Module 1

ORGANIZATION CHANGE
Change management plays an important role in any organisation since the
task of managing change is not an easy one. Change management can
ensure standardised methods, processes and procedures that are useful for
all changes. It is also useful for efficient and prompt handling of all changes
and to maintain a proper balance between the need for change and the
potential detrimental impact of changes. The main objective of change
management is to reduce the probability of change implementation failure;
reduce resistance to change and to get maximum benefit from the
implementation.

Change management can be referred from two perspectives:

 Organisational change management
 Individual change management

Organisational change management is the management of change from the perspective of a

manager or the top leadership. It takes into account both the 41 processes and the tools that
managers use to make changes at an organisational Change Management level. It focuses on
change management practices and skills as well as strategies, plans and training programs. It
is related with one to many (one manager dealing with the whole organisation collectively).
The emphasis is laid on communication, training and the overall culture or value system of
the organization

Individual change management is the process of helping employees to understand them

where they are in the change process and managing that change effectively. This change
management is related with bottom level that means employees. It is related with one-on-
one (each individual is given emphasis because they are the one who bring change). The
focus for individual change management is on the tools and techniques to enrich employees
through the transition.
 INTRODUCTION:

It is a combination of two words:

organization change Organization

change

In any organisation, we have people engaged in production, research,

development, administration, etc. The organisation in order to change should
prepare a stock of the situation and should effect change in their attitude and
style of functioning.

Change is a part of life and provides opportunity for growth. It is a conscious

decision by the management of organisation.

 MEANING:

It refers to the process of growth, decline and transformation within the

organization. Organizations may change their strategy or purpose, introduce
new products or services, change

the way they produce and sell, change their technology, enter new markets,
close down departments or plants, hire new employees, acquire other
organizations become acquired by other organizations and what not ! In
 doing so, they may turn larger, smaller or stay the same in terms of size.

DEFINITION:
Mr. John Bull defines it as “when an organization system is disturbed by some
internal as well as external forces.

According to a paper by Markus Wanner: “Change management is an organized,

systematic application of the knowledge, tools, and resources of change that provides
organizations with a key process to achieve their business strategy.”

 ORGANIZATIONAL CHANGES TYPES:

1. Reactive Changes:
Reactive changes occur when forces compel organization to implement change
without delay. In other words, when demands made by the forces are compiled
in a passive manner, such a change is called reactive change.
2. Proactive Changes:
Proactive changes occur when some factors make realize organization think
over and finally decide that implementation of a particular change is
necessary. Then, the change is introduced in a planned manner.

Organization Wide Change

Organization wide change is a large-scale transformation that affects the overall structure of the
company. This typically tends to entail resizing of any form, restructuring, or collaboration —
basically, a step towards changing the nature of the company.
For example, changing from a highly reactive entrepreneurial organization to one that more has a
more stable, corporate development.
It should be noted that irrespective of the type of change undertaken, these changes do affect
the organizational culture and as an end result, affects the behavior patterns of employees and
individuals.
Changes in this category are long term and if not planned well can be highly disruptive.

Transformational Change
It is important for companies to constantly examine the organization’s underlying strategies. A
company must be in touch with the environment around them. This includes knowing cultural
trends, understanding the social climate and generally be clued up on technological advances.

According to a recent MIT study, maturing digital businesses are focused on integrating digital
technologies, such as social, mobile, analytics and cloud, in the service of transforming how their
businesses work.

Less-mature digital businesses are focused on solving discrete business problems with individual
digital technologies.

In an increasingly digitally motivated world, more tech based companies are taking risks to the
point where it has become a cultural norm.

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Personnel Change
Personnel change is when a company undergoes mass hiring or layoffs. This necessitates a
shift in company culture and processes.

When a company rapidly expands by hiring en masse, the organization will have to absorb
the initial shock of onboarding new employees as it also fits each employee into their new
role, where each new role may yet to be defined. This transition, if not managed well, can
cause chaos and inefficiency.
Layoffs can stem from a number of reasons (government regulations, financial restraints) it
still greatly affects the remaining employees of the organization. These changes tend to
negatively affect employee morale.

This is something that should be considered. It is important to efficiently and fairly

manage how to disperse the workload. Employees who take on more tasks than
originally given can be inefficient and even if it is a temporary solution to filling gaps,
can also result in a shaky transitioning period.

Unplanned Change
Amidst the endless data analysis and planned strategies, an organization can undergo a
number of unplanned changes, sometimes even more drastic than planned ones. Changes
like these may be introduced in an unplanned manner in response to a change in the
demographic composition of an organization- i.e.: Lack of diversity or social equality.
These changes are typically internal unplanned changes.

External factors that include economic uncertainties and changes in government

regulations, play a crucial role in compelling organizations to change. Another surprise
occurrence could be any kind natural disaster. With instances like these being completely
wild and unforeseeable, a company’s response to such an event is a true testament to its
resiliency.

That being said, these changes are often chaotic and expensive and prompt companies to
act within limited time. It is because of this that solutions tend to be short term fix to a
current problem.

Remedial Change
Remedial changes are brought about when responding to a general sense of deficiency
or poor company performance. Performance levels tend to drop when suffering from
financial distress.
 These remedial changes or corrective actions are thus made with the intention of
increasing functionality and reviewing certain strategies that may have previously been
considered as profitable, but now, only seem to be detrimental to the organizational
structure.
An example — if the environment a business works in becomes polluted as the result of
the activities of that business, this pollution must be cleaned for reasons of safety and
welfare. A business would then invest in financing the remedial action or applying for the
finances to do so.
Another example — when a product is deemed redundant, either by the company itself or
by public, a recall plan of action must be implemented.

Forces for change

 TRIGGERS FOR CHANGE OR FACTORS AFFECTING

ORGANISATIONAL CHANGE:
Change is the essence of organisational life. Organisations have to anticipate
or respond to change to be successful in the long-run.

The factors that necessitate change fall into two categories:

1. Internal Factors:
Factors internal to organisation are as follows:
(a) Efficiency:
Organizations want to perform better, earn more profits for owners (in the
form of retained earnings), employees (increase in salary and bonus) and
shareholders (increase in dividends). This is possible if they consistently
review their policies and reorganize their structures to do better. Change is,
therefore, desirable to achieve higher level of efficiency.

(b) Control:
People at high managerial posts want to retain control over organisational
activities. They have their own philosophies and ways of working. They
introduce new organisation designs and control systems which are followed in
the organisation.

(c) Leadership:
Dynamic managers introduce change because they want to lead the market.
Change in one business forces others to adopt the changes.

(d) Internal pressures:

Attitudes of employees also enforce change. Dissatisfaction with the working
conditions, pay structures and inter-personal relationships reflect negative
behaviour towards managers which may force employees to change their
policies, procedures and strategies. Change is, therefore, enforced to develop
cordial relations in the organisation.

(e) Changes in workforce:

Changes in managerial personnel (when new managers join in place of retiring
managers) also require the organisation to change its values and philosophies.
Changes in operative personnel (new workers who are more educated, skilled
and competent) also require the organisation to change its values and beliefs to
match those who join the organisation. There may be changes in leadership
styles and motivation systems to deal with knowledge workers.

(f) Internal inefficiencies:

Organisations may change their structures because of internal inefficiencies
like imbalance between narrow and wide span of management, centralisation
and decentralisation, line and staff relationships, internal and external
environment, communication systems etc. Improvement in these areas
requires changes in organisation structure.

2. External factors:
Survival of organisation depends on its active interaction with the
environment. Every organisation affects and is affected by others — be it
organisations or suppliers, shareholders, customers, Government or trade
unions. Thus, an organisation has to give due consideration to its own goals
and also the goals of those external to its working.

In order to survive in the changing environment, organisations have to change

their production process, labour-management relations, departmental functions
etc. in response to changes in technological, political, economic factors etc.

Some of the external factors which affect change are as follows:

(a) Market factors:
Organisations operate in the volatile markets. Various market forces related to
buyers and competitors affect competitive position of the organisation and
promote changes to remain competitive in the market. Factors related to
buyers are demand, changes in consumer tastes and preferences, income of
consumers etc. and those related to competitors are policies of competitors,
better products and suppliers etc. New companies promote diversification,
product deletion, disinvestment, core competence to gain distinctive advantage
etc.

(b) Economic factors:

Changes in economic conditions; exchange rate and interest rate fluctuations,
fiscal and monetary policies, inflation and cost of living necessitate changes
in the organisational policies.

(c) Social factors:

The norms for pollution, safety and working conditions, health consciousness,
geographical movement of workers, their age composition, education etc. are
the social factors that necessitate changes in the organisational policies.
Organisations are the creations of society and have to take care of social
factors in making adjustments in their plans, policies and procedures.

(d) Technological factors:

The modern world is facing constantly changing technology, information
systems, computerization and decision support systems. If organisations fail to
update their technology and management information system, they will not be
able to survive in the market.

(e) Political factors:

Business enterprises and Government actively interact with each other.
Changes in government policies with respect to taxation and corporate
governance, new laws and court decisions require the organisations to change
their policies according to these regulations.

(f) Natural factors:

Natural calamities like floods and earthquakes also require changes in the
policies of the organisation. Organisations are open social systems and cannot
ignore the impact of their operations on the society. Social responsibilities are
part of the organisational operations which change according to needs of the
environment. Providing medicines, clothes, food and monetary help may not
be part of organization’s social agenda but natural factors may require it to do
so; not only from the point of view of ethics but also its survival.

(g) Educational factors:

Educated employees, shareholders, labour unions, customers and suppliers
require organisations to change their structures to come up to their
expectations. New employees, new managerial personnel, new suppliers with
different educational levels and backgrounds necessitate organisations to
change their policies to accommodate them.

(h) Global factors:

Globalization and liberalization require changes in the policies of
organisations to compete with multinational corporations operating in the
home country and the host country. Companies of different countries have
different cultural and social values. Since they interact with each other in the
globalized world, changes have to be made in the organisational processes to
be interactive with each other.
Models of Planned change
Lewin’s Force-Field Theory of Change

A wide variety of forces make organizations resistant to change, and a wide variety of
forces push organizations toward change. Researcher Kurt Lewin developed a theory
about organizational change. According to his force-field theory, these two sets of
forces are always in opposition in an organization. When the forces are evenly
balanced, the organization is in a state of inertia and does not change. To get an
organization to change, the managers must find a way to increase the forces for
change, reduce resistance to change, or do both simultaneously. Any of these
strategies will overcome inertia and cause an organization to change.
 Lewin’s Force-Field Theory of Change

An organization at performance level X is in balance (Figure). Forces for change

and resistance to change are equal. Management, however, decides that the
organization should strive to achieve performance level Y. To get to level Y, the
managers must increase the forces for change (the increase is represented by the
lengthening of the up arrows), reduce resistance to change (the reduction is
represented by the shortening of the down arrows), or do both. If they pursue any
of the three strategies successfully, the organization will change and reach
performance level Y. Kurt Lewin, whose Force-Field theory argues that
organizations are balanced between forces for change and resistance to change, has a
related perspective on how managers can bring change to their organization
(Figure). In Lewin’s view, implementing change is a three-step process:
1. UNFREEZING
Unfreezing makes the need for change inevitable to members so that they become ready
to accept the change. It develops in people a belief that present system of working is
undesirable and change is desirable. It motivates people to move from the old and
traditional ways to new and modern ways of working.

Resistance to change is eliminated amongst members by:

(a) Building trust and confidence,

(b) Enhancing motivation,

(c) Improving communication, and

(d) Participative decision making

2. CHANGING OR MOVING:
Once people are ready to accept the change, change is initiated by learning
new ways of doing things. New information is collected, new concepts are
developed, members are trained to implement the concepts and present
perspectives and attitudes are changed.

Driving people to change their behaviour and attitude can take two forms:
(a) Negative:
Managers announce change, failing which, members are subjected to threats,
punishments and penalties. This change does not have lasting impact and,
therefore, has to be closely monitored.

(b) Positive:
People are motivated to feel the need for change and accept it as a positive
force that coordinates individual goals with organisational goals.
3. REFREEZING:
Though change is desirable, people generally resist change. Despite learning new ways of
doing things, they tend to revert to old behaviour after working in the changed environment
for some time. Refreezing attempts to make change permanent till there is need to
reintroduce change.
It means locking the new behaviour pattern into place by means of supporting
or reinforcing mechanisms, so that it becomes the new norm.” People realize
that change will affect their future behaviour. Reinforcement of behaviour is,
therefore, the aim of refreezing.

