Organisational Change

1. Organisational Change
Dr Dorota Joanna BourneDr Dorota Joanna Bourne

2. Learning Objectives
1. Present two models of the change process
in organisations: the Growth Curve Model
and the unfreezing-changing-refreezing
model .model .
2. Describe why people resist change and
how to manage such resistance.
3. Explain the nature of organisational
development.

3. Managing Change
Types of change in organisations:
Changes in technology
Changes in organisational structureChanges in organisational structure
Coworkers and customers

4. The Growth Curve Model of
Organisational Change

5. The Change Process (Kurt Lewin)
Unfreezing Changing Refreezing

6. Why People Resist Change
Resistance comes from:
Fear of a unfavourable outcome (e.g., less money,
personal inconvenience, more work)
Disrupted social relationships at work
Not wanting to break with well-established habits
A general fear of the unknown and uncertainty
Fear that an unrecognised weakness in the proposed
change will result in unfavourable outcome.

7. Methods for Dealing with
Resistance to Change
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement

8. Three Major Factors that Create
Organisational Change
ManagementManagement
InitiativesInitiatives
Changes inChanges in
TechnologyTechnology
New WorkNew Work
ProcessesProcesses
OrganisationalOrganisational
ChangeChange

9. Downsizing and Restructuring
Primary reason for downsizing:
Reductions in the size of the firm to lower
costs and allow the firm to become more
competitive.competitive.
Dangers in downsizing:
Inability to capitalise on post-restructuring
opportunities due to understaffing.
Loss of critical human assets reduces
organisational learning.

10. The Costs of Downsizing
Massive layoffs can
backfire after taking into
account:
Rehiring costs
Companies that avoid
downsizing say they get:
A fiercely loyal, more
productive workforceRehiring costs
Loss of institutional
memory and trust in
management
Lack of staff when the
economy rebounds
Survivors who are risk
averse, paranoid, and
political
Higher customer
satisfaction
Readiness to snap back
with the economy
A recruiting edge
Workers who aren’t afraid to
innovate, knowing that their
jobs are safe

11. Keys to Successful Restructuring
Integrate downsizing with long-term
strategies.
Identify and protect high-potential employees.Identify and protect high-potential employees.
Decentralise and empower employees.
Eliminate low-value and non-value activities.
Emphasise teamwork and cooperation.
Support and train, then evaluate and reward
performance.

12. Organisational Development
as a Change Strategy
Organisational Development (OD)
Is any strategy, method, or technique
for making organisations more effectivefor making organisations more effective
by bringing about constructive,
planned change.

13. Organisational Development
Interventions
Individual Level
Executive (or business) coaching
Employee assistance programs (EAPs)
Career development programs
Organizational behavior modification
(OB Mod)
Small-Group Level
Team development
Cultural diversity training
Modified work schedules
Creativity training
Intergroup conflict resolution
Job enrichment
Wellness programs (stress reduction)
Bullying/ harassment avoidance training
Intergroup conflict resolution
Quality improvement teams
Self-managing teams
Organisation Level
Survey feedback (attitude surveys)
Action research (employees participate in
implementing changes identified by a consultant)
Implementing organisation learning
Knowledge management

14. Large-Scale Organisational Change
Signs of the need for large-scale change:
Top executives micromanaging instead of delegating
A high turnover rate of employeesA high turnover rate of employees
Ineffective communication in the organisation.
A compensation system that rewards people for
actions unrelated to business success
Loss of established business and failure to acquire
new business

15. Total Quality Management (TQM)
A management system for improving
performance throughout a firm by:
Maximizing customer satisfactionMaximizing customer satisfaction
Making continuous improvements
Relying heavily on employee involvement

16. Total Quality Management (TQM)
TQM is a fundamental change in an
organisation’s culture to one that includes:
A focus on the customerA focus on the customer
An environment of trust and openness
Formation of work teams
Breaking down internal barriers
Sharing power