8d29cModule_2_odc__amizone

8/7/2019 8d29cModule_2_odc__amizone

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Amity School of Business

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BBA, SEMESTER V

ORGANISATIONAL DEVELOPMENT AND CHANGE

(BBAHR-30502)

Module-2

(LEADING CHANGE)

Divya Goel


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Contents Need for change

Types of change

Impact of change

Factors causing change

Resistance to change Overcoming resistance to change strategies


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What is Change? Coping process of moving from a

unsatisfactory present state to a desired

state


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Reacting to Change

Unplanned change

Planned change


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TYPES OF CHANGEThe three types of change that occur most frequently in

organizations are:

1. Developmental

2. Transitional3. Transformational

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Planned and Unplanned Organizational Changes

planned Changes

Changes in products and

services

Changes in administrative

systems

Changes in organizationalsize orstructure

Introduction of new

technologies

Advances in information

processing and

communication

planned Changes

Changes in products and

services

Changes in administrative

systems

Changes in organizationalsize orstructure

Introduction of new

technologies

Advances in information

processing and

communication

Unplanned Changes

Changing employee

demographics

Performance gaps

Governmental regulations

Economic competition in theglobal arena

Unplanned Changes

Changing employee

demographics

Performance gaps

Governmental regulations

Economic competition in theglobal arena

Organizational

Change


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Force Examples

Nature of the workforce More cultural diversity

Aging population

Many new entrants with inadequate skills

Technology Faster, cheaper, and more mobile computers

Economic shocks Rise and fall of stocks

200002 stock market collapse

Record low interest rates

Competition Global competitors

Mergers and consolidationsGrowth of e-commerce

Social trends Rise in discount and big box retailers

World politics IraqU.S. war

Opening of markets in China

Waron terrorism following 9/11/01


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Factors causing change

Environmental

Technological Legal

Political

Social Cultural

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StructureStructure

TechnologyTechnology

PeoplePeople

Structure, Technology, and People as Targets ofOrganizational Change

OrganizationalOrganizational

ChangeChange

OrganizationalOrganizational

ChangeChange


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Resistance to Change Forms of Resistance to Change

Overt and immediate

Voicing complaints, engaging in job actions

Implicit and deferred

Loss of employee loyalty and motivation, increased errors or

mistakes, increased absenteeism

Two major factors determine the level ofresistance to organizational change :

Degree of change.

Impact on organizations culture.


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The Life Cycle ofResistance to ChangeThe response to change tends to move through a life

cycle:

Phase 1: Only a few people see the need for change and

take reform seriously. The resistance looks massive. Phase 2: Forces for and against change become

identifiable.

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Phase 3: There is a direct conflict and showdown

between the forces for and against the change.

Phase 4:If the supporters of the change are in power

after the decisive battles, they will see the remainingresistance as stubborn and a nuisance. There is still a

possibility that the resisters will mobilize enough support

to shift the balance of power.

Phase 5: The resisters to the change are as few and as

alienated as the advocates were in the first phase.

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Five Phases in Action Phase 1:In the 1970s the environmentalmovement began to grow. The First Earth Day

was held in 1970.Widespread interest in

environmental concerns subsided during the1980s. Some political officials neglected

environmental concerns, and environmentalists

were often portrayed as extremists and radicals

(even antidevelopment). The forces for changewere small, but pressure for change persisted

through court actions, elected officials, and

group actions.14


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Phase 2: Environmental supporters and

opponents became more identifiable in the

1980s. Secretary of the Interior James Watt was

perhaps the most vocal and visible opponent ofenvironmental concerns and served as a

lightening rod for pro-environmental forces like

the Sierra Club and the Wilderness Society. As

time passed, educational efforts byenvironmental groups increasingly delivered

their message. The public now has information

and scientific data that enabled it to understand

the problem. 15


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Phase 3:The Clean Air Act passed by Congress

in 1990 represented the culmination of years of

confrontation between pro- and anti-

environmental forces. The bill was passedseveral months after national and worldwide

Earth Day events. Corporations criticized for

contributing to environmental problems took out

large newspaper and television ads to explainhow they were reducing pollution and cleaning

up the environment. The greening of

corporations became very popular.16


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Phase 4: One example is the confrontation betweenGreenpeace (an environmental group) and Shell Oil. The

