Module 1

Managing Organizational Change and

Development
 Syllabus

 Organizational Change: Meaning- Necessity for Change- Classification

of change-factors affecting change-Model of Organizational change-
Kurt Lewin Three Stage Model and Force Field Analysis- Systems
theory, 7 Stage models, Burke-Litwin model, Porras and Robbortson.
Change Agent-Role and Skills of a change Agent.HR Role as change
agent, Resistance to Change and minimizing the resistance: Impact of
change on Human Resources Planning; quality consciousness as an
emerging catalyst for change.
 What is Organizational Change?

 Organizational change refers to planned alteration of organizational

components such as strategy, structure, process, technology and people
to improve the effectiveness of the organization. Organizational
change usually happens in response to – or as a result of – external
or internal pressures.
 Necessity of Change

Competition Technology

Customers
 Necessity of Organizational Change

1.Competition
 Change can be big or small, easy or complex in an organization.
 Change does not necessarily indicate a major transformation every time.
 But it can seriously help to build competition, which would help
organizations progress and develop themselves.
 Without change, organizations would struggle to lift up themselves to face
the competition put forward by their competitors.
Necessity of Organizational Change

 Example- When a particular organization changes its way of working and if it

attracts more customers, the neighbouring competitor will definitely observe
the same and would try to bring a change in his usual form of working .

 Thus, here change plays a very positive role in building up competition which
leads to a desire among organizations to develop themselves more than their
competitors
 Necessity of Organizational Change
2.Technology
 Technology plays a vital role in development of an organization.
 Change that results from the adoption of new technology is common in most
organizations and while it can be disruptive at first, ultimately the change tends to
increase productivity and service.
 To beat the competition, organizations can make use of new technologies.
 The same, old, obsolete ways of doing things would not work out when the
competitors would be moving fast forward with new technologies. 
 It also enables employees to adopt the new technology and indirectly helps in
growth of organization.
 For Example Toyota – the company to emulate in the automobile industry, it has
emerged to become one of the most successful organizations in terms of establishing
change management.
 Customers

 Adopting change in organizations can create a certain extent of dissatisfaction amon

employees and also among customers.
 But, once change brings in a favourable effect, customers and employees start acceptin
it.
 Eventually this change brings satisfied customers which inturn acts positively fo
customers. As always said, satisfied customer is a boon for every organization. Just
mere tweak in the strategy can do wonders for you.
 The most famous example being Google – The Google experience is a classic exampl
of a company committed to wowing its customers based on consistent quality an
constant innovation over the years.
 What is change management?

Change management is a systematic approach to dealing with change both from the
perspective of an organization and the individual. 
Types of Changes

Developmental

Transitional

Transformational
 Developmental Changes

Developmental changes are those you make to improve current business procedures.
 Developmental change

When making developmental changes, it's important for you to:

 explain to staff your rationale for the changes.

 skill your staff to use new processes and technology.

 show your staff your commitment to minimising the impacts of change on your
business.
 Transitional Changes

Transitional changes are those you make to replace existing processes with new
processes.
 Transitional change

The 'transitional' phase of dismantling old systems and processes and implementing
new ones can be unsettling for staff. When making transitional changes, you need to:
 clearly communicate the impacts and benefits you foresee as a result of your
changes
 reinforce to staff that their jobs are secure

 capture the views and contributions of your staff in making your changes

 regularly update your staff on the steps you are taking to support them through
the change and train them in new systems.
 Transformational Change

 Transformational changes are those you make to completely reshape your

business strategy and processes, often resulting in a shift in work culture.
 Transformational change

Transformational changes will usually involve both transitional and developmental

change - where businesses recognise that they need to overhaul the way they do
business. When making transformational changes, it's crucial that you:
 develop and communicate a well-defined strategy that explains the approaches
you are taking to change and the goals you are setting
 continually reinforce your rationale for the changes
 plan and methodically implement new business systems and approaches
 involve your staff in all phases of change discussions and planning and
communicate regularly throughout the process.
Forces of Change
External Forces
 Political Factors

 These are all about how and to what degree a government intervenes in the
economy. This can include – government policy, political stability or
instability in overseas markets, foreign trade policy, tax policy, labour law,
environmental law, trade restrictions and so on.
 Economic Factors

 Economic factors have a significant impact on how an organisation does business

and also how profitable they are. Factors include – economic growth, interest rates,
exchange rates, inflation, disposable income of consumers and businesses and so on.
 These factors can be further broken down into macro-economical and micro-
economical factors. Macro-economical  factors deal with the management of demand
in any given economy. Governments use interest rate control, taxation policy and

government expenditure as their main mechanisms they use for this.

