CHAPTER 14 ORGANIZATIONAL CHANGE INTRODUCTION Organizational change may

CHAPTER 14 ORGANIZATIONAL CHANGE

INTRODUCTION: Organizational change may be defined as the adoption of a new idea or a behavior by an organization. Dropping the existing patterns in order to adapt new ones. ” Way of altering an existing organization to increase organizational effectiveness for achieving its objectives.

FORCES OF CHANGES Internal Forces change in top management, change in size of organization, performance gaps (with relation to productivity, profit, market share) , employee needs and values, deficiency in existing organization. External forces - change in technology , business scenario (increase in competition, changes in customer’s demand), environmental factors, social changes.

RESISTANCE TO CHANGE Individual Resistance 1) Habit 2)Security – individuals with high security need are likely to resist change as it threatens their feeling of safety 3) Economic factors- wherein pay is closely tied to productivity. 4) Fear of Unknown- having uncertainty for how the future changed scenario would be. 5) Selective information processing

RESISTANCE TO CHANGE Organizational Resistance 1) Structural Inertia- when an organization is confronted with change, this structural inertia acts as a counterbalance to sustain stability. 2) Group Inertia – group may norms act as a constraint 3) Threat to expertise 4) Threat to power relationship – The introduction of participative decision making or self managed work teams are often viewed as threatening by supervisors and middle managers.

RESISTANCE TO CHANGE Economic Factors: Skill Obsolescence Reduced Opportunities for incentives Economic Loss Social Factors: Desire to maintain existing social interaction Feeling of outside interference Psychological Factors: Ego defensiveness Status Quo Low tolerance for change Lack of trust in change agent

REACTIONS TO CHANGE: Anger Denial Acceptance

OVERCOMING RESISTANCE TO CHANGE Education and communication Employee participation and involvement. Facilitation and support (reducing anxiety by supportive efforts like counseling therapy, new skills training) Negotiation and agreement

THEORIES OF CHANGE: FORCE FIELD ANALYSIS THEORY

ACTION RESEARCH MODEL: Problem identification Consultation with the expert Data gathering and preliminary diagnosis Feedback to key client or group Joint diagnosis of the problem Joint action planning Action Data gathering after action

STRATEGIES FOR CHANGE MANAGEMENT Empirical-Rational: People are rational & will follow their self interest. Normative-Re-educative : People are social beings and adhere to cultural norms and values. Change can take place by redefining existing norms and developing commitment for the same. Power-Coercive : People are basically compliant. Environmental-Adaptive

TOOL KIT FOR MANAGING CHANGE: Degree of resistance Target population The stakes The time frames Expertise Dependency