CHAPTER 3

ORGANIZATIONAL CHANGE

This lesson is intended to discuss integrative approach to organization change. After studying
this lesson you will be able to:
 Define meaning and forms of organization change.
 Explain various forces of change.
 Know how to manage organizational change.
 Describe the role of change agents.
 Identify the reasons for resistance to change.
INTRODUCTION
There is nothing permanent except change. It has become an inescapable fact of life; a
fundamental aspect of historical evolution. Change is inevitable in a progressive culture. Change
in fact, is accelerating in our society. Revolutions are taking place in political, scientific,
technological and institutional areas. Organizations cannot completely buffer themselves from
this environmental instability. Change is induced by the internal and external forces. Meeting
this challenge of change is the primary responsibility of management. An organization lacking
adaptability to change has no future. Adaptability to change is a necessary quality of good
management. Modern managers have the responsibility to device the management practices to
meet the new challenges and make use of the opportunities for the growth of the organization.

3.1. Meaning and implications

Managing change in the organizational context
The topic of managing change is one that comes closest to describe the totality of a manager's
job. Practically everything a manager does is in some way concerned with implementing change.
1. Hiring a new employee - Changing the work group
2. Purchasing a new piece of equipment - Changing work methods
3. Rearranging work station - Changing work flows
All require knowledge of how to manage change effectively. Organizational change refers to a
modification or transformation of the organization's structure, processes or goods. Flexibility
requires that organizations be open to change in all areas, including the structure of the
organization itself. In a flexible organization, employees can't think of their roles in terms of a

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job description. They often have to change the tasks they perform and learn new skills. The most
flexible organizations have a culture that values change and managers who know how to
implement changes effectively.

3.2. Forces for Organizational Change

More and more organizations today face a dynamic and changing environment that, in turn
requires these organizations to adapt. Change has become the norm in most organizations. Plant
closing, business failures, mergers and acquisitions, and downsizing have become common
experiences for most organizations. Adaptiveness, flexibility and responsiveness are terms used
to describe the organizations that will succeed in meeting the competitive challenges that
businesses face. In the past, organizations could succeed by claiming excellence in one area –
quality, reliability or cost. But this is not the case today. The current environment demands
excellence in all areas.
Why is organizational change so important?
From outside and inside the organization a variety of forces press for change. "We live in the
midst of constant change" has become a well-worn but relevant cliché. Pressures for change are
created from both inside and outside the organization. Organization must forge ahead on these
forces to survive. Some of these are external, arising from outside the company, whereas others
are internal arising from sources within the organization.
1. External Forces: When the organization's general or task environment changes, the
organization's success often rides on its ability and willingness to change as well. Modern
manager is change-conscious and operating in the constantly changing environment. Many
external changes bombard the modern organizations and make change inevitable. The general
environment has social, economic, legal and political and technological dimensions. Any of
these can introduce the need for change. In recent years, far-reaching forces for change have
included developments in information technology, the globalization of competition, and demands
that organizations take greater responsibility for their impact on the environment. These forces
are discussed below:
(a) Technological Change: Rapid technological innovation is a major force for change in
organizations, and those who fail to keep pace can quickly fall behind. It is perhaps the greatest
factor that organizations reckon with. According to C. Handy "the rate of technological changes

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is greater today than any time in the past and technological changes are responsible for changing
the nature of jobs performed at all levels in the organization". For example, the substitution of
computer control for direct supervision is resulting in wider spans of control for managers and
flatter organizations. Technological innovations bring about profound change because they are
not just changes in the way work is performed. Instead, the innovation process promotes
associated changes in work relationships and organizational structures. Sophisticated information
technology is also making organizations more responsive. The team approach adopted by many
organizations, leads to flatter structures, decentralized decision making and more open
communication between leaders and team members.
(b) Globalization: The global economy means competitors are likely to come from across the
ocean. The power players in the global market are the multinational and trans-national
organizations. This has led companies to think globally. There are no mental distinctions
between domestic and foreign operations. Globalization, for an organization, means rethinking
the most efficient ways to use resources, disseminate and gather information and develop people.
It requires not only structural changes but also changes in the minds of employees. Successful
organizations will be the ones that can change in response to the competition. They will be fast
on their feet, capable of developing new products rapidly and getting them to market quickly.
(c) Social and Political Changes: A firm's fate is also influenced by such environmental
pressures as social and political changes. Many new legal provisions in the corporate sector get
introduced every time that affects the organizations.
(d) Workforce Diversity: Related to globalization is the challenge of workforce diversity.
Workforce diversity is a powerful force for change in organization. The demographic trends
contributing to workforce diversity are:
1. The workforce will see increased participation form females, as the majority of new workers
will be female.
2. The workforce will be more culturally diverse than ever (part of this is attributable to
globalization).
3. The workforce is aging. There will be fewer young workers and more Organisational Change
middle aged working.
(e) Managing Ethical Behaviour: Employees face ethical dilemmas in their daily work lives.
The need to manage ethical behaviour has brought about several changes in organizations. Most