 Social Factors

 Also known as socio-cultural factors, are the areas that involve the shared belief and
attitudes of the population. These factors include – population growth, age distribution,
health consciousness, career attitudes and so on. These factors are of particular interest
as they have a direct effect on how marketers understand customers and what drives
them.
 Technological Factors

 We all know how fast the technological landscape changes and how this impacts
the way we market our products. Technological factors affect marketing and the
management in three distinct ways:
 New ways of producing goods and services

 New ways of distributing goods and services

 New ways of communicating with target markets

 Environmental Factors

 These factors have only really come to the forefront in the last fifteen years or
so. They have become important due to the increasing scarcity of raw materials,
pollution targets, doing business as an ethical and sustainable company, carbon
footprint targets set by governments (this is a good example were one factor
could be classes as political and environmental at the same time). These are just
some of the issues marketers are facing within this factor. More and more
consumers are demanding that the products they buy are sourced ethically, and
if possible from a sustainable source.
 Legal Factors

 Legal factors include - health and safety, equal opportunities, advertising

standards, consumer rights and laws, product labelling and product safety.
 It is clear that companies need to know what is and what is not legal in
order to trade successfully. If an organisation trades globally this becomes a
very tricky area to get right as each country has its own set of rules and
regulations.
Internal Forces

Internal
Forces
 Men

 People or human resources in an organization, are employees who are doing all

activities in a specific company.

 We can have the best structure and the best processes in place, but without the people
in the processes of transformation of input into the output, we will not be able to
perform anything. People in the organization can be managers or employees, but all
they represent a source of organizational change.

 Employees are persons who must take the initiative to change their workplace, or
changes in work tasks for more efficient and effective performance.
 Materials

 Without materials, human resource is made redundant. Thus every right thinking and right
planning organization knows that materials needed for any business or service must be in
place before ‘man’ can be of use in any business activity.

 Supply chain departments grew out of this thinking and has been a very useful and
effective aspect of business management.

 A group of cement factory workers waiting for supply of limestone may have nothing
much to do for as long as the supply does not arrive. Even if it arrives, but in poor quality,
the production is certainly doomed for a loss. Quality compromised is business pauperized.
Poor quality of materials potentially ruins entrepreneurship. This is an indisputable fact.
 Machines

 The metal contraptions called machines have made man fulfil almost effortlessly variou
dreams of creating things that make our existence more worthwhile.
 Machines have replaced man in tilling, planting, and harvesting. Man has been replace
with looms in cotton and fabric processing. Countless other ventures requiring physic
exertions of force has been taken over by things fixed with gears, bolts and nuts an
conveyor belts. Recently, computers joined in the fray of increasing production an
reduction in time spent by man for manufacturing and general production of goods an
services. However, without man and materials, machines will be useless. They need to b
operated by man and fed with materials. That again is a doubtless fact.
 Money

 Without money, no venture or enterprise can motivate workers, get quality

and sufficient materials, get the right machines and maintain them or even
ensure that time is properly managed. Money management, when not
properly organized has been the most known factor involved in collapse of
enterprises in history.
 The quantity and quality of money expended in ventures have a direct
bearing on the fruitfulness of same over time. Accounts department have been
revolutionized over the years, by man, to ensure maximum operations of
surviving business organizations. Where there is not enough money, no good
workers, materials, or machines can be employed or purchased or acquired. In
other words, such a venture will be wasting its time existing in the first place.
 Methods

 Processes in an organization are a collection of activities that need to be done in

order to transform input to output, and that will have a value for consumers.
Processes in the organization can be different, and now I will show some of them
that are most relevant to business:
Technological process is a process that transform raw materials into the products
or services.
The decision-making process is a choice that people make about
specific direction in the company.
The communication process is the dissemination of information between people
in the organization.
Management process – is the process with which organizational members are
managed to achieve the organizational goals.
Types of resistance to change

Individual Group
Resistance Resistance

Organizational
Resistance
 Individual Resistance

Fear of Lack of
Security
Unknown Communication

Selective
Economic
Information
Factors
processing
 Individual Resistance

 Fear of the Unknown : Changes often bring with it ambiguity and

uncertainty. If, for example, the introduction of a new computer system
requires that the employees learn some specific statistical technique, some
may fear they will be unable to do so. They may, therefore, develop a
negative attitude toward the introduction of new computer system.
 Individual Resistance

 Lack of Communication : If the workers are given an opportunity to participate in

the process of change the resistance is likely to be less. But if the change is not
properly communicated that to in an acceptable manner to the employees, it is likely to
cause resistance.
 Poor communication can lead to the spread of rumours and gossip, which can create
tension among employees. 
 Individual Resistance

 Security - People with a high need for security are likely to resist change because it
threatens their feeling of safety. When General Dynamics announces personnel
cutbacks or Ford introduces new robotic equipment, many employees at these firms
may fear that their jobs are in jeopardy.
 Individual Resistance

 Economic Factors : Another source of individual resistance is concern that

changes will lower one's income. Changes in job tasks or established work
routines also can arouse economic fears if people are concerned that they won't be
able to perform the new tasks or routines to their previous standards, especially
when pay is closely tied to productivity.
 Individual Resistance

 Selective Information Processing: Individuals shape their world through their

perceptions. Once they have created this world, it resists change. So individuals
are guilty of selectively processing information in order to keep their perceptions
intact. They hear what they want to hear. They ignore information that
challenges the world that they've created. To return to the secretaries who are
faced with the introduction of word processors, they may ignore the arguments
that their bosses make in explaining why the new equipment has been purchased
or the potential benefits that the change will provide them.
 Group Resistance

 Group Inertia: Even if individuals want to change their behaviour, group

norms may act as a constraint. An individual union member, for instance,
may be willing to accept changes in his job suggested by management.
But if union norms dictate resisting any unilateral change made by
management, he's likely to resist.
 Organizational Resistance

Structural Inertia

Limited Focus of change

Threat to expertise

Threat to established power relationships

Threat to established resource allocations

 Organizational Resistance

 Structural Inertia : Organizations have built-in mechanisms to produce stability.

