Organizational Change

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Concept, Kurt Lewin Theory of Change; Organizational Development (OD): Organisational Change, Strategies for Change, Theories of Planned Change (Lewin’s change model, Action research model, Positive model).

1. Change Management
   1. External Change
   2. Internal Change
   3. Planned Change
2. Strategies for Change
3. Theories of Planned Change
   1. Kurt Lewin Theory of Change
   2. Action Research Model
   3. Positive model

Change Management

Organizational change refers to the process through which an organisation undergoes any transformation internally or externally. It can involve changes to a company’s operational methods, technologies, organizational structure, strategies, or other aspects of the organization. Organizational change usually happens in response to external or internal pressures, such as changes in market conditions or the need to improve efficiency.

Organizational change can have many benefits, including increased efficiency, improved adaptability to changing market conditions, and the ability to take advantage of new opportunities. However, it can also be challenging to implement and may require significant effort and resources. It is important for organizations to carefully plan and manage the change process in order to achieve the desired outcomes.

External Change

External change refers to changes that are brought about by factors outside of an organization. These can include changes in the market, technological advancements, social trends, and political or legal changes. For example, a company may need to adapt to new regulations or laws, or respond to changing consumer preferences or technological developments. External change can also refer to the use of an external change agent, who is hired from outside the organization to oversee the change process. An external change agent is not subject to the same rules and regulations as employees of the organization and can bring a fresh perspective to the change process.

Internal Change

Internal change refers to changes that occur within an organization due to factors within the organization’s environment. These changes can involve people, processes, and other factors such as motivation. Internal change can be planned or unplanned. Planned internal change is a strategic move by the organization implemented with the objective of changing the nature of the business itself or the way in which an organization is doing its business. Examples of internal change include structural change, strategic change, people changes, and process change.

Planned Change

Planned change is a deliberate and structured approach to transitioning an organization towards new strategic goals or operational changes. Unlike sudden adaptations to new circumstances, planned change is carefully thought out and executed. It can impact various aspects of an organization, including its vision, culture, operations, product development, sales, target market, staffing, and marketing. The process of planned change typically involves several steps:

1. Recognition of a need: The process begins when leaders recognize that the organization needs to change in order to succeed. This can be due to internal challenges or external factors in the market or society.
2. Goal development: After recognizing the need for change, leaders can start to conceptualize the type of change that is necessary. This often involves identifying challenges and opportunities and determining how to respond to them.
3. Selection of an agent: Once a goal has been established, executives can select a change agent within the company who can help them achieve their objectives. This is usually a leader within the organization who understands the goal and has ideas for achieving it.
4. Diagnosis/research: The change agent then begins gathering information about the current state of the company. This often involves speaking with employees to assess their readiness and desire for change and understand their desired outcomes.
5. Selection of implementation method: The change agent uses their knowledge of the company’s climate to design a strategy for implementing the change. During this phase, they may seek feedback from colleagues and business leaders or explore methods used by other companies to enact similar changes.
6. Planning: After deciding on an implementation method, a detailed plan of execution is created. This plan typically includes a timeline, budget, list of necessary resources and contingency arrangements, and assigns responsibility for different tasks to individual managers.
7. Implementation: Once the plan is approved, leadership teams can begin implementing it throughout the company. During this process, it’s important for managers to remain responsive and secure new resources and expertise as needed.
8. Evaluation: After the implementation phase is complete, leaders often evaluate the entire project to assess its success in meeting its original goals. This helps them determine whether further changes are necessary and can inform future planning efforts.

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Roethlisberger’s x-chart explains how attitudes affect the response to change.

Strategies for Change

Chin and Benne describe three strategies managers commonly use in introducing organizational change:

1. Empirical – Rational Strategy: people are rational beings
2. Normative – Reeducative Strategy: people are guided by the socio-cultural norms they subscribe to
3. Power – Coercive strategies: people with less power will accept change brought by people with more power

Theories of Planned Change

There are three well known theories of Planned Change:

1. Kurt Lewin Theory of Change
2. Action research model
3. Positive model

Kurt Lewin is known as the father of change process.

Kurt Lewin’s theory of change is a three-stage model of change that is known as the unfreezing-change-refreeze model. The theory explains how people react, resist, and adapt to change over time. The theory states that behavior is a dynamic balance of forces working in opposing directions. To change behavior, the driving forces must be stronger than the resisting forces.

 Three stages in initiating and establishing any change: 

Stage 1: Unfreezing

• It involves preparing the organization to accept that change is necessary by breaking down the existing status quo.
• This can be done by developing a compelling message showing why the existing way of doing things cannot continue.

• It involves discontinuation of the old practice, attitudes, behaviours etc.

Stage 2: Changing

• It involves molding the organization into the desired shape.
• This may involve introducing new processes, structures, or systems to achieve the desired change.

Stage 1: Refreezing

• This is the final stage, which involves solidifying the new shape of the organization so that it becomes the new status quo.
• This can involve reinforcing new behaviors and processes to ensure that they become embedded in the organization.

This model provides a useful framework for understanding and managing change within organizations.

Action Research Model

“No research without action, no action without research.”

-Kurt Lewin

Action Research Model was given by Kurt Lewin.

Action Research is an effective approach for bringing about change within an organization by working together with the client throughout the entire process, which includes diagnosing issues, identifying problems, engaging in experiential learning, and finding solutions to problems. The Action Research Model is the standard process used in organizational change.

Action research is often used in fields like education, healthcare, and community development because of its iterative and flexible style. Here are some examples of action research:

• In education, a teacher might conduct action research to improve their teaching practices by gathering feedback from students and colleagues, trying out new teaching methods, and reflecting on the results to make further improvements.
• In healthcare, a team of nurses might conduct action research to improve patient care by identifying areas for improvement, implementing changes to their practices, and evaluating the impact on patient outcomes.
• In community development, a group of residents might conduct action research to address a local issue such as crime or unemployment by gathering data, engaging with stakeholders, and implementing and evaluating interventions.

Positive model

In contrast to the action research and Lewin’s models, which concentrate on addressing an organization’s shortcomings, the positive model seeks to capitalize on a company’s strengths and transform them into even greater achievements. The positive model of change is a model of planned change that focuses on what the organization is doing right. This approach to change management is about looking for opportunities for growth instead of focusing on the negative. The positive model is often oriented towards the future, and is not only concerned with what is, but also what it should be, involving also judging and sanctioning proposed solutions. This approach also places emphasis on generating enthusiasm for future developments and fostering a collective vision within the organization.

Five phases of Positive Model of Change:

Phase 1: Initiate the inquiry

organizational leaders work together with employees to identify the focus of future change efforts. This is typically done by assessing the organization’s strengths and determining which areas the company is most motivated to address.

Phase 2: Inquiry into the best practice

Once a focus for change has been identified, organizational leaders and change agents gather information about the company’s past successes in that area. This is often done through interviews with employees to learn about their experiences and insights into what has worked well in the past.

Phase 3: Discover key themes

After gathering stories about the organization’s past successes, leaders analyze them to identify common themes that reflect the experiences of individuals within the company. These themes provide a foundation for change agents to guide the organization in a new direction.

Phase 4: Envision a preferred future

After identifying common themes from their analysis of the organization’s past successes, leaders can begin to envision the future direction of the company. Using these themes as a foundation, they can develop ideas for how the organization can build upon its strengths to pursue innovation and growth.

Phase 5: Design and deliver ways to create the future

This stage is similar to the action phase of ‘Action Research model‘ and involves the development and implementation of strategies for change. At the conclusion of this process, organizational leaders evaluate their success and consider how the company can continue to build upon its achievements.

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