Unit – 1

MANAGEMENT OF CHANGE

Introduction to Management of Change

Change management (CM) refers to any approach to transitioning individuals, teams

and organizations using methods intended to re-direct the use of resources, business process,
budget allocations, or other modes of operation that significantly reshape a company or
organization. Organizational change management (OCM) considers the full organization and
what needs to change. Organizational change management principles and practices include CM
as a tool for change focused solely on the individual.

CM focuses on how people and teams are affected by an organizational transition. It deals with
many different disciplines, from behavioral and social sciences to information technology and
business solutions. In a project management context, CM may refer to the change
control process wherein changes to the scope of a project are formally introduced and
approved. Organizational change management employs a structured approach to ensure that
changes are implemented smoothly and successfully to achieve lasting benefits.

Globalization and constant innovation of technology result in a constantly evolving business

environment. Phenomena such as social media and mobile adaptability have revolutionized
business and have increased need for change, therefore, change management. The growth in
technology also has a secondary effect of increasing the availability and therefore accountability
of knowledge. Easily accessible information has resulted in unprecedented scrutiny from
stockholders and the media and pressure on management.

With the business environment experiencing so much change, organizations must then learn to
become comfortable with change as well. Therefore, the ability to manage and adapt to
organizational change is an essential ability required in the workplace today. Yet, major and
rapid organizational change is profoundly difficult because the structure, culture, and routines of
organizations often reflect a persistent and difficult-to-remove "imprint" of past periods, which
are resistant to radical change even as the current environment of the organization changes
rapidly.

Due to the growth of technology, modern organizational change is largely motivated by exterior
innovations rather than internal factors. When these developments occur, the organizations that
adapt quickest create a competitive advantage for themselves, while the companies that refuse
to change get left behind. This can result in drastic profit and/or market share losses.

Organizational change directly affects all departments and employees. The entire company
must learn how to handle changes to the organization. The effectiveness of change
management can have a strong positive or negative impact on employee morale.
History of Change Management

1960s

Many change management models and processes are based with their roots in grief studies. As
consultants saw a correlation between grieving from health-related issues and grieving among
employees in an organization due to loss of jobs and departments, many early change models
captured the full range of human emotions as employees mourned job-related transitions.

In his work on diffusion of innovations, Everett Rogers posited that change must be

understood in the context of time, communication channels, and its impact on all
affected participants. Placing people at the core of change thinking was a fundamental
contribution to developing the concept of change management. He proposed the descriptive
Adopter groups of how people respond to change: Innovators, Early Adopters, Early Majority,
Late Majority and Laggards.

1980s

McKinsey & Company consultant Julien Phillips published a change management model

in 1982 in the journal Human Resource Management, though it took a decade for his change
management peers to catch up with him.

Robert Marshak has since credited the big 6 accounting and consulting firms with adopting the
work of early organizational change pioneers, such as Daryl Conner and Don Harrison, thereby
contributing to the legitimization of a whole change management industry when they branded
their reengineering services as change management in the 1980s.

1990s

In his 1993 book, Managing at the Speed of Change, Daryl Conner coined the term 'burning
platform' based on the 1988 North Sea Piper Alpha oil rig fire. He went on to found Conner
Partners in 1994, focusing on the human performance and adoption techniques that would help
ensure technology innovations were absorbed and adopted as best as possible.

2000s

Linda Ackerman Anderson states in Beyond Change Management that in the late 1980s
and early 1990s, top leaders, growing dissatisfied with the failures of creating and
implementing changes in a top-down fashion, created the role of the change leader to
take responsibility for the human side of the change. The first State of the Change
Management Industry report was published in the Consultants News in February 1995.

2010s

In Australia, change management is now recognised as a formal vocation through the work of
Christina Dean with the Australian government in establishing national competency standards
and academic programmes from diploma to masters level.
In response to continuing reports of the failure of large-scale top-down plan-driven change
programmes, innovative change practitioners have been reporting success with
applying Lean and Agile principles to the field of change management.

The Association of Change Management Professionals (ACMP) announced a new certification

to enhance the profession: Certified Change Management Professional, planned for 2016.

Process of Managing Organizational Change:

https://www.managementstudyguide.com/kotters-8-step-model-of-change.htm

https://www.slideshare.net/manumelwin/kotters-eight-step-model-of-organizational-
change

Although there are many types of organizational changes, the critical aspect is a company's
ability to win the buy-in of their organization's employees on the change. Effectively managing
organizational change is a four-step process:

 Recognizing the changes in the broader business environment.

 Developing the necessary adjustments for their company's needs.

 Training their employees on the appropriate changes.

 Winning the support of the employees with the persuasiveness of the appropriate
adjustments.
As a multi-disciplinary practice that has evolved as a result of scholarly research, organizational
change management should begin with a systematic diagnosis of the current situation in order
to determine both the need for change and the capability to change. The objectives, content,
and process of change should all be specified as part of a change management plan.

