Organizational Change – Concept & Need, Change Process, Reasons for Resistance to Change, Measures to Overcome Resistance to Change

Organisational Change
Unit III
•Concept
•Importance
•Change Process
•Resistance to change
•Managing resistance to change

Lecture - 1
Points to Cover:
1. What is Change
2. Concept
3. Definition
4. Importance of change

Change…
Adaptation of a new idea or a behavior
by an organization.

Concept of Change
 Organisation change may be defined as the
adoption of a new idea or a behavior.
 It is the process of altering the existing with
new for the betterment.
 Change is generally refer to the innovation. So
all innovation involve change but all change do
not involve innovation

What is Organizational Change?
 An alteration of an organization’s environment,
structure, culture, technology, or people
– A constant force
– An organizational reality
– An opportunity or a threat
 Change agent
– A person who initiates and assumes the
responsibility for managing a change in an
organization

Forces for Change
External Forces Internal Forces
Competition Laws and
regulations
Strategy modifications
New technologies New equipment
Labor market shifts New processes
Business cycles Workforce composition
Social change Job restructuring
Compensation and
benefits
Labor surpluses and
shortages
Employee attitude

Three Categories of Change
Organizational Culture

Types Of Change
 Strategic Change
 Single mission may have to be change to the multiple
 Structural Change
 Structural change shift the authority & responsibility to
general lower level .
 Process – oriented Change
 Change in process
 People –oriented Change

Ghoshal & Bartlett view:
Old values:
compliance,
control,
contract and
constraint
New values:
discipline,
support, trust
and stretch
Change
Process

Ghoshal & Bartlett
 Successful change involves simplification,
integration, and regeneration
 Phased approach essential, along with focus on
people’s attitudes, assumptions and behaviors
 Brings both organizational design and human
resources lessons to bear

Reaction to change
 Anger
 Denial
 Acceptance

Principles Of Change
 Understanding the things before try.
 You cannot change any one element.
 People resist any thing they feel is punishment.
 Change always generate stress
 Behavioral changes comes in small steps.

Difficulty with organization:
 Major challenge for the organization is to
manage change.
 If fail to change, cost of failure is high.
 It is important to understand & reflect the
nature of change, which is sweeping & sustain
themselves.
 Strategies should be build to handle change.

Lecture - 2
 Nature of Change
 Change Models

Nature of Change
– Vital if a company were to avoid stagnation;
– A process and not an event;
– Normal and constant;
– Fast and is likely to increase further in the present
competitive business;
– ‘Directive’, that is, implemented by ‘top down’
management or ‘participative’, that is, involving
those parties impacted by change;

Nature of Change
– Is ‘natural’, that is, evolutionary or ‘adaptive’,
that is, a reaction to external circumstances and
pressures;
– Is ‘incremental’, that is continuous small changes
or ‘step’, that is, radical shift from current to new
processes; and
– Is interdependent on organizational environment
or culture.

Components of Change –
Through TQM
Components of Re-
engineering
Examples of Change:

Kurt Lewin’s
Change Management Model
Kurt Lewin proposed a three stage theory of
change commonly referred to as-
 Unfreeze,
 Change, and
 Freeze (or Refreeze).

Stage 1: Unfreezing
 This stage is about getting ready to change. It involves
getting to a point of understanding that change is
necessary, and getting ready to move away from our
current comfort zone.
 This first stage is about preparing ourselves, or others,
before the change (and ideally creating a situation in which
we want the change).
 The more we feel that change is necessary, the more urgent
it is, the more motivated we are to make the change when
the deadline comes or some sort of reward or punishment
linked to the job. If there's no deadline, then the urge to
change is lower than the need to change.

