Chapter Four and Five

Organizational Culture and Change

• Organizational or corporate culture is the system of shared actions,

values, and beliefs that develops within an organization and guides the
behavior of its members.
• OC is the pattern of shared values, beliefs, and assumptions considered
to be the appropriate way to think and act within an organization. The
key features of culture are as follows.

• Levels of cultural analysis

• Three important levels of cultural analysis in organizations are:
observable culture, shared values, and common assumptions. These
levels may be envisioned as layers. The deeper one gets, the more
difficult it is to discover the culture.
• The first level concerns observable culture, or the way we do things
around here.” These are the methods the group has developed and
teaches to new members. The observable culture includes the unique
stories, ceremonies, and corporate rituals that make up the history of a
contd
• The second level of analysis recognizes that shared values can play a
critical part in linking people together and can provide a powerful
motivational mechanism for members of the culture. Many
consultants suggest that organizations should develop a “dominant
and coherent set of shared values.”
• The term shared in cultural analysis implies that the group is a whole.
Every member may not agree with the shared values, but they have all
been exposed to them and have often been told they are important.
• At Hewlett-Packard, for example, “quality” is part of everyone’s
vocabulary/ language. The firm was founded on the belief that
everyone could make a creative contribution to developing quality
products.
• At the deepest level of cultural analysis are common assumptions, or
the taken-for-granted truths that collections of corporate members
share as a result of their joint experience. It is often extremely difficult
to isolate these patterns, but doing so helps explain why culture
invades every aspect of organizational life.
Characteristics of Organizational Culture
• A good organizational structure has the following Characteristics.
1. Individual Autonomy: the degree of responsibility, freedom and
opportunities of exercising initiative that the individual have in the
organization.
2. Structure : the degree to w/c the organization creates clear
objectives, communication, performance expectations.
3. Management support: : the degree to w/c managers provide clear
communication, assistance, warmth and support to subordinates.
4. Identity: the degree to w/c members identify in with organization as
a whole rather than with their particular work group or field of
professional expertise.
5. Performance -reward system: the degree to w/c reward system in
the organization like increase in salary, promotion, transfer etc are
based on employee performance rather than seniority, nepotism or
any sort of artificial segregation.
contd
6. Conflict Tolerance: the degree of conflict present in relationships
between colleagues and work groups as well as the degree to which
employees are encouraged to air conflict and criticisms openly
7. Risk tolerance: The degree to w/c employees are encouraged to be
innovative, aggressive and risk taking.
8. Communication patterns: the degree to w/c org. communications
are restricted to the formal hierarchy of authority.
9. Outcome orientation: the degree to w/c management focuses on
outcomes or results rather than the techniques and processes used
to achieve these outcomes.
10. People orientation: the degree to w/c the management decisions
take in to consideration the impacts of outcomes on people in the
orgs.
When we appraise the organization with the above characteristics we
will get the exact organizational Culture.
The components of Culture
1. Values; are the beliefs as what is best for the organization that determine
what is good or bad right or wrong. Values may be expressed implicitly or
explicitly in the following ways.
- performance, competence, competitiveness, quality, customer service
teamwork etc.
2. Norms: are the “ought's” or “should be” of a behavior. They are
prescriptions for acceptable behavior. They are set of beliefs, feelings and
attitudes commonly shared by groups.
Therefore, organizational norms are the basis for predicting and controlling
the behaviors of members.
3. artifacts: are visible and tangible aspects of an organization that people can
hear, see, or feel which may include Environments, dressing styles, the
manner in w/c people can address each other.
4. Leadership styles: describes the approach the managers use to deal with
employees in the organization. The leader is central to the organizational
culture and the culture of the organization is likely to reflect the
personality of the leader.
Dimensions of culture
A common misconception is that organizations have similar cultures w/c
means that individuals with d/t backgrounds or d/t levels in the
organization will tend to describe the organization culture in similar
fashion. But in reality it may not tend to happen and as a result there
may be a dominant and sub culture strong or weak culture.
The following are the different cultural dimensions.
1. Dominant vs Subculture: dominant culture is the set of core values
shared by a majority of organizational members. It is a macro level
that helps to guide the day to day behavior of employees. Where as
sub-culture is a set of values shared by small minority organizational
members. This arises as a result of problems and experiences that
are shared by members of the department or unit of the orgsn. In
the sub-culture the values of dominant culture are retained but
modified to reflect individuals unit’s distinct situation. E.g.
marketing dept may have its own sub-culture, purchasing dept
similarly.
contd
2. Strong Culture vs. Weak culture: org culture may be strong or weak.
• Strong Cultures have the following features;
a. Have strong values and strong leadership
b. Widely shared high degree of organizational members with core
values.
c. Intensely held; organizational members have high degree of
commitment of core values.
. Strong culture with high sharedness and intensity reduces labor
turnover and increases positive employee’s attitude.
On the other hand it leads to high “group think”
3. Mechanistic Vs. organic Cultures: in the cultures of mechanistic the
values of bureaucracy and feudalism are exhibited. People restrict
their careers to their own specializations only and organizational
work is concerned as a system of narrow specialization. It follows a
flow of traditional authority from top to bottom.
Communication channels are well defined and prescribed.
contd
• On the other hand organic culture just contrast of mechanistic
culture. where there is no prescribed communication channels,
departmental boundaries, strict hierarchies of authority and
formal rules and regulations. More stress is on flexibility ,
consultation, change and innovation.
4. Authoritarian vs Participative culture:
in authoritarian culture power is centralized and subordinates are
supposed to obey orders strictly.
Discipline is stressed and disobedience is severely punished. This
culture is based on the assumption that leader knows what is
good for the organization.
The participative culture is on based on the assumption that when all
the people working in the organization participate in decision
making.
Group problem solving, synergy the “we approach”.
contd
• National Culture vs. Organizational culture
• Organizational culture is always influenced by national culture
irrespective of the origin company.
• In other words if there is a clash between national and
organizational cultures, the national ?? culture prevails.
• For example any company operating in India whether it is
Indian origin or foreign, observes the local culture.
• They declare the same holidays, celebrate the same festivals
and organize the same functions and cultural activities. As
reflected by Indian ethnos.
• How is culture starts founders?? Kroc. Kroc McDonalds co.
(Quality service and cleanness). TATA co. powerful and
successful cultures(honesty and fair dealing).
• Philosophies, principles and values are still alive in their
Change in Organizations

