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Module-2
Organizational
Change
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Organizational Change can be defined
as,
a concerted (determined), planned effortto increase Organizational effectiveness
help thorough changes in Organization
dynamics using behavioral science
knowledge
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to make different in some particular to make radically different to give a different position, course, or direction to to replace with another
to make a shift from one to another to exchange for an equivalent sum or comparable item to undergo a modification of to undergo transformation, transition or substitution
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TYPE OF CHANGES:
Following are examples of candidates for ChangeManagement. Computing Systems hardware:Hardware changes:Additions, deletions, reconfigurations, relocations, orpreventative or emergency maintenance.
Computing Systems software:PTF's, product releases, versions, table changes,tuning, alterations to libraries, catalogs,monitors, traps, or changes to priority mechanisms.
Environmental:
Power, UPS system, generators, air conditioning,chilled water, electrical work, facilitymaintenance, security systems, fire control systems.
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Network Systems:Additions, modifications, lines, modems routers,network access, controllers, servers, protocolconverters. Software components either distributed orcentralized, bitnet tables,
router software, servers. Operating Procedures:
Changes in equipment downtime schedules, plannedsystem outages, changes in delivering services, orchanges to service levels.
Workstations and Public Clusters:Changes in hours of availability, hardwareconfigurations, operating systems, utilities,applications including release levels or versions,installations or de-installations of systems, servers.
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Change management means to plan,
initiate, realize, control, and finally
stabilize change processes on both,
corporate and personal level.
Change may cover such diverse
problems as for example strategic
direction or personal developmentprograms for staff.
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Examples of organization-wide change
might include a change in mission,
restructuring operations
(e.g., restructuring to self-managed
teams, layoffs, etc.),
new technologies, mergers, major
collaborations, "rightsizing"
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Why is it Important to Adapt to Change?
Individuals, teams, or organizations that
do not adapt to change in timely ways
are unlikely to survive.
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What is Change?
Coping process of moving from a
unsatisfactory present state to a desired
state
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Organizational change management
is the process of developing a
planned approach to change in an
organization.
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Any variation or alteration; a passing
from one state or form to another
A passing from one phase to another
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If you force change on people
normally problems arise.
Change must be realistic,achievable and measurable.
These aspects are especially
relevant to managing personalchange.
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Before starting organizational change, ask yourself:
What do we want to achieve with this change,why, and
how will we know that the change has been
achieved?Who is affected by this change, and how will
they react to it?How much of this change can we achieve
ourselves, andwhat parts of the change do we need help
with?
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Typically the objective is to maximize
the collective benefits for all people
involved in the change and minimize
the risk of failure of implementing thechange.
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To alter; to make different; to cause to
pass from one state to another; as, to
change the position, character, or
appearance of a thing (process oractivity)
To alter by substituting something else
for, or by giving up for something else
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The discipline of change management
deals primarily with the human aspect of
change, and is therefore related to pure
and industrial psychology.
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Typically, the concept of organizational
change is in regard to organization-wide
change, as opposed to smaller changes
such as adding a new person, modifyinga program, etc.
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new programs such as Total Quality
Management, re-engineering, etc. Some
experts refer to organizational
transformation. Often this termdesignates a fundamental and radical
reorientation in the way the organization
operates.
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Nature of change
change may be conceived as continuous
and intrinsic to an organization.
Change as patterned and predictable
Change and complex and unpredictable.
The rate of change is faster than our
abilities to comprehend and cope upwith.
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Nature of change
Change may be said to take place at
three levels:
micro changes (personal lives)
Organizational level (institution influence
people lives)
Macro level (people, community &society)
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Change customerneeds and
preferences
Political forces
System
dynamics
Managerial and
administrative
processes
Technological
changes
Individual and
group
expectations
Organizational design
and structure
Technological forcesGovernment forces
Economic
forces
Increased
global
competition
Forces of change
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Political forces
The transition of east European nations
to democracy and a market economy.
