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Organizational Change: Process, Forces, and Resistance

Learn about the concept of organizational change, the forces that drive it, and the process of implementing change. Understand the causes of resistance to change and discover strategies for managing resistance effectively.

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Organizational Change: Process, Forces, and Resistance

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  1. Chapter 15 ORGANIZATIONAL CHANGE

  2. LEARNING OUTCOMES • Define the concept of change • Distinguish the forces of change • Discuss the change process • Identify causes of resistance to change • Explain the ways to administer resistance to change

  3. INTRODUCTION • Change is inevitable. • Some change can be initiated by the organization itself, otherwise the organization must learn how to respond and adapt quickly and effectively to the requirements of completely new circumstances.

  4. CONCEPT OF CHANGE • Organizational change is the movement of an organization from its existing situation to a more effective condition. • There are two forms of change in an organization: • Planned change: A change resulting from a deliberate decision to alter the organization. • Unplanned change: A change that is imposed on an organization and is often unexpected.

  5. INTERNAL FORCES FOR CHANGE • Strategic Changes • Change that occurs because of transformation in strategic management of a company would lead to decline in the workers’ effectiveness. Due to this strategic change, people will view the organization as being different and no longer feel the same about the organization. • Cultural Changes • People change due to habits. People do not like to be asked to do something opposite to what they have been doing previously.

  6. INTERNAL FORCES FOR CHANGE (cont.) • Needs and Values • Many of today’s employees are leaning less towards financial rewards and more towards quality of life alternatives.

  7. EXTERNAL FORCES OF CHANGE • Workforce Diversification • Workforce diversification is the differences of background, education, language skills, personality, preference, expectations and work role among the employees. • Technology • Rapid technological innovation is changing jobs and organizations. The transition from manpower to more computer control has increasingly enhanced division of authority.

  8. EXTERNAL FORCES OF CHANGE (cont.) • Globalization Competition • Globalization describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation and trade. • Social Trends • In the past two decades, evolution in social trends suggests that organizations change. Businesses like frozen meals, fast food and more have to cater for these changes to meet increasing demands. House-building businesses are also affected by social trend changes.

  9. EXTERNAL FORCES OF CHANGE (cont.) • Economic Shocks • Unexpected pattern of global economic changes lead many businesses to bankruptcy. Economic problems lead to uncertainty and if organizations are not prepared for unplanned change, major breakdown will occur. • World Politics • A nation’s political stability is an important factor to determine the efficiency of a business.

  10. THE CHANGE PROCESS Levin’s Three Steps Model • Kurt Lewin’s change model emphasizes that effective change occurs by: • Unfreezing the current situation • Changing towards the desired situation • Refreezing the changed situation so that it remains in the desired state

  11. THE CHANGE PROCESS (cont.) Kotter’s Change Model • Kotter’sfirst four steps focus on Lewin’s freezing stage. Step 5 to 7 represent the movement stage and the final step portrays the refreezing stage. • Step 1: Create urgency • Step 2: Form a powerful coalition • Step 3: Create a vision for change • Step 4: Communicate the vision • Step 5: Remove obstacles • Step 6: Create short-term wins • Step 7: Build on the change • Step 8: Anchor the changes in corporate culture

  12. THE CHANGE PROCESS (cont.) THE CHANGE CURVE • The Change Curve is developed by Elisabeth Kubler-Ross to explain the grieving process. It has been widely utilized as a method of helping people understand their reactions to significant change.

  13. RESISTANCE TO CHANGE • Logical • It refers to reasons given based on rational and scientific evaluation. • Psychological • It refers to reasons given based on emotional sentiments and attitudes in human. • Sociological • It refers to reasons given based on interests of group and group values.

  14. MANAGING RESISTANCE TO CHANGE • Education and Communication • Participation and Involvement • Facilitation and Support • Negotiation and Agreement • Manipulation and Cooptation • Explicit and Implicit Coercion

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