Change management processes should include creative marketing to enable communication

between changing audiences, as well as deep social understanding about leadership styles and
group dynamics. As a visible track on transformation projects, organizational change
management aligns groups' expectations, integrates teams, and manages employee-training. It
makes use of performance metrics, such as financial results, operational efficiency, leadership
commitment, communication effectiveness, and the perceived need for change in order to
design appropriate strategies, resolve troubled change projects, and avoid change failures.

Factors of successful change management

Successful change management is more likely to occur if the following are included:

 Define measurable stakeholder aims and create a business case for their achievement

(which should be continuously updated)

 Monitor assumptions, risks, dependencies, costs, return on investment, dis-benefits and

cultural issues

 Effective communication that informs various stakeholders of the reasons for the change
(why?), the benefits of successful implementation (what is in it for us, and you) as well
as the details of the change (when? where? who is involved? how much will it cost? etc.)

 Devise an effective education, training and/or skills upgrading scheme for the
organization

 Counter resistance from the employees of companies and align them to overall strategic
direction of the organization

 Provide personal counseling (if required) to alleviate any change-related fears

 Monitoring of the implementation and fine-tuning as required

11 Steps Continual Organizational Change Process – By Peter, Change Management

Consultant (Built on Kotter’s 8 Steps Change Processs)

Step 1 - Build Awareness

The first step in the organizational change process begins with building awareness. A
company's people need to be aware that there is a continuing pressure to make a change or
improve. Why? Otherwise things will stand still, the status quo will remain the same and many
things will never change.

Competition and competitive forces will take over. You may hear people say, 'The way we do
things around here!'
One benefit of this awareness and pressure is that it gets things moving and when actioned
correctly, it gets positive things done. Maybe the CEO has insights into what lies ahead and this
awareness becomes the internal pressure to change.

This awareness among your employees is significant benefit for your business because it
provides your organization a motivational edge. When this motivation is followed by action your
organization can lead its field.

And in addition this invites into the business anticipation of what lies ahead which is more
important than ever before because of the rapid rate that business consumer and producer
markets are changing and with tougher competition and so on.

Step 2 - Recognize an Area of Need

The second step in the organizational change process is to recognize where in the business is
the most important need right now. We may be aware that there is pressure for our business or
department to improve of change, but how do we determine what area within our business or
department to focus on. Where is the greatest need?

The starting point may be by undertaking a simple company health check. It may be by looking
at what gaps exist between where the business is now and where you want it to be, or by
comparing the elements of a high performance business to your own, or by benchmarking
against competitors.

Internally often the area of need can be recognized by reviewing the company's financial
performance. However you may also recognize a need in the company's staff attrition rates,
number of injuries at work or when the firm is not producing the volume it has the capacity to
produce. There may be too much down time of equipment, high maintenance, failure and defect
rates, or the trend is successful sales calls may be heading down.

One benefit of analyzing the business is recognizing the area where changes are most needed
now.

Step 3 - Diagnose the Problem

The third step in the organizational change process is to diagnose the extent of how broad the
opportunity is to improve. To diagnose the existing issues or problems affect on the firm and
which aspect of it should be focused on first?

Initially the various change management tools such as internal interviews, survey
questionnaires, workplace observation, and data mining and brainstorming techniques can be
used. In addition, to complete a root causes analysis of the main issues, some of the operations
management tools to use include Pareto charts, fishbone diagrams and the 5 whys.

Collect and analyze as much information as is needed when managing change in the workplace
to be able to make the first major decision. How widespread the issue appears to be will
determine the extent of the analysis required. It may involve organizational wide analysis
including reviewing the firms goals, plans and practices, or may involve just one department or
function.

Step 4 - Decision 1

Are we going to take this opportunity or not? This is first major decision in the organizational
change process. Answering the question: Are we going to fix the problem, or not fix it and
maintain the course we are on?

Step 5 - Develop, Review and Compare Possible Courses of Action

Determine which action will provide the best result in the shortest possible time. Reviewing and
comparing possible courses of action is the fifth step of the organizational change process.

More than one area of the business may improve with some causes of actions, while other
actions may not fit well because they may cause a problem somewhere else. Continue with
additional brainstorming activities and data analysis with your team and through stakeholder
analysis to develop the best courses of action available.

One benefit of this step is the opportunity to determine the right action that will deliver the
sustainable results you seek in the shortest possible time.

Step 6 - Decision 2

Selecting the best course of action to take is the second major decision in the organizational
change process. Try to base this decision on the achievement of the end result being in support
of the firm's strategic objectives, and one that can be sustainable and provide financial benefit to
your firm.

Step 7 - Plan the Change

Develop the change management plan. Planning the change will involve answering the
questions of who, what, when, where, how and why.

