What is Change management? What are its implications? Why it is needed>

1. “ORGANISATIONAL
CHANGE AND
DEVELOPMENT”
SUBMITTED BY:
PRINCY, VIJAYSHREE, SOUVIK,
DEBANJAN, PRAJAKTA

2. ORGANISATIONAL CHANGE
 Organizational change is the process by which organization move from their
present state to some desired future state to increase effectiveness.
 When an organization system is disturbed by some internal or external forces
change frequently occur or any alteration which occur in the overall work
environment of an organization.

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

4. CHANGE FORCES
INTERNAL FORCES
• WORKFORCE
• MANAGING PERSONEL
• MANAGEMENT STRUCTURE
• AVOID DEVELOPING INERTIA
EXTERNAL FORCES
• TECHNOLOGY
• MARKET CONDITIONS
• SOCIAL CHANGES
• POLITICAL FORCES
CHANGE
FORCES

5. CHANGE AGENTS
 A Persons in organization responsible for managing change
activities.
 Can be managers or non managers, current employees, newly
hired employees or outside consultants.

6. PROCESS OF PLANNED
CHANGE
UNFREEZING
• PROVIDE
RATIONAL FOR
CHANGE
• CREATE MINOR
LEVELS OF
GUILT/ANXIETY
ABOUT NOT
CHANGING
• CREATE SENSE OF
PSYCHOLOGICAL
SAFETY
CONCERNING
CHANGE
MOVING
• PROVIDE
INFORMATION
THAT SUSPECTS
PROPOSD
CHANGES
• BRING ABOUT
ACTUAL SHIFTS
IN BEHAVIOUR
REFREEZING
• IMPLEMENT
NEW
EVALUATION
SYSTEMS
• IMPLEMENT
NEW HIRING
AND
PROMOTION
SYSTEMS

7. CRITERIA TO
CONSIDER
URGENCY
DEGREE OF
SUPPORT
AMOUNT
AND
COMPLEXITY
OF CHANGE
COMPETITIVE
ENVIRONMENT
FINANCIAL
AND OTHER
RESOURCES

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

9. EFFORTS TO
BLOCK NEW WAYS
OF DOING THING
INDIVIDUAL
RESISTANCE
GROUP
RESISTANCE
ORGANIZATIONAL
RESISTANCE

10. INDIVIDUAL RESISTANCE
Below are stated some reasons why people resists changes. Some of
these appear to be rational or emotional. These reasons are:-
• Economic factors
• Habits
• Insecurity
• Lack of communication
• Extend of change
• Psychological factors
• Social factors

11. GROUP RESISTANCE
– Most organizational changes have impact on formal
groups in the organization the main reason why the
groups resists change is that they fear that their
cohesiveness or existence is threatened by it.

12. ORGANIZATIONAL RESISTANCE
– Organizational resistance means the change is resisted at the level of the
organization itself.
– Some organizations resist new idea, this is specifically true in case of organization
which are conservative in nature. Majority of the business firm also resist to
changes. The major reason for organizational resistance are:-
• Threat to power
• Group inertia
• Organizational structure
• Threat to specialization
• Resource constraints
• Sunk costs

13. MINIMIZING RESISTANCE TO
CHANGE
–
COMMUNICATION
• Highest priority and first
strategy for change
• Improves urgency to
change
• Reduces uncertainty (fear
of unknown)
• Problems -- time
consuming and costly

14. MINIMIZING RESISTANCE TO
CHANGE
–
COMMUNICATION
• Provides new knowledge
and skills
• Includes coaching and
action learning
• Helps break old routines
and adopt new roles
• Problems -- potentially
time consuming and costly
TRAINING

15. MINIMIZING RESISTANCE TO
CHANGE
–
COMMUNICATION
• Increases ownership of
change
• Helps saving face and
reducing fear of unknown
• Includes task forces,
search conferences
• Problems -- time-
consuming, potential
conflict
TRAINING
EMPLOYEE
INVOLVEMENT

16. MINIMIZING RESISTANCE TO
CHANGE
–
STRESS
MANAGEMENT
• When communication, training,
and involvement do not resolve
stress
• Potential benefits
1. More motivation to change
2. Less fear of unknown
3. Fewer direct costs
• Problems -- time-consuming,
expensive, doesn’t help
everyone

17. MINIMIZING RESISTANCE TO
CHANGE
STRESS
MANAGEMENT
• When people clearly lose
something and won’t otherwise
support change
• Influence by exchange-- reduces
direct costs
• Problems
1. Expensive
2. Increases compliance, not
commitment
NEGOTIATIONS

18. MINIMIZING RESISTANCE TO
CHANGE
STRESS
MANAGEMENT
• When all else fails
• Assertive influence
• Firing people -- radical form of
“unlearning”
• Problems
1. Reduces trust
2. May create more subtle
resistance
NEGOTIATIONS
COERCION

19. ORGANIZATIONAL DEVELOPEMENT
– A planned, organization-wide, continuous process designed to
improve communication, problem solving, and learning through the
application of behavioral science knowledge.
– Planned change
– Long range change
– Problem solving
– Team building
– Feedback

20. BASIC ORGANIZATIONAL
DEVELOPMENT MODEL
FEEDBACK
Diagnosis of
situation
Introduction to
interventions
Progress
Monitoring

21. THANK YOU