CHAPTER 2 ORGANISATION CHANGE AND DEVELOPMENT (20%)

CONTENT
2.1 Organisation Change

1. Change
2. Organisation Change Definition and concept
3. Reasons for change
4. Types of Organisation Change
5. Resistance to change
6. Planned Change
7. Ways to inviting Change
8. Interventions and Change:
a. Quality of Work Life
b. TQM
c. ISO-9000
d. Training
e. TA
f. Feedback and Change
g. Competition
h. Benchmarking

2.2 Organisation Development

1. Definition
2. Characteristics
3. OD Assumptions
4. Various OD interventions

Organisation is a social system. All parts of organisation affect all other parts. That is, there is so much of
interrelationship of parts that anything happening at one end is transmitted to the other end. This
interrelationship is not only between the elements and parts of organisation, but also with the environment
around it. When organisation functions, these relationship and interrelationships get established and gradually
organization obtains a systematised and orderly behaviour. The whole system is said to be in equilibrium. This
becomes an established way of life and any disturbance to this established way of life naturally exercises
pressure on some elements which are accustomed to that way of life. This event evokes a reaction which may
suggest acceptance of it, lack of interest in it or there may be counterpressure opposed to the disturbance. In
some cases, the impact of accepting or ignoring a disturbance may not be much different, but otherwise, the
former connotes cooperation and the latter, lack of interest.

1.1 CHANGE

The term ‘change’ refers to any alternation which occurs in the overall work environment of an organisation. It
is to be emphasised that ‘change is the law of nature’. Nothing is permanent except change. Change has the
following characteristics:
(i) Change often results from the pressure of forces which are both outside and inside the organisation;

(ii) The whole organisation tends to be affected by the change in any part of it; and

(iii) Change takes place in all parts of the organisation, but at varying rates of speed and degrees of significance.

(iv) Change may be reactive or proactive. When change is brought about due to the pressure of external forces,
it is called reactive change. Proactive change is initiated by the management on its own to increase
organisational effectiveness.

An organisational is an open system which means that it is in a constant interactional and interdependent
relationship with its environment. Any change in its external environment, such as changes in consumer tastes
and preferences, competition, economic policies of the Government, etc., make it imperative for an organisation
to make changes in its internal system. Further, organisation is composed of a number of subsystem, which are
also in a dynamic relationship of interaction and interdependence with one another. Any change in a subsystem
creates a chain of changes throughout the entire system.

1.2 CONCEPT OF ORGANISATIONAL CHANGE

The term ‘organisational change’ implies the creation of imbalances in the existing pattern of situation. When
an organization operates and functions for a long time, an adjustment between its technical, human and
structural set-up is established. It tends to approximate an equilibrium in relation to its environment. In other
words, organisation members evolve a tentative set of relations with the environment. They have an adjustment
with their job, working conditions, friends and colleagues etc. Change requires individuals to make new
adjustments. Hence the fear of adjustment gives rise to the problem of change and resistance to change.
Individual comes in to danger. On the other hand, groups resist change where their existence is in danger or a
total change in overall work environment is contemplated.

DEFINITION
Management of change may be defined as a conscious and concerted initiative by those who are in-charge of
the destiny of the business undertaking or firm to keep a constant and intelligent watch over the behaviour of
uncontrollable forces, to assess their impact and influence of the controllable forces, and to evolve appropriate
strategies and action programmes to maintain a dynamic equilibrium between the controllable and
uncontrollable forces.

“The term change refers to any alternation which occurs in the overall work environment of an organisation.”
To quote another definition “when an organisational system is disturbed by some internal or external force,
change occurs frequently. Change, as a process, is simply modification of the structure or process of a system. It
may be good or bad, the concept is descriptive only.”

“Organisation change is the process of establishing new equilibrium in the organisation that was altered by
external or internal forces.”

