College of Business and Management

Bachelor of Science in Business Administration

Handout in
Mgt. 406 – Organizational Development
Effective 1st Semester, School Year 2022-2023

Chapter 2 - Change Paradigm / Paradigm Shift

What is change?
- a condition of mobility
- a process
- reality of development and growth

What is paradigm?
- a standard, perspective or set of ideas
- perception or group of ideas about how things should be done, made, or thought
about. In other words, it is your perspective on the world, your POV or your beliefs
about what is true.

What is Change Paradigm/Paradigm Shift?

- a change in the perceptions and beliefs of a person or group of people. This
change occurs when they acquire information that significantly alters their
thoughts and affects their actions.
ENVIRONMENT
SOCIAL
ENVIRONMENTAL

TECHNOLOGICAL POLITICAL

ECONOMIC LEGAL

ORGANIZATION

Figure 2.1 Environmental Framework

THE ENVIRONMENT

The environment has been inevitably and markedly affected by the occurrences of certain phenomenal change in the
various aspects of social, political, legal, economic, technological and environmental existence. Such developments
have been largely brought about by the impact of certain significant variables that are critical and symbiotically
interrelated with one another. Some of these are significant variables of affect the micro and micro environment and
even the organizational point of view.
SOCIAL VARIABLES
 Aging population
 Demand for health services
 Sophistication for health services
 Cross - cultural diversity

POLITICAL VARIABLES
 Political Independence
 Changing Governments
 Balance of Power
 Terrorism
 Suicide Bombings
 Global Alliances
 Chemical and nuclear warfare

LEGAL VARIABLES
 Labor Standards
 Business Politics
 Ethical Standards

ECONOMIC VARIABLES CHANGE

 Globalization
 Competitors and suppliers
 The fall of financially stable organizations
 Increasing oil prices
 Economic trade agreements
 New markets
 Rise of China

TECHNOLOGICAL VARIABLES
 Communication
 Business
 Banking
 Education
 Medicine
 Security

ENVIRONMENTAL VARIABLES
 Use of biodegradable materials
 Preservation of rainforest and marine life
 Waste management

Figure 2.2 Change Framework

In addition to these factors, there are intervening variables that can affect and effect
change directly and indirectly. These intervening variables vary and may include
other important variables that are only to the organization itself.

THEORIES OF PLANNED CHANGE

Lewin's planned change method is a simple framework for planned change

developed by Kurt Lewin in 1951. Conception of planned change have tended to
focus on how change can be implemented in organizations. Here, we describe and
compare three theories of changing.

 Lewin’s change model

 The action research model
 Positive model

These frameworks have received widespread attention in OD and serve as the

primary basis for a general model of planned change.

 Change Model. One of earliest models of planned change was provided by Kurt
Lewin. He conceived of change as modification of these forces keeping a
system’s behavior stable.This model consists of the following 3 steps which are:

1. Unfreeze. For any successful change to occur, one must first start by
understanding why the change must occur and re-examine cherished assumptions.
During the unfreezing stage, ensure to generate motivation for successful change &
transition to transpire.

2. Change/move. After introducing the need for change, company leaders use the
moving phase to introduce an intervention that addresses organizational challenges.
During this phase, it's important for change agents to remain responsive, receive
employee feedback and generate visible wins for their company.

3. Refreeze. Companies move out of the transition and into a renewed state of
stability. During this phase, it's important for leaders to provide extensive employee
support and reinforce new structures to prevent reversion.
 “Intelligence is the ability to adapt to change”
Stephen Hawking

 Action Research. The action research model is a popular method of planned

change management that focuses on extensive data gathering before and after
implementation. This makes it especially useful in the current business
environment that relies heavily on big data. The action research model can be
applied at the departmental or organizational level and often uses multiple cycles
of research and implementation. Other names for this model include action
science, self-design and participatory action research. Although implementation
can vary, the action research model usually includes eight steps:

1. Problem Identification. Like other models, the action research model begins
with the identification of challenges that an organization needs to overcome.

2. Consultation with Expert. During this stage, business leaders often consult
with experts, including behavioral experts to identify possible solutions to
challenges.

3. Data Gathering and preliminary diagnosis. In this phase, change agents

conduct extensive research into company operations using internal data. This
allows them to formulate an approach.

4. Client Feedback. After collecting data, the change agent presents the
information to clients and receives feedback on possible improvements.

5. Joint Diagnosis. Next, change agents arrive at a final diagnosis of the

problems facing an organization in collaboration with leaders and key
stakeholders.

6. Joint Action Planning. Once the data gathering and diagnosis phases are
complete, stakeholders, senior leaders and change agents make a detailed plan
for implementing necessary changes.

7. Action. This phase involves putting the joint plan for improvement into action.

8. Data Gathering. After the company fully implements the change plan, leaders
return to the data-gathering phase to gauge the results of the change and to
assess whether the organization requires further improvement.
 POSITIVE MODEL

The positive model is another planned change method that has a different focus than
other models. Unlike the action research model and Lewin's model which focus on
weaknesses within an organization, the positive model looks for ways to turn a
company's strengths into greater success. This method also emphasizes creating
and excitement about future developments and developing a shared vision
throughout an organization. The positive model usually includes the following five
steps:

1. Starting an Inquiry. During the first phase of the positive model process,
company leaders collaborate with employees to determine the subject of future
change. They usually choose a focus by analyzing the organization's strengths
and by determining what the company has the most energy to address.