Step 8 - Reassess and Adjust

Check your original business plan against your change management plan and its scheduled roll-
out. This is a short double checking phase of the organizational change process. Understand
and highlight any differences the impact of the change may have on the business plan and
make adjustments where necessary.

Step 9 - Implement the Plan

Action time. Implementing the changes and improvements is the ninth step in the organizational
change process, the action phase. Communicate the details of the plan to all people involved
and ensure understanding of the changes, how it effects them and their required involvement.
This helps in reducing internal challenges to change and minimizes change resistance.
Implementation should go ahead smoothly if the diagnosis and involvement of staff and the
stakeholder analysis has been undertaken thoroughly. If the project has been rushed through
without proper consultation and review then it may be a very hard project to implement, more
expensive, and could take a very long time.

Step 10 - Follow-up, Measure and Review

Follow-up, measure and review the change. Ensure your firm can maintain sustainable results
after the change by having an installed management operating system.

Measure the actual outcomes against the planned deliverables, and review the 'as is' against
the 'as was'.

Carry out skills audits to identify gaps and to support staff.

Review results to identify additional areas for continued change.

Report the efficiency and effectiveness of the new business systems and processes back into
the ongoing organizational change process.

Step 11 - Celebrate Achievements

Events are great for continuous improvement strategies, with most people involved having a
nice time they can also help to bring different teams within the company closer together.

Other options organizations use to celebrate achievements include staff recognition and reward
programs, promotions and positive performance appraisals.

Managing Resistance to Change:

https://slideplayer.com/slide/12902815/

https://www.slideshare.net/NavyaJayakumar1/change-resistance-to-change-overcome-
resistance-to-change

https://asq.org/quality-resources/change-management
Change resistance can provide substantial benefits to your firm as later in the organizational
change process people begin to suggest more ways to improve and to make more changes.

One of the reasons people may initially resist change is because they were not involved in the
development of the project initiatives. However because they are a part of the organization they
will in most cases participate in the roll-out.

Initially their behavior may appear mechanical, however as the change management benefits
start to come through and the momentum increases, their commitment to the project initiatives
and the organization builds.

Resistance is actually healthy. Try not to react against it defensively. It is good for you because
it makes you check your assumptions and it forces you to clarify what you are doing. You must
always probe the objections to find the real reason for resistance. Many times, it comes down to
personal fear.

Ways to reduce resistance to change:

1. Involve interested parties in the planning of change by asking them for suggestions and
incorporating their ideas.

2. Clearly define the need for the change by communicating the strategic decision
personally and in written form.
3. Address the “people needs” of those involved. Disrupt only what needs to be changed.
Help people retain friendships, comfortable settings and group norms wherever possible.

4. Design flexibility into change by phasing it in wherever possible. This will allow people to
complete current efforts and assimilate new behaviours along the way. Allow employees
to redefine their roles during the course of implementing change.

5. Be open and honest.

6. Do not leave openings for people to return to the status quo. If you and your organization
are not ready to commit yourselves to the change, don’t announce the strategy.

7. Focus continually on the positive aspects of the change. Be specific where you can.

8. Deliver training programs that develop basic skills as opposed to processes such as:
conducting meetings, communication, teambuilding, self-esteem, and coaching.
Strategies and Guidelines for Imparting Change

Change management is a process that allows companies to implement a change within the
organization effectively and efficiently. But, before you begin trying to implement the intended
change, you need to create a change management plan.

There are many advantages and disadvantages of change management. You need to decide
for yourself if you are willing to accept the disadvantages before you move forward with your
plan. It helps to read an overview of change management before you start.

Having a process in place to manage change is necessary because most businesses nowadays
are very decentralized. Multiple employees or users may be the ones who are making a change
to a system. This could lead to trouble if those making the changes do not understand how
those changes could affect the organization as a whole. That is why you should always have a
change management plan in place before a change is made.

Plan Objectives

The objectives of your plan should be pretty obvious, but you should have them written down
somewhere.

Train and educate employees, stakeholders, management, and clients about why the change is
necessary and what the change will involve.

Come up with back-out procedures in case the change is not having the desired effect.

Implement the planned change.

Monitor and evaluate the change before, during and after its implementation.

Change management strategies can help you deal with problems in the long run.

Plan Guidelines

Your change management strategy should involve plenty of documentation. Every change
needs to be documented so that you have a written record of what was done. Also,
communication before, during, and after the process is a must. You need to show why the
change is necessary, what is being done, and what risks are involved in the change.

A change management strategy can be broken down into several steps. If you follow these
steps, it will help you successfully implement your plan.

1. Create your plan and define your change management process.

You need to come up with procedures for your change management process. Who is
responsible for what? Who will be your change management coordinator? How will you
measure the change and its effectiveness? What tools will be used? What types of changes
are being implemented? What has priority?
 2. Submission of change requests.

You need to obtain in writing all of the changes that are being proposed. Change requests
need to be given to the change management coordinator. You should have an established
change request form on hand, which contains both the date, time and what is being
requested. You can see an example of a change management request/record form by
clicking on the link.