1.3 FORCES/ SOURCES/ DETERMINANTS/REASONS FOR CHANGE

Organisations encounter many different forces for change. These forces come from external
sources outside the organisation and from internal sources. Awareness of these forces can help
managers determine when they should consider implementing an organisational change. The
external and internal forces for change are as follows:

(A) EXTERNAL FORCES

External forces for change originate outside the organisation. Because these forces have global
effects, they may cause an organisation to question the essence of what business it is in and the
process by which products and services are produced. There are four key external forces for
change: demographic characteristics, technological advances, market changes, and social and
political pressures.

(I) DEMOGRAPHIC CHARACTERISTICS

Demographic characteristics refers to the composition characteristics of the workforce available

to the organisation in term of their gender, age, generation, income, family type, religion,
ethnicity, nationality, etc. Organisations need to effectively manage diversity if they are to receive
maximum contribution and commitment from employees.

(II) TECHNOLOGICAL ADVANCEMENTS

Both manufacturing and service organisations are increasingly using technology as a means to
improve productivity and market competitiveness. Manufacturing companies, for instance, have
automated their operations with robotics, computerized numerical control (CNC) which is used
for metal cutting operations, and computer-aided design (CAD). CAD is a computerized process
of drafting and designing engineering drawings of products. Companies have just begun to work
on computer-integrated manufacturing (CIM). This highly technical process attempts to integrate
product design with product planning, control, and operations. Office automation consists of a
host of computerized technologies that are used to obtain, store, analyse, retrieve, and
communicate information.

(III) MARKET CHANGES

The emergence of a global economy is forcing Indian companies to change the way they do
business. Companies are having to forge new partnerships with their suppliers in order to deliver
higher quality products at lower prices. Due to heavy competition, there was time that only huge
organisation or conglomerates were able to survive. And hence merger was one of the means of
survival of Indian firms. Now again market trend is changing, those who have lean systems can
survive. So today’s market trend is more towards agility and lean organisation.

(IV) SOCIAL AND POLITICAL PRESSURES

These forces are created by social and political events. Personal values affect employees’ needs,
priorities, and motivation; managers thus may need to adjust their managerial style or approach
to fit changing employee values. Political events can create substantial change. For example, the
collapse of both the Berlin Wall and communism in Russia created many new business
opportunities. Although it is difficult for organisations to predict changes in political forces, many
organisations hire lobbyists and consultants to help them detect and respond to social and
political changes.

(B) INTERNAL FORCES

Internal forces for change come from inside the organisation. These forces may be subtle such as
low morale, or can manifest in outward signs such as low productivity and conflict. Internal forces
for change come from both human resource problems and managerial behaviour/decisions.

(I) HUMAN RESOURCE PROBLEMS/PROSPECTS

These problems stem from employee perceptions about how they are treated at work and the
match between individual and organisation needs and desires. Dissatisfaction is a symptom of an
underlying employee problem that should be addressed. Unusual or high levels of absenteeism
and turnover also represent forces for change. Organisations might respond to these problems
by using the various approaches to job design by implementing realistic job previews, by reducing
employees role conflict, overload, and ambiguity, and by removing the different stresses.
Prospects for positive change stem from employee participation and suggestions.

(II) MANAGERIAL BEHAVIOUR/DECISIONS

Excessive interpersonal conflict between managers and their subordinates is a sign that change is
needed. Both the manager and the employee may need interpersonal skills training, or the two
may simply need to be separated: for example, one of the parties might be transferred to a new
department. Inappropriate leadership behaviours, such as inadequate direction or support, may
result in human resource problems requiring change. Leadership training is one potential solution
for this problem.

NATURE OF THE PRESENT EMPLOYEES/ DEMOGRAPHY OF PRESENT EMPLOYEES:

With the change in the nature or demography of the employees organisation has to change
leadership style, motivation systems and employee engagement practices. Different work values
have been expressed by different generations. Workers who are in the age group of 50 plus value
loyalty to their employers. Workers in their mid-thirties to mid-forties are loyal to themselves
only. The youngest generation of workers is loyal to their careers. The profile of the workforce as
it change the necessary change should be there in the organisation.