2. Investigating best practices. After selecting a focus of change, company

leaders and change agents conduct interviews to learn about successes within
the company. They usually try to learn about ways the company has previously
succeeded in the current area of focus.

3. Discovering themes. Leaders analyze them to discover themes that reflect

experiences of individuals within the company.

4. Envisioning the desired future. Once they have analyzed themes in their
company, leaders can begin to envision the future of their organization. Based
on the themes, they try to think of ways that the company can build on its
successes to pursue innovation and growth.

5. Designing and delivering ways to create the future. This phase

corresponds to the action phase of Lewin's model and involves designing and
implementing strategies for change.

Comparison of change models

Lewin’s Planned Change Model introduces change once the members are
prepared for it. It is the same case for the action research model. Under
positive model, however, change is implemented differently since the
manager aims at improving on the areas that the organization’s strengths are
after seeking expert advice.
 FIGURE 2.3 THE GENERAL MODELS OF PLANNED CHANGE

This framework describes the four basic activities that practitioners and organization
member jointly carry out in organization development.

The entering and contracting stage. Describes the initial set of activities that the
change agent and the organization must engage in, in order to better understand
what needs to be improved or facilitated and whether to engage further in the
planned change programme (Cummings & Worley, 2009; McLean, 2005).

The diagnosing stage. The second stage of the OD consulting process. It involves a
set of activities aimed at understanding the current state of the organization, in order
to clearly identify the set of intervention activities necessary to improve organizational
effectiveness.

The planning and implementation stage. Follows the diagnosis and feedback
stage and precedes the last phase of the change process. Depending on the
outcomes of the diagnosis, interventions may focus on modifying organizational
strategy, structure, technology, human processes, and/or human resources.

Evaluating and institutionalizing change. Here, the change agent gathers data on
the current state of the organization following the implementation of the intervention
in order to ascertain how well the intervention accomplished the objectives that were
planned. Feedback to organizational members about the impact of the intervention is
also a significant activity at this stage.

DIFFERENT TYPES OF PLANNED CHANGE

 MAGNITUDE OF CHANGE
 DEGREE OF ORGANIZATION
 DOMESTIC VS. INTERNATIONAL SETTING
 MAGNITUDE OF CHANGE

Change efforts in organizations may differ depending on their organizational structure.

Over-organized environments feature rigid leadership styles, job designs, and
regulations that reduce communication and avoid disputes. Under-organized settings
have no sense of restraint and regulation, resulting in weakened communication,
confusing job tasks, and misdirected staff energies. Such situations are common in
fields such as product development, project management, and community
development.

DEGREE OF ORGANIZATION

Planned change efforts in organizations can vary based on their organization

structure. Over-organized situations have rigid leadership styles, job designs, and
policies, suppressing communication and avoiding conflicts. Underorganized
situations lack constraint and regulation, leading to fragmented communication,
ambiguous job responsibilities, and dissipated employees' energies. These situations
are common in areas like product development, project management, and
community development.

These activities require a modification of the traditional phases of planned change

and include the following four steps:

1. Identification:

This step identifies the relevant people or groups who need to be involved in the
change program. In many under organized situations, people and departments can
be so disconnected that there is ambiguity about who should be included in the
problem-solving process.

2. Convention:

In this step the relevant people or departments in the company are brought together
to begin organizing for task performance.

3. Organization:

Different organizing mechanisms are created to structure the newly required

interactions among people and departments. This might include creating new
leadership positions, establishing communication channels, and specifying
appropriate plans and policies.

4. Evaluation:

In this final step the outcomes of the organization step are assessed. The evaluation
might signal the need for adjustments in the organizing process or for further
identification, convention, and organization activities.
 DOMESTIC VS. INTERNATIONAL SETTING

Conducting OD in international settings is highly stressful on OD practitioners. To be

successful, they must develop a keen awareness of their own cultural biases, be
open to seeing a variety of issues from another perspective, be fluent in the values
and assumptions of the host country, and understand the economic and political
context of business there. Most OD practitioners are not able to meet all of those
criteria and adopt a "cultural guide," often a member of the organization, to help
navigate the cultural, operational, and political nuances of change in that 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.
REFERENCES

Paradigm Shift Definition, Types & Examples - Video & Lesson Transcript |
Study.com

What Is A Paradigm Shift, Anyway? : 13.7: Cosmos And Culture : NPR

Organizational Environment and its Impact on the Performance – IspatGuru

Independent & Dependent Variables (With Examples) - Grad Coach

What factors influence the political equilibrium? | Homework.Study.com

The Glass Ceiling: Definition, History and Examples (builtin.com)

Independent & Dependent Variables (With Examples) - Grad Coach

World Trade Organization (WTO): What It Is and What It Does

(investopedia.com)

Kurt Lewin - Three Stages of Change - LeadershipYoda

Everything You Need To Know About the Planned Change Process |

Indeed.com

Comparing and Contrasting Models of Change Management - 1362 Words |

Essay Example (ivypanda.com)

Organization-Development-Models.pdf (eajournals.org)

General Model of Planned Change*Organization Development|eBooks Read

Domestic vs International Settings Conducting OD in international settings is |

Course Hero