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At the ends of this session, you are expected to:
Define change & organizational development
Describe purpose & Factors of organizational change.
Identify strategies & planning for implementing
organizational change.
Explain managing creativity and innovation
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Change is - the process of alteration or
transformation of individuals, groups, and
organization undergo in response to internal &
external factors.
 Making an essential difference
 Modification of the structure or process of a system.
 It may be good or bad, the concept is descriptive only.”
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 To meet changing clients needs
 To meet changing market conditions
 To respond to internal & competitive pressures
 To take advantage of new opportunities
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Internal factors
 Changes in managerial personnel and deficiency in
existing organizational practices.
 Arise from new strategies, technologies, and
employee attitudes and behavior.
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 Technology
 Marketing conditions
Since every organization exports its outputs to the
environment, an organization has to face
competition in the market.
 Social changes
Reflect in terms of people’s aspirations, the needs,
and their ways of working.
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Political and legal changes
 Broadly defines the activities which an organization
can undertake and the methods which will be followed
by it in accomplishing those activities.
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 A planned, long-term approach to organization---
wide change
 Change initiative is organization- wide & focuses in
essence on the culture of the organization: the beliefs
and values shared by the employees.
 Effective organizational development is based on
involving employees in the process
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1.Organization-wide Versus Subsystem Change
 Organization-wide-major restructuring of organization
Example- Entrepreneurial organization to a more stable and
planned development.
 Subsystem Change- addition or removal of a product or
service.
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2.Transformational Versus Incremental Change.
 Transformational-changing an organization’s structure
and culture from the traditional top-down, hierarchical
structure to a large amount of self-directing teams.
 Incremental Change-continuous improvement as a
quality management process / implementation of new
computer system to increase efficiencies.
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3.Remedial Versus Developmental Change
 Remedial change-more focused and urgent to address
current situations. Ex, to improve the poor
performance of a product or the entire organization.
 Developmental Change- make a successful situation
even more successful
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4.Unplanned Versus Planned Change
 Unplanned-occurs because of a major, sudden surprise
to the organization, which causes its members to
respond in a highly reactive and disorganized fashion.
 It my occur when the Chief Executive Officer suddenly
leaves the organization, significant public relations
problems occur.
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Planned Change:
 Occurs when leaders in the organization recognize the
need for a major change and proactively organize a
plan to accomplish the change.
 Occurs with successful implementation of a Strategic
Plan.
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1. Assess Organizational Readiness
Evaluate the high level impact of change, identify key
points of risk and plans to address them.
2. Develop Future State Vision:
 Articulate the change in a concise and compelling
manner that can be shared broadly.
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3. Engage Leaders- develop a plan to gain the buy-in and
support of those individuals most critical to success.
4. Communication -develop a communication strategy
and roll-out plan to create understanding and drive
acceptance.
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5.Transition Staff - Develop plans for staff transition,
separations and talent retention.
6.Facilitate Individual Change - Build change adaptability
skills and help individuals internalize and move through the
change.
7. Create Organizational Alignment- Evaluate relevant
programs and policies, to identify points of incongruence and
develop plans for alignment.
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8. Training -Develop a training strategy to create
proficiency.
9. Monitor and Remediate-Measure adoption and
performance to address problems.
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 After identifying areas need for change, it implement
change via following steps:
A.Management Support for Change
 Management shows support for changes by
communicating & interacting with staff.
B. Case for Change-developing a narrated case which
shows need of Change.
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C. Employee Involvement
 involve employees, specifically changes that affect
how employees perform their jobs.
D. Communicating the Change
Communicating change should be structured and
systematic way.
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E. Implementation-Implementing change with a logical
order.
F. Follow-up-follow-up after implementation and assess
how the change is working.
G. Removing Barriers.
H. Celebrate-It is important to celebrate successes along
the way as changes are made.
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 Creativity - Combining new ideas in unique ways or
making unusual connections
 Innovation- a Process of taking creative idea and
making into a useful product, service, or method of
operation
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 Innovation is a key characteristic of entrepreneurial
ventures.
 Entrepreneur must have a supportive culture to
flourish innovation
 Need to be able to do something with ideas
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