Collapse of soviet Russia
Unification Germany
Iraq crisis, Gulf War
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Economic forces
The uncertainty about future trends inthe economy is a major cause of change
Fluctuating bank interest rate
Uncertainty arising out of inflationLow capital investment (Iron ore exp)Banking reforms- Crude oil PricesMarket conditionsCapital market structure
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Increased global competition
Making their presence felt globally
IBM,SONY,MICROSOFT,GM
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Internal forces of change
System dynamics
Human behavior,
Constant and Dynamic (Many) interactionsRelationship among subsystem (Cordial)
Internal politics, group/ ind Behavior
Formal & Informal relationships
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Inadequacy of Admin Process
Set of procedures and rules
With changing times and the revision of
orgl goals and objectives, some existing
rules, procedure and regulations could
be at a variance with the demands of
reality.
Realization of their inadequacy is
force that induces CHANGE
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Individual and group expectations
Each one aiming to satisfy ones own
needs and aspirations.
Desires are keep changing
Ambition and Aspiration
Fear and insecurities and frustrations
operate as inter individual process.
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Structure focused change
Orgn make changes to reduce cost andincrease profitability.
Structural change can take a form of
Downsizing, decentralization, jobredesign.
JP Morgan & HSBC have laid off some
employees as a part of restructuringIndian operations.(forced many co. to become lean)
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Technology focused change
Change that impacts the actual process
of transforming input in to output is
referred to as change.
CNC Machine
CAD / CAM
Robotics
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Person focused change
Introduction of new technology result in
person focused change.
When employees cannot be trained
further. (replacement)
Skilled person and redesigning the job
Work is done in cost effective ways
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Profitability
A significant change that has
necessitated quite a number of orgn. To
restructure and reengineer themselves
relate to profitability issues such as lossof revenue and low productivity.
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Resource constraints
MMM personnel, technology.
Non availability of these can be a
powerful force for any orgn.
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Participation : The more the people
participate and more they will be
committed to getting results.
Recognition : People value recognition
for their change mgt endeavors more
than material rewards.
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Types of change
Happened change
Unpredictable. Occurs due to external
forces.
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Reactive change
Changes that are clearly in response to
an event or a series of events are
termed reactive.
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Planned change
Planned change or developmental
change is undertaken to improve upon
the current ways of operating.
It is a calculated change, initiated to
achieve a certain desirable
output/performance and to make the
organization to more responsive tointernal and external demands.
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Incremental change
Change directed at micro level and focused
on units, sub units and components within an
organization are termed as incremental
changes. It also provides an opportunity to learn form
its own mistake and experiences.
A failed incremental change will cause less
damage to a total system than unsuccessful
large scale implementation.
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Operational changes
This is necessitated when an
organization needs to improve the
quality of its products or services due
to external competition, customerschanging requirements and demands
or internal organization dynamics.
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Strategic change
Change that is addressed to
organization as a whole or to most of
the organizations components,
including strategy, may be calledstrategic change.
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Directional change
a change in direction may
become imperative for an
organization due to severecompetition or regulatory shifts
in government policy and
control
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Fundamental change
This entails a redefinition ofthe current purpose or
mission of the organization
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Transformational change
Such a change involves the entire or agreater part of the organization. It could be achange in the
Shape (size & complexity)
Structure (system & ownership) Nature (basic assumptions and Culture) of
the organization. Fundamental change in relationships
A change in organization culture and norms Shift from product driven to technology
driven
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Revolutionary change
Abrupt changes in organizational strategy
and design represent revolutionary change.
Such change represent 3 Es
Envisioning (clear & credible vision) Energizing (mobilizing employees-
demonstrating & inculcating the excitement
for change)
Enabling (which is to provide the necessary
resources, support structure & process)
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Recreation change
This involves a significant or drastic
change in an organizations strategy
and design, or a radical departure from
its current practices to achieve totaltransformation.
Recreation is metamorphosis
becoming not just best,but different.
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Models of Organizational Change
These model deal with the sequence of
steps involved in bringing about change
in an organization and with interventions
related to it.
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Models of Organizational Change
Lewins change model
The planning model
The action research model
The integrative planning model
These models refer to the planning &
process aspects of changemanagement.