• “Change” is the watchword of the day for many, if not most, organizations.
Some of this change may be described as radical change, or frame-breaking
change. Change: You are perhaps aware of the axiom that the only certainty
in the world is that there will be change.
• In this process of change, the Darwinian principles of adaptation and
natural selection are as true for the corporate world as they are for the
animate. `Survival of the fittest' is the unwritten but the radical rule of this
game
• This is change that results in a major overhaul of the organization or its
component systems. In today’s business environments, such radical changes
are often initiated by a critical event, such as a new CEO, a new ownership
brought about by merger or takeover, or a dramatic failure in operating
results.
• Another common form of organizational change is incremental change, or
frame-bending change. This type of change, being part of an organization’s
natural evolution, is frequent and less traumatic. Typical changes of this
type include the introduction of new products, new technologies, and new
systems and processes.
contd
• Although the nature of the organization remains relatively the same,
incremental change builds on the existing ways of operating to enhance
or extend them in new directions. The capability of improving
continuously through incremental change is an important asset in
today’s demanding environments.

• The success of both radical and incremental change in organizations

depends in part on change agents who lead and support the change
processes.
• These are individuals and groups who take responsibility for changing
the existing behavior patterns of another person or social system.
Although change agents sometimes are hired as consultants from
outside the organization, any manager or leader in today’s dynamic
times is expected to act in a change agent capacity.
• Indeed, this responsibility is increasingly defined even more specifically
as essential to the leadership role. Simply put, being an effective
change agent means being a great “change leader.
PLANNED AND UNPLANNED CHANGE
• Unplanned changes occur spontaneously or randomly. They may be
disruptive, such as a wildcat strike that ends in a plant closure, or beneficial,
such as an interpersonal conflict that results in a new procedure designed
to smooth the flow of work between two departments. When the forces of
unplanned change begin to appear, the appropriate goal is to act quickly to
minimize any negative consequences and maximize any possible benefits. In
many cases, unplanned changes can be turned into good advantage.

