1. HNDBM – 15. Organizational Change
Lim Sei cK

2. Change – making things different
Planned change – change activities that are intentional and goal oriented
Change agents – person who act as catalysts and assume the responsibility for managing change activities

3. Forces for change Force Examples Nature of the workforce
More cultural diversity
Aging population
Many new entrants with inadequate skills
Technology
Faster, cheaper and more mobile computers
Online music sharing
Economic shocks
Rise and fall of stocks
Market collapse
Low interest rates
Competition
Global competitors
Mergers and consolidation
Social trends
Internet chat
Retirement of baby boomers
World politics
War
Terrorism

4. Sources of resistance to change
Individual sources
Habit
Security
Economic factors
Fear of the unknown
Selective information processing
Organizational sources
Structural inertia
Limited focus of change
Group inertia
Threat to expertise
Threat to established power relationships
Threat to resource allocations

5. Overcoming resistance to change
Education and communication
Participation
Facilitation and support
Negotiation
Manipulation and cooptation
Coercion

6. Approaches to managing organizational change
Lewin’s three-step model
Kotter’s eight-step plan for implementing change
Action research

7. Lewin’s three step change model
Unfreezing
Movement
Refreezing
Unfreezing – change efforts to overcome the pressures of both individual resistance and group conformity.
Refreezing – stabilizing a change intervention by balancing driving and restraining forces

8. Lewin’s three step change model
Driving forces – forces that direct behavior away from the status quo.
Restraining forces – forces that hinder movement from that existing equilibrium.

9. Kotter’s eight step plan for implementing change
Established a sense of urgency by creating a compelling reason for why change is needed.
Form a coalition with enough power to lead to change
Create a new vision to direct the change and strategies for achieving the vision
Communicate the vision throughout the organization
Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving

10. Kotter’s eight step plan for implementing change
Plan for, create, and reward short-term “wins” that move the organization toward the new vision
Consolidate improvements, reassess changes, and make necessary adjustments in the new programs
Reinforce the changes by demonstrating the relationship between new behaviors and organizational success

11. Action research
A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate.
Diagnosis
Analysis
Feedback
Action
Evaluation
Advantages
Problem-focused
Heavily involves employees in the process, resistance to change is reduced

12. Organizational development
A collection of planned-change interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being
Values in OD efforts
Respect for people
Trust and support
Power equalization
Confrontation
Participation

13. OD techniques
Sensitivity training – training groups that seek to change behavior through unstructured group interaction.
Survey feedback – the use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested
Process consultation – a consultant assists a client to understand process events with which he or she must deal and identify processes that need improvement

14. OD techniques
Team building – high interaction among team members to increase trust and openness.
Intergroup development – OD efforts to change the attitudes, stereotypes and perceptions that groups have of each other.
Appreciative inquiry – seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance.