ORGANIZATIONAL DEVELOPMENT AND CHANGE

MANAGEMENT

OD AND CHANGE MANAGMENT LECTURE NOTES IIUI 1

Chapter Objectives
• Summarize four dominant forces for change in organizations.
• Describe the process of planned organization change as a continuous
process.
• Discuss several approaches to organization development.
• Explain organizational and individual sources of resistance to change.
• Identify six keys to managing successful organizational change and
development

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LECTURE NOTES IIUI
Forces for Change
• An organization faces pressures for change from numerous sources:
• It is difficult to predict what types of pressures for change will be the most
significant in the next decade because the complexity of events and the
rapidity of change are increasing.
• Four categories of pressures that are likely to have major effects on
organizations include:
• People, technology, information processing and communications, and competition.

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Pressures for Organizational Change
• People
• Baby Boomers comprise approximately 56 million people born between 1945
& 1960. Special characteristics of this group include distinct purchasing
patterns that affect product and service innovation, technological change, and
marketing activities.
• Technology
• Technology development is increasing so rapidly in almost every field making
it difficult to predict which products will dominate 10 years from now.

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Pressures for Organizational Change
(continued)
• Information Processing and Communications
• In the future, people may not need offices as they work with computers and
communicate through new data transmission devices.
• Competition
• Most markets are international because of decreasing transportation and
communication costs. The Internet is creating new opportunities overnight.

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Table 15.1
Pressures for Organizational Change

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Planned Organizational Change
• External forces may impose change on an organization.
• Ideally, the organization will not only respond to change but will
anticipate it, prepare for it through planning, and incorporate it in the
organization strategy.

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Lewin’s Process Model
• Kurt Lewin suggested that efforts to bring about planned change in
organizations should approach change as a multistage process.
• His model of planned change consists of 3 steps
• Unfreezing
• Change
• Refreezing

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Figure 15.1: Lewin’s Process Model of
Organizational Change

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The Continuous Change Process Model
• Lewin’s model is very simple and straightforward, so virtually all
models of organizational change use his approach.
• However, it does not deal with several important issues.
• This approach treats planned change from the perspective of top
management and indicates that change is continuous.

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The Continuous Change Process Model
(continued)
• Major Steps in the Model
• Top management perceives that change is needed.
• The issue in question is subjected to the organization’s usual problem-solving
and decision-making processes.
• Alternatives for change are generated and evaluated, and an acceptable one
is selected.
• The change agent and top management assess the degree to which the
change is having the desired effect, and make adjustments if necessary.

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Figure 15.2: Continuous Change Process
Model of Organizational Change

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Organization Development
• The process of planned change and improvement of an
organization through the application of knowledge of
the behavioral sciences.
• First, organization development involves attempts to plan
organization changes, which excludes spontaneous,
haphazard initiatives.
• Second, the specific intention of organizational development
is to improve the organization.
• Third, the panned improvement must be based on knowledge
of behavior sciences such as organizational behavior,
psychology, sociology, and related fields rather than financial
or technological considerations.

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Systemwide Organization Development
• Structural Change
• A major reorientation or reorganization that affects performance appraisal
and rewards, decision making, and communication and information
processing systems.
• No systemwide structural change is simple.

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Systemwide Organizational Development
(continued)
• Contemporary Approaches to Systemwide Structural Change involve:
• Reengineering
• Changing the way tasks are divided into jobs
• Combining jobs into departments and divisions
• Rearranging authority and reporting relationships
• Dividing large groups into smaller ones
• Moving from functional departmentalization to a system based on products
or geography
• Moving from a vertical or functional design to a matrix or a team-based
design

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Task and Technological Organizational
Development
• Task Redesign
• Changing tasks involved in doing the work
• Changing how inputs are transformed into outputs is called technological
change usually results in task changes

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Four Types of People-Oriented Change
Techniques
• Training
• Generally designed to improve employees’ job skills. Among the many
training methods, the most common are lectures, discussions, lecture-
discussion combinations, experiential methods, case studies, and films or
videotapes.
• Management Development Programs
• Programs that attempt to foster certain skills, abilities, and perspectives.
Training in this area typically relies heavily on participative methods such as
case studies and role playing.

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Four Types of People-Oriented Change
Techniques (continued)
• Team Building
• Emphasizes members working together in a spirit of cooperation
• Survey Feedback
• Techniques used to form the basis for a change process; data are gathered,
analyzed, summarized, and returned to those who generated them to
identify, discuss, and solve problems

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Figure 15.3: The Survey Feedback Process

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Resistance to Change
• Resistance to change can come from the
organization, the individual, or both.
• Organizations both promote and resist change.
• As an agent of change, the organization asks
prospective customers to change their purchasing
habits by buying its products or services, and asks
clients and suppliers to change to accommodate other
firm objectives.
• An organization resists change in that its structure and
control systems protect the daily tasks of producing a
product or service from uncertainties in the
environment.

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Table 15.3: Organizational and Individual
Sources of Resistance

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Table 15.3: Organizational and Individual
Sources of Resistance (continued)

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Table 15.4: Managing Successful
Organizational Change

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