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centre on the idea that an organization must create a culture that encourages ethical behaviour.
Society expects organizations to maintain ethical behaviour both internally and in relationships
with other organizations. Ethical behaviour is expected in relationships with customers,
environment and society. These expectations may be informal or they may come in the form of
increased legal requirements. These challenges are forces that place pressures to change on
organizations. Organizations cannot afford to be rigid and inflexible in the wake of
environmental pressures, they must be rather dynamic and viable so that they survive.
Corporate Insights
2. Internal Forces: Besides reacting to or anticipating changes on the outside, an organization
may change because someone on the inside thinks a new way of doing things will be beneficial
or even necessary. Pressures for change that originate inside the organization are generally
recognizable in the form of signals indicating that something needs to be altered. These internal
forces are discussed below:
(a) Changes in Managerial Personnel: One of the most frequent reasons for major changes in
an organization is the change of executives at the top. No two managers have the same styles,
skills or managerial philosophies. Managerial behaviour is always selective so that a newly
appointed manager might favour different organizational design, objectives procedures and
policies than a predecessor. Changes in the managerial personnel are thus a constant pressure for
change.
(b) Declining Effectiveness: Declining effectiveness is a pressure to change. A company that
experiences losses is undoubtedly motivated to do something about it. Some companies react by
instituting layoffs and massive cost cutting programmes, whereas others view the loss as
symptomatic of an underlying problem, and seek out the cause of the problem.
(c) Changes in Work Climate: Changes in the work climate at an organization can also stimulate
change. A workforce that seems lethargic, unmotivated, and dissatisfied is a symptom that must
be addressed. This symptom is New Force for Change common in organizations that have
experienced layoffs. Workers who have escaped a layoff may find it hard to continue to be
productive. They may fear that they will be laid off as well and may feel insecure in their jobs.
For Tata Iron and Steel Company, foreign investors (suppliers of capital) are a new force for
change. In the past, Tata emphasized the creation of jobs in its community of Jamshedpur, a city
in eastern India. Tata’s 78,000 workers receive lifetime employment, along with free housing,

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education and medical care. The company, in turn has benefited from a complete lack of strikes
in 60 years. But investors interested in Tata have asked how the company might improve its
profit margin of only 3.7 percent. Notes Tata’s managing director Jamshed Irani, “we will now
be forced to balance loyalty against productivity.
Source: Pete Engardio and Shekhar Hattangadi, “India’s Mr. Business,” Business Week, April
18, 1994 pages 100-101.
(d) Deficiencies in the Existing System: Another internal pressure for organizational change is
the loopholes in the system. These loopholes may be unmanageable spans of control, lack of
coordination between departments, lack of uniformity in politics, non-cooperation between line
and staff etc.
(e) Crisis: A crisis may also stimulate change in an organization. Strikes or walkouts may lead
management to change the wage structure. The resignation of a key decision maker is one crisis
that causes the company to rethink the composition of its management team and its role in the
organization.
(f) Employees, Expectations: Changes in employee’s expectations can also trigger change in
organizations. These forces may be:-
l Employees' desire to share in decision-making.
l Employees' demand for effective organizational mechanism.
l Higher employees’ expectation for satisfying jobs and work environment.
l Employees' desire for higher wage payment.
All these forces necessitate change in organizations. Besides these forces, a company that hires a
group of young newcomers may be met with a set of expectations very different from those
expressed by older workers.
Although organizational changes are important, managers should try to institute changes only
when they make strategic sense. A major change or two every year can be overwhelming to
employees and create confusion about priorities. A logical conclusion is that managers should
evaluate internal forces for change with as much care as they evaluate external forces.

3.3.Process of Organizational Change

Kurt Lewin proposed Three Stage Model of the change process for moving the organization from
present position to the changed position. This is as under:

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Stage 1: Unfreezing: Creating motivation and readiness to change through
(a) Disconfirmation or lack of confirmation.
(b) Creation of guilty or anxiety.
(c) Ensure subordinates of psychological safety.
Stage 2: Changing through cognitive restructuring: Helping the client to see things, judges
things, feel things differently based on new point of view obtained through.
(a) Identifying with a new role model, mentor, etc.
(b) Scanning the environment for new relevant information.
Stage 3: Refreezing: Helping the client to integrate the new point of view into
(a) The total personality and self – concept.
(b) Significant relationship.
1. Unfreezing: Process of unfreezing makes individuals ready for change. Lewin believes that
employees must be informed in advance of impending change and that they should not be
surprised. Unfreezing entails unfreezing the old behaviour or situation. Edgar Schein took this
excellent idea propagated by Lewin and improved by specifying psychological mechanism
involved in each stage of the model. Unfreezing involves creating motivation and readiness to
change by creating an environment of disconfirmation of existing psychological safety in the
changed pattern of behavior. This can be achieved by making announcements, meetings and
promoting the idea throughout the organization through bulletin, boards, personal contacts and
group conferences. The unfreezing process basically cleans the slate so that fresh behavioural
patterns, customs, traditions can be imprinted which can then become a new way of doing things.
2. Moving: Once unfreezing process is completed, moving takes place. Moving is incorporating
change. Persons undergo cognitive restructuring. The process is carried out by the following
three methods as proposed by Kelman.
• Compliance: Compliance is achieved by introducing rewards and punishments. It has been
established that individual accepts change if he is rewarded or punished. This is a behaviour
modification tool.
• Identification: Members are psychologically impressed upon to select their role model and
modify behaviour. If a leader can act as a role model the change is easier.

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• Internalization: Internalization involves internal changing of individual’s thought processes in
order to adjust to a new environment. Members are advised to carry out soul searching and adopt
a new behaviour.
3. Refreezing: It is related to integrate the new behaviors into the person’s personality and
attitude. It is referred to stabilization. The change behaviour must necessarily fit into the social
surroundings. Refreezing takes place when the new behaviour is adopted in a normal way of life.
New behaviour must replace the old on a permanent basis. New behaviors must be re-enforced
continuously so that it does not diminish. Change process is not a onetime process but it is
continuous hence unfreezing, change and refreezing must also be continuous.
Another ‘change model’ was proposed by Ronald lippitt, Jeanne Watson and Bruce Westley.
They expanded the original Lewin (3 stage) model into seven stage model.
Phase 1: The development of need for change.
Phase 2: The establishment of change relationship (establishment of ‘Client’ and ‘Change agent’
relationship).
Phase 3: Diagnosis of client of client system’s problems.
Phase 4: The examination of alternative routes and goals; Establishing goals and intentions of
action.
Phase 5: The Transformation of moving intentions into actual change efforts.
Phase 6: The generalization and refreezing stabilization of change.
Phase 7: Achieving a Terminal relationship with client – change agent.
THE ROLE OF CHANGE AGENTS
Change in organizations is inevitable, but change is a process that can be managed. The
individual or group who undertakes the task of introducing and managing a change in an
organization is known as a change agent. Change agents can be of two types:
(a) Internal Change Agents: Change agents can be internal such as managers or employees who
are appointed to oversee the change process. Internal change agents have certain advantages in
managing the change process. They are:
They know the organizations past history, its political system, and its culture.
Internal change agents are likely to be very careful about managing change because they
must live with the results of their change efforts. There are also disadvantages of using
internal change agents. They are:

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 They may be associated with certain factions within the organization and may easily be
accused of favoritisms.
Internal change agents may be too close to the situation to have an objective view of
what needs to be done.
(b) External Change Agents: Change agents can also be external, such as outside consultants.
They bring an outsider's objective view to the organization.
External change agents have certain advantages:
They may be preferred by employees because of their impartiality.
They have more power in directing changes if employees perceive the change agents as
being trustworthy, possessing important expertise, having a track record that establishes
credibility. There are also disadvantages of using external change agents. They are:
1. External change agents face certain problems, including their limited knowledge of the
organization's history.
2. They may be viewed with suspicion by organization members.
3.4. Resistance to change
As the manager contemplates and initiates change in the organization one phenomenon that is
quite likely to emerge anytime in the change process is the resistance to change. People often
resist change in a rational response based on self-interest. Resistance to change doesn't
necessarily surface in standardized ways. Resistance can be overt, implicit, immediate, or
deferred. It is easiest for management to deal with resistance when it is overt and immediate. The
greater challenge is managing resistance that is implicit or deferred.
The sources of resistance to change can be categorized into two sources: individual and
organizational.
1. Individual Resistance: One aspect of mankind that has remained more or less constant is
resistance to change. Individuals resist change because they attach great preference to maintain
status quo. Individual sources of resistance to change reside in basic human characteristics such
as perceptions, personalities and needs. The following are the reasons:-
(a) Economic Reasons: The economic reasons to fear change usually focus on one or more of the
following:
 Fear of technological unemployment.
 Fear of reduced work hours and consequently less pay.

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  Fear of demotion and thus reduced wages.
 Fear of speed-up and reduced incentive wages.
Changes in job tasks or established work routines can also arouse economic fears Organizational
Change if people are concerned they won't be able to perform the new tasks or routines to their
previous standards, especially when pay is closely tied to productivity.
(b) Fear of the Unknown: Change often bring with it substantial uncertainty. Employees facing a
technological change, such as the introduction of a new computer system, may resist the change
simply because it introduces ambiguity into what was once a comfortable situation for them.
This is especially a problem when there has been a lack of communication about the change.
(c) Fear of Loss: When a change is impending, some employees may fear losing their jobs,
particularly when an advanced technology is introduced. Employees may also fear losing their
status because of a change. Another common fear is that changes may diminish the positive
qualities the individual enjoys in the job. For example, computerizing the customer service
positions, threaten the autonomy that sales representatives previously enjoyed.
(d) Security: People with a high need for security are likely to resist change because it threatens
their feeling of safety.
(e) Status quo: Perhaps the biggest and most sound reason for the resistance to change is the
status quo. As human beings, we are creatures of habit. Change may pose disturbance to the
existing comforts of status quo. When confronted with change, this tendency to respond in our
accustomed ways becomes a source of resistance. Change means they will have to find new ways
of managing them and their environment – the ways that might not be successful as those
currently used.
(f) Peer Pressure: Individual employees may be prepared to accept change but refuse to accept it
for the sake of the group. Whenever change is unwilling to the peers, they force the individuals
who want to accept change to resist change.
(g) Disruption of Interpersonal Relationships: Employees may resist change that threatens to
limit meaningful interpersonal relationships on the job.
(h) Social Displacement: Introduction of change often results in disturbance of the existing social
relationships. Change may also result in breaking up of work groups. Thus when social
relationships develop, people try to maintain them and fight social displacement by resisting
change.

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2. Organizational Resistance: Organizations, by their very nature are conservative. They
actively resist change. Some of the organizational resistances are explained below:
(a) Resource Constraints: Resources are major constraints for many organizations. The
necessary financial, material and human resources may not be available to the organization to
make the needed changes. Further, those groups in organization that control sizable resources
often see change as a threat. They tend to be content with the way things are.
(b) Structural Inertia: Some organizational structures have in-built mechanism for resistance to
change. For example, in a bureaucratic structure where jobs are narrowly defined, lines of
authority are clearly spelled out change would be difficult. This is so because formalization
provides job descriptions, rules, and procedures for employees to follow. The people who are
hired into an organization are chose for fit; they are then shaped and directed to behave in certain
ways. When an organization is confronted with change, this structural inertia acts as a
counterbalance to sustain stability.
(c) Sunk Costs: Some organizations invest a huge amount of capital in fixed assets. If an
organization wishes to introduce change then difficulty arises because of these sunk costs.
(d) Politics: Organizational change may also shift the existing balance of power in organization.
Individuals or groups who hold power under the current arrangement may be threatened with
losing these political advantages in the advent of change.
(e) Threat to established power relationships: Any redistribution of decision making authority
can threaten long established power relationships within the organization. Managers may
therefore resist change that introduces participative decision making because they feel
threatened.
(f) Threat to expertise: Change in organizational pattern may threaten the expertise of
specialized groups. Therefore specialist usually resists change.
(g) Group Inertia: Even if individuals want to change their behaviour, group norms may act as a
constraint. For example, if union norms dictate resistance any unilateral change made by
management, an individual member of the union who may otherwise be willing to accept the
changes may resist it.
3.5. Managing Resistance to change
Although resistance to change is a common phenomenon in organizations, it must be noted that
not all changes are resisted. In fact, if we look at any organization closely we would probably

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find that far more changes are accepted than resisted. The traditional view of resistance to change
treated it as something to be overcome, and many organizational attempts to reduce the
resistance have only served to intensify it. The contemporary view holds that resistance is simply
a form of feedback and that this feedback can be sued very productively to manage the change
process. One key to managing resistance is to plan for it and to be ready with a variety of
strategies for using the resistance as feedback and helping employees negotiate the transition.
Some tactics have been suggested for sue in dealing with resistance to change.
(a) Education and Communication: Communication about impending change is essential if
employees are to adjust effectively. The details of the change should be provided, but equally
important is the rationale behind the change. Employees want to know why change is needed. If
there is no good reason for it, why should they favour the change? Providing accurate and timely
information about the change can help prevent unfounded fears and potentially damaging rumors
from developing. It is also beneficial to inform people about the potential consequences of the
change. Educating employees on new work procedures is often helpful.
(b) Participation: It is difficult for individuals to resist a change decision in which they
participated. Prior to making a change, those opposed can be brought into the decision process.
When employees are allowed to participate, they are more committed to the change.
(c) Empathy and Support: Another strategy for managing resistance is providing empathy and
support to employees who have trouble dealing with the change. Active listening is an excellent
tool for identifying the reasons behind resistance and for uncovering fears. An expression of
concerns about the change can provide important feedback that managers can use to improve the
change process.
(d) Negotiation: Another way to deal with potential resistance to change is to exchange
something of value for a lessening of the resistance. Where some persons in a group clearly lose
out in a change, and where groups have considerable power to resist, negotiation and agreements
are helpful. It becomes relatively easy to avoid major resistance through negotiation. Negotiation
as a tactic may be necessary when resistance comes from a powerful source.
(e) Manipulation and cooperation: Manipulation refers to covert influence attempts. Twisting
and distorting facts to make them appear more attractive, withholding undesirable information
and creating false rumors to get employees to accept a change are all examples of manipulation.
It involves giving individuals a desirable role in design or implementation of change.

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(f) Coercion: Coercion is the application of direct threats or force on the resisters. They
essentially force people to accept a change by explicitly or implicitly threatening them with the
loss of their jobs, promotion possibilities and transferring them. Coercion is mostly applied
where speed is essential in implementing change and the change initiator possesses considerable
power.
The Politics of Change
No discussion of resistance to change would be complete without a brief mention of the politics
of change. Because change invariably threatens the status quo, it inherently implies political
activity. Politics suggests that the demand for change is more likely to come from employees
who are new to the organization (and have less invested in the status quo) or managers who are
slightly removed from the main power structure. Those managers who have spent their entire
careers with a single organization and eventually achieve a senior position in the hierarchy are
often major impediments to change. Change itself is a very real threat to their status and position.
Yet they may be expected to implement changes to demonstrate that they are not merely
caretakers. By trying to bring about change, senior managers can symbolically convey to various
constituencies—stockholders, suppliers, employees, customers—that they are on top of problems
and adapting to a dynamic environment. Of course, as you might guess, when forced to introduce
change, these long-time power holders tend to introduce changes that do not fundamentally
challenge the status quo. Radical change is too threatening. This, incidentally, explains why
boards of directors that recognize the need for the rapid introduction of fundamental, radical
change in their organizations often turn to outside candidates for new leadership.
Levels of Change
Hersey and Blanchard identified four levels of change. These are knowledge change,
attitudinal change, individual behaviour change and group or organizational performance
change. The objective is to bring about change in the organization. It is possible through
knowledge change which in turn changes attitude of the individual. Knowledge change is simple
as one can improve the level of knowledge by reading or listening. Bringing attitudinal change is
difficult, because it is difficult to change the individual and his perception. Change in individual
is related to personality traits. A manager may believe that empowering subordinates is essential
for organizational growth yet he may not empower them because of his upbringing. Changes in
group and organization is even more complicated than implementing individual level change as

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it involves change in group norms, customs, and traditions. Change in group level involves
change in organizational culture. This is a long term process, which must be continuous with
active involvement of top management.
1. Knowledge Change: Change in knowledge can bring change in individual and group
behaviour. It is related to the leadership style, Hersey and Blanchard refer to as participative or
democratic change cycle and autocratic or directive change cycle.
(a) Participative leadership style in bringing change in group or organization is largely based on
the style of leadership. Change in knowledge of workforce coupled with participative leadership
style can transform an individual in his outlook. It can bring change in his attitude and an
individual can be more committed towards the organization. He can be more responsible towards
his duties and obligations. New methods and techniques can be implemented to bring change in
the group in desired direction. Assistance from likeminded leaders having democratic outlook
can help mangers to implement desired change. Once this is achieved, organizational change
may be effected by getting other people to begin to pattern their behaviour on the lines of
successful leaders. Thus the change cycle works through change in knowledge, attitude,
individual behaviour, group behaviour and organizational change.
(b) There are autocratic leaders in the organization. This type of leadership announces the
desired change all of a sudden. This type of process of change may result in whole hearted
acceptance of change or the group may resist the change totally. What is expected in the
autocratic change cycle is organizational change, group level change, knowledge change and
through this cycle, to implement individual behaviour change. Since this approach is opposite of
participative cycle change, it is difficult to implement and individuals are not ready to accept
change in first place. Secondly, the change may not be of a permanent nature. Participative
change is ideal when the employees are achievement oriented having task relevance and willing
to accept responsibilities. It has deeper and longer lasting impact. Autocratic change cycle has
fast speed and revolutionary in nature. It is sustainable where people are not willing and certain
amount of force is required. This change cycles are complimentary to each other and therefore
may be used according to the situations.
2. Attitudinal Level Change: It is difficult to bring attitudinal change. Attitudes are formed and
conditioned by feelings. The way one feels about change will determine how one is likely to
behave. Attitude is formed in early childhood based on social surroundings. When you are part

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of a group, an attitude is greatly influenced by group norms, expectations of the group members
and behavioural code a group adopts. Further the work environment influences the attitudes. Due
to complex nature of situations, there is positive or negative impact on individual behaviour.
Often actions or reactions of individual are effects of group-think. It often happens that workers
join the strike to show togetherness of the group or organization. Individual may not be able to
justify a particular behaviour but he does it merely because all others are engaged in a particular
behaviour. We are not able to explain our emotions largely, that make us behave in a particular
manner. These feelings as Davis explains are not a matter of logic. They are neither logical nor
illogical; rather they are non-logical hence, logic alone is not enough to modify feelings in
modern times, it is however necessary to effect change in individual attitude. It is possible by
way of delegation of authority, empowering employees in their work. Making work more
pleasant and interesting by way of providing the workers wherewithal necessary for its
accomplishment, creating autonomy in work and introducing management by objective concept
in the organization. Cultural change is important.
Organizational culture must conform to majority of workers culture and they must feel at home
while working. Attitude of leaders also play a vital role in attitude change of subordinates.
Participative leadership culture goes a long way in obtaining willing obedience of employees. It
must be borne in mind that it is a continuous process and all members must sub-conscientiously
attempt to improve work culture in the organization for attitudinal change.
3. The Group Level Change: Group plays variety of roles in bringing about change in the
organization: The group as medium of change, the group as the target of change and the group as
an agent of change. Cartwright7 has developed the following principles in this regard.
(a) The group as a medium of change:
(i) If group is to be used effectively as a medium of change, those people who are to be changed
and those who are to exert influence for change must have a strong sense of belonging to the
same group.
(ii) The more attractive the group is to its members, the greater is the influence that the group can
exert on its members.
(iii) In attempts to change attitudes, values, or behaviour the more relevant they are to the basis
of attraction to the group, the greater will be the influence that the group can exert upon them.