CHANGE IN MANAGERIAL PERSONNEL:

Change in managerial personnel is another force which brings about change in organisation. Old
managers are replaced by new managers which are necessitated because of promotion,
retirement, transfer or dismissal. Each manager brings his own ideas and way of working in the
organisation. The informal relationships change because of changes in managerial personnel.
Sometimes, even though there is no change in personnel, but their attitudes change. As a result,
the organisation has to change in accordingly.

Changes in the organisation are more fast when top executives change. Change in top executives
will lead to important changes in the organisation in terms of organisation design, allocation of
work to individuals, delegation of authority, installation of controls, etc. All these changes will be
necessitated because every top executive will have his own style and he will like to use his own
ideas and philosophies.
1.4 TYPES OF CHANGE

There are two types of classification of change based on level of change and pace of change.

1.4.1 LEVELS OF ORGANISATION CHANGE

Change can be at individual, group and organisational levels:

(A) INDIVIDUAL LEVEL CHANGE

At the individual level change is reflected in such developments as changes in a job assignment,
physical move to a different location, or the change in maturity of a person which occurs overtime.
It is said that changes at the individual level will seldom have significant implications for the total
organisation. This is not true because a significance change at the individual level will have its
repercussions on the group which, in turn, might influence the wider organisation. A manager
who desires to implement a major change at the individual level, transferring an employee for
instance, must understand that the change will have repercussions beyond the individual.

(B) GROUP LEVEL CHANGES

Most organisational changes have their major effects at the group level. This is because most
activities in organisations are organised on group basis. The groups could be departments, or
informal work groups. Changes at the group level can affect work flows, job design, social
organisation, influence and status systems, and communication patterns.

Managers must consider group factors when implementing change. Informal groups can pose a
major barrier to change because of the inherent strengths they contain. Formal groups can resist
change, as exemplified by the resistance demonstrated by unions to the changes proposed by
management. Because of the powerful influence that groups can have on individuals, effective
implementation of change at the group level can frequently overcome resistance at the individual
level.

(C) ORGANIZATION LEVEL CHANGES=ORGANISATION DEVELOPMENT

Change at this level involves major programmes that affect both individuals and groups. Decisions
regarding these changes are generally made by senior management and are seldom implemented
by only a single manager. Frequently they occur over long periods of time and require
considerable planning for implementation. Example of these changes would be reorganisation of
the organisation structure and responsibilities, revamping of employee remuneration system, or
major shifts in an organisation’s objectives. Change at the organisational level is generally referred
to as organization development.

1.4.2 PACE OF CHANGE

On the basis of speed of change organisational change can be classified into evolutionary change and
revolutionary change.

(A) EVOLUTIONARY CHANGE TQM= TOTAL QUALITY MANAGEMENT

According to Sashkin and Kiser "TQM is defined as creating an organizational culture committed towards
improvement of skills, teamwork, process, product and service quality and customer satisfaction."
 It is deeply embedded in the organisational culture.
 Meet customer's requirement
 Continuous improvement through management process
 Involvement of each and every employee.
Objectives