 Unfreezing and getting motivated for the change is all about
weighing up the 'pro's' and 'con's' and deciding if the 'pro's'
outnumber the 'con's' before you take any action. This is the
basis of what Kurt Lewin called the Force Field Analysis.
 Force Field Analysis is a fancy way of saying that there are
lots of different factors (forces) for and against making
change that we need to be aware of (analysis). If the factors
for change outweigh the factors against change we'll make
the change. If not, then there's low motivation to change.
 This first 'Unfreezing' stage involves moving ourselves, or a
department, or an entire business towards motivation for
change.

Stage 2: Change - or Transition
 According to Kurt Lewin, change is not an event, but
rather a process. He called that process a transition.
Transition is the inner movement or journey we make in
reaction to a change. This second stage occurs as we make
the changes that are needed.
 People are 'unfrozen' and moving towards a new way of
being.
 This stage is often the hardest as people are unsure or even
fearful. Ex.: Imagine a jumping from a very high placs or
parachuting.

 This is not an easy time as people are learning about
the changes and need to be given time to understand
and work with them. Support is really important
here and can be in the form of training, coaching,
and expecting mistakes as part of the process.
 Using role models and allowing people to develop
their own solutions also help to make the changes.
It's also really useful to keep communicating a clear
picture of the desired change and the benefits to
people so they don't lose sight of where they are
heading.

Stage 3: Freezing (or Refreezing)
 Kurt Lewin refers to this stage as freezing although a lot of
people refer to it as 'refreezing'. As the name suggests this
stage is about establishing stability once the changes have
been made. The changes are accepted and become the new
norm. People form new relationships and become
comfortable with their routines. This can take time.
 In todays world of change the next new change could
happen in weeks or less.

Lecture – 3
System Model of Change

 The systems approach to organizational change
makes it possible to describe change based on all
characteristics of change; after all the change
system presents all those attributes dynamically
and at the same time. Fluctuations in one or more
attributes are possible at any time during the
course of the change process.

 The input for the system model of change can be one or more elements
from the organizational context (strategy, structure, people, culture).
This element experiences a change through the influence of the change
attributes of the change system. The change attributes may vary
depending on the input in the system. Thus in case of a strategic
change other change attributes than with a cultural change are
involved. Moreover the change attributes will get another
interpretation when they are being looked upon from other paradigms.

 Apart from the intentional changes that occur unplanned changes take
place continuously. The system model of change generates specific
individual or group effects, organizational effects and social effects.
The organizational and socio-economic context affects the system
which for its part affects its environment. The system gets a number of
attributes by means of its action.

Implementing change powerfully and successfully
Learn how to implement change successfully.
Change is the only constant.
– Heraclitus, Greek philosopher
 What was true more than two thousand years ago is just as true today.
We live in a world where "business as usual" IS change. New
initiatives, project-based working, technology improvements, staying
ahead of the competition – these things come together to drive ongoing
changes to the way we work.
 Whether you're considering a small change to one or two processes, or
a system wide change to an organization, it's common to feel uneasy
and intimidated by the scale of the challenge.
 You know that the change needs to happen, but you don't really know
how to go about doing delivering it. Where do you start? Whom do
you involve? How do you see it through to the end?
Kotter's 8-Step Change Model

 There are many theories about how to "do" change. Many originate
with leadership and change management guru, John Kotter. A
professor at Harvard Business School and world-renowned change
expert, Kotter introduced his eight-step change process in his 1995
book, "Leading Change." We look at his eight steps for leading change
below.

Step One: Create Urgency
 For change to happen, it helps if the whole company really wants it.
Develop a sense of urgency around the need for change. This may help
you spark the initial motivation to get things moving.
 This isn't simply a matter of showing people poor sales statistics or
talking about increased competition. Open an honest and convincing
dialogue about what's happening in the marketplace and with your
competition. If many people start talking about the change you
propose, the urgency can build and feed on itself.
 What you can do:
 Identify potential threats, and develop scenarios showing what could
happen in the future.