For example, the selection process systematically selects certain people in and
certain people out.

 Training and other socialization techniques reinforce specific role requirements and
skills. Formalization provides job descriptions, rules, and procedures for employees to
follow. The people who are hired into an organization are chosen 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.
 Organizational Resistance

 Limited Focus of Change: Organizations are made up of a number of

interdependent subsystems. You can't change one without affecting the others.
 For example, if management changes the technological processes without
simultaneously modifying the organization's structure to match, the change in
technology is not likely to be accepted. So limited changes in sub systems tend to get
nullified by the larger system.
 Organizational Resistance

 Threat to Expertise: Changes in organizational patterns may threaten the

expertise of specialized groups.
 The introduction of decentralized personal computers, which allow managers to
gain access to information directly from a company's mainframe, is an example of
a change that was strongly resisted by many information systems departments in
the early 1980s. Why? Because decentralized end-user computing was a threat to
the specialized skills held by those in the centralized information systems
departments.
 Organizational Resistance

 Threat to established power relationships : Any redistribution of

decision-making authority can threaten long-established power
relationships within the organization. The introduction of participative
decision making or self-managed work teams is the kind of change that is
often seen as threatening by supervisors and middle managers.
 Organizational Resistance

 Threat to established resource allocation: Those groups in the organization tha

control sizable resources often see change as a threat. They tend to be content with the
way things are. Will the change, for instance, mean a reduction in their budgets or a cu
in their staff size? Those that most benefit from the current allocation of resources
often feel threatened by changes that may affect future allocations.
Minimizing Resistance to Change

Communication
Training
Employee Involvement
Stress Management
Negotiation
Coercion
 Minimizing Resistance to Change

Communication
 Highest priority and first strategy
for change
 Improves urgency to change
 Reduces uncertainty (fear of
unknown)
 Problems -- time consuming and
costly
 Minimizing Resistance to Change

Communication  Provides new knowledge and

skills
 Includes coaching and action
Training
learning
 Helps break old routines and
adopt new roles
 Problems -- potentially time
consuming and costly
 Minimizing Resistance to Change

 Increases ownership of change

Communication
 Helps saving face and reducing fear
Training of unknown
Employee  Includes task forces, search
Involvement conferences
 Problems -- time-consuming,
potential conflict
 Minimizing Resistance to Change

Communication

Training
 When communication, training,
Employee and involvement do not resolve
Involvement stress
Stress  Potential benefits
Management  More motivation to change
 Less fear of unknown
 Fewer direct costs
 Problems -- time-consuming,
expensive, doesn’t help
everyone
 Minimizing Resistance to Change

Communication

Training When people clearly lose

something and won’t
Employee otherwise support change
Involvement
Influence by exchange--
Stress
Management reduces direct costs
Problems
Negotiation Expensive
Increases compliance, not
commitment
 Minimizing Resistance to Change

Communication

Training When all else fails

Employee Assertive influence
Involvement Firing people -- radical form of
“unlearning”
Stress
Problems
Management Reduces trust
May create more subtle resistance
Negotiation

Coercion
 Three Stage Model

• Implement new evaluation

• Provide rationale for change. • Bring about actual
systems.
• Create minor level of change.
• Implement new hiring and
guilt/anxiety about not changing.
promotion system.
• Create a sense of psychological
safety concerning change.
 Unfreeze

Before you can cook a meal that has been frozen, you need to defrost or thaw it out.
The same can be said of change. Before a change can be implemented, it must go
through the initial step of unfreezing. Because many people will naturally resist
change, the goal during the unfreezing stage is to create an awareness of how the
status quo, or current level of acceptability, is hindering the organization in some
way. Old behaviours, ways of thinking, processes, people and organizational
structures must all be carefully examined to show employees how necessary a change
is for the organization to create or maintain a competitive advantage in the
marketplace. Communication is especially important during the unfreezing stage so
that employees can become informed about the imminent change, the logic behind it
and how it will benefit each employee. The idea is that the more we know about a
change and the more we feel it is necessary and urgent, the more motivated we are to
accept the change.
 Changing

 Now that the people are 'unfrozen' they can begin to move. Lewin recognized that
change is a process where the organization must transition or move into this new
state of being. This changing step, also referred to as 'transitioning' or 'moving,' is
marked by the implementation of the change. This is when the change becomes real.
It's also, consequently, the time that most people struggle with the new reality. It is a
time marked with uncertainty and fear, making it the hardest step to overcome.
During the changing step people begin to learn the new behaviors, processes and
ways of thinking. The more prepared they are for this step, the easier it is to
complete. For this reason, education, communication, support and time are critical
for employees as they become familiar with the change. Again, change is a process
that must be carefully planned and executed. Throughout this process, employees
should be reminded of the reasons for the change and how it will benefit them once
fully implemented.
 Refreezing

