The process of bringing planned change to an organization. MOC usually means leading an organization through a series of steps to meet a defined goal. Synonymous with change management.

1. Management of Change

2. Introduction

3. CHANGE
STRATEGY
TECHNOLOGY
PEOPLE
PROCESS

6. Factors Effecting Change
• Advocates of Change
• Degree of Change
• Time Frame
• Impact on Culture
• Evaluation of Change

7. Flow Of Change
Change Readiness Assessment
Change Agents & Sponsors
Communication &Feedback
Transition To New Workplace Skills
Resistance Management

8. Organisational Change

9. Importance of Organisational Change

10. Implementing Change

12. Resistance to Change

13. Why change is resistance?

14. Contd…

15. Dealing with Resistance To Change

16. Education & Communication
• Advantage:
– Creates willingness to
help with the change
• Disadvantage:
– can be time
consuming.

17. Participation & Involvement
• Advantage:
– Adds information to
change.
• Disadvantage:
– Can be very time
consuming.

18. Support
• Advantage:
– Directly satisfies
specific resource or
adjustment needs.
• Disadvantage:
– can be time
consuming; can be
expensive

19. Negotiation
• Advantage:
– Helps avoid major
resistance.
• Disadvantage:
– Can be expensive; can
cause others to seek
similar deals.

20. Manipulation
• Advantage:
– Quick and inexpensive
• Disadvantage:
– Can create future
problems if people sense
manipulation.

22. Resistance to Change Case study on
Kodak

25. Failed Strategies of KODAK

26. What KODAK should have done?

27. ORGANIZATIONAL CHANGE
“Change is the law of nature.
Those who change, survive;
those who don’t, perish.”

28. Concept of OC
 Change refers to an alteration in system
whether physical, biological or social.
 Organizational Change is defined as “ it is a
process of alteration of work environment in
organization.”
 It implies a new equilibrium between different
components of the organization i.e. w.r.t.
technology, structural arrangement, job
design, and people.

29. Features of organizational Change(3)
1. Organizational Change disturbs the old equilibrium as
the new equilibrium is developed due to change. This
type of new equilibrium depends upon the degree of
change and its impact on the organization.
2. Change may affect the whole organization; some part of
the organization may be affected more ,others
less(directly or indirectly)
3. Organizational Change is a continuous process. Changes
of minor type are absorbed by the existing equb. Others
of major type require special change efforts.

30. Factors In Organizational Change
• OC is required to maintain equilibrium between
various external & internal factors to achieve
organizational goals.
• Therefore the various factors in organizational
change is grouped into two (2) categories i.e.
external & internal factors
EXTERNAL FACTORS INTERNAL FACTORS
ORGANIZATIONAL CHANGE
EQUILIBRIUM

31. EXTERNAL FACTORS INTERNAL FACTORS
1. Technological Change 1. Change in Managerial
Personnel
2. Changes in Marketing
Conditions
2. Deficiency in Existing
Organization
3. Social Changes
4. Political and Legal Changes

32. CHAIN EFFECT OF CHANGE
• Domino effect: When the change touches a
sequence of related and supporting changes it is
known as domino effect.
• It can be observed that a change will bring
disequilibrium in the organization.In order to
achieve a new equilibrium the organization has to
modify many aspects and these aspects are inter-
related.
• Thus a systems approach to organizational change
has to be followed.

33. • Example : If the organization is not able to face competition due to its
usage of old techniques of production the only remedy for that is to
change itself according the need and acquire suitable technology.
• When this technology is put into action then the old jobs will be
replaced by new
• This change requires the change in people because they may not be
able to work with new machine.
• Such change can be brought either by recruiting new employees or
by providing training to the existing employees. And the second
alternatives is preferred most.
• So ,all these factors are interrelated and simultaneous changes have
to be made in all these.

34. Reactive & Proactive Change
• Reactive Change: This change happens when
the organization undergoes with some factors
either internal or external.
• Reactive change happens only when there is a
high pressure from the external or internal
factors.
• Example : Pollution control factor issued by
the government, to install pollution control
devices.

35. • Proactive Change: Proactive means “Practical” ,
so proactive change is brought out of the
anticipation of the likely behavior of the forces
having impact on the organizations.
• Such organizations are called as PROSPECTORS
which constantly interact with their
environment to identify new opportunities &
threats.
• Thus changes are incorporated so that the
people develop liking for change and there is
no unnecessary resistance when major change
in organization is brought up.

36. PLANNED CHANGE
• To understand planned change let us remember the law
given by Newton’s i.e. “bodies in motion tend to stay in
motion and the bodies in rest tend to stay at rest”
• The organizational version of this law is
“ those who believe in growth and forward
movement tends to be an exemplar for
change, while those who believe in this is how
we do things around here lead to doom.”
• Therefore building change in a planned
manner is the responsibility of the managers who are
forward looking.

37. Planned Change
• Planned change aims to prepare the total organization or a major
portion of it to adapt to significant changes in the organizations
goals and direction.
• Definition of Planned Change(Thomas & Bennis)
“Planned change is the deliberate design and
implementation of structural innovation, a new
policy or goal ,or a change in operating climate,
philosophy or style.”

