Organisational Change

13/04/2010

What is Organisational Change ?What is Organisational Change ?

• Change is a part of life. Human beings--- childhood to maturity-- Change of Behaviour

• Example- Computer Age

• Technological/Behavioral Change

• Work Values… Generation Gaps.

• Economic Shocks

•Whether change will happen? When ? Its irrelevant. Its dynamic

• Need to Change

• Managing a Planned Change

• Introducing a Change-- Resistance Kurt Lewin’s Force Field Analysis

Lewin’s Force-Field AnalysisLewin’s Force-Field Analysis

Equilibrium(Status-quo Situation)

DrivingForces

RestrainingForces

Manager needs to identify the two sets of forces and their intensity

Facilitating Forces Inhibiting Forces

Increase Reduce

Steps followed in Force Field AnalysisSteps followed in Force Field Analysis

1. Define the ultimate objectives

2. Brainstorm Session . Identify & List- (a) Resisting Forces (b) Driving Forces

3. Quantify the strength of each of these forces on a 5-point scale

4. Remove the forces one by one through discussion about which the team has no control

5. Identify the weak Driving Forces and try to strengthen them through discussion

6 Identify the restraining forces and agree on actions to make them weak

7 Work out an Action Plan to introduce Change

Resistance to ChangeResistance to Change

CHANGE

ECONOMIC THREAT

SOCIAL CONCERNS

SECURITY

UNDERMINING STATUS & AUTHORITY

-Its natural human reaction -Creates anxiety-Concerned about ambiguity due to change

- Possible Benefits of Resistance

RETRAINING

NON-INVOLVEMENT IN THEDECISION MAKING PROCESS

FEAR OF UNKNON

SELECTIVE INFORMATION PROCESSING

Possible Benefits of ResistancePossible Benefits of Resistance

• Forces management to re-examine its proposals

• Employees act as check-and balance

• Management does not implement change in a haste

• Management can take corrective steps in time

• Information on the intensity of employee emotions

• Provides emotional release to employees

• Understanding of employees develops

Organisational ResistanceOrganisational Resistance

STRUCTURAL DISEQUILIBRIUM

• Change itself creates disequilibrium

• Change in one sub system may not be accepted by another sub system

• Threatens expertise of existing people

• Threatens existing power relations

• Threat to existing resource allocation… reduced budgets

• Individuals may be ready to accept change but trade unions may resist

• Resistance in case change is introduced on personal basis and not on professional grounds

• Resistance in case established institutions are ignored

• Older employees are more likely to resist more … difficult to change from the tried and tested methods

Organisational ResistanceOrganisational Resistance

CONSEQUENCES

----- Overt & Covert Behaviour

• Striking work

• Slow down of work

• Very low work place engagement.. Low motivation, morale

• High employee turnover

• Absenteeism

• Indiscipline

Dealing with resistance to ChangeDealing with resistance to Change

Gray & Strace (1984) suggested three strategies to introduce change:

1. Introduce multiple changes at the same time…incremental resistance

2. Work through informal leaders

3. Introduce change where the resistance is likely to be the least

Kurt Lewin’s ModelKurt Lewin’s Model

Phase I Phase II Phase III

Unfreezing Changing Refreezing

Recognising the need for change

Modifying old waysAnd introducing new behaviours

Making new behaviours permanent

Dramatic drop inMarket Share/ High Attrition

Larry Griener’s ModelLarry Griener’s Model

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6

Pressure on Top

Management

Sequential Stages :

Interventionat the top

Diagnosis ofProblem areas

Inventions Of new solutions

Experimentation with newsolutions

Reinforcementof

positive results

Arousal to

take action

Re-orientation to InternalProblems

Recognitionof specificproblems

Commitment to new Course

of action

Search forResults

Acceptance of new practices

Stimuluson PowerStructure

Reaction of Power Structure

Lewitt’s ModelLewitt’s ModelStructure

Technology

People (Actors)

Task

It focuses on the interactiveNature of the variousSubsystems. Change in One subsystem automatically affectsthe other subsystems

Action ResearchAction Research

Role of a Change Agent -------

• DIAGNOSIS

• ANALYSIS

• FEEDBACK

• ACTION & EVALUATION

Skills of a Change AgentSkills of a Change Agent

• COGNITIVE SKILLS – Should be able to

understand and analyse his own motivation in perceiving the need for change

• ACTION SKILLS- As a consultant,counsellor,facilitator, trainer etc

• COMMUNICATION SKILLS

Focus for Change in futureFocus for Change in future

Post economic liberalisation--- • INNOVATION- Product, process or service

• EMPOWERMENT- Intrinsic task motivation