Organizational Change

Organizational change is the process by which

organization move from their present state to some
desired future state to increase effectiveness.

When an organization system is disturbed by some

internal or external forces change frequently occur or any
alteration which occur in the overall work environment of
an organization.

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CHARACTERSTICS OF O.C.
Change happen for the pressure of both internal and

external forces in the organization.

Change in any part of the organization affect the whole
organization.
Change may affect people , structure, technology, and
other element of the organization.

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The Evolution of Starbucks

In the beginning they had only just a shop that
sold some selected coffee beans.
As Starbucks growing, they realized that the
Howard Schultz
informal techniques were not sufficient and
needed to have a more formalized with people
and places.
Now Starbucks was the biggest coffee chain
network in the world with more than 15000
Dave Olsen
shops in over 44 countries. And they grown too
fast.
They adopting the Italian culture and make some
important changes in organization.
Dawn Pinaud
Exploring Behavior in Action
14-3

Change Agents
A Persons in organization responsible for
managing change activities.

Can be managers or non managers, current

employees, newly hired employees or outside
consultants.

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Process of Planned Change

Kurt Lewin

Unfreezing
Provide rationale
for change

Create minor
levels of
guilt/anxiety about
not changing

Moving
Provide information
that suspects
proposed changes

Bring about actual

shifts in behavior

Refreezing
Implement new
evaluation systems

Implement new
hiring and promotion
systems

Create sense of
psychological
safety concerning
change
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Resistance to Change
Effort to block new
ways of doing things

Four Factors
Individual
Resistance
Group
Resistance
Organizational
Resistance
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Individual Resistance
Below are stated some reasons why people resists
changes. Some of these appear to be rational or
emotional. These reasons are:Economic factors
Habits
Insecurity
Lack of communication
Extend of change
Psychological factors
Social factors
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Group Resistance
Most organizational changes have
impact on formal groups in the
organization the main reason
why the groups resists change is
that they fear that their cohesiveness
or existence is threatened by it.

14-8

Organizational Resistance
Organizational resistance means the change is
resisted at the level of the organization itself.
Some organization are so designed that they resist
new ideas, this is specifically true in case of
organization which are conservative in nature.
Majority of the business firm are also resistance to
changes. The major reason for organizational
resistance are:Threat to power
Group inertia
Organizational structure
Threat to specialization
Resource constants
14-9
Sunk costs