1. Meeting Customers requirement:

The most effective marketing tool is WOM. Positive WOM is only possible through customer loyalty. A
satisfied customer is loyal customer. Customer satisfaction is derived with the help of long-term
positive relationship that meets customers requirement. Company cannot sustain on the philosophy of
"take it or leave it" with the customers
2. Continuous improvement:
Organisation has to continuously improve on every part of the business process. This is only possible
when your employees are motivated. Ensure that employees work with a commitment that every time
they will deliver goods/ services better than earlier.
3. Organisational Culture:
TQM is only possible through the support and involvement of each and every employee. In order to
again hundred percent involvement there should be certain degree of trust and openness among
employees. Thus the third objective of TQM is to develop organisation culture that has values viz. trust,
openness, creativity and learning.
Evolution
it is not a new concept it has been since 1910. There are four stages of TQM
1. Detection and Rectification of defects:
 Started with inspection function to identify defects in the product during the time of
production.
 Those products which were found defective were put aside and the defect was noted so that
next time it is not repeated.
 By doing these chances to minimized losses due to defects was not available as we could
identify defects only when it has occurred.
2. Prevention of Defects
 The second stage of tqm was prevention of defects.
 In 1930s USA realise that identification of defects leaves no room for saving wastage.
Identification of defects one can only remove it from the production lot ensure that customer
does not receive defective product, however this does not minimised the wastage of the raw
material.
 Thus after 1930 the focus of the process shifted towards prevention of defects rather than
identifying the defects so that one can minimised wastage this approach was then tagged as
"process control"
3. Product Design Improvement
 Process Control wastage but it can’t stop errors of product design
 Hence in 1960s Japanese started focusing on product improvement through product design
and product planning.
4. Creativity and Innovation
 In 1980’s Quality circle were introduced to create a culture of TQM.
 Quality Circles
Elements of TQM
1. Customer Orientation:
The main objective of TQM is to satisfy all the requirements of customer.
These requirements keep on changing with change in time, environment, needs, fashion, situation,
etc. thus organisations have to deploy mechanisms to understand the ever-changing requirements of
both existing as well as potential customers.
Organisation cannot stop satisfying existing customer and gain potential customer.
2. Continuous improvement
As the customer requirement changes organisations need to adapt quickly. For this new products,
new processes, new ways of marketing to stay ahead of competition. For this introduction of
technology becomes key ingredient.
Eg. Xerox, Kaizen system in Japan
3. Employee involvement:
In order to keep a pace with customer requirement and introduction of new processes, products and
technology, employees need to be trained and develop regularly.
This will improve quality and reduce cost. Quality circles is an example of Employee involvement in
TQM. TQM is bottoms- up approach and hence lower level employees have to be taken in confidence
and motivated to contribute positively. With the philosophy that “Every member must take Quality as
their responsibility” TQM can be implemented.

PROCESS OF TQM
W.E. Deming developed a PDCA cycle for implementation of TQM.
Plan-Do-Check-Act
THE FOUR PHASES OF THE PDCA CYCLE

With the PDCA cycle you can solve problems and implement solutions in a rigorous, methodical way. Let's look
at each of the four stages in turn:

1. PLAN.

First, identify and understand your problem or opportunity. Perhaps the standard of a finished product isn't high
enough, or an aspect of your marketing process should be getting better results.

Explore the information available in full. Generate and screen ideas, and develop a robust implementation plan.

Be sure to state your success criteria and make them as measurable as possible. You'll return to them later in
the Check stage.

2. DO.

Once you've identified a potential solution, test it safely with a small-scale pilot project. This will show whether
your proposed changes achieve the desired outcome – with minimal disruption to the rest of your operation if
they don't. For example, you could organize a trial within a department, in a limited geographical area, or with
a particular demographic.

As you run the pilot project, gather data to show whether the change has worked or not. You'll use this in the
next stage.

3. CHECK.

Next, analyze your pilot project's results against the expectations that you defined in Step 1, to assess whether
your idea was a success.

If it wasn't, return to Step 1. If it was, advance to Step 4.

You may decide to try out more changes, and repeat the Do and Check phases. But if your original plan definitely
isn't working, you'll need to return to Step 1.

4. ACT.

This is where you implement your solution. But remember that PDCA/PDSA is a loop, not a process with a
beginning and end. Your improved process or product becomes the new baseline, but you continue to look for
ways to make it even better.
The four stages of the cycle are illustrated in Figure 1, below:

PDCA Model courtesy of The W. Edwards Deming Institute®.

Benefits of TQM
 It brings in quality consciousness in the organization
 greater satisfaction to customers
 helps in creating good image of the company
 better utilization off machine capital and human resource
 waste management gets activated
 employee get more committed towards quality.
Case Study:
Study into Total Quality Management of McDonalds - Bing video

(B) REVOLUTIONARY CHANGE: BUSINESS PROCESS REENGINEERING

Reengineering:

It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements
in critical, contemporary measures of performance, such as cost, quality, service, and speed.

It is a change that is not brought gradually rather radically.

Reengineering focuses on visualizing and streamlining any or all business processes in the organization. It seeks
to make such processes more efficient by combining, eliminating, or restructuring activities without regard to
present hierarchical or control procedures.

Reengineering is a top-down process; assumes neither an upward flow of involvement nor that consensus
decision making.