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Change affects three levels
Individual (Change affecting individual
attitude beliefs, values, skills and
behavior)
Structure and Systems (Change
affecting incentive system, Info Systems)
Organizational Climate( Change
affecting leadership styles, interpersonalrelation ships, decision making)
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Restraining forces
CURRENT STATE
Driving forces
Unfreeze
Change/Move
Refreeze
Desired State
Lewins model of Change
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Unfreezing
Disconfirmation where present
conditions lead to dissatisfaction, such
as not meeting personal goals. However,
the larger the gap between what isbelieved and what needs to be
believed for change to occur, the more
likely the new information will be ignored
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Unfreezing techniques
Unfreezing is the first of Lewin's changetransition stages, where people are taken froma state of being unready to change to beingready and willing to make the first step.
Here are some ways to make it happen:Burning platform: Expose or create a crisis.Challenge: Inspire them to achieve remarkable
things.Command: Just tell them to move!Evidence: Cold, hard data is difficult to ignore.
f
http://changingminds.org/disciplines/change_management/creating_change/burning_platform.htmhttp://changingminds.org/disciplines/change_management/creating_change/challenge.htmhttp://changingminds.org/disciplines/change_management/creating_change/command.htmhttp://changingminds.org/disciplines/change_management/creating_change/evidence.htmhttp://changingminds.org/disciplines/change_management/creating_change/evidence.htmhttp://changingminds.org/disciplines/change_management/creating_change/command.htmhttp://changingminds.org/disciplines/change_management/creating_change/challenge.htmhttp://changingminds.org/disciplines/change_management/creating_change/burning_platform.htm8/14/2019 CKM-Mod-Two
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Unfreezing techniques
Destabilizing: Shaking people of their comfort zone. Education: Learn them to change. Management by Objectives (MBO): Tell people what
to do, but not how.
Restructuring: Redesign the organization to forcebehavior change.
Rites of passage: Hold a wake to help let go of thepast.
Setting goals: Give them a formal objective. Visioning: Done well, visions work to create change. Whole-system Planning: Everyone planning together.
Ch i / M i
http://changingminds.org/disciplines/change_management/creating_change/destabilization.htmhttp://changingminds.org/disciplines/change_management/creating_change/education.htmhttp://changingminds.org/disciplines/change_management/creating_change/mbo.htmhttp://changingminds.org/disciplines/change_management/creating_change/restructuring.htmhttp://changingminds.org/disciplines/change_management/creating_change/rites_passage.htmhttp://changingminds.org/disciplines/change_management/creating_change/setting_goals.htmhttp://changingminds.org/disciplines/change_management/creating_change/visioning.htmhttp://changingminds.org/disciplines/change_management/creating_change/whole-system_planning.htmhttp://changingminds.org/disciplines/change_management/creating_change/whole-system_planning.htmhttp://changingminds.org/disciplines/change_management/creating_change/visioning.htmhttp://changingminds.org/disciplines/change_management/creating_change/setting_goals.htmhttp://changingminds.org/disciplines/change_management/creating_change/rites_passage.htmhttp://changingminds.org/disciplines/change_management/creating_change/restructuring.htmhttp://changingminds.org/disciplines/change_management/creating_change/mbo.htmhttp://changingminds.org/disciplines/change_management/creating_change/education.htmhttp://changingminds.org/disciplines/change_management/creating_change/destabilization.htm8/14/2019 CKM-Mod-Two
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Changing / Moving
This refers to the shift in behavior to a
new level resulting in the development of
new Behr., values and attitudes in
individuals through changes in orglstructure and process.
Orgl shake-ups
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T iti i t h i
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Transitioning techniques
Kurt Lewin's three phases give main phases ofchange. Once you have unfrozen the people, the nextquestion is how you keep them going.
Boiling the frog: Incremental changes may well not be
noticed. Challenge: Inspire them to achieve remarkable things. Coaching: Psychological support for executives. Command: Tell them what to do.
Education: Teach them, one step at a time. Facilitation: Use a facilitator to guide team meetings.