 Lewin called the final stage of his change model freezing, but many refer to it as
refreezing to symbolize the act of reinforcing, stabilizing and solidifying the new state
after the change. The changes made to organizational processes, goals, structure,
offerings or people are accepted and refrozen as the new norm or status quo. Lewin
found the refreezing step to be especially important to ensure that people do not revert
back to their old ways of thinking or doing prior to the implementation of the change.
Efforts must be made to guarantee the change is not lost; rather, it needs to be
cemented into the organization's culture and maintained as the acceptable way of
thinking or doing. Positive rewards and acknowledgment of individualized efforts are
often used to reinforce the new state because it is believed that positively reinforced
Force Field Analysis
 Force Field Analysis

 In an organization, change is a bit more complicated, but just

like deciding where to go for lunch, there are driving and
resisting forces at work. Driving forces are those seeking
change. Resisting (restraining) forces are those seeking to
maintain the status quo. The goal for the driving force is to
gain equilibrium, or a balance of power. Resisting forces
control the status quo, while driving forces seek change.
 What is system Theory?

 Systems theory treats an organization as a system. A system can be either

closed or open, but most approaches treat an organization as an open
system. An open system interacts with its environment by way of inputs,
throughputs, and outputs.
 System theory

  A system is an entity with interrelated and interdependent parts; it is

defined by its boundaries and it is more than the sum of its parts
(subsystem). Change in one part of the system affects other parts and the
whole system, with predictable patterns of behaviour.
 System Theory

 In Systems Theory, a system is defined in two ways:

Externally, by its purpose. Each system has a role that it plays in the higher-
level system in which it exists. Using the auto company example we can say that
the auto company is a system whose role is to provide cars to the next higher-
level system, the auto market. The auto market in turn has its multiple roles that
it plays in the next higher-level systems of transportation and national economy
and so on.
 System Theory

 In Systems Theory, a system is defined in two ways:

Internally, by its subsystems and internal functions. Each system is

made up of components and sub-systems that interrelate and contribute to
the overall purpose of the parent system. In the auto company those
components might consist of engineering, production, marketing, finance,
human resources and sales all of which should be supporting the system’s
purpose of providing cars to the higher system, the auto market. 
7S model
 7 S Model

 The McKinsey 7S Framework is a management model developed by well-

known business consultants Robert H. Waterman, Jr. and Tom Peters in the
1980s. This was a strategic vision for groups, to include businesses, business
units, and teams. The 7 Ss are structure, strategy, systems, skills, style, staff and
shared values.
 The model is most often used as an organizational analysis tool to assess and
monitor changes in the internal situation of an organization.
 7 S Model

 The McKinsey 7-S model involves seven interdependent factors which are
categorized as either "hard" or "soft" elements:
 "Hard" elements are easier to define or identify and management can directly
influence them: These are strategy statements; organization charts and reporting
lines; and formal processes and IT systems.
 "Soft" elements, on the other hand, can be more difficult to describe, and are
less tangible and more influenced by culture. However, these soft elements are
as important as the hard elements if the organization is going to be successful.
 Strategy

 The key in 7s model is not to look at your company to find the great strategy,
structure, systems and etc. but to look if its aligned with other elements. For
example, short-term strategy is usually a poor choice for a company but if its
aligned with other 6 elements, then it may provide strong results.
 Structure

 Structure represents the way business divisions and units are organized and
includes the information of who is accountable to whom. In other words,
structure is the organizational chart of the firm. It is also one of the most visible
and easy to change elements of the framework.
 Systems

Systems are the processes and procedures of the company, which reveal business’
daily activities and how decisions are made. Systems are the area of the firm that
determines how business is done and it should be the main focus for managers
during organizational change.
 Style

 Style represents the way the company is managed by top-level

managers, how they interact, what actions do they take and their
symbolic value. In other words, it is the management style of
company’s leaders.
 Staff

 Staff element is concerned with what type and how many employees

an organization will need and how they will be recruited, trained,
motivated and rewarded.
 Skills

 Skills are the abilities that firm’s employees perform very well. They
also include capabilities and competences. During organizational
change, the question often arises of what skills the company will
really need to reinforce its new strategy or new structure.
 Shared Values

 Shared Values are at the core of McKinsey 7s model. They are the

norms and standards that guide employee behavior and company
actions and thus, are the foundation of every organization.
Burke Litwin Change model
 Burke Litwin Change model

 The Performance and Change Model, developed in 1992 by two

organisational change consultants, is a tool used to understand
an organisation’s component parts and how they relate to each other
in a time of change.
 Burke Litwin Change model