38. Planned change attempts in all aspects of the
organization which are closely interrelated
Technology related
change
Task related change
Structure related
change
People related
change

39. Steps involved in Planned Stage
• Management of Organizational change is a
complex process.
• The change is successful if it is taken in
planned way which proceeds in a sequential
form as shown in the diagram.
• There are Five(5) major steps involved in a
planned change and is discussed one after
another.

40. Process of Planned Change
1.Identifying
need for change
2. Elements
to be changed
3. Planning
for change
4. Assessing
change forces
5. Actions for
change
a. Unfreezing
b. Changing
c. Refreezing
Feedback

41. Step-01: Identifying Need for change
• In this step it is necessary to identify when
change in the organization is required.
• In this stage we have to take care of the impact
of external and internal forces.
• Identification for need for change depends upon
the gap analysis. That is the gap between desired
state of affairs and actual state of affairs.
• It is the difference between what the
organization is achieving and what it should
achieve.

42. Step-02: Elements to be changed
• What elements of the organization should be
changed will largely be decided by need and
objectives of change.
• For example declining profit may require change
but does not specify what elements are to be
changed.
• Thus it is necessary to diagnose the factors
responsible for declining the profit.
• Another example is a change in technology from
manual to automation may require change in
people but at the same time ,change in
organization structure also.

43. Step-03: Planning for Change
• At this stage, change is planed on the basis of the
above two process.
• Planning for change includes:
– Who will bring change?
– When to bring change?
– How to bring change?

44. Step-04:Assessing Change Forces
• The planed change is not automatic, rather there are many
forces in individuals ,groups and even in the organization
which resist such change.
• Driving force: Force that helps to initiate the change
• Restraining Force: Force act to restrain or decrease the
driving force.
• Kurt Lewin’s field of forces: In group process ,there are some
forces favoring(Driving) and some opposing(Restraining) to
maintain an equilibrium as shown below:
Existing Equilibrium
Desired Equilibrium
Restraining Forces
Driving Forces
R1
R2
R3
R4
R5
D5
D4
D3
D2D1

45. Step-05: Action for change
• Action for change consist of three stages:
– Unfreezing: Is the process when a person cast aside his old
behavior which might be inappropriate ,irrelevant or
inadequate to changing demands of the situation.
– Changing : This is a stage at which the individuals being
change learn new behavior –methods of working ,new
thinking new roles etc.
– Refreezing: Refreezing means that what has been learned is
integrated into actual practice. At this stage the individuals
internalize the new beliefs ,feelings and behavior learned
during the changing phase.

46. Resistance to Change
• In the management of change people tend to
resist(oppose) many types of changes because new
habits or sacrifices are required.
• When the change in minor adjustment then it is fairly
routine but on the other hand if the change is major
then upsets may occur.

47. Factors in Resistance to Change
1. Individual Resistance
2. Economic factors:
1. Skill obsolescence
2. Fear of economic loss
3. Reduce opportunities for incentives
3. Psychological factors:
1. Ego Defensiveness
2. Status Quo
3. Low tolerance for change
4. Lack of trust in change agent
5. Fear of unknown cause
4. Social Factors:
1. Desire to maintain Existing social interaction
2. Feeling of outside interference

48. Overcoming Resistance to change
• Problem of overcoming resistance to change can be
handled at two levels:
– Efforts at Individual Levels
• Involvement
• Obtaining Commitment
• Leadership
• Training & psychological Counseling
– Efforts at Group levels
• Group Contact
• Participation
• Group dynamics Training for change(role playing, sensitivity
training)

49. Change Agents
• Change Agents are the persons who initiate
change in the organization because any planned
change needs change agents.
• Change agents are of two types:
– External Change Agents: These are in the form of
consultants for change. These are the persons who are
normally experts in the specific area of organizational
change.
– Internal Change agents: These are the persons from the
existing organizational personnel, from any level of the
department ,depending upon the needs of the change.

50. Role of External Change Agents
1. Education of top management
2. Organizational diagnosis
3. Formulation & Implementation of strategy
4. Selection, training and supervision of MBO
supervisors.
5. Training of managers
6. Process Consultation(P-C) at the top level
7. Evaluation & Innovation
8. Integration of MBO process with other management
systems & techniques.

51. Role of Internal Change Agent
• The internal change agent most likely to accept
the system as given and try to accommodate
their change tactics to the needs of the
organization.
• There may be (2) two categories of person who
may act as internal change agents are:
– Chief Executive
– Change Advisors: these are internal personnel initially
selected to work in close harmony with external
consultant. They are trained by the consultant for
implementing change.

52. ORGANISATIONAL
DEVELOPMENT(OD)

53. INTRODUCTION
• Organisational Development is an organisational
improvement strategy originated in 1960. Today
OD offers an integral framework capable of
solving most of the important problems
confronting the human side of the organisations.