T iti i t h i
http://changingminds.org/disciplines/change_management/lewin_change/unfreezing.htmhttp://changingminds.org/disciplines/change_management/creating_change/boiling_frog.htmhttp://changingminds.org/disciplines/change_management/creating_change/challenge.htmhttp://changingminds.org/disciplines/change_management/creating_change/coaching.htmhttp://changingminds.org/disciplines/change_management/creating_change/command.htmhttp://changingminds.org/disciplines/change_management/creating_change/education.htmhttp://changingminds.org/disciplines/change_management/creating_change/facilitation.htmhttp://changingminds.org/disciplines/change_management/creating_change/facilitation.htmhttp://changingminds.org/disciplines/change_management/creating_change/education.htmhttp://changingminds.org/disciplines/change_management/creating_change/command.htmhttp://changingminds.org/disciplines/change_management/creating_change/coaching.htmhttp://changingminds.org/disciplines/change_management/creating_change/challenge.htmhttp://changingminds.org/disciplines/change_management/creating_change/boiling_frog.htmhttp://changingminds.org/disciplines/change_management/lewin_change/unfreezing.htm8/14/2019 CKM-Mod-Two
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Transitioning techniques
First steps: Make it easy to get going. Involvement: Give them an important role. Management by Objectives (MBO): Tell people what to do, but
not how.
Open Space:People talking about what concerns them.
Re-education: Train the people you have in newknowledge/skills.
Restructuring: Redesign the organization to force behaviorchange.
Shift-and-sync: Change a bit then pause restabilize.
Spill and fill: Incremental movement to a new organization. Stepwise change: breaking things down into smaller packages. Whole-system Planning: Everyone planning together.
R f i
http://changingminds.org/disciplines/change_management/creating_change/first_steps.htmhttp://changingminds.org/disciplines/change_management/creating_change/involvement.htmhttp://changingminds.org/disciplines/change_management/creating_change/mbo.htmhttp://changingminds.org/disciplines/change_management/creating_change/open_space.htmhttp://changingminds.org/disciplines/change_management/creating_change/re-education.htmhttp://changingminds.org/disciplines/change_management/creating_change/restructuring.htmhttp://changingminds.org/disciplines/change_management/creating_change/shift_sync.htmhttp://changingminds.org/disciplines/change_management/creating_change/spill_fill.htmhttp://changingminds.org/disciplines/change_management/creating_change/stepwise_change.htmhttp://changingminds.org/disciplines/change_management/creating_change/whole-system_planning.htmhttp://changingminds.org/disciplines/change_management/creating_change/whole-system_planning.htmhttp://changingminds.org/disciplines/change_management/creating_change/stepwise_change.htmhttp://changingminds.org/disciplines/change_management/creating_change/spill_fill.htmhttp://changingminds.org/disciplines/change_management/creating_change/shift_sync.htmhttp://changingminds.org/disciplines/change_management/creating_change/restructuring.htmhttp://changingminds.org/disciplines/change_management/creating_change/re-education.htmhttp://changingminds.org/disciplines/change_management/creating_change/open_space.htmhttp://changingminds.org/disciplines/change_management/creating_change/mbo.htmhttp://changingminds.org/disciplines/change_management/creating_change/involvement.htmhttp://changingminds.org/disciplines/change_management/creating_change/first_steps.htm8/14/2019 CKM-Mod-Two
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Refreezing
This stage where the orgn stabilizes andachieves a new stage of equilibrium and
a preferred behavior.
Reinforcing the new orgl state
way to freeze Behr in orgl member may
include award, reward, recognition anddemonstration of benefits to individual.
R f i
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Refreezing
Refreezing is the final stage where new
behavior becomes habitual, which
includes developing a new self-concept
& identity and establishing newinterpersonal relationships.
R f i t h i
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Refreezing technique
Refreezing is the third of Lewin's changetransition stages, where people are taken froma state of being in transition and moved to astable and productive state.
Here are some ways to make it happen:Burning bridges: Ensure there is no way back.Evidence stream: Show them time and again
that the change is real.Golden handcuffs: Put rewards in their middle-
term future.
R f i t h i
http://changingminds.org/disciplines/change_management/creating_change/burning_bridges.htmhttp://changingminds.org/disciplines/change_management/creating_change/evidence_stream.htmhttp://changingminds.org/disciplines/change_management/creating_change/golden_handcuffs.htmhttp://changingminds.org/disciplines/change_management/creating_change/golden_handcuffs.htmhttp://changingminds.org/disciplines/change_management/creating_change/evidence_stream.htmhttp://changingminds.org/disciplines/change_management/creating_change/burning_bridges.htm8/14/2019 CKM-Mod-Two
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Refreezing technique
Institutionalization: Building change into theformal systems and structures.