 A common reason for a change initiative failing is all areas of the organisation
affected by the change are not accounted for. Therefore, using this model can
reveal what areas of the business are affected and how they are interrelated.
The model also demonstrates the hierarchy of factors within an organisation
and hence the flow of influence from one factor to the next. The model is an
example of ‘open systems theory’, which suggests change comes from external
influences. 
 Burke Litwin Change model

 The authors describe the model as a mechanism that portrays “…the primary
variables that need to be considered in any attempt to predict and explain the
total behaviour output of an organisation, the most important interactions
between these variables, and how they affect change”. There are four groups of
elements within an organisation; the external environment, transformational
factors, transactional factors and performance. Each group then contains
various elements of the organisation. The diagram demonstrates which
elements belong in which group, how they interact with each other and the
overall hierarchy of an organisation. 
 Burke Litwin Change model

 The beginning and end of the process (yellow blocks) represent the input to th
organisation, the external environment, and the organisation’s output, individual an
organisational performance. 
 External Environment – This factor represents any forces or conditions outside of th
organisation that will affect its processes. An example could be consumer behaviour o
marketplace conditions.
 Individual and Organisational Performance – This factor is the overall output of th
organisation. This can be represented in many different ways, commonly turnover
productivity, customer satisfaction etc.
 Burke Litwin Change model

 Transformational factors (purple blocks) are deeply embedded processes and

characteristics of the organisation. Any change that occurs to these factors will have
substantial consequences to the rest of the organisation. It is also true that any other
change will require these factors’ input and hence the arrows go in both directions.
Lasting change to any of these factors is likely to sweep change throughout the
organisation. These factors will be most strongly affected by the external
environment and will also have the strongest influence on transactional factors. 
Leadership – The authors state this factor ‘provides direction’ to the rest of the
organisation. Individuals in leadership positions are responsible for developing a
vision and motivating the rest of the organisation to achieving it. 
Mission and Strategy – This factor describes the purpose of the organisation and
also the processes for how it will be achieved. 
Organisation Culture – The norms and values of the organisation. They will be
less formal than the ‘mission and strategy’, but will still exist implicitly
throughout the organisation. 
 Burke Litwin Change model

 Transactional factors (pink blocks) refer to day-to-day operations within the

organisation. The authors argue these factors are strongly affected by management,
rather than leadership. Change in these factors is only likely to lead to lasting change if,
in turn, the transformational factors are also affected. 
Management Practices – Behaviours and activities of managers, usually aligned to
carrying out the overall strategy. 
Structure – The breakdown of the organisation i.e. hierarchy, departments, reporting
channels. 
Systems (Policies and Procedures) – These are the mechanisms put in place to help
and support employees. This may be legal systems or reward systems, for example. 
Work Unit Climate – The team’s working environment. For example, how well team
members cooperate, how comfortable individuals feel expressing themselves or how
well goals are set and rewarded.
Motivation – The setting of goals to inspire and direct employees.
Task Requirements and Individual Skills/Abilities – Matching the job description
with the expertise of an employee. An experienced, high-level employee may still
struggle to adopt new technologies, for example. 
 Burke Litwin Change model

 The two main uses of the model are to either diagnose a problem within the organisation
or create an action plan (often for a change initiative). Firstly, the group should be
identified where either the change is coming from or being planned for. Then within tha
group the specific element should be identified. Once this has occurred, all affected
elements can also be identified.
 An example would be a change in legal working requirements (external environment)
This would cause leadership to alter management practices, which in turn would affect the
work unit climate and systems. Through motivation and individual needs and values, we
would then see a change to individual and organisational performance. 
 It is important to remember that the model does not make any changes to the critica
factors, however it is a useful tool for identifying the relevant factors and how they
interact with one another when a change process is occurring or being planned for. 
 Porras & Robertson Model

Change Category
Order of Change
Planned Unplanned

First Developmental Evolutionary

Second Transformational Revolutionary

 Porras & Robertson Model

 Planned change originates with a decision made by the organization itself with
the deliberate purpose of improving its functioning.
 It is also common to engage an outside resource to help in the processes of
making these improvements.
 Planned change is typically initiated to respond to new external demands
imposed upon the organization.
 Planned change will often affect many unforeseen segments of the organization.
 Porras & Robertson Model

 Unplanned change is change that originates outside of the organizational system

and to which the organization must respond.
 This adaptive response is often focused on the alteration of relatively clearly
defined and narrow segments of the organization.
 It is spontaneous, evolutionary, fortuitous, or accidental.
 Porras & Robertson Model

 First-order change, linear and continuous in nature, involves alterations in

system characteristics without any shift in either fundamental assumptions
about key organizational cause-and-effect relationships or in the basic paradigm
used by the system to guide its functioning.
 Porras & Robertson Model
 Second-order change is a multi-dimensional, multi-level,
qualitative, discontinuous, radical organizational change involving a
paradigmatic shift.
 A change agent is a person from inside or outside the organization
who helps an organization transform itself by focusing on such matters
as organizational effectiveness, improvement, and development.
 Roles

 A person who implements organizational change must wear many

different hats.   Effective change agents demonstrate extraordinary
versatility within a broad skill set.  The following are some of the
roles you may play as you influence change in your organization.
 Roles of a Change Agent

