By

Prof. (Dr.) Vijay Kr Khurana

Understanding the Nature &
Importance of Change
Forces & Types of Change
Diagnosing Organizational capability to
Change - Strategy, Structure, Systems
and People;




How do external forces influence
organizational change?
What are various forces of change from
(a) individual perspective and
(b) organizational perspective.
Give diagrammatic representation of
Change Process.
How does Kurt Lewin explain the
process of change. List its various phases
and activities in each phase.



The quality of a successful man is to flow
and not to freeze Ralph Waldo
Emerson.

What is Organizational Change ?


At the heart of change management lies the change
problem, that is, some future state to be realized,
some current state to be left behind, and some
structured, organized process for getting from the
one state to the other state.
At a conceptual level, the change problem is a
matter of moving from one state (A) to another state
(B).
In simpler terms, the change problem can be treated
as smaller problems having to do with the how,
what, and why of change.
a. Change as a 'How Problem
b . Change as a What Problem
c. Change as a Why Problem
Change makes things different
Change is inevitable
Change is usually an ongoing activity
Change results from factors both inside and
outside the organization
Change offers new opportunities and poses
new challenges
Change takes place in all parts of an
organisation
Change takes place at varying rates in
different parts of an organization.



Contd
Changes take place at different levels of an
organization
Change may be both planned & unplanned
The rate of change may be slow or fast.
The quantum / magnitude of change may
be of First Order (Incremental) or Second
Order (Radical).
Organizational changes are not always
uniform.
Change brings risk and uncertainties,
which, if not managed properly, may lead to
huge costs to the organization or even
collapse of the organization
Change sometimes bring challenges without
which life and business activities may
become monotonous and repetitive.
Change may bring new business
opportunities
Change sometimes brings new threats which
act as stimuli for improvements
Contd
Change process may be used by the organizations
to move from current state of business operations
to next higher state of business operations.
Change process may enable the organization to
abandon some negative cultural values, some
outdated & obsolete practices and methods etc.
Change process can be used to raise motivation
viz. by creating desire to support and participate
in the change
Change process may lead to more satisfaction
through improvement in worker skills and more
worker participation
a. Planned Change (intentional or goal
oriented) and Unplanned Change
(accidental)
b. Fast Change and Slow Change ( in terms of
rate of change)
c. First Order Change (incremental) and
Second Order Change (fundamental or
radical) in terms of magnitude / quantum


a. some External Factors are:
Change in government policies
Technological advancement / Progress in
external environment
Change in demographic characteristics
Market changes
Change in economic conditions boom vs
recession
Increase in raw material / input costs
Social pressures etc.

b. some I nternal Factors are:
Change in leadership
Structural reorganization
Adoption or Implementation of new
technology
Decline in profitability
Productivity concerns
Industrial Relation Problems etc.


Demographic Changes
Education & Awareness
Political & social factors - demand for social
justice, inclusive growth
Struggle for Balance of Power- Have vs have-
nots, Developed vs Developing countries, North
vs south
Environ-mental issues
Health Care issues - medical tourism etc
Tech & Innovation breakthrough & disruptive
technologies / innovation
Economic Transformation globalization, open
& inter-connected economies
Rising needs for Infrastructure
Safety and Security
It is the process which changes the state
or which results in change
Change process as Unfreezing,
Changing & Refreezing
Change process as problem solving &
problem finding





Also known as Unfreeze-Change-Refreeze
Model
Lewin suggested following three steps for
ensuring successful change


1. Unfreeze efforts undertaken to overcome
the pressures of resistance to change.
Driving forces for change should be
greater than restraining forces working
for status quo. Following steps should be
taken:
Determine what needs to be done
Ensure there is strong support from upper
management
Create the need for change
Understand & Manage doubts & concerns
contd
2. Change moving to new state. Following
steps should be taken:
Communicate often
Dispel rumours
Empower action
Involve people in the change process
contd
3. Refreeze Stabilizing the change;
making new change permanent.
Following steps should be taken:
Anchor the changes into culture
Develop ways to sustain the change
Provide support & training
Celebrate success
a. Diagnosing the Organizational
capability to change
b. Formula for Change
c. Bringing change - Seven Levels of
Change Model




a. Diagnosing the Organizational capability to change
Before initiating change process, it is very
important to diagnose / assess the organizational
capability to change.
If it is not assessed / diagnosed, then, at later
stages, change process may go out of control,
leading to huge costs to the organization.
Following parameters can be used to diagnose / assess
organizational capability to change: -----
Organization culture
Vision for future
Commitment of top management
Contd .... Diagnosing the Organizational capability
to change
Risk taking attitude of top management
Risk taking capabilities of the organization
Degree of flexibility in organizational systems and
overall working
Effective communication
Strong leadership
Pool of dedicated managers and senior executives
Commitment, motivation and participation of
workforce
Convergence of organizational goals and
individual goals




How will you diagnose the Organizational
capability to change
Strategy
Structure
Systems
People ????




Strategy is a high level plan to achieve one
or more goals under conditions of uncertainty.
Strategy becomes necessary when it is known or
suspected that there are problems or insufficient
resources to achieve these goals.
A system is a set of interacting or
interdependent components forming an
integrated or a set of elements (often
called 'components' ) and their relationships.
Structure is a fundamental, tangible or
intangible notion referring to the recognition,
observation, nature, and permanence of patterns
and relationships of entity(ies).
b. Formula for Change
The formula for change was developed by
Richard Beckard and and David Gleicher. It
is sometimes referred to as Gleichers
formula.
The Gleichers formula stresses that the
combination of organisational dissatisfaction,
vision for the future and the possibility of
immediate, tactical action must be stronger
than the resistance within the organisation in
order for meaningful change to occur.
Driving forces must be > restraining forces
c. Bringing change Rolf Smiths Seven
Levels of Change Model - (7 types of
changes from easiest to difficult )
Level 1: Increasing Effectiveness
Doing The Right Things Use Pareto
principle
Level 2: Improving EfficiencyDoing
Things Right
Level 3: EnhancingDoing Things
Better
Level 4: Cutting or Abandoning the
Unnecessary Things viz Product
simplification
Contd Bringing change Rolf Smiths
Seven Levels of Change Model
Level 5: Copying / Imitation i.e Doing
Things which Other People are Doing
viz Copying / Imitation, Reverse
engineering, Benchmarking
Level 6: Doing Different Doing Things
No One Else is Doing Re-engineering
Level 7: Doing ImpossibleDoing What
Cannot be Done - some Breakthrough- a
revolutionary or shocking departure from
convention Disruptive innovation /
Business model innovation