ORGANISATIONAL
CHANGE AND DEVELOPMENT
Presented To : Dr.Puja Khatri
Group members
Aditya Birla Bhumika Ratan
Lal Bhadur
Manohar Lal
ORGANIZATIONAL CHANGE Organizational change is the process by which
organization move from their present state to some desired future state to increase effectiveness.
When an organization system is disturbed by some internal or external forces change frequently occur or any alteration which occur in the overall work environment of an organization.
CHARACTERSTICS OF O.C.
Change happen for the pressure of both internal and external forces in the organization.
Change in any part of the organization affect the whole organization.
Change may affect people , structure, technology, and other element of the organization.
Change also affect the rate of speed and degree of significance of the organization.
Change may be reactive or proactive.
THE EVOLUTION OF STARBUCKS
In the beginning they had only just a shop that sold some selected coffee beans.
As Starbucks growing, they realized that the informal techniques were not sufficient and needed to have a more formalized with people and places.
Now Starbucks was the biggest coffee chain network in the world with more than 15000 shops in over 44 countries. And they grown too fast.
They adopting the Italian culture and make some important changes in organization.
Howard Schultz
Dave Olsen
Dawn PinaudExploring Behavior in Action
CHANGE FORCES
INTETRNAL FORCES
Work forceManagerial personnelManagement structureAvoid developing inertia
External Forces
TechnologyMarketing conditionsSocial changesPolitical forces
Change forces
INTERNAL PRESSURES FOR CHANGE
Work force
Managerial personnel
Avoid developing inertia
Management structure
EXTERNAL PRESSURES FOR CHANGE
Technological advances
Marketingconditions
Socialchanges
PoliticalForces
ManagerialAdvice
COMPANIES’ RESPONSES TO PRESSURES FOR “GREEN” POLICIES AND PRACTICES
Taking as it positive way:
It create a healthy image in customers.It help in cost cutting.Energy saving in the office.Help in reducing carbon in environment.
CHANGE AGENTS
A Persons in organization responsible for managing change activities.
Can be managers or non managers, current employees, newly hired employees or outside consultants.
PROCESS OF PLANNED CHANGE
Kurt Zadek Lewin (September 9, 1890 – February 12, 1947) was a German-American psychologist, known as one of the modern pioneers of social, organizational, and applied psychology in the United States.
Lewin is often recognized as the "founder of social psychology" and was one of the first to study group dynamics and organizational development.
PROCESS OF PLANNED CHANGE (LEWIN’S CHANGE MODEL)….
PROCESS OF PLANNED CHANGE
Unfreezing RefreezingMoving
• Provide rationale for change
• Create minor levels of guilt/anxiety about not changing
• Create sense of psychological safety concerning change
• Provide information that suspects proposed changes
• Bring about actual shifts in behavior
• Implement new evaluation systems
• Implement new hiring and promotion systems
Kurt Lewin
COCA-COLA TAGLINES/SLOGANS
Coca-Cola is changing its culture, andalso enhance its product line to bettersatisfy the demand of customers.
SPEED OF CHANGE
Criteria toConsider
Urgency
Degree of support
Amount and complexity of change
Competitive environment
Knowledge and skills available
Financial and other resources
RESISTANCE TO CHANGE
Four Factors
Organizational Resistance
Group Resistance
Effort to block new ways of doing things
Individual Resistance
Individual Resistance
•Below are stated some reasons why people resists changes. Some of these appear to be rational or emotional. These reasons are:-
•Economic factors•Habits•Insecurity•Lack of communication•Extend of change•Psychological factors•Social factors
Group Resistance
Most organizational changes have impact on formal groups in the organization the main reason
why the groups resists change is that they fear that their cohesiveness
or existence is threatened by it.
Organizational ResistanceOrganizational resistance means the change is resisted at the level of the organization itself.
Some organization are so designed that they resist new ideas, this is specifically true in case of
organization which are conservative in nature. Majority of the business firm are also resistance to
changes. The major reason for organizational resistance are:-
•Threat to power•Group inertia•Organizational structure •Threat to specialization•Resource constants•Sunk costs
Communication
MINIMIZING RESISTANCE TO CHANGE Highest priority and first
strategy for change Improves urgency to
change Reduces uncertainty
(fear of unknown) Problems -- time
consuming and costly
Communication
MINIMIZING RESISTANCE TO CHANGE Provides new knowledge
and skills Includes coaching and
action learning Helps break old routines
and adopt new roles Problems -- potentially
time consuming and costly
Training
Communication
MINIMIZING RESISTANCE TO CHANGE Increases ownership of
change Helps saving face and
reducing fear of unknown
Includes task forces, search conferences
Problems -- time-consuming, potential conflict
Training
Employee Involvement
Communication
MINIMIZING RESISTANCE TO CHANGE When communication,
training, and involvement do not resolve stress
Potential benefitsMore motivation to
changeLess fear of unknownFewer direct costs
Problems -- time-consuming, expensive, doesn’t help everyone
Training
Employee Involvement
Stress Management
Communication
MINIMIZING RESISTANCE TO CHANGE
When people clearly lose something and won’t otherwise support change
Influence by exchange-- reduces direct costs
ProblemsExpensive Increases compliance, not
commitment
Training
Employee Involvement
Stress Management
Negotiation
Communication
MINIMIZING RESISTANCE TO CHANGE
When all else fails Assertive influence Firing people --
radical form of “unlearning”
ProblemsReduces trustMay create more
subtle resistance
Training
Employee Involvement
Stress Management
Negotiation
Coercion
ORGANIZATION DEVELOPMENT (OD)
Planned change Long range change Problem solving Team building Feedback
A planned, organization-wide, continuous process designed to
improve communication, problem solving, and learning through the application of behavioral science
knowledge
PROCESS OF ORGANIZATION DEVELOPMENT Problem Identification and Diagnosis Planning strategy for change Intervening in the system Evaluation
ORGANIZATION DEVELOPMENT INTERVENTIONS Survey feedback Process consultation Sensitivity training The managerial grid MBO (Management by Objectives) Team building Job enrichment
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