Detective Advocate Counsellor

Facilitator Mediator Expert

 The Detective

 Implementing change is rarely as straightforward as executing obvious

activities.  Dealing with people’s behaviours and attitudes usually requires
digging below the surface to understand the dynamics of the organization. 
Change agents look for clues that give away what is really preventing change
from happening, so they can determine the steps most likely to remove
obstacles and bring about success.  The Detective is observant and analytical.
 The Advocate

 Every organizational change needs someone who speaks up in

favour of it and keeps attention on it.  Change agents gain support
for the initiative and engage people to participate.  They also keep
beating the drum of change when everyone else is busy with other
activities.  The Advocate is vocal and persistent.
 The Counsellor

 Change happens when individuals alter their own activities, behaviours

and attitudes.  People experience varied emotions as their sense of
stability is removed.  In most cases, they are required to take risks and
step outside their comfort zones.  As a change agent, understand the
personal implications of people involved, so you can help people feel
better about making the changes.  The Counselor listens and encourages.
 The Facilitator

 One of the key activities of a change agent is finding ways to help

people change.  Change agents clarify the change and make it easier
to perform.  As a facilitator, you design systems, tools, forms, and
processes to enable people to succeed as they go through change. 
The Facilitator is helpful and creative.
 The Mediator

 Different groups and individuals undergoing change in an organization

frequently have opposing priorities.  Change agents manage conflict by
helping different parties see the situation from the other’s point of view,
and by finding common goals.  They work to improve understanding and
reduce friction between multiple parties so they can collaborate to
implement change.  The Mediator is a peacemaker.
 The Expert

 Change agents rely on their expertise to build their authority within the
organization.  By sharing knowledge, they demonstrate that they can be
relied upon to point people in the right direction.  Sometimes knowledge
transfer occurs directly through training, but it also happens every day in
meetings and conversations.  The Expert is confident and knowledgeable.
Skills of a Change Agent

Cognitive Technical
skills Skills

Personal Interpersonal
Skills Skills
 Cognitive Skills

 Cognitive competencies are required for perceiving and thinking and are
again a combination of a number of competencies. For simple explanation,
these can be divided in two types of thinking :
Analytical thinking; and
Conceptual thinking.
 Functional/Technical skills

 These are the skills required to perform effectively in a particular

discipline, functional or technical area such as — Heat Treatment,
Corrosion, Investment analysis, Designing a wage and salary
administration system, Organization Development, Structural Design etc.
 Personal Skills

 These competencies help a person to be effective in achieving his goals, actions

even amidst environmental difficulties and pressures. For effectiveness of
Change agents / Consultants, the following personal / self management skills are
quite essential.
 Inter Personal Skills

 These competencies are essential for dealing with other people

effectively. Inter-personal competencies are a bunch of different skills
largely overlapping with each other. It is very difficult to clearly
enumerate all such slots.
 HR as Change Agents

 For any organization looking to bring about culture of

change, Human Resources Department is best placed to
bring in employee management, engagement, motivation
and commitment. Hence, HR managers have the strategic
ability to be the change agent for successful organizations
by incorporating change in its own functioning, developing
change leaders in organization, anticipating resistance,
planning accordingly to develop sustainable change culture
and bringing in change in organizational structure.
 Effective
Conflict
Relationship
Management
Skills

HR
as Change Human
Value Chain
Knowledge Agent Resource
Development
Skill

Performance
Management
 Effective Relationship Skills

 HR professionals must be credible to both their HR counterparts and the

business line managers whom they serve. They need to deliver results and
establish a reliable track record. Furthermore, working well with others by
building good professional relationship is vital in developing the ability to work
together with others effectively. In addition, HR professionals must have
effective writing and verbal communication skills [17]. The findings of the
study by Boselie & Paauwe [17] correspond to the prior research of Kelly and
Gennard [18], who have found that HR directors require professional
competency in those social skills that allow them to develop effective
interpersonal relations with other board directors. Without this ability, HR
professionals would not able to spearhead change effort and unable to get
cooperation from various parties in an organization.
 HRD Skills

 Human Resource Development (HRD) helps employees develop their

personal and organizational knowledge, skills, and abilities. HR
professionals must acquire this skill to ensure a smooth implementation of
systematic employee training, career development, performance
management and development, coaching, mentoring, succession planning
and organization development. Furthermore, HR professionals as change
agent need to understand the learning process and how to create an
environment that facilitates learning can design and implement more
effective HRD interventions [19]. The focus of all aspects of HRD is on
developing the most superior workforce so that the organization and
individual employees can accomplish their work goals in service to
customers. Healthy organizations believe in HRD and HR professionals
must play a key role in making this development takes place in their
organization [20].
 Performance Management