 Examine opportunities that should be, or could be, exploited.
 Start honest discussions, and give dynamic and convincing reasons to
get people talking and thinking.
 Request support from customers, outside stakeholders and industry
people to strengthen your argument.
 Kotter suggests that for change to be successful, 75% of a company's
management needs to "buy into" the change. In other words, you have
to really work hard on Step One, and spend significant time and energy
building urgency, before moving onto the next steps. Don't panic and
jump in too fast because you don't want to risk further short-term
losses – if you act without proper preparation, you could be in for a
very bumpy ride.

Step Two: Form a Powerful Coalition
 Convince people that change is necessary. This often takes strong
leadership and visible support from key people within your
organization. Managing change isn't enough – you have to lead it.

 You can find effective change leaders throughout your organization –
they don't necessarily follow the traditional company hierarchy. To
lead change, you need to bring together a coalition, or team, of
influential people whose power comes from a variety of sources,
including job title, status, expertise, and political importance.


 Once formed, your "change coalition" needs to work as a team,
continuing to build urgency and momentum around the need for
change.

 Identify the true leaders in your organization.
 Ask for an emotional commitment from these key people.
 Work on team building within your change coalition.
 Check your team for weak areas, and ensure that you have a good mix
of people from different departments and different levels within your
company.

Step Three: Create a Vision for Change
 When you first start thinking about change, there will probably be
many great ideas and solutions floating around. Link these concepts to
an overall vision that people can grasp easily and remember.

 A clear vision can help everyone understand why you're asking them to
do something. When people see for themselves what you're trying to
achieve, then the directives they're given tend to make more sense.

 Determine the values that are central to the change.
 Develop a short summary (one or two sentences) that captures what
you "see" as the future of your organization.
 Create a strategy to execute that vision.
 Ensure that your change coalition can describe the vision in five
minutes or less.
 Practice your "vision speech" often.


 For more on creating visions, see our Mind Tools article on Mission
Statements and Vision Statements.

Step Four: Communicate the Vision

 What you do with your vision after you create it will determine your
success. Your message will probably have strong competition from
other day-to-day communications within the company, so you need to
communicate it frequently and powerfully, and embed it within
everything that you do.
 Don't just call special meetings to communicate your vision. Instead,
talk about it every chance you get. Use the vision daily to make
decisions and solve problems. When you keep it fresh on everyone's
minds, they'll remember it and respond to it.


 It's also important to "walk the talk." What you do is far more
important – and believable – than what you say. Demonstrate the kind
of behavior that you want from others.

 Talk often about your change vision.
 Openly and honestly address peoples' concerns and anxieties.
 Apply your vision to all aspects of operations – from training to
performance reviews. Tie everything back to the vision.
 Lead by example.

Step Five: Remove Obstacles
 If you follow these steps and reach this point in the change process,
you've been talking about your vision and building buy-in from all
levels of the organization. Hopefully, your staff wants to get busy and
achieve the benefits that you've been promoting.
 But is anyone resisting the change? And are there processes or
structures that are getting in its way?
 Put in place the structure for change, and continually check for barriers
to it. Removing obstacles can empower the people you need to execute
your vision, and it can help the change move forward.


 Identify, or hire, change leaders whose main roles are to deliver the
change.
 Look at your organizational structure, job descriptions, and
performance and compensation systems to ensure they're in line with
your vision.
 Recognize and reward people for making change happen.
 Identify people who are resisting the change, and help them see what's
needed.
 Take action to quickly remove barriers (human or otherwise).

Step Six: Create Short-term Wins
 Nothing motivates more than success. Give your company a taste of
victory early in the change process. Within a short time frame (this
could be a month or a year, depending on the type of change), you'll
want to have results that your staff can see. Without this, critics and
negative thinkers might hurt your progress.
 Create short-term targets – not just one long-term goal. You want each
smaller target to be achievable, with little room for failure. Your
change team may have to work very hard to come up with these
targets, but each "win" that you produce can further motivate the entire
staff.


 Look for sure-fire projects that you can implement without help from
any strong critics of the change.
 Don't choose early targets that are expensive. You want to be able to
justify the investment in each project.
 Thoroughly analyze the potential pros and cons of your targets. If you
don't succeed with an early goal, it can hurt your entire change
initiative.
 Reward the people who help you meet the targets.