New challenge: Get them looking to the future.
Rationalization trap: Get them into action thenhelp them explain their actions.Reward alignment: Align rewards with desired
behaviors.
Rites of passage: Use formal rituals to confirmchange.
Socializing: Build it into the social fabric.
Pl i d l
http://changingminds.org/disciplines/change_management/creating_change/institutionalization.htmhttp://changingminds.org/disciplines/change_management/creating_change/new_challenge.htmhttp://changingminds.org/disciplines/change_management/creating_change/rationalization_trap.htmhttp://changingminds.org/disciplines/change_management/creating_change/reward_alignment.htmhttp://changingminds.org/disciplines/change_management/creating_change/rites_passage.htmhttp://changingminds.org/disciplines/change_management/creating_change/socializing.htmhttp://changingminds.org/disciplines/change_management/creating_change/socializing.htmhttp://changingminds.org/disciplines/change_management/creating_change/rites_passage.htmhttp://changingminds.org/disciplines/change_management/creating_change/reward_alignment.htmhttp://changingminds.org/disciplines/change_management/creating_change/rationalization_trap.htmhttp://changingminds.org/disciplines/change_management/creating_change/new_challenge.htmhttp://changingminds.org/disciplines/change_management/creating_change/institutionalization.htm8/14/2019 CKM-Mod-Two
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Planning model
Scouting
Entry
Diagnosis
Stabilization
&
Evaluation
Planning
Action
Action
Pl i d l
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Planning model
This model is based on the principle
that information must be freely and
openly shared between the
organization and
the change agent and this
information must be able to betranslated into action.
Pl i d l
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Planning model
Scouting : this is the phase where the
change agent and orgn. Jointly explore
the need for and areas requiring change.
Entry : refers to the development ofmutual contract and mutual
expectations.
Diagnosis : refers to stage wherespecific improvement goals are
identified.
Planning model
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Planning model
Planning : this is the stage where actual
and possible reasons for resistance to
change are identified in addition to
planning for specific improvementsgoals.
Action : implementation of the steps
identified in the planning stage.
Planning model
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Planning model
Stabilization & Evaluation : to determine
the extent of success of the planed
change and need for further action or
termination.Termination :refers to the phase where a
decision is made to leave the system or
to end and begin another.
Action research model
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Action research model
Perception
of problem
by key
individuals
Consultationwith behavioral
science
experts
Feedback bythese
Experts to
client or group
Joint
diagnosis of
problems
Joint action
planning
Action Data gathering
after action
Feedback to
client groupby consultant
Re-diagnosis
and action
planning by
client &
consultant
New Action New Data
gathering as a
result of
action
Re-diagnosis
of situation,
etc
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This model focuses on the planned
change activity as a cyclical process.
Initial research about the orgn.
Undertaken which then provides therequisite information to guide further
action.
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The result of the action are assessed to
provide information to guide further
action & this cycle is repeated as an
ongoing process.
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Problem identification : key executive
senses the problem and solves with the
help of OD practitioner.
Consultation with behavioral expert :
after sensing the problem, and realizing
that it can be dealt with, the help of OD
expert is sought.
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Data gathering & preliminary
diagnosis :
the consultant, in conjunction with orgl
members, gathers data employingmethods such as interviews, process
observation, questionnaire, and the
analysis of orgl performance data.
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Feedback to client group : the data so
gathered is passed on to the client to
determine the strength and weakness of
the area under study, with the consultantproviding the client all relevant and
useful data
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Joint diagnosis of the problem : theconsultant and the management team
jointly agree on problem solving
methods.The specific action to be taken depends on
the orgns cultural, technological, and work
environment, problem to be solved.
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Action : this stage involves the actualchange from one orgl state to another.