 Performance management is define as a process that unites goal setting,

performance appraisal, and development into a single, common system
whose aim is to ensure that employee’s performance is supporting the
company’s strategic aims [20]. HR professionals need to ensure this
system work effectively in their organization. However, performance
management can only be successful if it is jointly executed by HR
professionals and line managers. Furthermore, a HR professional that
plays a change agent role need to alert constantly on way in improving
employees’ productivity and work performance. HR also needs to possess
this competency to ensure proper tools or instruments are used to measure
employee’s performance [21].
 Value chain knowledge

 To become a change agent and key players in the organization, HR

professionals must understand the business or industry of the company they
serve. Boselie and Paauwe [17] stress that the key areas of knowledge
include an applied understanding of the integrated value chain (how the firm
horizontally integrates). HR professionals must understand how their
business or agency operates. This includes the organization’s strategy, how
the organization makes money or achieves its primary purpose, its
technological processes and organizational capabilities, etc. Therefore, HR
professionals should develop their knowledge of such areas as finance,
marketing, operations, and general management [22]
 Conflict Management

 HR professionals are able to contribution to organizational success if they

can resolve conflicts among members in the organization. They can also
impart conflict management skills, such as active listening and
depersonalizing issues. They need to rolemodel them in their interactions
throughout the organization. HR professionals must also be willing to step
up and play at a much higher level, especially when dealing with senior
executive teams [23]. By assuming a key role in helping teams learn to
manage conflict, HR professionals can receive greater exposure, make a
more substantial impact and contribute significantly to business results.
Playing at this new level means taking greater risks, but it also brings
greater rewards than sitting on the sidelines, uninvolved [24].
 Human Resource Planning

 Human resource planning is a process that identifies current and

future human resources needs for an organization to achieve its
goals. 
 Walmart’s Human Resource
Planning

 Forecasting. Walmart’s human resource management forecasts its

workforce needs to ensure capacity to address changes in consumer
demand. While other forecasting methods and techniques are also
used, these three are the most notable at Walmart:
 Bottom-up approach
 Trend analysis
 Delphi method
 Bottom Up Approach

 The bottom-up approach analyzes human resource needs starting at the

lowest level of the organizational structure. Walmart’s human resource
management objective for this approach is to ensure that all levels of the
organization have adequate employees based on HR needs at the frontline
(e.g. hourly sales employees). The company starts forecasting HR needs of
frontline employees. Walmart’s HR managers then proceed to analyze HR
needs at the next higher level of the organizational structure. This human
resource management approach ensures that all human resource needs at
the lowest levels of Walmart’s organizational structure are supported
through an adequate number of employees at the upper levels of the
organizational structure. 
 Trend Analysis

 On the other hand, trend analysis is used in human resource management to

predict future HR needs based on current needs. For example, Walmart analyzes
the series of recent HR changes and uses this information to extrapolate future
HR needs. A current trend that shows an increasing demand for human resources
indicates a larger workforce requirement in the future. Walmart’s human resource
management uses trend analysis to determine HR needs along with the
company’s global expansion. 
 For example, if a business has grown by five percent each year for six years,
managers may anticipate that this trend will continue. Any increase in employee
numbers across the previous six years will be projected to continue in the future.
 Delphi Method

 In addition, the Delphi methodforecasts future HR needs based on expert

opinion. Walmart’s human resource management uses the Delphi method to
ensure adequate human resources in establishing new brands, stores or other
facilities. For example, HR experts can opine about the HR needs in opening a
new Walmart store of a certain size. The company’s human resource
management applies the Delphi method to estimate the number of employees
needed in each type of job, such as supply chain jobs, inventory jobs, and sales
jobs.
 Surplus & Shortage of Employees

 Walmart faces minimal concerns about the shortage of employees, especially sales
personnel. The company receives a continuous influx of applicants for sales positions.
However, Walmart experiences HR surplus when aggregate consumption declines. Such
surplus is a challenge to human resource management because it translates to lower HR
cost-effectiveness. 
 Walmart uses the following approaches to determine HR needs and
prevent surpluses or shortages:
 Sales performance analysis
 Turnover rate analysis
 Gap analysis
 Walmart’s human resource management changes recruitment efforts based
on changes in sales performance, which is an indicator of HR
needs. Turnover is the rate at which Walmart’s human resources leave
and/or are replaced. Turnover, together with the rate of recruitment, is an
indicator of changes in the size of the company’s workforce. Walmart’s
human resource management ensures that the recruitment rate is
commensurate to the turnover rate. If the turnover rate is lower than the
recruitment rate, Walmart’s workforce increases in size. An increase in
workforce size usually happens when the company expands or opens new
stores. In addition, Walmart’s human resource management uses gap
analysis to determine the gap between HR needs and actual HR capacity. A
significant gap means reduced HR cost-effectiveness or inadequacy in
meeting organizational needs. Walmart uses gap analysis to decide on
changing recruitment efforts. The company has a gap allowance or
 Balancing Supply and Demand.

 Walmart balances HR supply and demand by adjusting the compensation strategy

and recruitment efforts. These adjustments are based on trends in internal human
resource demand and the rate of applicant entry. Thus, the firm’s human resource
management uses the following approaches to balance HR supply and demand:
 Changes in recruitment
 Changes in compensation
 Balancing Supply and Demand.