3. Implementing Change Strategy.

Start implementing your change management strategy, and monitor it before, during, and
after the change. You should have back-out strategies in place in case the change is not
effective.

4. Evaluation.

The change coordinator needs to see where change was effective, where it created
problems, and whether or not it was effective as a whole.

5. Monitor.

Update the change management plan if the initial plan is not effective. You may need to
modify the plan for a variety of reasons, including ineffectiveness, too many back-outs, only
a certain amount of changes being handled, etc.

Once your change management plan has been implemented, you need to constantly evaluate
its success and its impact for years to come. A plan that was effectively implemented, for
example, could fall apart way after its adoption because employees have slipped back into their
old ways of doing things.
Models and Theories to Planned Change

Kurt Lewin Model

One of the cornerstone models for understanding organizational change was developed by Kurt
Lewin back in the 1940s, and still holds true today. His model is known as Unfreeze – Change –
Refreeze, refers to the three-stage process of change he describes. Lewin, a physicist as well
as social scientist, explained organizational change using the analogy of changing the shape of
a block of ice.

If you have a large cube of ice, but realize that what you want is a cone of ice, what do you do?
First you must melt the ice to make it amenable to change (unfreeze). Then you must mold the
iced water into the shape you want (change). Finally, you must solidify the new shape
(refreeze).

Lewin's Change Model: Unfreeze, Change, Refreeze

By looking at change as process with distinct stages, you can prepare yourself for what is
coming and make a plan to manage the transition – looking before you leap, so to speak. All too
often, people go into change blindly, causing much unnecessary turmoil and chaos.

To begin any successful change process, you must first start by understanding why the change
must take place. As Lewin put it, "Motivation for change must be generated before change can
occur. One must be helped to re-examine many cherished assumptions about oneself and one's
relations to others." This is the unfreezing stage from which change begins.
Unfreeze

This first stage of change involves preparing the organization to accept that change is
necessary, which involves break down the existing status quo before you can build up a new
way of operating.

Key to this is developing a compelling message showing why the existing way of doing things
cannot continue. This is easiest to frame when you can point to declining sales figures, poor
financial results, worrying customer satisfaction surveys, or suchlike: These show that things
have to change in a way that everyone can understand.

To prepare the organization successfully, you need to start at its core – you need to challenge
the beliefs, values, attitudes, and behaviors that currently define it. Using the analogy of a
building, you must examine and be prepared to change the existing foundations as they might
not support add-on storeys; unless this is done, the whole building may risk collapse.

This first part of the change process is usually the most difficult and stressful. When you start
cutting down the "way things are done", you put everyone and everything off balance. You may
evoke strong reactions in people, and that's exactly what needs to done.

By forcing the organization to re-examine its core, you effectively create a (controlled) crisis,
which in turn can build a strong motivation to seek out a new equilibrium. Without this
motivation, you won't get the buy-in and participation necessary to effect any meaningful
change.

Change

After the uncertainty created in the unfreeze stage, the change stage is where people begin to
resolve their uncertainty and look for new ways to do things. People start to believe and act in
ways that support the new direction.

The transition from unfreeze to change does not happen overnight: People take time to
embrace the new direction and participate proactively in the change. A related change model
focuses on the specific issue of personal transitions in a changing environment and is useful for
understanding this specific aspect in more detail.

In order to accept the change and contribute to making the change successful, people need to
understand how the changes will benefit them. Not everyone will fall in line just because the
change is necessary and will benefit the company. This is a common assumption and pitfall that
should be avoided.

Tip:

Unfortunately, some people will genuinely be harmed by change, particularly those who benefit
strongly from the status quo. Others may take a long time to recognize the benefits that change
brings. You need to foresee and manage these situations.
Time and communication are the two keys to success for the changes to occur. People need
time to understand the changes and they also need to feel highly connected to the organization
throughout the transition period. When you are managing change, this can require a great deal
of time and effort and hands-on management is usually the best approach.

Refreeze

When the changes are taking shape and people have embraced the new ways of working, the
organization is ready to refreeze. The outward signs of the refreeze are a stable organization
chart, consistent job descriptions, and so on. The refreeze stage also needs to help people and
the organization internalize or institutionalize the changes. This means making sure that the
changes are used all the time; and that they are incorporated into everyday business. With a
new sense of stability, employees feel confident and comfortable with the new ways of working.

The rationale for creating a new sense of stability in our ever changing world is often
questioned. Even though change is a constant in many organizations, this refreezing stage is
still important. Without it, employees get caught in a transition trap where they aren't sure how
things should be done, so nothing ever gets done to full capacity. In the absence of a new
frozen state, it is very difficult to tackle the next change initiative effectively. How do you go
about convincing people that something needs changing if you haven't allowed the most recent
changes to sink in? Change will be perceived as change for change's sake, and the motivation
required to implement new changes simply won't be there.

