Organization Change Power Point Presentation

A detailed information on Organization Change

1. Organizational ChangeOrganizational Change

2. What is Organizational Change?What is Organizational Change?
Organizational change: the
process by which organizations
move from their present state to
some desired future state to
increase their effectiveness

3. Organizational ChangeOrganizational Change
Organizational Change
◦Any alterations in the people, structure, or
technology of an organization
Characteristics of Change
◦Is constant yet varies in degree and direction
◦Produces uncertainty yet is not completely
unpredictable
◦Creates both threats and opportunities
Managing change is an integral part
of every manager’s job.

4. Evolutionary and Revolutionary Evolutionary and Revolutionary
Change in OrganizationsChange in Organizations
Evolutionary change: change that
is gradual, incremental, and
specifically focused
Revolutionary change: change
that is sudden, drastic, and
organization-wide

5. Organizational
Change
Employees
Technology
Tasks
Structure
Culture
Strategy

6. Managing Planned Change
Goals of Planned
Change:
Improving the ability of
the organization to adapt
to changes in its
environment.
Changing the behavior of
individuals and groups in
the organization.

7. The Manager as Change
Agent

Change Agents

People who act as catalysts and assume
the responsibility for changing process are
called change agents.

Types of Change Agents

Managers: internal entrepreneurs

Nonmanagers: change specialists

Outside consultants: change
implementation experts

8. QUALITIES OF A CHANGE AGENT
Realistic
Effective
communicator
Attentive
listener
Ideas
person
Eager for
improvement
Restless
Good
collaborator

9. Forces for Change

External forces

Marketplace

Governmental laws and
regulations

Technology

Labor market

Economic changes

10. ExternalExternal Forces for ChangeForces for Change
Competitive Forces
Political, and global forces
Demographic and social forces
Ethical forces
Worlds Politics

11. Internal ForcesInternal Forces
◦Changes in organizational strategy
◦Workforce changes
◦New equipment
◦Employee attitudes

12. Forces for Change

13. Forces for Change (cont’d)

14. Resistance to Change

Forms of Resistance to Change

Overt and immediate

Voicing complaints, engaging in
job actions

Implicit and deferred

Loss of employee loyalty and
motivation, increased errors or
mistakes, increased absenteeism

15. FACTORS: RESISTANCE TO CHANGE
Resistance
to change
Lack of understanding
- the reason why
Lack of trust and
confidence in others
Lack of confidence
in plans
Ingrained norms
and habits
Perception of
self/others
Historical precedent
Fear of loss
Fear of redundancy
or lack of skills
Lack of ‘social proof’
Fear of the unknown
ConfusionConflicting priorities
Conflicting ‘organizational
messages’ - lack of
management consistency
Fear of failure
Lack of motivation
Lack of information
Unclear benefits
Lack of individual
self-confidence
Threats of status

16. Sources of Individual Resistance to
Change

17. Managing Resistance to
Change

Why People Resist Change?

The ambiguity and uncertainty that
change introduces

A concern over personal loss of status,
money, authority, friendships, and
personal convenience

The perception that change is
incompatible with the goals and interest of
the organization

18. Sources of Organizational
Resistance to Change

19. Organizational-LevelOrganizational-Level
Organization-level resistance to
change
◦Power and conflict
When change causes power struggle and
conflicts, there is resistance.
◦Differences in functional orientation
◦Mechanistic structure
◦Organizational culture

20. Group-LevelGroup-Level
Group-level resistance to change
◦Group norms
◦Group cohesiveness
◦Groupthink and escalation of
commitment

21. Sources of Sources of
Resistance to ChangeResistance to Change
Level OneLevel One Level TwoLevel Two
HonestHonest
DisagreementDisagreement
Lack ofLack of
InformationInformation
EmotionalEmotional
IssuesIssues
PersonalPersonal
ReasonsReasons

22. CRITERIA FOR CHANGECRITERIA FOR CHANGE
CLARITY
The person must understand what to change and why?
SELF AWARENESS
The person must understand the need to change and its benefit,
how to change, and the person must have the will to change .
OPPORTUNITY
The person must have opportunities in which behavioral change
can and should occur.
MEASURES
The benefits must be apparent and recognizable positive change
must be recognized.

23. EducationEducation ParticipationParticipation
Overcoming ResistanceOvercoming Resistance
FacilitationFacilitation NegotiationNegotiation
ManipulationManipulation CoercionCoercion

24. REDUCING RESISTANCE TO CHANGE

Economic Incentives.

Bargain.

Handling symbols.

Ceremony.

Avoiding change till credibility is obtained.

Create a simple, compelling message explaining why
change is necessary.

Communicate constantly and honestly

Employee participation—get all employees committed

Encourage employees to be flexible

Remove those who resist and cannot be changed.