Installing new methods & procedures
Reorganizing structure & work designs
Reinforcing new work behavior
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Data gathering after action :
As this model is cyclical in nature, new
data is again gathered after action has
been taken to measure and determinethe effects of the action
Based on the feedback, the situation
may be re-diagnosed and new actioncan be taken.
The integrative model of change
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Change processNeed awareness
Search Controlling
Change processDiagnosis
Design Decision
Change processImplementation
Evaluation
Change processStabilization
Diffusion Renewal
Exploration Phase Planning Phase Action Phase Integration Phase
The integrative model of change
The integrative model of change
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The basis for an integrative model ofplanned change rests on the fact that an
orgn exists in different states at different
times and that planned movement canoccur from state another.
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Exploration Phase
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Exploration Phase
The orgn decides whether to plan for aspecific change and commit resources fir
it.
Search for OD expert & contracting theservices of an OD expert
Mutual assessment of requirement.
Consultants skill- readiness state for
change
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Contracting phase lays rules andregulations.
What each party expects from
relationshipHow much time each will, invest
Rules for carrying out the consulting
relationship
Planning Phase
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Planning Phase
Planning commence once the problemsidentified and resources committed.
Collecting pertinent information
Appropriate action is designed to
improve the action
The approval of key decision makers is
sought for the proposed changes.
Action Phase
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Action Phase
The changes derived from planning areimplemented at this stage. It includes
process aimed at transitioning the orgn
from its current state to desired futurestate.
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The change activities are monitored andevaluated periodically to assess their
progress and to check whether positive
results are being achieved or whetherthey need modification and refinement.
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The new behavior is reinforced throughregular feedback, incentives, and
rewards. The contract with the OD
professional is gradually terminated.
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Individual Resistance
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Individual Resistance
Individual sources of resistance tochange reside in basic human
characteristics such as perceptions,
personalities, and needs.Habit
Security
Economic factors
Fear of Unknown
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Selective Information ProcessingOrganizational ResistanceStructural inertia
Limited focus of changeGroup InertiaThreat to Expertise
Threat to Established PowerRelationships
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Threat to Established ResourceAllocations
Overcoming Resistance to change
Education and Communication
Participation
Facilitation and Support
Negotiation
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Manipulation and co-optationCoercion
Change Process
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Vision
Strategy (Intended)
Impact analysis
Current State
Structure
ProcessTechnology
Culture
HRM
Desired State
Structure
ProcessTechnology
Culture
HRM
Facilitated byBuilding support structure
(Internal support system, individual, team, top mgt andsystems and external support)Monitoring, evaluating and correctingTransition managementSustaining the momentum
Movement
g
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Confusion :A mental state characterized bydisorientation regarding time, place, or lack oforderly thought
Anxiety :Anxiety is a multi system response to aperceived threat or Change
Resistance :A force that tends to oppose or retardmotion.
Frustration : refers to the state of someone whodenies himself, or who is denied,
Treadmill :A monotonous task or set of tasksseeming to have no end.
Inertia : The tendency of resisting acceleration
John P Kotter's 'eight steps to
f l h '
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successful change'
Increase urgency - inspire people tomove, make objectives real and
relevant.
Build the guiding team - get the rightpeople in place with the right emotional
commitment, and the right mix of skills
and levels.
John P Kotter's 'eight steps to
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successful change'
Get the vision right - get the team toestablish a simple vision and strategy focus onemotional and creative aspects necessary todrive service and efficiency.
Communicate for buy-in - Involve as manypeople as possible, communicate theessentials, simply, and to appeal and respondto people's needs. De-clutter communications
- make technology work for you rather thanagainst.
John P Kotter's 'eight steps to
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successful change'
Empower actions - Remove obstacles,enable constructive feedback and lots ofsupport from leaders - reward andrecognize progress and achievements.
Create short-term wins - Set aims thatare easy to achieve - in bite-size chunks.Manageable numbers of initiatives.
Finish current stages before starting newones.
John P Kotter's 'eight steps to
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successful change'
Don't let up - Foster and encouragedetermination and persistence - ongoingchange - encourage ongoing progressreporting - highlight achieved and futuremilestones.
Make change stick - Reinforce thevalue of successful change via
recruitment, promotion, new changeleaders. Weave change into culture.