As part of the Refreezing process, make sure that you celebrate the success of the change –
this helps people to find closure, thanks them for enduring a painful time, and helps them
believe that future change will be successful.

Force Field Analysis: Lewin's Next Level

In addition to the main three phases of his change theory, Lewin extended his theory by
including “force field analysis”. A force field analysis allows the change agent to identify positive
and negative forces in a change event. This allows for fine tuning of communication or strategy.
Lewin assumed that in any situation there are both driving and restraining forces that influence
any change that may occur. According to Lewin’s theory, human behavior is caused by forces –
beliefs, expectations, cultural norms, and the like – within the “life space” of an individual or
society. These forces can be positive, urging us toward a behavior, or negative, propelling us
away from a beneficial behavior as illustrated below.
Understanding the dynamics of Lewin's "force field" is an important step in learning to apply his
3-phase change theory in real-life situations. It is simple to read the unfreeze, change, re-freeze
steps and assume that making changes in an organization is easy. However, without knowing
what positive factors (or people) can aid you in your change initiative, it is going to be a more
difficult challenge. Also, knowing what the primary negative forces (or resistive people) are will
allow you to formulate a strategy for securing buy-in or support from even those who are not as
quick to accept the change.

Edgar Schein Model

https://www.humansynergistics.com/blog/culture-university/details/culture-
university/2018/05/15/a-template-for-organizational-cultural-change

In 1980 the American management professor Edgar Schein developed organizational culture

model to make culture more visible within an organization.

He also indicated what steps need to be followed to bring about cultural change.

According to Edgar Schein there are direct and indirect mechanisms within organizations.

The organizational culture model is directly influenced by direct mechanisms. This includes
exemplary behaviour, opinions, status and appointments.

Indirect mechanisms do not influence the organizational culture directly however they are

determinative. This includes the mission and vision statement of a company, formal guidelines,
corporate identity, rituals and design.

Artifacts and symbols

Artifacts mark the surface of the organization. They are the visible elements in the organization
such as logos, architecture, structure, processes and corporate clothing.

These are not only visible to the employees but also visible and recognizable for external
parties.

Espoused Values

This concerns standards, values and rules of conduct. How does the organization express
strategies, objectives and philosophies and how are these made public?

Problems could arise when the ideas of managers are not in line with the basic assumptions of
the organization.

Basic underlying assumptions

The basic underlying assumptions are deeply embedded in the organizational culture and are
experienced as self-evident and unconscious behaviour.

Assumptions are hard to recognize from within.

This is also known as the onion model

In practice, the three levels of the organizational culture model are sometimes represented as
an onion model as it is based on different layers.

The outer layer is fairly easy to adapt and easy to change.

The deeper the layer, the harder it becomes to adjust it.

Deeply embedded in the core of the onion we find the assumptions. Around the core we find the
values. The artifacts and symbols can be found in the outer layers of the onion and these can
be changed more easily.

Between this layer and the layer in which the values are embedded, there may be another layer
in which we find the so-called “heroes”; people who play or have played an important role in the
organization and who are admired.

The core of the onion is made up of assumptions. These are about “how the world
works” according to the all the people who belong to the organization and stem from
experiences and perception.

These have partly become unconscious assumptions and they are considered to be self-evident
therefore they need not be discussed.

Cultural change

Schein’s organizational culture model also provides points of reference to create cultural

change.
According to Edgar Schein, its sensible to have discussions with as many employees as
possible to discover the underlying backgrounds and aspects of the organizational culture.
These could be a basis for cultural change.

People should be aware that cultural change is a transformation process; behaviour must be
unlearned first before new behaviour can be learned in its place.

When a difference arises between the desired and the prevailing culture, cultural interventions
should take place. The responsibility lies with senior management supported by a personnel
department. This requires a comprehensive approach.

A new logo, corporate style or a customer-orientation training will not suffice. It is important that
results are measured and that good performance is rewarded.

Burke-Litwin Model

Burke-Litwin: Understanding Drivers for Change.

There are many reasons that change occurs in organisations. Building on the Burke-Litwin
model of organisational change and performance, this article will help you identify different
drivers of change and consider the implications for you as a change manager. The Burke-Litwin
model shows the various drivers of change and ranks them in terms of importance. The model
is expressed diagrammatically, with the most important factors featuring at the top. The lower
layers become gradually less important. The model argues that all of the factors are integrated
(to greater or lesser degrees). Therefore, a change in one will eventually affect all other factors.

Burke & Litwin believe environmental factors to be the most important driver for change. Indeed,
most change can be traced back to external drivers for change.

Important elements of organisational success, such as mission and strategy, leadership and
organisational culture, are often impacted by changes that originate outside the organisation.

It is your job to understand these external changes and identify the implications for you and your
team.