• planned change is the result of specific efforts by a change agent. It is a

direct response to someone’s perception of a performance gap—a
discrepancy between the desired and actual state of affairs. Performance
gaps may represent problems to be resolved or opportunities to be
explored.
• Most planned changes may be regarded as efforts intended to deal with
performance gaps in ways that benefit an organization and its members.
The processes of continuous improvement require constant vigilance to
spot performance gaps— both problems and opportunities—and to take
action to resolve them.
PHASES OF PLANNED CHANGE
contd
• Unfreezing : As a practical matter, change does not occur in a
vacuum of no prior perspective. To the extent the new is different
from the old and the old-had value to the individuals, the old
patterns of perspective implies a questioning and doubting of
existing assumptions and feelings. For most change which is
significant, the unfreezing requires a loosening of emotional as well
as intellectual forces. Unfreezing involves the following steps:
• A) Recognizing the Driving Forces
• Recognizing major changes in the environment and problems
within the organization is the first step toward organizational
change. In many organizations, however, the need for change may
go unnoticed until a major problem strikes.
• B) Increasing the Driving Forces Once the need for change is
identified, it has to be communicated to people who are involved in
the changing process. Because if members know why the change is
needed, they are more likely to adopt it.
contd
• The following strategies can be adopted to increase the -
acceptance of a change.
– Express the need for change
• People who will be affected by the change have to know the
change is needed. If they do not, they will hesitate to cooperate in
the change process.
• Communicate the potential benefit
• People have a tendency to ask, "what's in it for me?" Unless they
feel that the change will benefit them or that failure to change will
hurt them substantially, they are less likely to cooperate. If no
benefits can be identified, the costs of not changing must at least
be understood.
• Protect the interest of concerned people
• People fear change because it may cause them to lose their jobs,
income or status. Assurances of job security, income protection and
maintenance of status can increase the acceptance of change.
contd
• Get people involved in the process
• Participation can help people accept change. Some individuals have a positive
outlook on change and when they participate, the progress of change is
facilitated.
• Communicate the progress of change
• In order to minimize fear of the unknown, the content and progress of change
must be communicated to employees. It is often difficult to know all the
potential consequences and influences of a given change, but, by keeping
employees informed of its progress, management can at least maintain a
climate of trust.
• Use a respected change agent
• The credibility and power of the change agent can facilitate the process of
change. The change agent must be familiar with the technical and behavioral
aspects of a given change and must be someone with an influence on
organizational functioning.
• Reinforce earlier changes
• When an organization undertakes a large scale change involving a series of
continual modification, it is important for people to see that earlier changes
contd
C) Managing the Resisting Forces
• Most of the strategies designed to increase the driving forces are equally applicable for
reducing resisting forces to change.
• People resist change because they perceive that it can be harmful to them; thus, it is
essential that they be made aware of its need and benefit.
• Understanding the reason why people resist change can help you formulate a plan to reduce
the resistance.
• Moving
– In the moving or changing phase the individual is ready for new behavior and a change in
perspective.
– It is a time of trial and error learning, characterized by ambiguity and tentativeness.
– The phase is typically one of careful guidance by an authority, of learning the pieces of a
new pattern of behavior before the whole can be conceived.
– Moving or change involves changing the organizational components. Traditionally,
organizational change was thought to mean modifying only one subsystem of an
organization.
– For example if there was a change in technology, modifying a task was thought to be
sufficient. In recent years, however, more attention has been paid to larger-scale
organizational changes involving several organizational components. This approach is
based on the view that an organization is composed of four major components-task,
structure, technology and people and that a change in any one of them requires
changing the others
contd
• Refreezing
• This phase involves the establishment of a new perspective compatible
with and leading to the new desirable behavior.
• In effect, the new part of one's total perspective is now established and
integrated so that it fits the whole. This makes it possible for the new
behavior to be accomplished as a matter of course. This is the period in
which the individual or group begins to enjoy the rewards for the new
behavior, either extrinsically in the form of social approval, monetary
reward and the like or intrinsically in the form of ego satisfaction, sense
of mastery and self-fulfillment.
• In order to continuously reinforce the newly acquired behavior, the
organization needs to maintain the organizational fit among various
components that are supportive of such behavior. Without such
organizational compatibility, the organization will encounter instability.
• 4. Feedback
Management of change requires feedback and follow-up actions that
change program is progressing in right direction without producing
Individual Change and Organizational Change