Step Seven: Build on the Change
 Kotter argues that many change projects fail because victory is
declared too early. Real change runs deep. Quick wins are only the
beginning of what needs to be done to achieve long-term change.

 Launching one new product using a new system is great. But if you
can launch 10 products, that means the new system is working. To
reach that 10th success, you need to keep looking for improvements.

 Each success provides an opportunity to build on what went right and
identify what you can improve.


 After every win, analyze what went right and what needs improving.
 Set goals to continue building on the momentum you've achieved.
 Learn about kaizen, the idea of continuous improvement.
 Keep ideas fresh by bringing in new change agents and leaders for
your change coalition.

Step Eight: Anchor the Changes in Corporate
Culture
 Finally, to make any change stick, it should become part of the core of
your organization. Your corporate culture often determines what gets
done, so the values behind your vision must show in day-to-day work.
 Make continuous efforts to ensure that the change is seen in every
aspect of your organization. This will help give that change a solid
place in your organization's culture.
 It's also important that your company's leaders continue to support the
change. This includes existing staff and new leaders who are brought
in. If you lose the support of these people, you might end up back
where you started.


 Talk about progress every chance you get. Tell success stories about
the change process, and repeat other stories that you hear.
 Include the change ideals and values when hiring and training new
staff.
 Publicly recognize key members of your original change coalition, and
make sure the rest of the staff – new and old – remembers their
contributions.
 Create plans to replace key leaders of change as they move on. This
will help ensure that their legacy is not lost or forgotten.

FORCES FOR CHANGE
 Organizations encounter many different forces for
change. These forces come from external sources
outside the organization and from internal sources.
 Awareness of these forces can help managers
determine when they should consider
implementing an organizational change. The
external and internal forces for change are as
follows:

(a) External Forces
 External forces for change originate outside the
organization. Because these forces have global effects,
they may cause an organization to question the essence of
what business it is in and the process by which products
and services are produced.
There are four key external forces for change:
 Demographic characteristics,
 Technological advances,
 Market changes, and
 Social and political pressures.

(i) Demographic Characteristics
(1) The workforce is more diverse and
(2) There is a business imperative to effectively manage
diversity.
 Organizations need to effectively manage diversity if they are
to receive maximum contribution and commitment from
employees.
 Ex. Net generation culture

(ii) Technological Advancements: Both manufacturing and
service organizations are increasingly using technology as a
means to improve productivity and market competitiveness.
 Manufacturing companies, for instance, have automated their
operations with robotics, Computerized Numerical control
(CNC) which is used for metal cutting operations, and
computer-aided design (CAD). Companies have just begun to
work on computer-integrated manufacturing (CIM). This highly
technical process attempts to integrate product design with
product planning, control, and operations.
 Office automation consists of a host of computerized
technologies that are used to obtain, store, analyse, retrieve, and
communicate information.

(iii) Market Changes
The emergence of a global economy is forcing Indian companies to
change the way they do business. Companies are having to forge new
partnerships with their suppliers in order to deliver higher quality
products at lower prices.
 Customers choice is changing
 Customers demands are changing
 Easy switching to new market
 Ex: Wal-Mart, Superbazar, Flip-kart, Tradus

(iv) Social and Political Pressures
These forces are created by social and political events. Personal values
affect employees’ needs, priorities, and motivation; managers thus may
need to adjust their managerial style or approach to fit changing
employee values. Political events can create substantial change. For
example:
 Helmet was made compulsory in 2006.
 Statutory Warning on Tobacco products.
 Maternity leave to workers etc
Although it is difficult for organizations to predict changes in political
forces, many organizations hire lobbyists and consultants to help them
detect and respond to social and political changes.

(b) Internal Forces
Internal forces come from inside the organization.
These forces may be subtle such as low morale, or
can manifest in outward signs such as low
productivity and conflict. Internal forces for
change come from both human resource problems
and managerial behavior/decisions.