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(iv) The greater the prestige of a group member in the eyes of the other members, the greater the
influence he can exert.
(v) Efforts to change individuals or sub-parts of a group which, if successful, would have the
result of making them deviate from the norms of the group that will encounter strong resistance.
(b) The group as a Target of change
(i) Strong pressure for change in the group can be established by creating a shared perception by
members of the need for change, thus making the source of pressure for change laid within the
group.
(ii) Information relating to the need for change, plans for change, and consequences of change
must be shared by all relevant people in the group.
(iii) Changes in one part of a group produce strain in other related parts which can be reduced
only by eliminating the change or by bringing about readjustments in the related parts.
4. Organizational – wide Change: Organizational change is of a mega nature. It starts at the
bottom level and acquires a very huge dimension. In defense services if a person is promoted
at the top level, there is a chain reaction upward for promotion and resultant placement,
transfers etc. If an organization is attempting to change the job of an individual, his role-set is
also likely to change which may distrusts the self – concept of the individual. Thus any
action for change may also have chain reaction. It is therefore necessary to plan for change
carefully. Allen has suggested following steps:
(a) Development of clean objectives
(b) Analysis of existing organizations
(c) Preparation of an ideal plan
(d) Trying out the plan
(e) Establishment of uniform nomenclature
(f) Overcoming resistance to change
In the fast developing world today, there are pressures on the human resources. Due care must be
taken to ensure that employees are not disturbed physiologically and psychologically. Careful
review of the situation to identify the gaps must be carried out. Change costs money and
therefore it is advisable to undertake a pilot project before a universal change is implemented.
Status system, titles and appellations attached to it must be protected by introducing uniform
nomenclature, designation etc. People must be educated about the impending change so that they

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are not taken by surprise. Benefits of change must be highlighted. Automation of systems in
organization have proved fruitful and cost effective for which it had initial resistance.
‘Change Management’ has already emerged as a discipline. It requires proper planning,
programming, evolving appropriate procedures and systems. An organization must modify
policies, procedures, rules and regulations based on changed objectives. Behavioural science
plays an important role by way of ensuring that revised system is in tune with the time.
STEPS IN MANAGING CHANGE
Organizations must plan to implement change in a systematic manner. It must identify the field
in which the change is required whether it is strategic, structural, process – oriented or cultural
change. Changes can also be affected in all the areas concurrently, but it must be managed
appropriately so that there is no bottleneck effect. Once the need for change is identified and the
area in which it is to be implemented, the following steps have been suggested by Greiner.
(a) Develop new goals and objectives: Objectives and goals are derived out of mission
statements, objects may need revision due to change in external or internal forces.
(b) Select an agent for change: It is the responsibility of the management to entrust execution
of change to appropriate authority. A manager may be given this responsibility. Outside change
agent can also be employed for the purpose. A specialist or a consultant can be brought in to
suggest change and monitor implementation. He is also called a facilitator.
(c) Diagnose the problem: Diagnosis is the first step to implement change. If an organization
has a large number of employee turnover then the data must be collected and made available to
the consultant so that the reasons for turnover can be identified and appropriate corrective
measures taken. The process of identification of problem is not simple as it appears. This itself
may need a research.
(d) Select Methodology: It is comparatively easy to implement material change as a part of
change of a system. What is important is to protect the emotions they must be made party to
select methods so that it is easier to implement at a later stage.
(e) Develop Pan: If the organization wants to reduce employee turnover, it may like to carry out
comparative study of other organizations in respect of job content, reward system, employee
performance, appraisal system, promotion criteria, training & development and the strategy
adopted by the organization for its growth. Based on examination of these factors, consultant
would be able to develop a plan for change. It may require to introduce a new training and