• It may be useful to note the difference between individual change and

organizational change, although the two are interwoven.
• Individual change
• Is behavioral-determined by individual characteristics of members such as
knowledge, attitudes, beliefs, needs, expectations etc.
• It is possible to bring about a total change in an organization by changing
behaviors of individual members through participative-educative strategy.
• The degree of difficulty involved in the change and the time taken to
change will be primarily dependent upon what exactly is your target of
change.
• If your target of change is a person's knowledge, it would not be a very
difficult and time-consuming endeavor.
• Changing attitudes is usually considered more difficult and time taking
when compared to changing knowledge.
• Changing behavior is a still more time-taking and difficult task. We often
assume that having enough knowledge and a positive attitude towards
something will naturally result in changing behavior or modification
Evolutionary Change and Revolutionary Change

• Look at the following exhibit on the stages of organization's change and

development. You will find that in each stage there are some critical
concerns and key issues which must be addressed to and satisfactorily
solved. The exhibit also shows the consequences if the concerns are not
met with satisfaction.
• In order to meet the critical concerns of each stage, organizations go
through some rapid, visible, shake-ups of their structure, policies,
procedures, techniques, personnel, etc.
• These changes in calmer moments of steady growth may be viewed as
revolutionary changes.
• You will be able to appreciate the difference between the two degrees of
change through yet another model of organization’s growth given below.
• It postulates that as an organization grows from young to mature stage,
tiny sized to giant size, it passes through five phases of evolution each of
which ends with a period of crisis and revolution.
• Evolutionary periods are characterized by the dominant management styles
used to achieve growth, while revolutionary periods are characterized by
the dominant problems that must be solved before growth continues.
contd
contd
The first phase of a newly-born organization is characterized by:
– Creating a viable product in a promising market.
– The founders, who are usually technically brilliant and
entrepreneurially oriented, manage their endeavors themselves in
an ad hoc manner with little respect to any formal system of
communication and control.
– Their physical and mental energies are entirely absorbed in making
and selling.
– But as the organization starts growing from its tiny embryonic
stage, many managerial problems crop up, forcing the founders to
wonder as to who is going to lead the organization out of
confusion.
– By the end of the first phase, the crisis of leadership has emerged.
The solution usually lies in locating and installing a strong business;
manager who is acceptable to the founders and who can pull the
organization together.
contd
When leadership crisis forces the founders to relinquish some of
their power to a professional manager, organizational growth is
achieved by direction through systematization of operating
procedures.
The manager is usually given a free hand and zealously accepts
most of the responsibility for initiating direction. But the lower
level supervisors are treated merely as functional specialists
devoid of any decision-making authority. In course of growth
for the organization, the lower level managers demand more
autonomy in decision-making and the stage is set for the crisis
of autonomy to come to the fore. The second phase of the
organization's growth is capped by this turmoil for autonomy.
• The crisis of autonomy is resolved through the delegation of
authority which helps in gaining expansion through heightened
motivation at lower ranges. But one serious problem that
eventually evolves is the loss of top management control over
highly diversified field of operations.
contd
• The crisis of control emerges at the conclusion of phase three where
field managers run their own shows without aligning plans, money,
technology, or manpower with the rest of the organization. In order
to achieve more efficient allocation of organization's limited
resources, an elaborate network of coordinating mechanisms is
usually introduced at phase IV of 'the organization's growth.
• The organization becomes typically much more formalized;
rules, regulations and rigidities increase almost
exponentially. For some time, the new systems prove useful
for achieving growth through coordinated efforts. But soon
procedure takes precedence over problem-solving, the
chronic conflict between line and staff becomes acute. The
organization becomes too large and complex to be
managed through formal programms and rigid systems.
Thus begins the crisis of reshape.
contd
• The fifth phase of an organization's growth is characterized by
strong inter-personal collaboration in order to overcome the
crisis of red tape and the widespread conflicts between
several subsystems. Developing the team becomes the theme,
social contra and self-discipline take over from formal control,
more flexible and behavioral approaches are adopted to attack
the problems of managing a large organization.
• What crisis do you anticipate at this phase of organization's
growth? Nobody seems to know the exact nature of this
future shock, as no organization has traversed so far. Some
authors feels that some problems may emerge centering
around the psychological saturation of employees who grow
emotionally and physically exhausted by the intensity of
teamwork and the heavy pressure for innovative solution.
Antecedents of Organizational Change