Business Process Reengineering (BPR) can be defined as: ... a radical scrutiny, questioning, redefinition and
redesign of business processes with the aim of eliminating all activities not central to the process goals … and
automating all activities not requiring human judgmental input, or facilitating that judgment at reduced cost
(Thomas 1994, p.28).

BPR was championed by Michael Hammer and James Champy (1994) in the book 'Reengineering the
Corporation' in which they advocated that old systems be discarded and replaced with new, more innovative
and effective processes.

BPR demands lateral thinking that extends beyond the current boundaries in order to achieve a more effective
organisation.

FEATURES OF A RE-ENGINEERED PROCESS

The following are common features of re-engineered processes:

 Radical change also known as revolutionary change.

 several jobs are combined into one
 workers make real decisions
 work is performed where it makes most sense
 checks and controls are reduced
 reconciliation processes are reduced
 a case manager provides a point of contact.

The influence of BPR on organizational performance

 Despite some success stories, e.g. at IBM and Ford, BPR became unpopular in the late 1990s due to
some widely discussed failures.
 Numerous organizations have attempted to redesign their business processes but have failed to enjoy
the enormous improvements in organizational performance that were promised.
 The key to realizing these improvements in performance seems to be continuous learning. As
problems emerge, they must be identified, analyzed and communicated in order to improve the
future success rate of BPR.

Advantages and disadvantages of BPR

 BPR revolves around customer needs and helps to give an appropriate focus to the business.
 BPR provides cost advantages that assist the organization‘s competitive position.
 BPR encourages a long-term strategic view of operational processes by asking radical questions about
how things are done and how processes could be improved. BPR helps overcome the short-sighted
approaches that sometimes emerge from excessive concentration on functional boundaries. By
focusing on entire processes the exercise can streamline activities throughout the organization.
 BPR can help to reduce organizational complexity by eliminating unnecessary activities.
Criticisms of BPR

 BPR was sometimes seen (incorrectly) as a means of making small improvements in existing practices.
In reality, it should be a more radical approach that questions whether existing practices make any
sense in their present form.
 BPR was often perceived (incorrectly) as a single, once-for-all cost-cutting exercise. In reality, it is not
primarily concerned with cost cutting (though cost reductions often result), and should be regarded as
on-going rather than once-for-all. This misconception often creates hostility in the minds of staff who
see the exercise as a threat to their security.
 BPR requires a far-reaching and long-term commitment by management and staff. Securing this is not
an easy task, and many organizations have rejected the whole idea as not worth the effort.
In many cases business processes were not redesigned but merely automated.
 In some cases the efficiency of one department was improved at the expense of the overall process. To
make BPR work requires a focus on integrated processes (as discussed above) that often involves
obliterating existing processes and creating new ones.
 Some companies became so focused on improving internal processes that they failed to keep up with
competitors' activities in the market. Most companies are now more likely to talk about 'business
process redesign' instead.

The influence of BPR on systems development BPR results in more automation and greater use of IT/IS to
integrate processes. Some of the key technologies that allow fundamental shifts in business operations to occur
are:

 shared database access from any location

 expert systems (a database system providing expert knowledge and advice) to devolve expertise
 powerful communication networks for remote offices
 wireless communication for on-the-spot decision making
 tracking technology for warehouses and delivery systems
 internet services to re-engineer channels of distribution.

Objectives of BPR

When applying the BPR management technique to a business organization the implementation team effort is
focused on the following objectives:

1. Customer focus: Customer service oriented processes aiming to eliminate customer complaints.

2. Speed: Dramatic compression of the time it takes to complete a task for key business processes. For instance,
if process before BPR had an average cycle time 5 hours, after BPR the average cycle time should be cut down
to half an hour.

3. Compression: Cutting major tasks of cost and capital, throughout the value chain. Organizing the processes a
company develops transparency throughout the operational level reducing cost. For instance the decision to
buy a large amount of raw material at 50% discount is connected to eleven cross checking in the organizational
structure from cash flow, inventory, to production planning and marketing. These checking become easily
implemented within the cross-functional teams, optimizing the decision making and cutting operational cost.