Identifying and Dealing with Drivers for Change

1. External Environment

This includes such factors as markets, legislation, competition and the economy. All of these will
have consequences for organisations, and, as a change manager, it is vital that you continually
scan the environment for issues that will affect you and your team. For example, in the world of
accountancy, International Accounting Standards and International Financial Reporting
Standards will have a significant impact on the way companies manage their accounts and
report their results. In the public sector, legislative changes across health, local government and
other services have a direct impact on the work organisations are required to carry out.

2. Mission and Strategy

An organisation’s mission articulates its reason for existing. It is the foundation upon which all
activity should be built. The strategy then sets out, in broad terms, how the organisation will go
about achieving its mission. Very often, the strategy will be developed in light of environmental
change, and will have a significant impact on the work you do. As a change manager, you need
to understand change in strategy and be able to communicate the implications to your staff.

3. Leadership

This considers the attitudes and behaviour of senior colleagues and how these behaviours are
perceived by the organisation as a whole. The way in which change is implemented and
accepted through the organisation will be largely influenced by the top team. Does your team
believe that senior colleagues are committed to change, or is it just another initiative that will
disappear in six month’s time?

4. Organisation Culture

Organisation culture can be described as “the way we do things around here”. It considers the
beliefs, behaviours, values and conventions that prevail in an organisation. Culture change does
not happen overnight. It evolves over time as a result of many other changes in the
organisation. As a manager, you should keep in mind the desired state for the organisation, in
terms of how you expect people to behave (and not to behave), and what your organization
values as important. You need to ensure that your behaviour fits with these expectations at all
times, and that you ‘walk the walk’.

5. Structure

Very often, changes in strategy can lead to changes in the way the organisation is structured.
This can impact on relationships, responsibilities and ways of working. Your job is to assess the
impact of the structural change and ensure your team understands why it is required, and what
it means for them.

6. Work Unit Climate

This considers employees’ perception of their immediate colleagues and working environment.
Our immediate working environment is often what shapes our view of the organisation as a
whole, and influences the extent to which we feel satisfied in our jobs.

Changes to the immediate working environment need to be managed sensitively, as they are
likely to invoke a range of emotional and political responses from staff. This is particularly the
case where change involves moving location, a change in personnel, or a change in terms of
conditions of service, such as working hours.

7. Task Requirements and Individual Skills/Abilities

Change at a higher level in the organisation will often require changes in the work carried out
and the skills available in the team. As the change manager you need to assess whether: all the
right skills are in place; if they can be developed; or, if you need to bring them in from outside
the team.

8. Individual Needs and Values

Changes to team membership can mean a change in the team dynamic. In a perfect world, we
would be able to recruit the exact fit for our teams, in terms of personal style, abilities and skills
mix. However, in reality it is not always possible, and it is your job to identify any risks in these
areas and mitigate them as best you can.

9. Employee Motivation

Consider the significance of individual and organisational goals. Motivation is key to effective
change. The real challenge is to maintain motivation throughout a change project, particularly
when change is often not well-received by those affected.
Porras-Robertson Model

https://www.slideshare.net/manumelwin/porras-and-robertson-model

Porras and Robertson model focuses on individual behavior. The model’s premises suggest
that by focusing on individual behavior the overall disposition of the organization can be
impacted. French and Bell (1999) agree with researchers that through focusing on what are
“expected, required, and rewarded” OD practitioners can obtain the desired work behaviors.

Porras and Robertson believe that organizational change appears when individuals modify their
behavior – a fact which occurs, in its turn, because of the environment’s transformation thanks
to OD. In other words, the purpose is altering individual behavior by changing the work
environment’s structure and way of functioning. This last change is due to interventions upon
four factors: organizational arrangements, social factors, physical environment and technology.

This model presents a psychological perspective upon organizational change, with an emphasis
on the interventions in the working environment. For instance, transformations based on goals,
strategies and rewards will affect organizational arrangements (in other words, both the static as
well as the dynamic structure of the organization). As for those that place their emphasis on
culture, management style and interaction processes, they will affect social factors etc. The
basal premise is that factors that make up the working environment influence the behavior and
axiological direction of the organization’s members (as they learn what is expected of them,
what type of behavior is rewarded and what other type is banned), which in turn influence their
performance at the workplace, and consequently, the performance of the entire organization.
The model belonging to Porras and Robertson both indicates specific points/dimensions of the
organization that can become targets of change or of OD interventions, as well as suggests the
possible consequences of actions upon these organizational elements. Nevertheless, this
model‟s utility is limited by the fact that it focuses only on increasing performance level (a
possible and significant OD goal, but not the only one), as well as by its not approaching the OD
process systematically, laying stress on interventions at individual level – a limited area and a
rather uncertain one, when it comes to global results.

