Info6510(7)Organizational Change

By: Dr. Nabhan AlHarrasi

Definition

• “making things different”• Ellis and Dick (2000) describe it as a method and

procedure to change the organization in any way that enables it to meet its agreed objectives

Pressure for Change: Internal

• Need to change the traditional methods of work • Change the structure of organization • Change the process of services to increase the

capacity of products • Need to change the organizational culture

(behaviour, attitude, and thinking of people). • Enhance personal skills

Pressure for Change: External Source of Change Example

Market demand Decline/increase in demand for particular products/services

Economic Overall fall in retail companies Global competitorsGrowth of e-commerce

Social Changes in taste, interest, information seeking behaviour (libraries)

Technological Increased availability of new production technologies and information systems

Political Change in leadership of local authority or government

Chance Earthquake, Fire, food, storm

Resistance to Change

Source of Resistance to Change

Individual Source Organizational Source

HabitSecurity

Economic FactorsFear of the unknown

Lack of understanding

Organizational StructureLimited focus of change

Group norms (OC)Economic factors

Social Factors

Overcoming Resistance to Change

• Education and Communication• Participation • Building Support and Commitment • Negotiation, communication and collaboration• Selecting people who accept change

Managing Organizational Change

Phase 1Unfreezing____________________

Recognize the need for change Resistance to change

Phase 2Transforming____________________

Transform people, tasks, structure, technology

Phase 3Refreezing____________________

Assess results Make needed modifications

Phase 1: Unfreezing

• Unfreezing starts when an organization feels that its work is inadequate in some way, receives feedback from customers telling them that their services are insufficient, and/or wishes to integrate information technology and keep pace with their changing environment• Sometimes difficulties and conflicts occur before

a decision of change is taken• Resistance to change arises during the early

stage of a change process as a result of inter-group conflict

• listed of contextual features which should be given much attention when designing change

1. Time: Identify to what extent the change is needed; and how long an organization has to achieve change.

2. Scope: What level of change is needed? Does an organization require a depth of the change or the physical spread of the change? Do divisions of an organization need to be involved in the change process or can it be limited to a small department?

• 3. Diversity: Is there a high level of diversity that can affect the change path? The theory is based on “a programme that emphasizes tightly prescribed behavior which may be hard to introduce across diverse national groups” • 4. Capability: A set of capabilities is required to

deliver success and continue change, such as money, people, and equipment. Moreover, the necessary skills and abilities to manage the change should be given much attention before moving to the real process.

• 5. Capacity: Organizations should make clear how many resources can be invested in the change initiative. Capacity includes three main areas: cash, time, and staff.• 6. Readiness for change: This feature means examining to

what extent the staff are prepared to change. • 7. Power: This can be considered from two perspectives:

the power of individuals or groups of people within the organisation and the power of an organisation to establish its own future change.

Phase 2: transforming

• In this stage an organisation begins to implement the planned change• The planned change may affect the entire

organisation, and therefore the organisational structure would be changed or a traditional system would be replaced by a new one• the change agents may face some challenges

such as an inadequate budget for continued change• the goals and visions of organisations conflict

with each other again

Phase 3: refreezing

• enabling the change to stabilize and continue as part of ongoing organisational processes• During refreezing new behaviour and attitudes

emerge and combine into everyday organisational processes and procedures• organizations enhance their cooperation and

communication to encourage greater collaboration. Leaders and members gain experience that makes them usually learn not to fear change but to accept it