus You could not step twice into the same rivers, for other waters are ever flowing to you ~Heraclitus

Like the life cycles of plants and animals, organizations are born, they mature and they eventually die. What are the different phases an organization passes through?

Simple and Informal Structure Focus is on survival Primary concern is on technical aspects of production and marketing As organization grows complex managerial needs may lead to a crisis

After initial success, goals become clarified and employees begin to identify with the mission of the organization in the growth phase

Specialization leads to more elaborate structure

Delegation of authority Overload of work and unwillingness to delegate authority may lead to a serious crisis
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Slowdown in growth Organizations become more formal and beaurocratic

Slower and conservative decision making causes organization to be less adaptive to changes in external environment Typical streamlining intervention might be required
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Not all organizations pass through this phase

Diverse array of products for different markets

Separate divisions become responsible for developing , marketing and producing their own lines of products Segmented structure needs maintaining good communication and cooperative effort Teambuilding and co operation necessary during this phase
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Markets decline and products become obsolete Organizations become risk aversive and less innovative

Top management operates in a crisis mode that prevents strategic long term planning from being completed.
Streamlining strategic planning, and fostering innovation are critical issues during this phase
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 Much of what we have constructed inherently opposes change Companies are designed in a manner that often makes change difficult

What then, does change mean in the context of organizations?

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Three options to bring about change : increase the driving forces decrease the restraining forces do a combination of the two approaches.

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Restraining Forces Desired State Status Quo

Driving Forces

Source: Aurosoorya(http://www.aurosoorya.com)

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Broadly speaking, how can change be classified? What could we say is the nature of change?

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Nature Of Change
Types of change Ordered Change Random Change Limited Change Vital Mental

Physical

All is fixed change is at the best incremental.

Probabilistic system sometimes this happening, sometimes that

Change happens according to some design

Degrees of Freedom
Source: Aurosoorya(http://www.aurosoorya.com 14

Study events in isolation: Change seems random Study events systemically : Possibly some sense of order emerges

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In the business world is change Physical or Vital or Mental?

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What are the factors influencing change?

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Economic and Market Changes Technological Innovation

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 Organizational Structure Changes. Changing Employee Demographics.

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Lasting and meaningful organizational change ultimately comes from the individuals who are building blocks of the organization. People need to understand why the change is necessary. Organizations must effectively communicate the need for change to all their members before attempting any kind of change.

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Vision represents the force that guides the organization and provide a sense of purpose and direction.
Vision comprises of four parts -Organizations core values and beliefs -Enduring purpose of the organization -A highly compelling mission or purpose -A vivid description of the mission

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Any time an organization attempts to change, individuals and groups within the organization are likely to resist the change process. Although people may be dissatisfied with the way the organization currently functions, change always carries the risk of making the situation worse. In situations where change is perceived as more threatening than beneficial, organizational members will be unwilling to accept change. What are barriers to change?
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Failure to recognize the need for change Misunderstanding the purpose, process and outcomes of change Fear of the unknown Threats to existing social relationships Reluctance to give up old work routines and habits

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 A Reward system that reinforces old ways of doing things Threats to existing balance of power Inter group conflicts that inhibit cooperation Incompatibility of change process and organizational culture Heavy investment in previous decisions and course of action
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Depending on the nature of the resistance and the need of the organization several strategies are available for dealing with resistance to change. What then are the methods for dealing with resistance to change?

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Approach

Commonly used when..

Advantages

Disadvantages

1.Education & Comunication

There is lack of information or inaccurate information and analysis

Once persuaded, people will often help implement the change

Can be very time consuming if many people are involved

Source: Kotter & Schesinger ,1979

2.Participati on and Involvement

Initiators-not enough info./others resist considerably

People participating help in implementin g No approach works as well with adjustment problems

Can be time consuming if an inappropriat e change designed Can be time consuming, costly and can still fail

3.Facilitation People & Support resist because of adjustment prob.

Source: Kotter & Schesinger ,1979

4.Negotiation Group with Sometimes & Agreement powers lose an easy way in the change 5.Manipulatio Other tactics Can be n & Codon't work or inexpensive optation are too costly & quick

Expensive if alerts others to negotiate Can lead to future problems if people feel manipulated Can be risky if it leaves people angry with initiators

6.Explicit & Implicit Coercion

Speed is essential& initiators have powers

Speedy and can overcome any resistance

Source: Kotter & Schesinger ,1979

Understanding an organizations culture is a critical first step in gauging the level of resistance a change- effort is likely to encounter. All successful change efforts have some impact on organizational culture. However, since organizational culture develops slowly, efforts to change it will generate varying degrees of resistance.

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Degree of Change

Impact on Culture

Resistance

Chances of Success

Small Small Large Large

Slight High Low High

Low Moderate Moderate Highest

High Moderate Moderate Remote

Source: Kotter & Schesinger ,1979

Doing Better is a good thing The facts are friendly People should have ownership of their life space A challenging environment requires the system to be adaptive in terms of its structure and processes Change does not have to be haphazard The results of change actions are not always 100 percent predictable and controllable Behavioral science knowledge can contribute to organizational health
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Change agents are people with the responsibility for implementing change in an organization. How can change agents be classified?

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 Internal Change Agents External Change Agents

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Advantages
External Change Agents
Credibility No

Disadvantages
Perceived Lacks

as an expert

as an outsider

negative history with organizational members

Objective Wide

outsider

knowledge of organization and its technology

Often

experience

has limited availability and time constraints

Often

Internal Change Agents

Credibility Knows

as an insider

the people, the culture and norms of the organization

Knows

not perceived as an expert

May

the technology available

have negative history with the organization

May Has

Continuously Personal

lack objectivity

relationships

limited experience with other organizations

A satisfactory relationship between the change agent and the organizational members is critical to the success of any OD effort. A trusting relationship helps the consultant deal with the changes brought by those who are uncomfortable or in disagreement with the change effort, and the consultancys style and values are key factors establishing trust and making relationships successful. How change agents build trusting relationships?

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An impervious response An interrupting response An irrelevant response A tangible response An impersonal response An ambiguous response An incongruous response

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Supportive Behaviors
1) Description 2) Problem

Defensive Behaviors
1) Evaluations 2) Control 3) Strategy 4) Neutrality 5) Superiority 6) Certainty

Orientation
3) Spontaneity 4) Empathy

5) Equality
6) Provisionalism

 Listens, but does not sells Fits into the organization and embraces its mission and culture Provides good customer service Protects confidentiality Challenges assumptions Is a recognized expert Provides perspective and objectivity Celebrates with the internal staff
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 Leaders as Change Agents

Managers as Change Agents

Human Resource Professionals as Change Agents

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How can change be managed?

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Mental

Physical

Mental Vital

Mental

Mental

If system is moving at the Mental level, then an organization is going to face a different set of issues and challenges, depending on whether it is itself at the Physical, Vital, or Mental level.
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How Then Do We Manage Change Given Where An Organization May Be At?

Mental
Introspective techniques Appreciative inquiry Managing from the future

Level of Operation

Rewarding inventive accountability Infusing intricate situational understanding Insisting on uncompromising straight talk

Physical

Adversarial

Positive Mobilizing Technique

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