MODULE 1

Introduction
Definition: Organisational change is the process by which organisations move from their present
state to some desired future state to increase their effectiveness
Change is one of the most critical aspects of effective management. Change is the coping process of
moving from the present state to a desired state that individuals, groups and organizations undertake
in response to dynamic internal and external factors that alter current realities. When organizations
fail to change, the cost of failure may be quite high.
Increasingly, organizations that emphasis bureaucratic or mechanistic systems are ineffective.
Organizations with rigid hierarchies, high degree of functional specialization, narrow and limited job
descriptions, inflexible rules and procedures, and impersonal management cant respond adequately
to demands for change. Organizations need designs that are flexible and adaptive. They also need
systems that both require and allow greater commitment and use of talent on the part of employees
and managers.
Why is change important to managers and organizations? Simply stated, organizations that do not
bring about timely change in appropriate ways are unlikely to survive. One reason that the rate of
change is accelerating is that knowledge and technology feed on themselves, constantly creating
innovations at exponential rates. Few business leaders would have envisioned in the mid-1990s, the
revolutionary impact the Internet and World Wide Web would have on business practices in the early
twenty-five century.
Types Of Change
Happened Change:
This type of change is rather unpredictable and takes place naturally due to external factors. It is
profound and traumatic for it is out of direct control and produces a future state that is largely
unknown.
Reactive Change:
Changes that are clearly in response to an event or a series of events are termed reactive changes.
Generally, most companies are engaged in reactive, often incremental change. These changes are
attempted when the demand for a companys products/services registers an increase or decrease, or a
problem/crisis occurs or develops. Technological changes, for example, force the organization to
invest in modern technologies.
Anticipatory Change:
Change carries out in expectation of an event or a series of events is called anticipatory change.

Planned Change:
Planned change or developmental change is undertaken to improve upon the current way(s) of
operating. It is a calculated change, initiated to achieve a certain desirable output/performance and to
make the organization more responsive to internal and external demands.
Incremental Change: Change directed at the micro level and focused on units/subunits/components
within an organization are termed as incremental changes.
Operational Change: This is necessitated when an organization needs to improve the quality of its
products or services due to external competition, customers changing requirements and demands, or
internal organizational dynamics.
Strategic Change: Change that is addressed to the organization as a whole or to most of the
organisations components including strategy may be called strategic change. An example could be a
change in the organisations management style.

Importance of change

Change is the only thing permanent in the world.

Change is inevitable, but pervasive too.
Life itself is almost synonymous with the concept of change.
Humans and organisms, grow up leaving behind the characteristics of earlier stages of

development and adopt new behaviours with age, environments and expectations.
An organisation too cannot and should not remain constant/stagnant all the time.
Even if the management does not want to change, the external pressures force it to change.
Change encompasses leadership, motivation, organisational environment, roles of people, etc.
Change produces emotional reactions too.
To many it is threatening, it has visions of revolutions.
If throws up also a dissatisfied person, a trouble maker.

Resistance to Change

Resistance to change consist of any employee behaviours designed to

Delay
Discredit
Prevent the implementation of work change.
Employee resists change because it threatens their:
Need for security
Social interaction
Status
Competence

Self esteem

Regardless of the nature of change, some employees will try to protect themselves from its
effects.
White and blue collared people resist change.
Particularly employees too have a desire for new experience and the accompanying rewards that
come with the change.
A lesson to management is: change is likely to be a success or a problem, depending upon how
skillfully it is managed to minimize resistance.

Reasons for Resistance: (3 broad reasons)

First

Not comfortable with the nature of the change itself

It may violate their moral belief system
They may believe that the decision is technically incorrect
May be reluctant to change the present familiar comforts to an uncertainty.
People resist because of the fear of unknown.
Threats to job security.

Second
The method by which it is introduced
People may resent having been ill informed.
May reject an insensitive and authoritarian approach that did not involve them in the change
process
May be a perception of poor timings.
Third
Inequity of the peoples experience
Some perceive as losers due to change.
Some perceive as gainers due to change.
Types of Resistance: (3 types)
Logical, rational objections:
Time required to adjust.
Extra effort to relearn
Possibility of less desirable conditions, such as skill downgrading.
Economic costs of change.
Questioned technical feasibilities of changes.
Psychological, emotional resistances:
Fear of the unknown.
Low tolerance of change.
Dislike of management or other change agent.

Lack of trust in others.

Need for security; desire for status quo.

Sociological, group resistances:

Political coalitions
Opposing group values.
Parochial, narrow outlook
Vested interests.
Desire to retain existing friendships.
A SYSTEMS MODEL OF CHANGE

The Systems Model of Change describes the organisation as six interacting variables that could serve
as the focus of planned change: people, culture, task, technology, design, and strategy. The people
variable applies to individuals working for the organisation, including their individual differencespersonalities, attitudes, perceptions, attributions, needs and motives.
Culture: The culture variable reflects the shared beliefs, values, expectations, and norms of
organisational members.
Task: The task variable involves the nature of work itself whether jobs are simple or complex,
novel or repetitive, standardised or unique.
Technology: The technology variable encompasses the problem solving methods andegy techniques
used and the application of knowledge to various organisational processes.
Design: The design variable is the formal organisational structure and its system
of communication, control, authority, and responsibility

Strategy: strategy variable comprises the organisations planning process and

includes decisions about how the organisation chooses to compete. It typically
consists of activities undertaken to identify organisational goals and prepare
specific plans to acquire, allocate, and use resources in order to accomplish those.

Module 3
INTERVENTION STRATEGIES
McCalman and Paton (1992:) define an intervention strategy as:
the procedural methodology for successfully intervening in the
working
processes of the original system, with the purpose of bringing
about an
effective change in that system. The ultimate result should be a
stable
new environment, which incorporates the desired changes.
There are a number of different intervention strategy models,
including Systems Intervention Strategy (SIS) developed by the
Open Business School, the Total Project Management Model
(TPMM) developed by the Glasgow Business School and the
Intervention Strategy Model (ISM).
Models of this type, which are based on addressing hard
problems, often have the word system in their title. However,
some academics argue that this term is off-putting and links the
model too closely with engineering and systems-based
enterprises. It can, in fact, be successfully used in any
organization.
Every intervention strategy model has its supporters; the type of
model that companies use in practice is often a result of which

particular models managers were exposed to when they studied

for their MBA qualifications.
All the intervention strategy models, despite the use of different
terminology and slightly different methods, follow the same basic
three-phase approach:
1 Definition phase.
This involves:
defining the objectives
collecting data
examining the problem environment.
2 Evaluation and design phase.
This involves:
determining which research procedures to use
analysing data to produce potential solutions
evaluating potential solutions against performance objectives
choosing the best solution.
3 Implementation phase.
This involves:
implementing the solution
appraising and monitoring.
In simple terms, when organizations work through a systems
intervention
model they ask themselves a number of questions:
Where are we now?
Where do we want to be?
How will we know when we get there?
How can we get there?
What will it be like?
Can we carry the process through?