Welcome to . . .

“Managing,
and Leading
Organizational Change”
By: Sheeba Rehman
Your Perceptions of Change

What are your reactions when you

hear the word “change?”

•Negative perceptions….
•Positive perceptions….
 Types of Organizational Change
– Anticipatory changes: planned changes based on
expected situations.

– Reactive changes: changes made in response to

unexpected situations.

– Incremental changes: subsystem adjustments

required to keep the organization on course.

– Strategic changes: altering the overall shape or

direction of the organization.
 Forces of Change
• External Forces
– Market Place
– Govt Laws and Regulations
– Technology
– Labor market
– Economic Change
• Internal Forces
– Changes in Organisational
Strategies
– Workforce change
– New Equipment
– Employee Attitude
A Journey Through
Change:
Stabilit
y
Comfort Learning
and Acceptance,
control Commitmen
Looki t Lookin
ng g
Back Forwa
Fear, Anger Enquiry,
rd
and Experimenta
Resistance tion and
Discovery
Chaos
 Individual Reactions to Change

• How People Respond to Changes They Like?

– Three-stage process
– Unrealistic optimism
– Reality shock
– Constructive direction
 Individual Reactions to Change (cont’d)

• How People Respond to Changes They Fear

and Dislike?
– Stages
– Getting off on the wrong track
– Laughing it off
– Growing self-doubt
– Destructive direction
 Change: Organizational and
Individual Perspectives (cont’d)

• Tuning
– The most common, least intense, and least risky type
of change.
– Also known as preventive maintenance and kaizen
(continuous improvement).
– Key is to actively anticipate and avoid problems
rather than waiting for something to go wrong.
• Adaptation
– Incremental changes that are in reaction to external
problems, events, or pressures.
 Change: Organizational and Individual
Perspectives (cont’d)

• Re-Orientation
– Change that is anticipatory and strategic in scope and
causes the organization to be significantly redirected.
– Also called “frame bending”(Nadler and Tushman).
• Re-Creation
– Intense and risky decisive change that reinvents the
organization.
– Also called “frame breaking” (Nadler and
Tushman).
 Why Do Employees
Resist Change?
• Surprise
– Unannounced significant changes threaten employees’ sense of
balance in the workplace.
• Inertia
– Employees have a desire to maintain a safe, secure, and
predictable status quo.
• Misunderstanding and lack of skills
– Without introductory or remedial training, change may be
perceived negatively.
• Poor Timing
– Other events can conspire to create resentment about a
particular change.
Why Do Employees Resist Change? (cont’d)
• Emotional Side Effects
– Forced acceptance of change can create a sense of
powerlessness, anger, and passive resistance to change.
• Lack of Trust
– Promises of improvement mean nothing if employees do not
trust management.
• Fear of Failure
– Employees are intimidated by change and doubt their abilities to
meet new challenges.
• Personality Conflicts
– Managers who are disliked by their managers are poor conduits
for change.
Why Do Employees Resist Change? (cont’d)
• Threat to Job Status/Security
– Employees worry that any change may threaten their
job or security.
• Breakup of Work Group
– Changes can tear apart established on-the-job social
relationships.
• Competing Commitments
– Change can disrupt employees in their pursuit of
other goals.
 Overcoming Resistance to Change

• Strategies for Overcoming Resistance to

Change
– Education and communication
– Participation and involvement
– Facilitation and support
– Negotiation and agreement
– Manipulation and co-optation
– Explicit and implicit coercion
LEADER ACTION:
Stabilit
y
Learning,
Comfort Acceptance &
1 4
and Commitment
control Create a Stabilize and
felt need of Sustain the
change change Lookin
Looki
ng g
2 3
Back Introduc Revise Forwar
e the and d
change finalize
Fear,Anger the Enquiry,
and change Experimenta
Resistance plan
tion and
Chaos Discovery
 Making Change Happen

• Two Approaches to Organization Change

– Organization Development (OD)
– Formal top-down approach
– Grassroots Change
– An unofficial and informal bottom-up approach
 Planned Change Through Organization
Development (OD)

• Organization development (OD)

– Planned change programs intended to help people
and organizations function more effectively.
– Applying behavioral science principles, methods,
and theories to create and cope with change.
– OD creates fundamental change in the
organization, as opposed to fixing a problem or
improving a procedure.
– OD programs generally are facilitated by hired
consultants,
 Planned Change Through Organization
Development (OD) (cont’d)

• Objectives of OD
– Deepen the sense of organizational purpose.
– Strengthen interpersonal trust.
– Encourage problem solving rather than avoidance.
– Develop a satisfying work experience.
– Supplement formal authority with knowledge and skill-
based authority.
– Increase personal responsibility for planning and
implementing.
– Encourage willingness to change.
 Planned Change Through Organization
Development (OD) (cont’d)

• The OD Process (Kurt Lewin)

– Unfreezing, changing, and refreezing social systems
– Unfreezing: neutralizing resistance by preparing
people for change.
– Changing: implementing the planned change
– Refreezing: systematically following a change
program for lasting results.
Unofficial and Informal Grassroots Change

• Grassroots Change
– Change that is spontaneous, informal, experimental,
and driven from within.
• Tempered Radicals
– People who quietly try to change the dominant
organizational culture in line with their convictions.
– Guidelines for tempered radicals
– Think small for big results.
– Be authentic.
– Translate.
– Don’t go it alone.
 Managing Change

Work specialization,Departmentalization,
Structure Chain of Command Span of Control,
Formalization,Job Redesign

Technology Work Process, Methods and Equipments

Attitude, Expectations, Perception and

People Behavior
C
R
E
A Innovation
T
I
V
I
T
Y
 Stimulating Innovation
• Creativity
– The ability to combine ideas in a
unique way or to make an unusual
association.

• Innovation
– Turning the outcomes of the creation
process into useful products,
services, or work methods.
 System View of Innovation

Inputs Transformation Outputs

Creative Individuals,
Creative Environment,
Groups and Innovative Products,
Process and Situation
Organizations Work Methods
 Innovation Variables
Structural Variables HR Variables
•Organic structure •High commitment to T & D
•Communication •High job security
•Abundant resources •Creative people
•High interunit stimulate
•Work and network support

Innovative Variables
Cultural variables
•Acceptance of ambiguity
•Positive feedback
•Low external control
•Tolerance of risks
•Tolerance of conflicts
•Focus on ends
•Open system focus
 Structural Variables
• Adopt an organic structure
• Make available plentiful resources
• Engage in frequent inherent
communication
• Minimize extreme time pressures
on creative activities
• Provide explicit support for
creativity
Cultural Variables
• Accept Ambiguity, have low
external control
• Tolerant impractical
• Tolerant risk taking
• Tolerate conflict
• Focus on ends rather than
means
• Develop an open system focus
• Provide positive feedback
Human Resources Variables

• Actively promote T & D to

keep employee’s skills
updated
• Offer high job security to
encourage risk taking
• Encourage individual to
be “Champion” to change