Model of OD – Action Research

A basic model underlying most OD activities is the action research model- a

data based, problem solving model that replicates the steps involved in the
scientific method of inquiry .The processes involved in the action research are :
data collection , feedback of the data to the client, and action planning based on
data (Backhard ,1969) . Action research is both an approach to problem
solving – a model or a paradigm- and a problem solving process- a series of
activities and events.

The action research model focuses on planned changes as a cyclical process

involving collaboration between organisational members and OD practitioners.
It places heavy emphasis on data gathering and diagnosis prior to action
planning and implementation, as well as careful evaluation of results after the
action is taken. Action research is aimed both at helping a specific organisation
increase its effectiveness and at developing new knowledge that can be applied
in other settings (Sussman & Evered , 1978)

Action Research as a Process

Action Research is described as a process that is as an ongoing series of events

and actions. Actions Research can be identified as a process of systematically
collecting research data about an ongoing system relative to some objective,
goal or need of the system; feeding these data back in the system; taking
actions by altering selected variables within the system based both on the data
and on hypotheses; and evaluating the results of action by collecting more data
(French & Bell 1978). This definition characteristics action research in terms
of the activities comprising the process: first a static picture is taken of an
organisation; on the basis of what exits; hunches and hypotheses suggest
actions; these actions typically entail manipulating some variable in the system
that is under the contract of the action researcher; later a second static picture is
taken of the system to examine the effects of the actions taken .

1. Problem Identification: This stage usually begins when a key executive

in the organisation or someone with power and influence senses that the
organisation has one or more problems that might be alleviated with the
help of an OD practitioner.

2. Consultation with a Behavioural Science Expert: During the initial

contract, the consultant or change agent and the client carefully assist each
other. The change agent has his or her own normative, developmental
theory or frames of references (Tichy, 1974) and must be conscious of
these assumptions and values. Sharing them with the manager from the
beginning establishes an open and collaborative atmosphere.
3. Data Gathering and Preliminary Diagnosis: This stage is usually
completed by the consultant often in conjunction with organisational
members. The four basic methods of gathering data are: interviews, process
observation, questionnaires, and organisational performance data. The most
effective diagnosis begins with observation, proceeds to a semi structured
interview and concludes with a questionnaire to measure precisely the
problems identified by the earlier steps. “This sequence provides a funnel
effect, moving from emphasis on ‘bandwidth’ to emphasis on ‘fidelity of
measurement”(Beer,1976)

4. Feedback to the Key Client or Group: Since action research is a

collaborative activity, the data are feedback to the client, usually in a group
or work team meeting. The feedback step, in which the group is given the
information gathered by the consultant, helps the group determine the
strengths and weaknesses of the organisation or the department
understudy. The consultant provides the client with all relevant and useful
data. Obviously, the consultant will protect those sources of information
and will, at times, withhold data if the group is not ready for the
information or if the information would make the client overly defensive.

5. Joint Diagnosis of Problem: At this point, the group discusses the

feedback, and the focus returns to research as the change agent and the
members of a group discuss whether this is a problem on which the group
intends to work. A close relationship exists among data gathering, feedback
and diagnosis because the basic data from the client have been summarized
by the consultant and presented to the group for validation and further
diagnosis. It is important to point out, as Schein the action research process
is very different from the doctor patient model, in which the consultant
comes in makes a diagnosis and prescribes a solution. Schein notes that the
failure to establish a common frame of reference in the client –consultant
relationship may lead to faculty diagnosis or a communication gap whereby the
client is sometimes “unwilling to believe the diagnosis or accept the prescription”.
He believes that “most companies have drawers full of reports by consultants,
each loaded with diagnosis and recommendations which are either not understood
or not accepted by the ‘patient’” (Schein ,1969).

6. Action: Next, the consultant and management jointly agree on further

action to be taken. This is the beginning of the unfreezing process, as the
organisation moves to a different quasi –stationary equilibrium. At this
stage , one cannot be specific about the action to be taken, since this
 depends on the culture , values and norms of the organisation; the
diagnosis of the problem; and the time and expense of the intervention.