(i) Human Resource Problems/Prospects
 These problems stem from employee perceptions about
how they are treated at work and the match between
individual and organization needs and desires.
 Dissatisfaction is a symptom of an underlying employee
problem that should be addressed. Unusual or high levels
of absenteeism and turnover also represent forces for
change. Organizations might respond to these problems by
using the various approaches to job design by
implementing realistic job previews, by reducing
employees role conflict, overload, and ambiguity, and by
removing the different stresses. Prospects for positive
change stem from employee participation and suggestions.

(ii) Managerial Behavior/Decisions
 Excessive interpersonal conflict between
managers and their subordinates is a sign that
change is needed. Both the manager and the
employee may need interpersonal skills training,
or the two may simply need to be separated.
For example, one of the parties might be
transferred to a new department.
Ex.: Inappropriate leadership behavior.

(c) Organization Level Changes
 Change at this level involves major programmes that affect
both individuals and groups. Decisions regarding these
changes are generally made by senior management and are
seldom implemented by only a single manager. Frequently
they occur over long periods of time and require
considerable planning for implementation.
Example of these changes would be reorganization of the
organization structure and responsibilities, revamping of
employee remuneration system, or major shifts in an
organization's objectives. Change at the organizational
level is generally referred to as organization development.

Why People Resist Change
Prentice Hall, 2002

Sources of Resistance to Change
• Ignorance: A failure to understand the
situation or the problem
• Mistrust: Motives for change are
considered suspicious
• Disbelief: A feeling that the way forward
will not work
• “Power-Cut”: A fear that sources of
influence and control will be eroded.

• Loss: Change has unacceptable personal costs
• Inadequacy: The benefits from the change are
not seen as sufficient
• Anxiety: Fear of being unable to cope with the
new situation.
• Comparison: The way forward is disliked
because an alternative is preferred
• Demolition: Change threatens the destruction of
existing social networks.

Types of Resistance
Functional Resistance:
• Critically assessing
whether change will
lead to improvements
• Exploring the personal
consequences of
change.
Dysfunctional Resistance:
• Avoiding dealing with
urgent and pressing
issues
• Declining to work on
what really needs to be
done.

Types of Resistance
Functional Resistance:
• Feelings of regret,
anxiety or fear
• To a previous history
of non-disclosure and
poor working
relations.
Dysfunctional Resistance
• Blaming and criticising
without proposing
alternatives
• Sabotaging change
• Non-collaboration with
others.

Scepticism
• Causes are complex
• Often slow to overcome
• Sceptics often dislike the “language”
change is expressed in and want practical
and demonstrable benefits
• Not wholly negative - Can be constructive
in “reality-testing” change.

THE CHANGE EQUATION:
FACTORS NECESSARY FOR EFFECTIVE CHANGE
A The individual, group or organisation level of
dissatisfaction with the status quo
B A clear and shared picture of a better future - how
things could be
C The capacity of individuals, groups and the
organisation to change (orientation, competence
and skill)
D Acceptable and “do-able” first action steps
E The cost (financial, time) of making the change to
individuals, groups and the organisation.

The Change Equation
A + B + C + D
must be greater than E

The Change Equation: When Elements Are
Missing
B + C +D means that the urgent will
drive out the important and change
will go to the “bottom of the in-tray”.

The Change Equation: When
Elements Are Missing
A + B + D means that with no
investment to improve change
management capacity, anxiety and
frustration will result.

The Change Equation: When
Elements Are Missing
A + B + C means that the change
effort will be haphazard and there
will be a succession of false-starts.

A 4-Stage Process For Dealing With
Resistance
• Consider Different People
• Work With Values and Beliefs
• Understand and Relate to Needs and
Problems
• Tailor Your Message to Your Audience.

Consider Different People
• Identify the “adopters” - The staff the
change will affect
• Identify key professional and organisational
groups
• Identify crucial opinion-leaders in the
organisation.