 Changes in recruitment are Walmart’s main approach to balance HR supply and

demand. The company’s human resource management changes the recruitment
rate to address workforce requirements. Walmart can easily adjust its
recruitment efforts without significantly impacting financial performance. In
prioritizing changes in recruitment to balance HR supply and demand,
Walmart’s human resource management minimizes changes in the firm’s
compensation strategy. 
 Balancing Supply and Demand.

 On the other hand, changes in compensation are also used to prevent an

imbalance in HR supply and demand. Walmart’s compensation strategy is
designed to minimize HR expenditure. This strategy agrees with the
company’s cost leadership generic strategy. When HR supply becomes
inadequate, Walmart’s last resort is to increase wages. Theoretically, higher
wages attract more applicants. Walmart’s human resource management uses
this second approach to effectively compete in the labor market.
 Quality Definition

 "The totality of features and characteristics of a

product or service that bear on its ability to satisfy
stated or implied needs". - ISO
 Quality Consciousness

 The term “quality consciousness” was first used, from what I can find, in a
1947 keynote by C.R. Sheaffer to the first convention of the American Society
for Quality Control (ASQC), the predecessor to ASQ. To answer the question
“what does top management expect from quality control [people and
organizations]” he notes that a change in quality consciousness is expected.
Attitudes must shift from an acceptance of what’s good enough to the constant
pursuit of making things better. People must be able to take pride in their high-
quality work.
 Importance of quality

 Managing quality is crucial for small businesses. Quality products

help to maintain customer satisfaction and loyalty and reduce the
risk and cost of replacing faulty goods. Companies can build a
reputation for quality by gaining accreditation with a recognized
quality standard, such as ISO 9001, published by the International
Organization for Standardization.
 Customer Expectations

 Your customers expect you to deliver quality products. If you do not,

they will quickly look for alternatives. Quality is critical to satisfying
your customers and retaining their loyalty so they continue to buy
from you in the future. Quality products make an important
contribution to long-term revenue and profitability. They also enable
you to charge and maintain higher prices.
 Reputation

 Quality influences your company’s reputation. The growing importance of

social media means that customers and prospects can easily share both
favorable opinions and criticism of your product quality on forums, product
review sites and social networking sites, such as Facebook and Twitter. A
strong reputation for quality can be an important differentiator in markets that
are very competitive. Poor quality or a product failure that results in a product
recall campaign can create negative publicity and damage your reputation.
 Meeting Standards

 Accreditation to a recognized quality standard may be essential for dealing

with certain customers or complying with legislation. Public sector
companies, for example, may insist that their suppliers achieve accreditation
with quality standards. If you sell products in regulated markets, such as
health care, food or electrical goods, you must be able to comply with health
and safety standards designed to protect consumers. Accredited quality
control systems play a crucial role in complying with those standards.
Accreditation can also help you win new customers or enter new markets by
giving prospects independent confirmation of your company’s ability to
supply quality products.
 Costs
 Poor quality increases costs. If you do not have an effective quality control system
in place, you may incur the cost of analyzing nonconforming goods or services to
determine the root causes and retesting products after reworking them. In some
cases, you may have to scrap defective products and incur additional production
costs to replace them. If defective products reach customers, you will have to pay
for returns and replacements and, in serious cases, you could incur legal costs for
failure to comply with customer or industry standards.
 Importance of quality

Customer
Reputation
Expectations

Meeting
Costs
Standards
 Quality Consciousness

 Quality consciousness can be summed up by the “3 A’s”

– Awareness, Alignment, and Attention. 
 Quality Consciousness

 Based on this definition, I believe that quality consciousness can be summed

up by the “3 A’s” – Awareness, Alignment, and Attention. Quality
consciousness implies awareness of yourself and the environment around
you (including what constitutes quality and high performance for people,
processes and products – most importantly, YOU). It also suggests that you
must achieve alignment of your consciousness with the consciousness of the
organization, which will aid in full activity and engagement of the senses.
Your attention must be selectively focused onto what you can accomplish in
the present moment according to that alignment (which implies that you are
able to effectively filter the rapid and voluminous streams of information
coming at you).
University Questions from Module 1
 M.B.A- DEGREE (REGULAR)
EXAMINATION, SEPTEMBER
2014
 1.
 (a) Describe kurt lewin three stage model of organisational change.
Or
 (b) Discuss the impact of change on HR planning.
 M.B.A. DEGREE
(REGULAR/SUPPLEMENTARY)
EXAMINATION, JULY 2OI5
 1.
 (a) Explain the different types of changes relevant to Indian business
enterprise in the present scenario.
Or
 b) Explain Kurt Lewin Three stage model.
 M.BA DEGREE EXAMINATION,
NOVEMBER 2016

 1.
 (a) Describe force field analysis and its relationship to kurt lewin's
model.
Or
 (b) Examine drivers of organizational change suggested by Burke
Litwin Model. .
 MBA- DEGREE
(REGULAR/SUPPLEMENTARY)
EXAMINATION AUGUST 2016

 1
 (b)Discuss porras and Robbort Son model for organisational change.