Contents
1. Why Culture is important?
2. Organizational Change
3. Forces for Change
4. Sources of Individual/Organizational Resistance to Change
5. Managing the Change
6. Overcoming Resistance to Change
7. Organizational Development
8. Various Approaches to O.D.
9. How to Create Motivation
10. Change targets
11. Key Stages of OD Programme
12. Change Skills: A Managerial Approach
13. Implications for Managers
14. Summary/conclusion


- Organization Culture?
- Organization Change?
- Organization Development?

Why culture is important?
- Performance 
- Commitment

Why changes
- External 
- Internal

Organization Change

Culture at Work
- Another Change?

What is Organizational Change?
- Individual Change
- Group Change
- Structural Change


Sources of Organizational Change

Internal Change Factors
- Technical Production Processes
- Political Processes
- Organizational Culture
The Role of Internal Change Variables

External Change Variables

Immediate Environment
- Domestic competition
- Population trends
- Social trends
- Government actions

The General Environment
- Foreign competition
- Social movements
- Political-economic movements
- Technology
- Professionalization
- Culture contact

The Role of External Change Variables


Change Variables and Culture

National Culture and Organizational Change
- Time Orientation
- Resistance to Change
- Tradition 
- Habit
- Resource Limitations
- Power and Influence
- Fear of the Unknown 
- Values


Organizational Culture and Change

Managing Change
Organization Development (OD)
Lewin's Model of Change
- Phase 1: Diagnosis
- Phase 2: Unfreezing
- Phase 3: Movement 
- Phase 4: Refreezing
- Phase 5: Renewal


Managing Resistance to Change
- Education and Communication
- Participation and involvement
- Negotiation and agreement 
- Manipulation and co-optation
- Coercion

The Interaction of National and Organizational Cultures
- National Culture
- Organizational Culture

Macro-Organizational Change Theories
- Life-Cycle Theory
- Teleological Theory
- Dialectical Theory
- Evolutionary Theory
- Cultural Implications of Macro Change Theories

Convergence or Divergence?
- Forces for Convergence
- Forces for Divergence


Forces for Change: External
- Competitive Edge
- Economic Forces
- Internationalization
- Changes in Social Values
- Political Changes
- *Technological

Internal 
- Leadership(CEO Key Personnels)
- Culture(Management Styles, Values, etc.)


OD Values
- Respect for people
- Trust and support
- Power equalization
- Confrontation
- Participation

Forces for Change 
- Nature of the Work Force 
- Technology
- Economic Shocks
- Social Trends
- World Politics
- Competition

Management of Change
- Importance
- Relevance of OB
- Key problems
- Solutions?


Six ways to deal with resistance to change
- Education and communication
- Participation and involvement
- Facilitation and support
- Facilitation and agreement
- Manipulation and co-optation
- Explicit and implicit coercion

Ten sources of Resistance to Change
1. Fear of the unknown
2. Loss of control 
3. Loss of face
4. Loss of competency
5. Need for security
6. Poor timing 
7. Force of habit
8. Lack of support
9. Lack of confidence
10. Lingering resentment

Power base
- Rewards 
- Punishments 
- Legitimacy
- Expertise 
- Reference

Change Strategy
- Force-coercion
- Rational persuasion
- Shared powers

Managerial behavior
- Unilateral action: "command"
- Rational persuasion;
- Expert testimony;
- Demonstration projects
- Empowerment;
- Participative decisions;
- Group process

Predicted outcomes
-  Temporary compliance
- Long-term internalization


Job Stress

Work Factors
- Task demands
- Role dynamics
- Interpersonal relationships
- Career progress

Non-work Factors
- Family
- Economics
- Personal affairs

Personal Factors
- Needs
- Capabilities
- Personality

Potential Consequences
- For the individual - behavioral, psychological, and medical problems.
- For the organization - decreased performance, morale and motivation;
increased turnover and absenteeism

Managing the Change:
*Activities Contributing to Effective Change in Organization.
- Motivation Change
- Creating a vision
- Developing political Support
- Managing the Transition
- Sustaining Momentum

Motiving Change
- Creating readiness
- Overcoming resistance to change

Creating a Vision
- Mission
- Value Outcomes & Conditions
- Goals (Midpoint Goals)

Developing Political Support
- Assessing & agent power
- Identify key stakeholders
- Influencing stakeholders

Managing the Transition
- Activity planning
- Commitment planning 
- Management Structures

Sustaining Momentum
- Providing Resources for change
- Building a Support System for change agent
- Developing new competencies & Skills
- Reinforcing new Behavior


Organisational Development

I. Definitions
1) It is defined as a strategy for improving organisational
effectiveness by means of behavioural approaches, involving the
application of diagnostic and problem-solving skills by external
consultant in collaboration with the organisation's management.