SYSTEMS THEORY

This theory identifies that organizations are “open systems that exchange with the environment”
(French and Bell, 1999). The systems theory first came about in 1950 under the direction of
Ludwig von Bertalanffy. In most cases organizations work in an input and output environment
and as open systems they communicate with the environment. As such they can be receptive
to changes needed from feedback from their environment. In today’s fast paced global
marketplace organizational development under the systems theory is very common. One of the
risks of such an approach could be the inability to gather data from the TOP three areas that
feed such an approach.

https://www.slideshare.net/manumelwin/systems-theory-50247339

https://www.slideshare.net/hooriaali1/open-system-theory
PROSCI’S Change Management Process

The change management process is the sequence of steps or activities that a change
management team or project leader follow to apply change management to a change in order to
drive individual transitions and ensure the project meets its intended outcomes. The below
elements have been identified from research as key elements of a successful change
management process.

Prosci 3-phase process for change

Here are the nine elements of a successful change management process:

1. READINESS ASSESSMENTS

Assessments are tools used by a change management team or project leader to assess the
organization's readiness to change. Readiness assessments can include organizational
assessments, culture and history assessments, employee assessments, sponsor assessments
and change assessments. Each tool provides the project team with insights into the challenges
and opportunities they may face during the change process. What to assess:

Assess the scope of the change:

How big is this change?

How many people are affected?

Is it a gradual or radical change?

Assess the readiness of the organization impacted by the change:

What is the value-system and background of the impacted groups?

How much change is already going on?

What type of resistance can be expected?

You will also need to assess the strengths of your change management team and change
sponsors, then take the first steps to enable them to effectively lead the change process.
2. COMMUNICATION AND COMMUNICATION PLANNING

Many managers assume that if they communicate clearly with their employees, their job is
done. However, there are many reasons why employees may not hear or understand what their
managers are saying the first time around. In fact, you may have heard that messages need to
be repeated five to seven times before they are cemented into the minds of employees.

Three components of effective communication

Effective communicators carefully consider three components:

The audience

What is communicated

When it is communicated

Communication planning, therefore, begins with a careful analysis of the audiences, key
messages and the timing for those messages. The change management team or project
leaders must design a communication plan that addresses the needs of frontline employees,
supervisors and executives. Each audience has particular needs for information based on their
role in the implementation of the change.

3. SPONSOR ACTIVITIES AND SPONSOR ROADMAPS

Business leaders and executives play a critical sponsor role in times of change. The change
management team must develop a plan for sponsor activities and help key business leaders
carry out these plans. Research shows that sponsorship is the most important success factor.

Avoid confusing the notion of sponsorship with support

The CEO of the company may support your project, but that is not the same as sponsoring your
initiative. Sponsorship involves active and visible participation by senior business leaders
throughout the process, building a coalition of support among other leaders and communicating
directly with employees. Unfortunately, many executives do not know what this sponsorship
looks like. A change manager or project leader's role includes helping senior executives do the
right things to sponsor the project.

4. CHANGE MANAGEMENT TRAINING FOR MANAGERS

Managers and supervisors play a key role in managing change. Ultimately, the manager has
more influence over an employee’s motivation to change than any other person. Unfortunately,
managers can be the most difficult group to convince of the need for change and can be a
source of resistance. It is vital for the change management team and executive sponsors to
gain the support of managers and supervisors. Individual change management activities should
be used to help these managers through the change process.

Once managers and supervisors are on board, the change management team must prepare a
strategy to equip managers to successfully coach their employees through the change. They
will need to provide training and guidance for managers, including how to use individual change
management tools with their employees.

5. TRAINING DEVELOPMENT AND DELIVERY

Training is the cornerstone for building knowledge about the change and the required skills to
succeed in the future state. Ensuring impacted people receive the training they need at the right
time is a primary role of change management. This means training should only be delivered
after steps have been taken to ensure impacted employees have the awareness of the need for
change and desire to support the change. Change management and project team members will
develop training requirements based on the skills, knowledge and behaviors necessary to
implement the change. These training requirements will be the starting point for the training
group or the project team to develop and deliver training programs.

6. RESISTANCE MANAGEMENT

Resistance from employees and managers is normal and can be proactively addressed.
Persistent resistance, however, can threaten a project. The change management team needs to
identify, understand and help leaders manage resistance throughout the organization.
Resistance management is the processes and tools used by managers and executives with the
support of the change team to manage employee resistance.

7. EMPLOYEE FEEDBACK AND CORRECTIVE ACTION

Managing change is not a one way street; employee involvement is a necessary and integral
part of managing change. Feedback from employees as a change is being implemented is a
key element of the change management process. Change managers can analyze feedback and
implement corrective action based on this feedback to ensure full adoption of the changes.

8. RECOGNIZING SUCCESS REINFORCING CHANGE

Early adoption, successes and long-term wins must be recognized and celebrated. Individual
and group recognition is a necessary component of change management in order to cement
and reinforce the change in the organization. Continued adoption needs to be monitored to
ensure employees do not slip back into their old ways of working.