4. Flexibility: Adaptive processes and structures to changing conditions and competition. Being closer to the
customer the company can develop the awareness mechanisms to rapidly spot the weak points and adapt to
new requirements of the market.
5. Quality: Obsession with the superior service and value to the customers. The level of quality is always the
same controlled and monitored by the processes, and does not depend mainly on the person, who servicing the
customer.

6. Innovation: Leadership through imaginative change providing to organization competitive advantage.

7. Productivity: Improve drastically effectiveness and efficiency. In order to achieve the above mentioned
adjectives the following BPR project methodology is proposed. Business process reengineering is a radical
change activity that cannot be repeated if it goes wrong the first time. It is often a high risk activity that involves
monetary investment and a risk of demotivated employees. In is essential to have buy in all the way from top
management down and it should have a broad functional scope.

RESISTANCE TO CHANGE

The sources of resistance to change can be categorized into two sources: individual and organisational.

1. INDIVIDUAL RESISTANCE:
One aspect of mankind that has remained more or less constant is his innate resistance to change. Individuals
resist change because they attach great preference to maintaining the status quo. Individual sources of
resistance to change reside in basic human characteristics such as perceptions, personalities and needs. The
following are the reasons:

(a) Economic Reasons: The economic reasons to fear change usually focus on one or more of the following:

(i) Fear of technological unemployment.

(ii) Fear of reduced work hours and consequently less pay.

(iii) Fear of demotion and thus reduced wages.

(iv) Fear of speed-up and reduced incentive wages.

Changes in job tasks or established work routines can also arouse economic fears if people are concerned they
won’t be able to perform the new tasks or routines to their previous standards, especially when pay is closely
tied to productivity.

(b) Fear of the unknown: Change often bring with it substantial uncertainty. Employees facing a technological
change, such as the introduction of a new computer system, may resist the change simply because it introduces
ambiguity into what was once a comfortable situation for them. This is especially a problem when there has
been a lack of communication about the change.

(c) Fear of Loss: When a change is impending, some employees may fear losing their jobs, particularly when an
advanced technology is introduced. Employees may also fear losing their status because of a change. Another
common fear is that changes may diminish the positive qualities the individual enjoys in the job. For example,
computerizing the customer service positions, threaten the autonomy that sales representatives previously
enjoyed.

(d) Security: People with a high need for security are likely to resist change because it threatens their feeling of
safety.
(e) Status quo: Perhaps the biggest and most sound reason for the resistance to change is the status quo. As
human beings, we are creatures of habit. Change may pose disturbance to the existing comforts of status quo.
When confronted with change, this tendency to respond in our accustomed ways becomes a source of
resistance. Change means they will have to find new ways of managing them and their environment—the ways
that might not be successful as those currently used.

(f) Peer Pressure: Individual employees may be prepared to accept change but refuse to accept it for the sake of
the group. Whenever change is unwilling to the peers, they force the individuals who want to accept change to
resist change.

(g) Disruption of Interpersonal Relationships: Employees may resist change that threatens to limit meaningful
interpersonal relationships on the job.

(h) Social Displacement: Introduction of change often results in disturbance of the existing

social relationships. Change may also result in breaking up of work groups. Thus when social relationships
develop, people try to maintain them and fight social Notes

displacement by resisting change.

2. ORGANISATIONAL RESISTANCE:
Organisations, by their very nature are conservative. They actively resist change. Some of the organisational
resistances are explained below:

(a) Resource Constraints: Resources are major constraints for many organisations. The necessary financial,
material and human resources may not be available to the organisation to make the needed changes. Further,
those groups in organisation that control sizable resources often see change as a threat. They tend to be content
with the way things are.

(b) Structural Inertia: Some organisational structures have in-built mechanism for resistance to change. For
example, in a bureaucratic structure where jobs are narrowly defined and lines of authority are clearly spelled
out, change would be difficult. This is so because formalization provides job descriptions, rules, and procedures
for employees to follow. The people who are hired into an organisation are chosen for fit; they are then shaped
and directed to behave in certain ways. When an organisation is confronted with change, this structural inertia
acts as a counterbalance to sustain stability.