• Reasons for which organizations change

• Some major antecedent conditions which serve as stimuli for changes
to be undertaken in an organization are discussed as bellow.
1. Growth and Decay
• Organization’s growth presents many problems and opportunities for
change. Decay too poses change problems. It leads to defensive,
restorative changes aimed at survival and the essential resumption of
growth.
• When growth occurs through internal vigor of product lines, services
or market penetration, change is gradual.
• Change is more extensive when growth occurs from mergers,
acquisitions or exceptionally rapid success of organizational activities.
• Mergers and acquisitions are undertaken for many reasons such as
consolidating or increasing capital, pooling management talent using
facilities more efficiently, increasing production and marketing
capacity and achieving vertical integration.
contd

2. New Personnel
• Some change is inevitable because of internal factors such as death,
retirement, transfer, promotion, discharge, or resignation and
constantly changing elements in the external environment.
• One of the most frequent reasons for major changes in company
structure is a change of executives at the top. They usually begin by
examining the structure below them to see if it corresponds to their
ideas of what will be needed to do their job effectively. Upon taking
over a position at the top, a new manager may make sweeping
changes.
3. Change Agents
• Change Agent is the technical term for an organizational member
whose role involves the strategies and procedures for bringing about
change. Any individual can be a change agent at one time or another,
but many people have positions, tasks, or formal roles in which their
main assignments involve dealing with change.
contd
• A change agent's formal role is primarily to plan and initiate
changes rather than to implement them. Change agents
serve as catalysts, interpreters, and synthesists. They often
work quietly behind the scenes to promote change.
• An interesting kind of change agent is often referred to as
"The Young Turk". Young Turks are new, usually young
employees, eager and ambitious, full of ideas for
improvement, and willing to be a bit pushy, and obnoxious,
or at least persistent, in trying their ideas.
• Organizations sensing the need for change often deliberately
appoint Young Turks to challenge the status quo. They are
not always popular with colleagues or even their bosses.
• The best of the Young Turks are those who have real talent
combined with a measure of tact and patience.
contd
4. Declining Effectiveness
Decline in effectiveness is one of the reasons for change for
organizations.
• Organizations have a number of ways of "taking their pulse" by
looking at indicators from their own information systems.
– A business firm monitors data on sales, absenteeism, turnover,
scrap rates, manufacturing costs and numerous ratios of financial
measures.
– Some firms also conduct regular opinion surveys of their work
force.
– Others have systematic methods of obtaining feedback from
customers.
• In response to the information obtained through the above
methods, the organizations make the required changes in
organization to maintain the desired level of efficiency.
•
contd
5. Change in Corporate Strategy
• An organization may undertake comprehensive changes even when no
indicators would suggest immediate problems in its performance.
• Forecasts of long run trend may prompt a decision to enter new markets, to
pursue a strategy of growth, to become less dependent on government, to
switch from a centralized to a decentralized structure, or to adopt new
technologies.
• All these strategic decisions have implications for changing the behavior of
people in their organization.
6. Crises
• Not infrequently, the occasion for organizational change is an unforeseen
crisis which makes continuation of the status quo unthinkable.
• The sudden death of a Chief Executive Officer, the resignation of key
members of a top management team, a strike by a critically important group
of specialized workers, loss of major client or suppliers on whom the
company has been dependent, a drastic cutback in budget, even
spontaneous civil disturbances directed against an organization force a
reorientation of the corporate posture and initiate a total revamping of
contd
7.Personal Goals
• Leaders, interest groups and coalitions have their
own goals: to see the company become more
aggressive, to shape the organization around
some distinctive theme, to cast a particular
corporate image, to further some ideology or
philosophy.
• Seldom are these goals stated in precisely those
forms, at least for the record or for public
consumption. More frequently, they are clothed
in rationalizations about their presumed effect on
profit and service.
Resistance To Change
• In organizations, resistance to change is any attitude or behavior
that indicates unwillingness to make or support a desired change.
Change agents often view any such resistance as something that
must be “overcome” in order for change to be successful. It is
helpful to view resistance to change as feedback that the change
agent can use to facilitate gaining change objectives. The essence of
this constructive approach to resistance is to recognize that when
people resist change, they are defending something important and
that appears threatened by the change attempt. Resistance to
change may be:
1. Resistance to the Change Itself Sometimes a change agent
experiences resistance to the change itself. People may reject a
change because they believe it is not worth their time, effort, or
attention. To minimize resistance in such cases, the change agent
should make sure that everyone who may be affected by a change
knows specifically how it satisfies the following criteria.
contd
a. Benefit—The change should have a clear relative
advantage for the people being asked to change;
it should be perceived as “a better way.”
b. Compatibility—The change should be as
compatible as possible with the existing values and
experiences of the people being asked to change.
c. Complexity—The change should be no more
complex than necessary; it must be as easy as
possible for people to understand and use.
d. Trialability—The change should be something
that people can try on a step by- step basis and
make adjustments as things progress.
Contd
2. Resistance to the Change Strategy Change agents must also be
prepared to deal with resistance to the change strategy. Someone
who attempts to bring about change via force–coercion, for
example, may create resistance among individuals who resent