7. Data Gathering after Action: Since action research is a cyclical process ,

data must also be gathered after action has been taken in order to monitor,
measure , and determine the effects of the action and feed the results back
to the organisation. This, in turn, may lead to rediagnosis and new action.

Features of Action Research

An analysis of action research model reveals several characteristics of
this approach. A synthesis of the characteristics is presented below:

a) Problem Focus: Action research begins with a problem drawn from

the field. Kurt Lewin (1946), widely considered to be one of the
founders of the field of organisational behaviour, felt that scientific
research was often divorced from the real life problems encountered in
various subsystems that we are member of often pursuing questions of
little interest to practitioners. The response to the inadequacy of
scientific research was action research, which always begins with a
problem.
b) Action Oriented: The focus is not only one of maximizing the
knowledge of understanding of a phenomenon, but also a concerned
attempt to take concrete actions to change the situation. The actions
taken may range from steps to reduce employee resistance to change,
increase employee involvement in problem solving in organisational
contexts or actions to transform the quality of life in a community
context.
c) Cyclical Process: The mode of inquiry is cyclical and leads to change
as well as to the generation of new knowledge. The iterative process
starts with problem identification and one cycle ends with the action
taken. The second cycle begins with the evaluation of the results and a
reassessment of the problem. The knowledge generation in the first
cycle is employed again to introduce some change, if necessary, and the
process continues until the problem is satisfactory addressed .
d) Collaborative: It is a collaborative process in which both the
 researchers and employee contribute their joint expertise. This is based
on the assumption that while the external consultants bring in their
expertise in the process of organisational problems and collaboration to
achieve the best of both worlds.
e) Experimental: Action research being an organic or cyclical process
involves the introduction of a change, examination of its effects, and
subsequent modification of the change. Experimentation is inherent to
the approach and the knowledge gained is inductive. Often experiments
may fail and produce unanticipated or undesired effects. Action
research emphasizes the power of learning by doing, experimentation
being a primary route towards its attainment.
f) Learning and capability Building to tackle Future Problems: The
action researchers intervenes in the problem situation in order to
improve the self help and action taking competencies of the individual
(Susmen & Evered , 1978). It is a self critical approach that calls on
both client and consultants to examine their actions and assumptions.
The learning so derived can result in corrective action.
CHARACTERISTICS OF ORGANIZATION CHANGE:

CHANGE IS THE LAW OF NATURE

CHANGE IS RESISTED BY MAN

CHANGE LEADS TO DEVELOPMENT

CHANGE HAS AN ELEMENT OF UNCERTAINITY

CHANGE REQUIRES CHANGE AGENTS

CHANGES TAKE PLACE DUE TO TWO FORCES

CHANGE IINCLUDES PROACTIVE AND REACTIVE

CHANGE

IMPORTANCE OF PLANNED CHANGE

 1. Increased productivity: Planned change help increase productivity
and service ability. On the other hand, change without plan might not
help that much to increase productivity.
2. Enhancement of quality: Enhancement of quality deserves planned
change in an organization. Quality of the goods is the condition of
success of the organization.
3. Facing competition: If change process starts in a planned way that
can help face competition successfully. Otherwise it may be difficult.
4. Technological change: Planned change can also help in technological
change, which type of technology is to be installed, that decision is
supposed to take through a proper plan.
5. Customer satisfaction: Customer satisfaction is one of the prime
objectives of the organizations. That satisfaction can also be increased
and retained in a planned way.
6. Expansion of market: Every organization wants to expand its
business. This expansion program should be taken with effective plan.
7. Satisfaction of owners: Owners and managers satisfaction is one of
the prime implied objectives of establishing organization. This
objective may be achieved, if it is tried in a planned way.
8. Complying with laws: Some changes take place in compliance with
law provisions. In honor of law provisions, change is initiated.
9. Development of manpower: Manpower training and development is a
continuous process. If this process is undertaken in a planned way that
can help the organization to gain long term benefits.

 STRATEGIES FOR IMPLEMENTING ORGANIZATIONAL CHANGE.