25. 1 - Shock
2 - Denial
3 - Frustration
4 - Depression
5 - Experience
6 - Decisions
7 - Integration
THE KUBLER-ROSS CHANGE CURVE

26. Stage-1. Shock and surprise in response to the event or change. ‘I
can’t believe it’.
Stage - 2. Denial of the change and finding ways to prove that it isn’t
happening. Sticking your head in the sand and reassuring
yourself that it isn’t really happening. ‘I’ve always done it
this way-these new ideas will blow over.’
Stage -3. On the way down, and experiencing anger and frustration.
Often a tendency to blame everyone else and lash out at
them. Still no acceptance of the change. ‘Why pick on me?’
Stage -4. Hitting rock-bottom and experiencing depression and apathy.
Everything seems pointless and there is no point in doing
anything. ‘I’m ready to give up.’ Lack of self-confidence.
THE KUBLER-ROSS CHANGE CURVE

27. Stage- 5.Stage 4 is so depressing that most of us start to pull overselves
out of it. This is where you will start to try out new things. ‘I
think I’ll have a go at this - after all, anything’s better than
Stage 4’.
Stage - 6. Deciding what works and what doesn’t work. Accepting the
change and beginning to feel more optimistic and enthusiastic.
‘This isn’t so bad after all - it actually seems to be working.’
Stage -7. At this stage, you will be integrating the change into your Life
it becomes part of your norm -’The new me’.
THE KUBLER-ROSS CHANGE CURVE

28. Change Management Models Change Management Models

29. Models Models
Lewin’s Change Management Model
McKinsey 7 – S Model
Kotter’s Eight Step Change Model
ADKAR Model

30. Unfreezing Moving Refreezing
Lewin’s Three-Step Lewin’s Three-Step
Process of Change Process of Change

31. Lewin’s Three-Step Change Model

32. unfreezingunfreezing
means reducing the forces which are
striving to maintain the status quo.
This can be accomplished by presenting a
provocative problem or event to get people
to recognize the need for change and to
search for new solutions.
Without unfreezing, change will not
occur.

33. movingmoving
aims to shift or alter the behavior of the
individuals in the departments or
organizations in which the changes are to
occur.
Moving, therefore, means developing new
behaviors, values, and attitudes.

34. refreezingrefreezing
Lewin assumed that organizations will
revert to their former ways of doing
things unless the changes are reinforced.
This reinforcement is accomplished by
refreezing the organization in its new state
of equilibrium.
Lewin advocated instituting new systems
and procedures that would support and
maintain the changes that were made.

35. Lewin’s Force-Field Theory of Lewin’s Force-Field Theory of
ChangeChange
Theory of change which argues that two sets
of opposing forces within an organization
determine how change will take place
◦Forces for change and forces making
organizations resistant to change
◦To change an organization, managers must
increase forces for change and decrease
forces resisting change

36. Lewin’s TheoryLewin’s Theory

37. Kotter’s Eight-Step Change Model Kotter’s Eight-Step Change Model
1. A sense of urgency
2. Coalition and commitment
3. A shared vision
4. Empowerment
5. Short-term wins
6. Consolidated gains
7. New ways of doing things
8. Monitoring and adjustment

38. C y c le o f C h a n g e
C O N T E N T M E N T R E N E W A L
D E N IA L C O N F U S IO N
CYCLE OF CHANGE

39. McKinsey 7 – S ModelMcKinsey 7 – S Model
‘Hard Ss’ ‘Hard Ss’
‘Soft Ss’ ‘Soft Ss’
Structure
Strategy Systems
Skills Style
Staff
Shared
Values

40. ADKAR Model ADKAR Model
Result Oriented change management tool
A – Awareness
D - Desire
K - Knowledge
A – Action
R - Reinforcement
Developed by Jeff Hiatt in 2003
Introduced as a practical tool by Prosci – a
renowned Change Management Consultancy and
Learning Centre

41. A – Awareness of the need for A – Awareness of the need for
changechange
Management Communication
Customer Input
Market place changes
Ready – access to information

42. D – Desire to participate and support the D – Desire to participate and support the
change change
Fear of job loss
Imminent negative consequences
Discontent with current state
Enhanced job security
Affiliation and sense of belongings

43. Career advancement
Acquisition of power and position
Incentive or compensation
Trust and respect for leadership
Hope in future state

44. K – Knowledge on how to changeK – Knowledge on how to change
Training and Education
Information Access
Examples and Role Models

45. A – Ability to implement required A – Ability to implement required
skills and behaviorsskills and behaviors
Practice applying new skills or using new
processes and tools
Coaching
Mentoring
Removal of barriers

46. R – Reinforcement to sustain the R – Reinforcement to sustain the
change change
Incentives and rewards
Compensation changes
Celebrations
Personal recognition