Work With Values and Beliefs
• Assess what’s important to people with
regard to the change at personal,
professional and organisational levels
• Understand and relate to what people
consider important.

Understand and Relate To Needs
and Problems
• For all key players, assess “What’s in it
for Me?”
• Don’t be too precious about the detail
of the approach proposed
• Understand people’s problems and
needs from different perspectives.

Tailor Your Message To Your Audience
• Do “homework” - Get to know what’s
important to individuals and groups
• Keep the message as simple as possible
• Use case studies and examples to show
benefits
• Highlight multiple pay-offs from change
• Use both informal & formal
communication.

Managing Resistance to Change
Lecture - 6

Why People Resist Change?
– The ambiguity and uncertainty that change
introduces
– The comfort of old habits
– A concern over personal loss of status, money,
authority, friendships, and personal
convenience
– The perception that change is incompatible with
the goals and interest of the organization

Managerial Actions to Reduce Resistance
to Change (Managing Change)
• Education and communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation and co-optation
• Selecting people who accept change
• Coercion

Education and communication
This strategy is designed to overcome resistance
when there is misunderstanding of the changes. The
communication can take a wide range of forms
including small meetings, large meetings,
presentations, online communications, reports, mails
and much more. This strategy can work well only
when there is a degree of trust that already exists.
Thus there needs to be significant investment in
building this trust.

Participation
By getting more people involve in the planning stage, the
more successful the change will be. As people participate
they develop a sense of ownership. For example, The
Avionics Group was facing decentralization problems,
uncoordinated processes and few common measures.
Therefore, the group feels the need to deliver its One
Company vision by focusing on technology, people and
processes by consulting KPMG Consulting. The firm worked
with Avionics employees, with more responsibility devolving
to the employees over time . They feel responsible to get the
things work rather than to oppose it. Furthermore,
participants may have some good idea to contribute. They
may build understanding and are much more likely to truly
hear important message.

Especially, if the leaders can get the potential resistor to help
in implementing the change, they will have a sense of
accomplishment from making it work. As people who
participate will commit to the change and give any relevant
information they know putting into the change plan.
However, it can also be very time consuming if participants
design an irrelevance change. And the change leaders have to
figure out which information is relevant to the change.

Facilitation and support
This strategy involves providing training in new
skills as well as other forms of support. A
common source of resistance to change is fear.
The source of this fear is often that people feel
they don’t have the skills and experience to cope
with the changes planned. This is often
overlooked by managers. To help reduce this
resistance a well planned training and support
initiative can have a significant impact on the
success of the change initiative.

Negotiation
By having discussion with the staffs, the change
leaders are able to discover the potential resister.
They are the person or group with considerable
power to resist and win clearly spoil the whole
process of change. Therefore, the change leaders
should have to take initiative to negotiate with them
and even soliciting written letters of understanding.
Once people were convincing, the level of
resistance will be reduced. This will help to smooth
the process of change. However, this can be very
expensive if it alerts others to negotiate for
compliance.

Manipulation and co-optation
To effectively achieve change, to assign the key
persons a desirable role in designing or
implementing the change process is important. As
people participate, they develop a sense of
ownership. If someone is imposing the change upon
them, they derive a sense of messing it up. In
contrast, they get a sense of accomplishment from
making it work. This method is relatively quick and
inexpensive solution to resist problems. However, it
can lead to future problems if people feel
manipulated.

Creation of a positive environment
To get to a more desirable work situation, the change
leaders have to know the importance of the environment.
By allowing the employees having enough times to adjust
to new procedures, therefore they will understand the
importance of the change and how they will benefit from
it, will usually be more co-operative in accepting change.
The change leaders have to encourage the individuals or
groups to try new ideas or be innovative. Obviously,
mistakes will be made by going through new ideas,
therefore the change leaders should give tolerance to the
individuals or groups. Atmospheres in which employees
feel safe expressing their negative emotional responses
openly.