1. Management Support for Change

Employees develop a comfort level when they see management supporting the
process. It is critical that management shows support for changes and
demonstrates that support when communicating and interacting with staff

2. Case for Change

No one wants to change for change sake, so it is important to create a case for
change. A case for change can come from different sources. It can be a
result of data collected on defect rates, customer satisfaction surveys,
employee satisfaction surveys, customer comment cards, business goals as
a result of a strategic planning session, or budget pressures.

Using data is the best way to identify and justify areas that need to improve
through change initiatives

3. Employee Involvement

All change efforts should involve employees at some level. Organizational

change, whether large or small, needs to be explained and communicated,
specifically changes that affect how employees perform their jobs.

Whether it is changing a work process, improving customer satisfaction, or

finding ways to reduce costs, employees have experiences that can benefit the
change planning and implementation process. Since employees are typically
closest to the process, it is important that they understand the why behind a
change and participate in creating the new process.

5. Implementation

Once a change is planned, it is important to have good communication about

the roll-out and implementation of the change. A timeline should be made for
the implementation and changes should be made in the order of its impact on
the process and the employees who manage that process. For instance, if your
organization is upgrading its software program, employee training should be
done before the software is installed on their computers.

An effective timeline will allow for all new equipment, supplies, or training
to take place before it is fully implemented.

6. Follow-up

Whenever a change is made it is always good to follow-up after

implementation and assess how the change is working and if the change
delivered the results that were intended. Sometimes changes exceed target
expectations but there are occasions that changes just don’t work as planned.
When this is the case, management should acknowledge that it didn’t work
and make adjustments until the desired result is achieved.
Entering and Contracting:
The first set of activities in planned change concerns entering and contracting. Those events help managers
decide whether they want to engage further in a planned change program and to commit resources to such
a process. Entering an organization involves gathering initial data to understand the problems facing the
organization or the positive opportunities for inquiry. Once this information is collected, the problems or
opportunities are discussed with managers and other organization members to develop a contract or
agreement to engage in planned change. The contract spells out future change activities, the resources that
will be committed to the process, and how OD practitioners and organization members will be involved. In
many cases, organizations do not get beyond this early stage of planned change because disagreements
about the need for change surface, resource constraints are encountered, or other methods for change
appear more feasible. When OD is used in nontraditional and international settings, the entering and
contracting process must be sensitive to the context in which the change is taking place
Diagnosing:
In this stage of planned change, the client system is carefully studied. Diagnoses can .focus on
understanding organizational problems, including their causes and consequences, or on identifying the
organization's positive attributes. The diagnostic process is one of the most important activities in OD. It
includes choosing an appropriate model for understanding the organization and gathering, analyzing, and
feeding back information to managers and organization members about the problems or opportunities that
exist.
Diagnostic models for analyzing problems explore three levels of activities. Organization issues represent
the most complex level of analysis and involve the total system. Group-level issues are associated with de-
partment and group effectiveness. Individual-level issues involve the way jobs are designed.
Gathering, analyzing, and feeding back data are the central change activities in diagnosis. Describes how
data can be gathered through interviews, observations, survey instruments, or such archival sources as
meeting minutes and organization charts. It also explains how data can be reviewed and analyzed.
Organization members, often in collaboration with an OD practitioner, jointly discuss the data and their
implications for change

Planning and Implementing Change:

In this stage, organization members and practitioners jointly plan and implement OD interventions. They
design interventions to achieve the organization's vision or goals and make action plans to implement them.
There are several criteria for designing interventions, including the organization's readiness for change, its
current change capability, its culture and power distributions, and the change agent's skills and abilities.
Depending on the outcomes of diagnosis, there are four major types of interventions in OD:
1.
Human process interventions at the individual, group, and total system levels.
2.
Interventions that modify an organization's structure and technology.
3.
Human resource interventions that seek to improve member performance and wellness.
4.
Strategic interventions that involve managing the organization's relationship to its external
environment and the internal structure and process necessary to support a business strategy.
Implementing interventions is concerned with managing the change process. It includes motivating change,
creating a desired future vision of the organization, developing political support, managing the transition
toward the vision, and sustaining momentum for change
Evaluating and Institutionalizing Change:

The final stage in planned change involves evaluating the effects of the intervention and managing the
institutionalization of successful change programs. Feedback to organization members about the
intervention's results provides information about whether the changes should be continued, modified, or
suspended. Institutionalizing successful changes involves reinforcing them through feedback, rewards, and
training. It demonstrates how traditional planned change activities, such as entry and contracting, survey
feedback, and change planning, can be combined with contemporary methods, such as large-group
interventions and high levels of participation.