(c) Sunk Costs: Some organisations invest a huge amount of capital in fixed assets. If an organisation wishes to
introduce change, then difficulty arises because of these sunk costs.

(d) Politics: Organisational change may also shift the existing balance of power in an organisation. Individuals or
groups who hold power under the current arrangement may be threatened with losing these political
advantages in the advent of change.

(e) Threat to established power relationships: Any redistribution of decision-making authority can threaten long
established power relationships within the organisation. Managers may therefore resist change that introduces
participative decision making because they feel threatened.

(f) Threat to expertise: Change in organisational pattern may threaten the expertise of specialized groups.
Therefore, specialists usually resist change.
(g) Group Inertia: Even if individuals want to change their behaviour, group norms may act as a constraint. For
example, if union norms dictate resistance to any unilateral change made by management, an individual
member of the union who may otherwise be willing to accept the changes may resist it.

OVERCOMING RESISTANCE TO CHANGE

Although resistance to change is a common phenomenon in organisations, it must be noted that not all changes
are resisted. In fact, if we look at any organisation closely we would probably find that far more changes are
accepted than resisted. The traditional view of resistance to change treated it as something to be overcome,
and many organisational attempts to reduce the resistance have only served to intensify it. The contemporary
view holds that resistance is simply a form of feedback and that this feedback can be used very productively to
manage the change process. One key to managing resistance is to plan for it and to be ready with a variety of
strategies for using the resistance as feedback and helping employees negotiate the transition. Some tactics
have been suggested for use in dealing with resistance to change.

1. EDUCATION AND COMMUNICATION:

Communication about impending change is essential if employees are to adjust effectively. The details of the
change should be provided, but equally important is the rationale behind the change. Employees want to know
why change is needed. If there is no good reason for it, why should they favour the change? Providing accurate
and timely information about the change can help prevent unfounded fears and potentially damaging rumours
from developing. It is also beneficial to inform people about the potential consequences of the change.
Educating employees on new work procedures is often helpful.

2. PARTICIPATION:

It is difficult for individuals to resist a change decision in which they participated. Prior to making a change, those
opposed can be brought into the decision process. When employees are allowed to participate, they are more
committed to the change.

3. EMPATHY AND SUPPORT:

Another strategy for managing resistance is providing empathy and support to employees who have trouble
dealing with the change. Active listening is an excellent tool for identifying the reasons behind resistance and
for uncovering fears. An expression of concerns about the change can provide important feedback that
managers can use to improve the change process.

4. NEGOTIATION:

Another way to deal with potential resistance to change is to exchange Notes something of value for a lessening
of the resistance. Where some persons in a group clearly lose out in a change, and where groups have
considerable power to resist, negotiation and agreements are helpful. It becomes relatively easy to avoid major
resistance through negotiation. Negotiation as a tactic may be necessary when resistance comes from a
powerful source.

5. MANIPULATION AND CO-OPTATION:

Manipulation refers to covert influence attempts. Twisting and distorting facts to make them appear more
attractive, withholding undesirable information and creating false rumours to get employees to accept a change
are all examples of manipulation. It involves giving individuals a desirable role in design or implementation of
change.
6. COERCION:

Coercion is the application of direct threats or force on the resisters. They essentially force people to accept a
change by explicitly or implicitly threatening them with the loss of their jobs, promotion possibilities and
transferring them. Coercion is mostly applied where speed is essential in implementing change and the change
initiator possesses considerable power.

PLANNED CHANGE/ APPROACHES/MODELS TO MANAGING ORGANISATIONAL CHANGE

For most people, change is not easy. Even when we know things could be better, we get a certain comfort from a
familiar setting; familiar people and familiar ways of doing things. Because of this, change is most likely to
succeed when managers follow a well-thought-out path to implement it.

LEWIN’S THREE STAGE MODEL

Kurt Lewin a social psychologist, noted for his work in organisational theory, developed a model of the change
process that has stood the test of time and continues to influence the way organisations manage planned change.
Lewin’s model is based on the idea of force field analysis.
Lewin proposed the three-step model as shown in the Figure below.