9. AFTER-PROJECT REVIEW

The final step in the change management process is the after-action review. It is at this point
that you can stand back from the entire program, evaluate successes and failures, and identify
process changes for the next project. This is part of the ongoing, continuous improvement of
change management for your organization and ultimately leads to change competency.

These elements comprise the areas or components of a change management program. Along
with the change management process, they create a system for managing change. Good
project managers apply these components effectively to ensure project success, avoid the loss
of valued employees and minimize the negative impact of the change on productivity and a
company's customers.
 UNIT II: Organization Development
Introduction to Organisation Development, Objectives, Characteristics, History and Foundations of
Organisation Development
https://slideplayer.com/slide/9169303/

HISTORY OF ORGANIZATIONAL DEVELOPMENT:

Organizational development is a very young and recent field of study. OD is being carried out
systematically. French (1996) has identified four “trunk stems” (as he calls it) under which the
study of OD is carried out.
The four trunk stems are as under:
(a) Innovations are carried out to solve complex organizational problems through laboratory
training.
(b) Survey research and feedback methodology.
(c) Action research.
(d) Socio-technical and socio-clinical approach to organizational development.

Kurt Lewin had established a research center called Research Center for Group Dynamics
(RCGDs) at MIT in 1945. Laboratory training methodology was practiced in the center to
develop organization. Study of group dynamics, change process and action research was jointly
carried out by distinguish people like Marian Radke, Leon Festinger, Ronald Lippitt and Dorwin
Cartwright. A leader carried out sessions and “feedback” at the end of the day was practiced.
That is how “T Group” emerged. Lewin who was pioneer in T Group died in 1947.

Berne Bradford and Lippitt at National Training Laboratory undertook the work later.
Organizational development included training into applied behaviour science, role-playing,
concept in learning and change, transactional analysis and studies of environment.

In 1940s intensive training was being carried out on performance of teams in organizations.

It was largely a practical application of T Group laboratory experience. Later Chris Angyris was
one of the first persons to carry out team building sessions at Yale University and subsequently
at Harvard. Douglas McGregar was influenced by the work done by Kurt Lewin, Angryris and
others. Two significant innovations were carried out during this period. (1) Managerial Grid and,
(2) Team development, consultation and conflict resolution concepts by Blake and Mouton.

“It was learning to reject T Group stranger type labs that permitted OD into focus” and it was
inter group projects, in particular that “triggered real OD” states Robert Blake4.

During World War II Blake served in the Psychological Research Unit of Army, Air Force where
he interacted with large number of behavioral scientists. During this period Systems Theory and
OD was evolved. The people involved in development of OD processes were Jane Mouton,
Robert Blake, and McGregor. Richard Beckhard and Herbert Shepard during the period of
1940–50s, Beckhard quotes. We clearly did not want to call it management development because
it was total organization wide, nor, was it human relations training although there was a
component of that in it, we did not want to call it organization improvement because that is a
static term, so we labeled the programme “Organization Development”, meaning system wide
change efforts.
Second generation OD efforts revolved around the following lines

(a) Change is a continuous phenomenon: Organizations are required to study external and
internal environmental factors, identification of drawbacks, obsolescence and carryout change.
The change may take place in organizational structure, work design, processes and various
operational systems. Change is required to be undertaken for organizational growth. There are
two basic strategies of change namely (1) Fundamental change strategy and (2) Incremental
change strategy.

(b) Organizational transformation: It refers to carrying out fundamental change in the

organization. It is a commitment made by high-level managerial staff to carry out modification to
existing systems. It is a systems approach. Organizational culture is required to be changed to
adjust to the external environment.

(c) Learning organization: An all out effort is required on the part of managers to keep its
employees educated on the latest technology, systems, knowhow and processes. It is a part and
parcel of the OD requirement. More on learning organizations has been separately dwelt with in
the separate chapter later in the book.

(d) Total quality management: Edward Deming and Crosby have done pioneering work on
Total Quality Management (TQM). TQM involves employee involvement, teamwork, decision-
making, problem-solving, high level involvement, adopting a work culture aimed at growth and
quality of product and services. TQM requires total commitment, removing fear psychosis
caused due to failure at lower levels, development of successful work culture and continuous
improvement.

(e) Visioning: Visioning envisages as to what the organization would look like in the future. It is
related to the shape in terms of HR facilities, the growth and the needs of people it is likely to
fulfill. Based on the vision, database is required to be built, leading to interpretation of
information, arriving at suitable decisions and setting a course of action leading to growth.
Visioning refers to looking at the organization in “totality”.

(f) Virtual organizations: Getting whole system in one room, evolving action plan and
implementation.

Structural changes are initiated to carry out organizational development. This includes research,
use of change agent for implementation. The process involves identification of problem; courses
open, selecting the best course of action and implementation. Services of OD consultant are
central to implement change.