Different types of Planned Change:

The general model of planned change describes how the OD process typically un-folds in organizations. In
actual practice, the different phases are not nearly as orderly as the model implies. OD practitioners tend to
modify or adjust the stages to fit the needs of the situation. Steps in planned change may be implemented
in a variety of ways, depending on the client's needs and goals, the change agent's skills and values, and the
organization's context. Thus, planned change can vary enormously from one situation to another.
To understand the differences better, planned change can be contrasted across situations on three key
dimensions: the magnitude of organizational change, the degree to which the client system is organized, and
whether the setting is domestic or international

Magnitude of Change:
Planned change efforts can be characterized as falling along a continuum ranging from incremental changes
that involve fine-tuning the organization to quantum changes that entail fundamentally altering how it
operates. Incremental changes tend to involve limited dimensions and levels of the organization, such as
the decision-making processes of work groups. They occur within the context of the organization's existing
business strategy, structure, and culture and are aimed at improving the status quo. Quantum changes, on
the other hand, are directed at significantly altering how the organization operates. They tend to involve
several organizational dimensions, including structure, culture, reward systems, information processes, and
work design. They also involve changing multiple levels of the organization, from top-level management
through departments and work groups to individual jobs.
Planned change traditionally has been applied in situations involving incremental change. Organizations in
the 1960s and 1970s were concerned mainly with fine-tuning their bureaucratic structures by resolving
many, of the social problems that emerged with increasing size and complexity. In those situations, planned
change involves a relatively bounded set of problem-solving activities. OD practitioners are typically
contracted by managers to help solve specific problems in particular organizational systems, such as poor
communication among members of a work team or low customer satisfaction scores in a department store.
Diagnostic and change activities tend to be limited to the defined issues, although additional problems may
be uncovered and may need to be addressed. Similarly, the change process tends to focus on those
organizational systems having specific problems, and it generally terminates when the problems are
resolved. Of course, the change agent may contract to help solve additional problems

Degree of Organization:
Planned change efforts also can vary depending on the degree to which the organization or client system is
organized. In over organized situations, such as in highly mechanistic, bureaucratic organizations, various
dimensions such as leadership styles, job designs, organization structure, and policies and procedures are
too rigid and overly defined for effective task performance. Communication between management and
employees is typically suppressed, conflicts are avoided, and employees are apathetic. In under organized
organizations, on the other hand, there is too little constraint or regulation for effective task performance.
Leadership, structure, job design, and policy are poorly defined and fail to control task behaviors effective-
ly. Communication is fragmented, job responsibilities are ambiguous, and employees' energies are
dissipated because they lack direction. Underorganized situations are typically found in such .areas as
product development, project management, and community development, where relationships among
diverse groups and participants must be coordinated around complex, uncertain tasks

Domestic vs. International Settings:

Planned change efforts traditionally have been applied in North American and European settings but
increasingly are used outside of those cultures. Developed in western societies, the action research model
reflects the underlying values and assumptions of these geographic settings, including equality, involvement,
and short-term time horizons. Under such conditions, the action research model works quite well. In other
societies, however, a very different set of cultural values and assumptions may operate and make the
application of OD problematic. For example, the cultures of most Asian countries are more hierarchical
and status conscious, are less open to discussing personal issues, more concerned with saving "face," and
have a longer time horizon for results. Even when the consultant is aware of the cultural norms and values
that permeate the society; those cultural differences make the traditional action research steps more difficult
for a North American or European consultant to implement.
The cultural values that guide OD practice in the United States, for example, include a tolerance for
ambiguity, equality among people, individuality, and achievement motives. An OD process that encourages
openness among individuals, high levels of participation, and actions that promote increased effectiveness
are viewed favorably. The OD practitioner is also assumed to hold those values and to model them in the
conduct of planned change. Most reported cases of OD involve western-based organizations using
practitioners trained in the traditional model and raised and experienced in western society.
Critique of Planned Change:

Despite their continued refinement, the models and practice of planned change are still in
a formative stage
of development, and there is considerable room for improvement. Critics of OD have pointed out several
problems with the way planned change has been conceptualized and practiced.