54. INTRODUCTION
• Organisational Development is about how
people and organisations functions and how
to get them to function better.
• Organisational Development are long term,
planned, sustained efforts .
• In short OD deals with the gamut of “ people
problems” & “work system problems” in
organisations

55. Definitions of Organisational Development
• OD is an organizational process for
understanding and improving any and all
substantive process an organization may
develop for performing any task pursuing any
objectives…. “A process of improving processes”
( Vaill 1989).

56. Other Definitions of OD
• A planned and sustained effort to apply behavioral
science for system improvement ,using reflexive , self
analytical methods.(Schmuck & Miles,1971).
• OD is a planned process of change in an
organization’s culture through the utilization of
behavioral science , technologies, research and
theory.(Bruke,1994)

57. • Based on these definitions we can identify
various features of OD which are as follows:
– Planned change: OD is a strategy of planned change for
organisational improvement
– Comprehensive change: OD efforts focus on complete
change in the organisation, rather than focusing
attention on individuals so that change is easily
absorbed.
– Long-range change: OD efforts are not meant for
solving short-term ,temporary or isolated problems.
– Dynamic Process: OD is a dynamic process and
includes the efforts to guide and direct changes as well
as to cope with or adapt changes imposed.

58. – Participation of change agent: Most of the OD
experts emphasize the need for an outside ,third
party change agent or catalyst. They discourage “do
it yourself” approach. There is a close relationship
between the change agent and the target
organisational members to be changed.
– Emphasis on Intervention and Action Research.
– Normative Educational Process : OD helps in
replacing the old norms by new norms to achieve the
higher level of outcomes in the organisational level.

59. OD & Management Development
Factors Management Development Organisational Development
Objectives Increasing managers
contributions to goal
accomplishment
Changing the nature of the
organisation
Focus Train & equip employees &
managers to perform
better in existing
organisation
Focus on design ,not on the
managers: focus on achieving
improvements in design
Approach Educative & training Problem solving approach
Time Short range Long range strategy for
organisational improvement
Specialist No special requirement Trained specialist required.

60. OD -Assumptions
• There are three(3) OD assumptions for
dealing with Individuals ,Groups and
Organizations.
1. Dealing with Individuals
1. Most individuals have drives towards personal growth
& development if provided an environment i.e. both
supportive and challenging .Most people want to
develop its potential.
2. Most people desire to make ,and are capable of making,
a greater contribution to attaining organizational goals
than most organization environment permit.

61. 2. Dealing with Groups
1. One of the most psychological relevant reference groups for
most people is the work group, including peers and boss and is
greatly influences the feelings of satisfaction and competence.
2. Most people wish, to be accepted and to interact
cooperatively with at least one small reference groups.
3. Most people are capable of making greater contributions to a
groups effectiveness & development
4. A formal leader cannot perform all the leadership and
maintenance functions required for the effectiveness of the
group. Hence group members should assist the leader with
multiple roles.
5. Many attitudinal & motivational problems in an organization
requires interactive and transactional solutions.

62. 3.Dealing with Organizations
1. The need and aspirations of human beings are
the reasons for organized effort in society.
2. It is possible to create organizations that on one
hand are humane , developmental , and
empowering and on the other hand are high
performing in terms of productivity, quality of
output, and profitability.

63. Normative goals in OD(Warren Bennis 1969)
1
• Improvement in interpersonal competence.
2
• A shift in the values so that human factors and feelings to be considered
legitimate
3
• Development of increased understanding between and within working groups
in order to reduce tensions.
4
• Development of more effective ‘team management’.
5
• Development of better methods of conflict resolution.
6
• Development of organic rather than mechanical system. (Mechanical
system rely on “authority-obedience relationship” while organic
systems rely on mutual confidence.)

64. OD can be taken as the process of
changing people and other related aspects
of an organization. Thus it consist of many
sub processes or steps which is as under:
1.Problem Identification & Diagnosis
2.Planning Strategy for Change.
3.Interveing in the system
4. Evaluation

65. Step-01
(Problem Identification & Diagnosis)
1. The problems may be a gap between desired
path of action and actual path of action, the
organization fails to meet its objective on a
long term basis.
2. Diagnosis in OD involves a number of
techniques concerned with identifying issues,
establishing priorities and translating them
into aims and objectives.
3. Once the problem is identified the analysis will
show why the problem exist. In other words
analysis brings the identification of
environment that has caused problems.

66. Step-02
(Planning Strategy for Change)
1. When problems are diagnosed it requires a
various course of action.
2. Attempts are made to transform diagnosis of
problem into proper action plan involving the
overall goals for change.
3. Planning and implementation of change are
interdependent ; the way in which change is
planned has an impact on the way in which it is
carried out. The problems of implementing
change have an impact on the way it is planned.

67. Step-03
(Intervening in the System)
1. Intervening in the system refers to
implementation of the planned activities
during the course of an OD program.
2. These planned activities bring certain changes
in the system which is the basic objective of
OD .
3. These methods includes the interventions of
external consultant in the system ,such as
training ,process consultation and team
development.

68. Step-04
( Evaluation)
1. This step relates to evaluate the results of OD
program so that suitable actions may be
followed up.
2. Since is OD is a long process, there is an
urgent need for careful monitoring to get
precise feedback regarding what is going on
soon as an OD programs starts.