Greenpeace group had been campaigning for weeks to

block the Royal Dutch/Shell group from disposing of the

towering Brent Spar oil-storage rig by sinking it deep in

the Atlantic Ocean. As a small helicopter sought to land

Greenpeace protesters on the rigs deck, Shell blasted

high-powered water canons to fend off the aircraft. This

was all captured on film and shown on TV around the

world. Four days after the incident, Shell executivesmade a humiliating about-face; they agreed to comply

with Greenpeace requests and dispose of the Brent Spar

on land. The incident, like the Exxon Valdez oil spill,

shows how high profile cases can ignite worldwide public

interest. 17


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Phase 5: Much of the world now sees

environmentally responsible behavior as a

necessity. Near-zero automobile

emissions are moving closer to a reality.

Recycling has become a natural part of

everyday life for many people. But new

ways to be environmentally responsibleare still being sought.

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Why Individuals resist change?

Fear of the unknown.

Lack of good information.

Fear for loss of security. No reason to change.

Fear for loss of power.

Lack of resources

Habit Economic factors

Selective information processing


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Why organizations resist change?

Threat to established resource allocations.

Threat to established power relationships.

Threat to expertise.

Group inertia.

Structural inertia.

Limited focus of change.


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OVERCOMING

RESISTANCE TO

CHANGE-STRATEGIES


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Problem of overcoming resistance to change

can be handled at two levels:

(i) At the individual level.

(ii) At the group level through group dynamics.

Both these attempts are complementary and

sometimes these efforts may be overlapping

because every individual is a member of somegroup, both at the formal and at the informal

levels.

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Education andEducation and

CommunicationCommunication

Education andEducation and

CommunicationCommunication ParticipationParticipationParticipationParticipation

NegotiationNegotiationNegotiationNegotiation FacilitationFacilitation

and Supportand Support

FacilitationFacilitation

and Supportand Support

CoercionCoercionCoercionCoercionManipulationManipulation

and Cooptationand Cooptation

ManipulationManipulation

and Cooptationand Cooptation

OvercomingResistance to ChangeOvercomingResistance to ChangeOvercomingResistance to ChangeOvercomingResistance to Change

Promote Positive Attitudes Toward ChangePromote Positive Attitudes Toward Change

Individual Level


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METHODS FOR DEALING WITH RESISTANCE TO CHANGEApproach Commonly used Advantages Disadvantage

Education and

Communication

When there is

lack

of information or

inaccurate

information and

analyses.

Once persuaded,

people will often

help with the

implementation of

the change.

Can be time

consuming if lots

of people are

involved.

Participation

and

involvement

Where the

initiators do not

have all the

information theyneed to design

the

change, and

where

others have

considerable

power to resist.

People who

participate will be

committed to

implementingchange, and nay

relevant

information

they have will be

integrated into the

change plan.

Can be time

consuming it

participants

designin inappropriate

change.

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Approach Commonly used Advantages Disadvantage

Facilitation and

Support

When people are

resisting because

of adjustment

problems.

No other approach

works as well with

adjustment

problems.

Can be time

consuming,

expensive and still

fail.

Negotiation and

Agreement

When someone or

some group willclearly lose out in

a change and

when that group

has considerable

power to resist.

Sometimes its a

relatively easy wayto avoid major

resistance.

Can be too

expensive in manycases if it alerts

others of negotiate

for competence.

Manipulationand

Co-optation

Where othertactics will not

work or are too

expensive.

It can be arelatively

quick and

inexpensive

solution

to resistance

problems.

Can lead to futureproblems if people

feel manipulated.

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Approach Commonly used Advantages Disadvantage

Explicit and

implicit

coercion

Where speed is

essential, and the

changes

initiationspossess

considerable

power.

It is speedy and

can

overcome any

kindof resistance.

Can be risky if it

leaves people

mad

at the initiator.

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Methods to minimize resistanceEfforts to minimize any resistance should be

undertaken while it is still potential rather than

real. The different methods to minimize

resistance are:

Compulsion Threats and Bribery

Persuasion, Rewards and Bargaining

Security and Guarantees Understanding and Discussions

Proper timings

Flexibility and tentative approach27


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Involvement and Participation : are the most

powerful techniques management can use to

gain acceptance of change.The extent of

personal involvement can range from merelybeing informed, to discussing problems and

voicing opinions and feelings to actually making

and implementing decision.

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