2) Some key considerations:
a) OD is an organisation-wide process.
b) It involves the intervention of an external third party in the
role of change agent.
c) It is aimed at both improving organisation effectiveness and
management development.

Various Approaches To O.D.
A. Leurin's Change Model:
- Unfreezing
- *Moving (Change)
- *Refreezing (Institutional)

Change - change means shift the behaviour of the Organisation
/Department to a new level.

Refreezing - means the maintenance of the change.
This also means the "system" of maintenance.


Change Models:

A. Kurt Lewin's Model:
3 Stage
- Unfreezing 
- Moving (change)
- Refreezing

B. Lippitt. Watson & Westley - the 7 stages:
- Need
- Est. change relation (client-agent)
- Clarification & diagnosis of problem
- Alternatives
- Transformation of intentions into actual change efforts.
- Generalisation & stabilisation of change (refreezing).
- Terminal relation

C. Stream Analysis (Jerry Porras)
- Classifying the problem into these "stream settings"
- Social factors(culture, style)
- Technology (tools, equipment, job)
- Physical settings(space etc.)
- Organisation arrangements(goals, strategy rewards) etc.
interconnection of these variables (& problems)

* Stream Analysis, O.D. programs change the work setting which
leads to changes in behaviour, which leads to organisation improvement.


D. Burke - Litwin - Model of individual & Organisation  performance

Planned Change can be viewed from the following Situations:
A. The Degree of organisational change involved
B. The Degree to which organisational members learn how to change.
C. The Degree to which the client system is organized.


Degree of Change:
- Incremental Change?
- Quantum Change?

* Incremental - Gradual Change
- Problem solving type
- Fine-tuning of existing system & Status Quo.

* Quantum Change - more radical & drastic
- Tend to involve multiple levels 
- More responsive to the external environment(competitors & uncertainty)
- High staff involvement & participation.

Degree of Organizing
- Overorganized (bureaucratic, mechanistic, leadership styles.,
job designs, etc.)
- Underorganized (Loose control, too much decentralization,
ill-defined jobs & structure, etc.)


How to Create Motivation(Readiness)
1. Sensitise Organization to pressures for change(Devil's advocates)
2. Reveal discrepancies between current & desired status(performance).
3. Convey the message positively(credible positive expectations).

Change Options
- Structure 
- Technology 
- People
* What are the Change Options?

Sources of Individual Resistance to Change
- Selective Information Processing
- Fear of the Unknown
- Economic Factors 
- Security
- Habit

Sources of Organizational Resistance to Change
- Threat to Established Resource Allocations
- Threat to Established Power Relationships
- Threat to Expertise
- Group Inertia
- Limited Focus of Change
- Structural Inertia

Overcoming Resistance to Change
- Education and Communication
- Participation
- Facilitation and Support 
- Negotiation
- Manipulation And Co-optation
- Coercion

Lewin's 3-Step Change Model
- Unfreezing 
- Movement 
- Refreezing

Managing Planned Change
- Planned change is pro-active and purposeful 
- Goal: Improve the ability of organizations to react to
environmental changes
- Goal: Change employee behavior
- Change agents are existing managers, new managers, consultants
- What can change?


Change targets
Purpose - Clarify or create mission and objectives
Objectives - Set or modify specific performance targets
Strategy 
- Clarify or create strategic and operational plans

Culture 
- Clarify or create core beliefs and values
People 
- Update recruiting and selection practices; improve training
and development

Tasks 
- Update job designs for individuals and groups

Structure 
- Update organizational design and co-ordination mechanisms

Technology
- improve equipment, facilities, and workflows 


Phase 1: Unfreezing
- Creating a felt need for change
- Minimizing resistance to change

Phase II: Changing
- Changing people(individuals and groups); tasks; structure; technology

Phase III: Refreezing
- Reinforcing outcomes Evaluating results 
- Making constructive modifications


Lewin's Three Phases of Planned Change

1. Unfreezing 
2. Changing 
3. Refreezing


Key Stages of OD Programme

1) Preliminary stage
- Discuss scope and implications of OD with external third party.

2) Analysis and Diagnosis
- Direct involvement of third party to gather information.

3) Agreement on aims of the OD programme between change agent and
the client
- Setting of specific objectives for all levels of organization.

4) Action Planning
- Planning the content and sequences of the activities designed
to achieve aims of the programme.

Change Skills(Kanter, 1983)

Power Skills
- Persuading others to invest in initiative

Participation Skills 
- Ability to deal with problems associated with tams & employee
participation

Analytical Skills
- Understanding how micro-changes relate to macro-changes & strategic
re-orientations.