Coercion
Having job loss threatening, transfer or lack of
promotion can also help to overcome resistance
to change. Especially during bad economic
situation, people tend to stay on the job instead
of going for a new one. Therefore, the
employees will have to accept the change at low
level of resistance. This is an effective method in
term of speed and can almost overcome any kind
of resistance. However, it can be very risky if
people are angry feeling threatened with the
change leaders.

Create dissatisfaction with the current state
In order to get to a desired future state, we have to
create dissatisfaction with the current state. Most
people tend to assume their performance is pretty
good until they are hit with comparable numbers
form elsewhere. The cycle time for new product,
consumer satisfaction percentage, total sales per
employee, comparison with their competitors and
finally realize that it is time for them to change. This
will lead the people to take their initiative to
implement the change. However, if the change
leaders over-emphasize the disaster scenario, people
can panic and may ruin the whole process.

Reward acceptance and be fair
Robert Evans said “If you consistently deny
people confirmation that their efforts are
adequate, you are actually demotivate them” . So
it is important to reward behavior in support of
change. Because people may show resistance to
change if they are not satisfied in the way they
are treated. People are more likely to accept the
change if they receive positive rewards in the
form of pay, promotion, recognition and
advancement.

Furthermore, it is important for the change leaders to
develop a good reputation of fairness in order to gain
the individuals or groups’ trust. By doing this, it will
help the change leaders become effective in
implementing and managing change. Normally,
people feel uncertain during the periods of change
because they are told to start doing their job
differently, yet the reward system lags behind and
sometimes, the new objectives were being under-
minded by the old reward system. Therefore, the
change leaders have to be fair to gain people’s
confidence.

Timing
The importance of picking the right time to
engage “overcoming“ strategies as well as
dealing with each person individually, and not
only as part of a group. People need information
most whenever they are likely to be surprised by
events. Therefore, right timing is crucial as well
as keeping surprise to a minimum. Due to many
factors required, to ensure the organization is
ready for a change, the change leaders need to be
aware of the importance of considering their
readiness when embarking on a change initiative.

The change leaders should, for instance, make the
effort to change elements of the company, which are
not satisfying, before they become a problem. They
should also consider in what ways the organization
could be modified, in order to prevent a reoccurrence
of problems that have been thrown up during the
change.

Change should not be for the sake of
Change
Change-not-encouraged

Lecture – 7
Issues in Managing Change

The issues in managing change are:
1. Resistance to change
2. Changing the culture
3. Organizing for change
4. Attitude for change

 Changing Organizational Cultures
– Cultures are naturally resistant to change.
– Conditions that facilitate cultural change:
» The occurrence of a dramatic crisis
» Leadership changing hands
» A young, flexible, and small organization
» A weak organizational culture

Strategies for Managing Cultural Change
• Set the tone through management behavior; top
managers, particularly, need to be positive role
models.
• Create new stories, symbols, and rituals to replace
those currently in use.
• Select, promote, and support employees who adopt the
new values.
• Redesign socialization processes to align with the new
values.

Strategies for Managing Cultural Change
• To encourage acceptance of the new values, change
the reward system.
• Replace unwritten norms with clearly specified
expectations.
• Shake up current subcultures through job transfers,
job rotation, and/or terminations.
• Work to get consensus through employee
participation and creating a climate with a high level
of trust.

 Handling Employee Stress
– Stress
» The adverse reaction people have to excessive
pressure placed on them from extraordinary
demands, constraints, or opportunities.
» Functional Stress
 Stress that has a positive effect on performance.
– How Potential Stress Becomes Actual Stress
» When there is uncertainty over the outcome.
» When the outcome is important.