management by “command” or the use of threatened punishment.
• People may resist a rational persuasion strategy in which the data
are suspect or the expertise of advocates is not clear. They may
resist a shared power strategy that appears manipulative and
insincere.
3. Resistance to the Change Agent Resistance to the change agent is
directed at the person implementing the change and often
involves personality and other differences. Change agents who are
isolated and aloof from other persons in the change situation, who
appear self-serving, or who have a high emotional involvement in
the changes are especially prone to such problems
Strategies to Overcome Resistance to Change
Change is such a constant in today’s organizations that to
mention it is like telling an old and not‐very welcome joke at a
dinner party. Nevertheless, sometimes in a change effort, the
organization makes you the story‐teller.
• How then can you bring out that old saw in fresh and effective
ways? How can you help your workplace accept an impending
and unavoidable change? Here are some proven strategies that
can make you more successful at overcoming resistance to
change.
1. Address Personal Concerns First
• Most organizations justify the need for change by telling their
employees—the ultimate users of the change—all of the
wonderful things the change will mean for the organization.
This is a poor approach to getting audience buy‐in. When faced
with a change, people react first with their own concerns:
contd
2. Link the Change to Other Issues People Care About
• The perceived need for a change can be increased by linking it to
other issues that people already care about (CRED, 2009). By
showing how a change is connected to issues of health, job
security,
• and other things that are already in the front of people’s minds,
you can make a change “more sticky” and less likely to be replaced
as new demands for their attention show up.
3. Tap into People’s Desire to Avoid Loss
• People are more sensitive to loss than to gain. This “negativity
bias” is a longstanding survival trait that has kept humans alive
throughout their development as a species. Historically, it was
always more important to avoid stepping on a snake than to find a
soft place to sleep.
• Therefore, rather than just telling people what they stand to gain
from a change, you may have a greater impact by telling them
contd
4. Tailor Information to People’s Expectations
• People generally hold firm views of how the world works. These often
unconscious and invisible “mental models” govern much of people’s
thinking including how they perceive a potential change (Carey, S.,
1986; Morgan, M., Fischhoff, B., Bostrom, A., et al., 2002). For
example, they may tend to see a change as something good about to
happen (a promotion model) and willingly accept it, or they may see a
change as something bad about to happen (a prevention model) and
deal with it as an “ought to do” while focusing their energy on
avoiding loss (Cesario, Grant, and Higgins, 2004; Higgins, 1997, 2000).
You can provide all the logical arguments in the world in support of
your change, but if your arguments don’t match the basic assumptions
and rules to the way the person sees the world, you are unlikely to get
very far. To make matters worse, people hold fast to their current
beliefs, desires, or feelings; this “confirmation bias” means that if the
change you are promoting doesn’t appeal to their current beliefs,
desires, or feelings, you may have a hard time making any headway.
contd
5. Group Your Audience Homogeneously
• Getting the message over to a group of people who share basic opinions
with regard to the change is easier than getting it over to a group of
people with diverse opinions. Whenever possible, divide your audience
into homogeneous groups insofar as their view of the change goes.
• Being smart about how you present your argument and evidence for
change.
6. Take Advantage of People’s Bias—Buy Now, Pay Later!
• People tend to see things that are happening now as more urgent than
those that will happen in the future (Weber, 2006). This tendency is
often referred to as “discounting the future.” For instance, when
presented with the option of getting $250 now or $366 in a year (a 46%
rate of interest), the average person will choose the $250 now (Hardesty
and Weber, 2009).
• This suggests that when trying to persuade others that a change is
necessary, even though the future threat and loss may be great, it is
desirable to emphasize that inaction now poses its own threat and loss.
Contd
7. Make the Change Local and Concrete
• Often organizational changes are responses to some sort of threat. If that
threat is seen as more relevant to distant outsiders than to the people in the
organization, or if the threat is presented in the abstract, then the targeted
people will have little motivation to change (Leiserowitz, 2007).
• However, if you can demonstrate in concrete terms that the threat is local
and will have a real impact on the people you are trying to get to accept the
change, you may find it easier to persuade them to buy ‐in.
8. Appeal to the Whole Brain
• Often, when making a case for a change, change agents use lots of numbers,
charts, tables, etc. Such facts and figures appeal especially to one side of the
brain. But the human brain has two sides, and although they work together,
each has a different way of processing information. The left side is analytical
and controls the processing of quantitative information. The right side is
experiential and controls the processing of emotional information.
• Even for audiences where one side may dominate (e.g., engineers who favor
facts and figures), the most effective communication targets both sides of
the brain (Chaiken and Trope, 1999; Epstein, 1994; Marx, et.
contd
9. Know the Pros and Cons of Your Change
• Not all changes are equal. Some are more beneficial, and some cause
more inconvenience and pain. Some characterstics
• Simple—Is your change complex or is it relatively simple to
understand and do?
• Compatible—Is your change compatible with what your users are
used to?
• Better—Does your change offer clear advantages over other
alternatives, including the status quo?
• Adaptable—Can people adapt your change to their own
circumstances or must they do it exactly the way you prescribe?
• Painful—Does your change alter social relationships in any way by
changing where people work, who they deal with, or how they spend
their time?
• Divisible—Can you break the change you offer into smaller parts or
phases, or must audiences implement it all at one time?
Strategies of implementing change