Conceptualization of Planned Change:

Planned change has typically been characterized as involving a series of activities for carrying out effective
organization development. Although current models outline a general set of steps to be followed,
considerably more information is needed to guide how those steps should be performed in specific
situations. In an extensive review and critique of planned change theory, Porras and Robertson argued that
planned change activities should be guided by information about (1) the organizational features that can be
changed, (2) the intended outcomes from making those changes, (3) the causal mechanisms by which those
outcomes are achieved, and (4) the contingencies upon which successful change depends. In particular

Change Agent:
Though change is a continuous process involving managers
at all levels, who should initiate change and how has to be
deliberately decided in planned change. Planned change can
be introduced through change agents. Change agent is the
person who initiates change in the organisation to increase
organisational effectiveness.

Planned change may be change in people, structure or

technology. Any resistance in introducing change is
overcome by the change agent who motivates the employees
to accept the change. Internal management takes help of
external consultants in introducing planned change.

Change agents can, thus, be:

1. External Change Agents
2. Internal Change Agents

External change agents

They are generally the behavioural scientists who specialise

in human behaviour. They work as consultants for the
company and devise its change strategy.

2. Internal change agents:

They are continuously involved in the change process. They
belong to the organisation only and depending on the need
where the change is required, they are selected from
different levels and departments. Internal change agents are
usually the managers who are trained by the consultants
(external change agents) to implement change as on ongoing
process.

They introduce change within the broad framework of

change strategy devised by the external change agents.

They also lead the members to implement the change

process. Internal change agents may also be change advisors
appointed from specific departments for specific periods.
After the change programme is completed, they go to their
original departments.

They convince organisational members to accept and

implement the change. What they learn from the
consultants, they communicate to the managers and promote
behavioural skills to smoothen the change process.

Change advisors should have the following qualities for

making change programme successful:
1. Diagnostic skills.

2. Behavioural skill.

3. Attitudes of acceptance.

4. Personal qualities to provide emotional support and

reassurance.

External Change Agents:

1. They take total view of the organization as a system.

2. They are not much affected by norms of the organization.

3. They do not view change as an on-going process as they

are appointed by the organization for specific tasks.

4. They use diagnostic skills to diagnose the problem and

plan the overall strategy for change.

5. Their role is comprehensive in nature.

6. Their role is primarily that of process consultation, that is,

deciding the process of introducing change.

7. They help the organisation move towards self-renewal and

growth

Internal Change Agents:

1. They accept the system as given

2. They apply change practices suitable to the needs of the

organization within the organisational norms.

3. They view change as an on-going process with minor or

major changes in the components of the organization
4. They use problem-solving skills to deal with problems
related to change.

5. Their role is secondary to that of external agents.

6. Their role is primarily of implementing the change

process. They work as trained by the consultants. Their role
is primarily educational as they educate people about the
need for accepting and implementing the change.

Role of a Change Agent:

1. He announces the need for change in the organisation.
Members usually want to maintain status quo which is
resistant to change. Change agents help to overcome this
resistance.

2. He diagnoses the present situation in the organisation,

foresees changes in the environment and helps the client
company in adapting to the changing environment.

3. He helps in smoothly carrying out the change process.

People accept change naturally without feeling that they are
forced to accept it.

4. He formulates strategies for change. These are known as

change interventions or OD (organisation Development)
interventions.

5. He trains the internal change agents to implement the

change process and introduce it further in the organisation.
Change, thus, becomes an on-going process in the light of
ever-changing dynamic external environment.

6. He uses behavioural skills to deal with emotional and

social problems of employees in accepting and implementing
change.
A change agent, thus, acts as a:
1. Facilitator:
He facilitates change by developing awareness about the
importance of change.

2. Consultant:
He draws major plan for change based on his diagnostic
skills.

3. Counselor:
He studies the attitudes, personality, perception, beliefs and
expectations of organisational members to the change
process and motivates them to accept change and continue
in the changed environment till a change is introduced
again.