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Organizational ChangeOrganizational Change

Organizational change is the process by which organization move from their present state to some desired future state to increase effectiveness.

When an organization system is disturbed by some internal or external forces change frequently occur or any alteration which occur in the overall work environment of an organization.

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CHARACTERSTICS OF O.C.CHARACTERSTICS OF O.C.

Change happen for the pressure of both internal and external forces in the organization.

Change in any part of the organization affect the whole organization.

Change may affect people , structure, technology, and other element of the organization.

Change also affect the rate of speed and degree of significance of the organization.

Change may be reactive or proactive.

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The Evolution of StarbucksThe Evolution of Starbucks

Exploring Behavior in Action

In the beginning they had only just a shop that sold some selected coffee beans.

As Starbucks growing, they realized that the informal techniques were not sufficient and needed to have a more formalized with people and places.

Now Starbucks was the biggest coffee chain network in the world with more than 15000 shops in over 44 countries. And they grown too fast.

They adopting the Italian culture and make some important changes in organization.

Howard Schultz

Dave Olsen

Dawn Pinaud

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Change ForcesChange Forces

INTETRNAL FORCES

Work forceManagerial personnelManagement structureAvoid developing inertia

External Forces

TechnologyMarketing conditionsSocial changesPolitical forces

Change forces

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Internal Pressures for ChangeInternal Pressures for Change

Work force

Managerial personnel

Avoid developing inertia

Management structure

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External Pressures for ChangeExternal Pressures for Change

Technological advances

Marketingconditions

Socialchanges

PoliticalForces

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ManagerialAdvice

Companies’ Responses Companies’ Responses to Pressures for “Green” to Pressures for “Green”

Policies and PracticesPolicies and Practices

Taking as it positive way:

It create a healthy image in customers.It help in cost cutting.Energy saving in the office.Help in reducing carbon in environment.

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Change AgentsChange Agents

• A Persons in organization responsible for managing change activities.

• Can be managers or non managers, current employees, newly hired employees or outside consultants.

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Process of Planned ChangeProcess of Planned Change

Unfreezing RefreezingMoving

• Provide rationale for change

• Create minor levels of guilt/anxiety about not changing

• Create sense of psychological safety concerning change

• Provide information that suspects proposed changes

• Bring about actual shifts in behavior

• Implement new evaluation systems

• Implement new hiring and promotion systems

Kurt Lewin

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ExperiencingStrategic OB

Coca-Cola Is Finding a New FizzCoca-Cola Is Finding a New Fizz

Neville Isdell Sandy Douglas

Coca-Cola is changing its culture, andalso enhance its product line to bettersatisfy the demand of customers.

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Speed of ChangeSpeed of Change

Criteria toConsider

Urgency

Degree of support

Amount and complexity of change

Competitive environment

Knowledge and skills available

Financial and other resources

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Resistance to ChangeResistance to Change

Four Factors

Organizational Organizational ResistanceResistance

Group Group ResistanceResistance

Effort to block new ways of doing things

Individual Individual ResistanceResistance

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Individual ResistanceIndividual Resistance

•Below are stated some reasons why people resists changes. Some of these appear to be rational or emotional. These reasons are:-

•Economic factors•Habits•Insecurity•Lack of communication•Extend of change•Psychological factors•Social factors

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Group ResistanceGroup Resistance

Most organizational changes have impact on formal groups in the organization the main reason

why the groups resists change is that they fear that their cohesiveness

or existence is threatened by it.

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Organizational ResistanceOrganizational ResistanceOrganizational resistance means the change is resisted at the level of the organization itself.

Some organization are so designed that they resist new ideas, this is specifically true in case of

organization which are conservative in nature. Majority of the business firm are also resistance to

changes. The major reason for organizational resistance are:-

•Threat to power•Group inertia•Organizational structure •Threat to specialization•Resource constants•Sunk costs

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CommunicationCommunication • Highest priority and first strategy for change

• Improves urgency to change

• Reduces uncertainty (fear of unknown)

• Problems -- time consuming and costly

Minimizing Resistance to ChangeMinimizing Resistance to Change

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CommunicationCommunication • Provides new knowledge and skills

• Includes coaching and action learning

• Helps break old routines and adopt new roles

• Problems -- potentially time consuming and costly

Minimizing Resistance to ChangeMinimizing Resistance to Change

TrainingTraining

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CommunicationCommunication • Increases ownership of change

• Helps saving face and reducing fear of unknown

• Includes task forces, search conferences

• Problems -- time-consuming, potential conflict

Minimizing Resistance to ChangeMinimizing Resistance to Change

TrainingTraining

Employee Employee InvolvementInvolvement

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CommunicationCommunication • When communication, training, and involvement do not resolve stress

• Potential benefits• More motivation to

change• Less fear of unknown• Fewer direct costs

• Problems -- time-consuming, expensive, doesn’t help everyone

Minimizing Resistance to ChangeMinimizing Resistance to Change

TrainingTraining

Employee Employee InvolvementInvolvement

Stress Stress ManagementManagement

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CommunicationCommunication

• When people clearly lose something and won’t otherwise support change

• Influence by exchange-- reduces direct costs

• Problems• Expensive• Increases compliance,

not commitment

Minimizing Resistance to ChangeMinimizing Resistance to Change

TrainingTraining

Employee Employee InvolvementInvolvement

Stress Stress ManagementManagement

Negotiation

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CommunicationCommunication

• When all else fails

• Assertive influence

• Firing people -- radical form of “unlearning”

• Problems• Reduces trust• May create more subtle

resistance

Minimizing Resistance to ChangeMinimizing Resistance to Change

TrainingTraining

Employee Employee InvolvementInvolvement

Stress Stress ManagementManagement

Negotiation

Coercion

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Organization Development (OD)Organization Development (OD)

• Planned change

• Long range change

• Problem solving

• Team building

• Feedback

A planned, organization-wide, continuous process designed to

improve communication, problem solving, and learning through the application of behavioral science

knowledge

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Basic Organization Development Basic Organization Development ModelModel

Diagnosis of Diagnosis of SituationSituation

Introduction of Introduction of interventionsinterventions

Progress Progress MonitoringMonitoring

FeedbackFeedback

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Organization Development Organization Development InterventionsInterventions

OrganizationDevelopment

Structural TechniquesRelationship Techniques

T-group Training

Team Building

Survey Feedback

Job Redesign

Management by Objectives

Supplemental Organizational Processes

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Relationship TechniquesRelationship Techniques

T-group TrainingT-group Training

Team BuildingTeam Building

Survey FeedbackSurvey Feedback

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Structural Structural TechniquesTechniquesJob RedesignJob RedesignJob RedesignJob Redesign

Management by Management by Objectives (MBO)Objectives (MBO)Management by Management by Objectives (MBO)Objectives (MBO)

SupplementalSupplementalOrganizationalOrganizational

ProcessesProcesses

SupplementalSupplementalOrganizationalOrganizational

ProcessesProcesses

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