STEPS IN THE CHANGE PROCESS

1. Unfreezing:
The process begins with unfreezing, which is a crucial first hurdle in the change process. ‘Unfreezing’ means
melting resistance to change; the people who will be affected by the change come to accept the need for it. People
tend to resist change because it increases anxiety and stress, and it may threaten their self-interests. Unfreezing
involves encouraging individuals to discard old behaviours by shaking up the equilibrium state that maintains the
status quo. Unfreezing on the part of individuals is an acceptance that change needs to occur. Resistance to change
“melts” when events or information-customer complaints, mounting losses, an accident – causes people to
conclude that the status quo is unacceptable and that change is worth the effort. In essence, individuals surrender
by allowing the boundaries of their status quo to be opened in preparation for change.

2. Change or moving:
If unfreezing succeeds, people want to make a change, but they still need to see a path to a better state. In the
moving stage, new attitudes, values and behaviours are substituted for old ones. Organisations accomplish
moving by initiating new options and explaining the rationale for the change, as well as by providing training to
help employees develop the new skills needed.
The transformation stage requires altering one or more characteristics of the work setting:
(a) The structure and systems of the organisation;
(b) Social factors – characteristics of employees, the way they interact, the organisational culture;
(c) The organisation’s technology and/or
(d) The physical setting.
The implication is that changes in the work setting will lead to changes in individual behaviour, which in turn
will improve the organisation’s outcomes.

3. Refreezing: For the change to endure, it must be reinforced as part of a new system. Lewin calls this step
refreezing’. Refreezing is the final step in the change process. In this step, new attitudes, values and behaviours are
established as the new status quo. In some cases, the people affected by the change will clearly benefit from it. The
resulting benefits will themselves reinforce the change. In other cases, the manager needs to take an active role in
reinforcing the change. The new ways of operating should be cemented and reinforced. Managers should ensure
that the organisational culture and formal reward system encourage the new behaviours and avoid rewarding the
old ways of operating.
ACTION RESEARCH MODEL

Planned change is a cycle, and the action research model focuses on the planned change as the cycle. The
primary research about the organization gives information to guide further action. The results are assessed to
provide information to guide further action.

Action research has the objective of assisting companies with implementing their planned change. Also, it is
aimed at developing general knowledge gathered from implementing the planned change so that it can be
applied to other companies as well.

The action research was developed to have a two focus on changing and knowledge generation; it has been
changed and adopted to efforts in which the primary emphasis is on the planned change.

3. CONTEMPORARY APPROACHES TO CHANGE

The contemporary approaches to change are adopted from an action research model. Although there is the
difference that the member involvement is relatively high in the change process.

This consists of learning for the members of the organization about their company and how they should change
it to apply the planned change.

THE ROLE OF CHANGE AGENTS

Change in organisations is inevitable, but change is a process that can be managed. The individual or group
that undertakes the task of introducing and managing a change in an organisation is known as a change agent.
Change agents can be of two types:
1. INTERNAL CHANGE AGENTS:
Change agents can be internal, such as managers or employees who are appointed to oversee the change
process. Internal change agents have certain advantages in managing the change process. They are: (i) They
know the organisation’s past history, its political system, and its culture. (ii) Internal change agents are likely to
be very careful about managing change because they must live with the results of their change efforts. There
are also disadvantages of using internal change agents: (i) They may be associated with certain factions within
the organisation and may easily be accused of favouritism. (ii) Internal change agents may be too close to the
situation to have an objective view of what needs to be done.

2. EXTERNAL CHANGE AGENTS:

Change agents can also be external, such as outside consultants. They bring an outsider’s objective view to the
organisation. External change agents have certain advantages: (i) They may be preferred by employees
because of their impartiality. (ii) They have more power in directing changes if employees perceive the change
agents as being trustworthy, possessing important expertise, and having a track record that establishes
credibility. There are also disadvantages of using external change agents: (i) External change agents face
certain problems, including their limited knowledge of the organisation’s history. (ii) They may be viewed with
suspicion by organisation members