 Reducing Stress
– Engage in proper employee selection
– Match employees’ KSA’s(Key Skill Areas) to jobs’
Tasks, Duties, and Responsibilities (TDR’s)
– Use realistic job interviews for reduce ambiguity
– Improve organizational communications
– Develop a performance planning program
– Use job redesign
– Provide a counseling program
– Offer time planning management assistance
– Sponsor wellness programs

 Making Change Happen Successfully
– Embrace change—become a change-capable
organization.
– Create a simple, compelling message explaining why
change is necessary.
– Communicate constantly and honestly.
– Foster as much employee participation as possible—get
all employees committed.
– Encourage employees to be flexible.
– Remove those who resist and cannot be changed.

Characteristics of Change-Capable Organizations
• Link the present and
the future.
• Make learning a way of
life.
• Actively support and
encourage day-to-day
improvements and
changes.
• Ensure diverse teams.
• Encourage
maverick(unconventional).
• Shelter breakthroughs
• Integrate technology.
• Build and deepen trust.

A Change Model (part 2 of 5)
Quadrant 1
Minor change, minor impact on culture.
Resistance will be at lowest level and success will be most
probable.

Quadrant 2
Minor change, major impact on culture.
Some resistance can be expected.

Quadrant 3
Major change, minor impact on culture.
Some resistance is likely.
Good management can probably overcome it.

Quadrant 4
Major change, major impact on culture.
High resistance is expected.
Difficult to manage but only Good management
can probably overcome it with proper planning.

Lecture - 8
Case Problem
Sea side is forced to modernize

Fortune India Ltd. is a manufacturing company located in
Delhi. The company was doing well from the past thirty
years and the people involved in the operations were
confident in their respective areas of operations as they
were doing it from quite some time. There was a feeling
among some of the employees that it is becoming
monotonous kind of an affair although the efficiency has
gone very high due to the fact that the same person is doing
the job from quite some time.

A recent change in the policy and procedures of the
company, it was made possible for the employees to
engage in job rotation. Shyam is In-charge of a
manufacturing operation from the past five years and he
has three subordinates directly reporting to him - Vijay,
Sameer, Rahul. Vijay has been working in the same job
position from the past twenty years, whereas Sameer from
the past five years and Rahul from the past two years in the
same job position.
Shyam being quite young and dynamic welcomed the
change in the policy and procedures as it amounts to giving
more options to the people those who are dynamic and
look for more challenges.

Moreover it provides more holistic perspective about the
organisation. Shyam perceived that it is a win/win situation
for both the employees and the organisation. Shyam called
a meeting to discuss the possibility of the adoption of job
rotation. As the meeting progressed, Shyam became aware
that out of three subordinates, two wanted to change to a
job rotation schedule, whereas one is not at all interested
for the same. Shyam was in a fix and adjourned the
meeting. After giving a considerable thought to the
problem, he was able to crystallize on four alternative
approaches that may be followed to manage this conflict
situation:

1. Forget about Job rotation in this unit.
2. Issue the orders that job rotation is mandatory for all the
three subordinates with immediate effect.
3. Respect the feelings of each one and workout an
arrangement where job rotation occurs for a while, is
stopped for a while, and so on, thus allowing each person
to have his or her way for some time.
4. Call the meeting again and discuss the pros and cons of the
proposed change and that their interpersonal relationship
are very important than any job rotation. Try to develop a
consensus for job rotation.

Questions:
(a)What conflict management styles are represented by each
of the four alternatives suggested above by Shyam?
(b) Which of the four approaches should Shyam choose to
follow in this situation? Why? Or Should an alternative
approach be taken?
(c) What special interpersonal skills should Shyam need to
succeed in this problem situation?
Defend your answer.
(d) Assume that you are the CEO of the organization and you
have to implement this change.
Prepare a model of change which you think would avoid such
conflict when this change would be implemented.

Questions
 What are various types of Changes ? Explain.
 Discuss the process of Change in organization ?
 Discuss the objective & goal of organisational Change ?
 How to overcome the resistance to change?
 Why do people resist change & how would you introduce
large change successfully in an organization ?

Organizational Change – Concept & Need, Change Process, Reasons for Resistance to Change, Measures to Overcome Resistance to Change

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