1. The Tops-down Strategy

• The advocates of this strategy believe that, in general, people resist
changes and require direction and structure for their well being as well
as to work efficiently and effectively. The basic psychological contract
between employees and management, it is assumed, is one in which the
employee provides work, effort and commitment and expects in return
pay, benefits, and a clear definition of what is expected to be done. It
follows that it is the management's responsibility to design the changes
it deems appropriate and to implement these thoroughly but quickly by
directives from the top.
• 2. The Bottoms-up Strategy
• The advocates of this approach profess a more enlightened view of
human nature. They argue that people welcome change and the
opportunity to contribute to their own productivity, especially if the
change gives, them more variety in their work and more autonomy.
These managers assume people have a psychological contract which
includes an expectation that they be involved in designing change as well
contd
• Contingency Approach
• According to the contingency school, the choice of an appropriate
strategy and the implementation diagnosis consists of assessing
eight independent variables or factors in the organizations. Based on
the diagnosis which evolves, the basic implementation strategy will
consist of selecting values along the continua for the three
dependent variables as shown at the bottom of Table below.
• Once the values of these variables have been located, and if the
answers to the diagnostic for the independent variables fall towards
the left of the continuum, then the implementation strategy would
also be leftwards. On the other hand, if the values of variables tend
towards the right side of continuum then the implementation
strategy would also be rightwards. Thus, for example, if there is very
little time available, the crisis or need for change is clear to all, it is a
small organization, and so on, the appropriate change strategy is
tops-down, directive, and fast.
Learning Organizations
• A learning organization is one that is able to change
its behaviors and mind-sets as a result of
experience.
• ‘Organizational learning’ is a fighting process for
organizations in the face of swift pace of change
(Senge, 1990).
• In this battle managers are responsible for
increasing the awareness and the ability of the
organization members to comprehend and manage
the organization and its environment. In this way
they can make decisions that continuously secure
the organization to reach its goals.
Characterstics of Learning Organizations
1. Adopt an organic, networked organizational form.
2. Encourage their employees to learn and to confront
their assumptions
3. Have employees who share a common vision
4. Have the capacity
• to adapt to unforeseen situations/calamities or changes
• to learn from their own experiences( past present)
• to shift their shared mindsets
• to change more quickly, broadly, and deeply than ever before.