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development policy that may reduce employee turnover. While developing a plan, various other
factors must also be reviewed. Plan should not be finalized in isolation. All departmental heads
must be co-opted in the exercise.
(f) Strategy for implementation: Timings of implementation of change is very crutial. A
deliberate decision must be taken in this regard like hike in price of a product, the decision to
implement change is critical. If the change is related to internal employees, it must be
communicated at an appropriate time so that there is no resistance to planned change.
(g) Implementation of Plan: Once the decision to implement the plan and communication
through which the plan is to be implemented is decided, it is the responsibility of the various
departments to implement the same. This may need notification, briefing sessions or in-house
seminars so as to ensure acceptance of all the members of the organizations specially those who
are likely to get affected. Implementation may be for a short duration as one time change of
system or process but its aftermath is of great value. Employee reactions in attitudes, aspirations,
emotions and behaviour must be canalized in positive directions due to change.
(h) Evaluation & Feedback: The result of the change must be evaluated and suitable feedback
obtained. If modification to training & development causes decrease in employee turnover, the
objective of change would deemed to have been achieved. If the results are contrary to the
expectation, then a new change may be required to diagnose cause.
SUMMARY
Change is a permanent phenomenon. It is necessary due to external forces like technology,
systems, and social changes interacting with the internal variables of the organization. To
implement change Kurt Lewin’s model of unfreezing the situation, implementing a change and
refreezing must be implemented. Individual, group and organizational changes takes place
continuously. Individual change refers to change in attitude, perception and also acquiring new
skills to cope up with external environment. Group is the important unit of organization. In the
present scenario group undertakes work. It is successfully completed because of group norms
and groupthink. Organizational level changes can be implemented by clearly defining objectives
and plans for change. Driving forces and restraining forces must be evaluated while
implementing change. Change is structured when planned and unstructured when change is
implemented as a reaction to some situation. There is great resistance to change because of the
fear of unknown. Workers in the organization, therefore must be educated, trained, made party to

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change and benefit of change must be divided between the employees and the organization. It is
handling of employee emotions and making them psychologically ready to implement change
that will ultimately work. The fear must be removed from the minds of people. Change must be
taken in the positive manner for the growth of the organization. It is difficult to predict which
strategy will succeed in implementing the change. Efficient communication, educating the
people about impending change, participation, and active involvement and last but not the least
sharing benefits of change with people is the essential requirement for overcoming resistance to
change.
Kotter’s Eight-Step Plan for Implementing Change
John Kotter, professor of leadership at Harvard Business School, built on Lewin’s threestep
model to create a more detailed approach for implementing change. Kotter began by listing
common failures that occur when managers try to initiate change. These include the inability to
create a sense of urgency about the need for change; failure to create a coalition for managing the
change process; the absence of a vision for change and to effectively communicate that vision;
not removing obstacles that could impede the achievement of the vision; failure to provide short-
term and achievable goals; the tendency to declare victory too soon; and not anchoring the
changes in the organization’s culture. Kotter then established eight sequential steps to overcome
these problems. These steps are listed in Exhibit 10-8. Notice how Exhibit 10-8 builds on
Lewin’s model. Kotter’s first four steps essentially represent the “unfreezing” stage. Steps 5
through 7 represent “moving.” The final step works on “refreezing.” Kotter’s contribution lies in
providing managers and change agents with a more detailed guide for implementing change
successfully.
Kotter’s Eight-Step Plan for Implementing Change
1. Establish a sense of urgency by creating a compelling reason for why change is needed.
2. Form a coalition with enough power to lead the change.
3. Create a new vision to direct the change and strategies for achieving the vision.
4. Communicate the vision throughout the organization.
5. Empower others to act on the vision by removing barriers to change and encouraging risk-
taking and creative problem solving.
6. Plan for, create, and reward short-term “wins” that move the organization toward the new
vision.

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7. Consolidate improvements, reassess changes, and make necessary adjustments in the new
programs.
8. Reinforce the changes by demonstrating the relationship between new behaviours and
organizational success.

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