Introduction

It is a common saying that change is the only constant in life. Reflect on your own experiences. How
have things changed around you −both in your social life and your workplace? You will realise that the
pace of changes has increased manifold in the past few decades.
We are experiencing rapid changes in practically all spheres of our lives – food, drinks, clothing,
relationships, ambitions, living standard, work, tools, techniques, etc. In this unit, we focus on change at the
workplace. Your own workplace may have undergone many changes, particularly in the wake of power
distribution reforms. Our aim is to sensitise you to the ways of managing change in your workplace.
The term change may be defined as the replacement of existing one with a new one. Change
results in new opportunities, challenges and also some hardships. Change is inevitable in the life of an
individual or organisation. A change in an organisation is known as organisational change, which refers to
the setting up new production methods; producing new products; restructuring of organisation; adoption
of information technology; change from public to private ownership or vice-versa etc. Organisations, which
learn and cope up with change, will flourish and others, which fail to do, so, will disappear. Modern
organisations are required to compete in a global market. Further technological developments resulted in
changes in the methods of producing goods and services. All these developments make changes inevitable,
pervasive, and persistent in organisational life.
FORCES OF CHANGE
Organisations today operate in a very dynamic and changing environment. They have to make
suitable changes from time to time to become competitive; to serve customers better; to be on par with
latest technology; to maintain or to improve upon existing level of profits.
All the forces, which initiate changes, can be broadly divided into two categories: Internal Forces
and External Forces.
Internal Forces
i) Change in Leadership: A change in leadership of an organisation may result in change in perceptions,
strategies, activities and results.
ii) Change in Employees Profile: Some changes in employees’ profile are inevitable because of death,
retirement, transfer, promotion, discharge or resignation. Women employment is on the increase. Further
in the context of present day globalisation, employees are recruited from different national and cultural
backgrounds. Human Resource policies and practices have to be reoriented to suit the diverse workforce.
iii) Change in Employees Morale and Motivation: The changes in leadership, their policies and practices
may affect the morale and motivation of the employees resulting in declining productivity, production and
profits.
iv) Union Influence: The influence of the union on many organisations in respect of recruitment, service
conditions, wage rates etc. is still perceptible inspite of the implementation of policies of
liberalisation by many Governments. The management will have to make suitable changes in response to
demands of the union.
v) Implementation of New Technology: Technological developments result in change of job, production
process, and employee profile. More computers, automation; and reengineering programmes result in
substantial changes in most of the organisations. The Internet has its profound impact on the markets of
number of organisations. Biotechnology is another field where large number of products are likely to be
created.
External Forces
i) Competition: Global competition has come into existence. Mergers and acquisitions have been on the
increasing trend. Organisations have to make suitable changes in response to the demands from the
competition. They should acquire the capacity of developing new products rapidly and market them
quickly. Short production runs, and short product cycles by equally flexible and responsive systems will be
required to face these competitive challenges.
ii) Economic Fluctuations: The fluctuations in security markets, interest rates, exchange rates etc. have
continued to impose changes on organisations.
iii) Social Trends: Increase in college attendance; delayed marriages by young couple; economic upliftment
of women and backward communities etc. suggest changes, which are to be considered by organisations.
All these result in fluctuations in the demand for products used by these groups.
iv) Global Politics: Collapse of Soviet Union, the reunification of Germany, the policies of W.T.O., U.S attack
on Afghanistan and Iraq etc. have their impact on the business of different organisations, whose activities
are related to such developments.
Table : Forces of Change
Forces Examples
External
New technological development Development of bio-technology IT revolution
Changes in government policies Liberalisation Privatisation
Competition Global competition Mergers and acquisitions
Economic fluctuations Interest rate fluctuations. Fluctuations in security
markets Exchange rate fluctuations
Social trends Increase in educated class Economic upliftment of women
and reserved communities Delayed marriages.
Global politics World Trade Organisation Collapse of
Soviet Union Reunification of Germany US attack on Afghanistan
and Iraq
Internal
Change in leadership Democratic leadership
Changes in employee profile Increase in women employment. Recruitment from different
national and cultural backgrounds.
Changes in employee morale and motivation Effect of changes in leadership
Implementation of new technology Computerization of production process. Business process
reengineering
Union influences Union demands include: recruitment, service
conditions, wage rates etc.

THE CONCEPT OF CHANGE

The term “change” refers to any alteration which occurs in the overall work environment of an
organisation. According to Robbins change means making things different. Change in an organisation
includes adapting to change, controlling change and effecting change. It can also be described as a shift in
the external situation is situational and happens at a given time in space. Four main areas in an organisation
need special focus when we discuss about change in an organisational set up, they are as follows:
1) Changing Organisational Structure: With globalization, competition and technological advancements, it
becomes necessary that changes are made in the structure of the organisation. Thus this one of the most
important changes that can be brought about in an organisation and the one that will call for planning and
a lot of effort and involvement of management and employees at all levels.
2) Changing Technology: Technology is fast changing and the organisation has to keep pace of it in order to
remain in business and survive strong competition. Thus new machinery has to be bought or existing
machinery has to be updated in the organisation. This is a major change as, as per the technological
advancements other changes like changes in structure, job positions, training programmes etc. have also to
be made.
3) Changing Work Environment: Work environment is fast changing due to various reasons, as a result of
diversity in the organisation, changing technology, changes in job market etc. A launching of new product
or merger or acquisition may also call for certain changes in an organisation. Thus the organisation has to
keep track of such changes and develop measure to deal with them.
4) Change with regard to People in the Organisation: Changes also occur with regard to people in the
organisation, due to attitudes, values, beliefs. Changes can also be as a result of new recruitment,
promotions, demotions, transfers etc. may also take place and they are to be effectively dealt with Change
can be explained with help of the following points:
1) Change Results from the Pressure of Forces, which are both Inside and Outside the Organisation:
Various factors from within the organisation and external to it may bring about some kind of change in an
organisation. The external forces like technology, nature of work, economic shocks, competitions, social
trends and politics necessitate change in the internal organisation like machinery, equipment, relationships,
leadership and decline in profitability etc. This organisational change is the alteration of work environment
in organisation which implies an equilibrium between different components of the organisation.
2) The Whole Organisation Tends to be Affected by the Change: In some way or the other change
influences the whole organisation as the sub units or various departments in an organisation are
interrelated and interdependent.
3) Change Takes Place in All Parts of the Organisation but in its Own Rates of Speed of Significance:
Different sections or different departments of an organisation are influence by change differently and this
influence may vary in its speed and degree. Usually there are many changes occurring simultaneously in an
organisation. An effective management technique is thus required in order to deal with the changes.
Changes in an organisation depend on various aspects. These are the aspects of an organisation that
facilitate change.
These aspects can be discussed as follows:
1) Genuine and Hard Working Employees: Change will depend on the commitment of the employees to
the functioning of the organisation.
2) The Willingness of the Employee to Develop: The employees should have an intrinsic motivation to
develop and become fully functional. This will create a positive attitude in them to readily accept change.
3) Effective Leadership: Effective Leaders will ensure effective management of change in an organisation:
The leaders in an organisation play most crucial role in implementation of the change as they are the ones
who are in regular touch with employees and have great influence over them.
4) Effective Diagnosis of Need for Change: In order to effectively implement change effective diagnosis
about need for change is also required. In the previous blocks we have discussed about diagnosis and we
now understand how relevant the topic is. The strategy to be employed for implementation of change will
depend on the diagnosis.
5) Commitment of Leaders in the Organisation to Diagnosis, Implementation and Evaluation: The leaders
should be committed and participate fully in the process of diagnosis, implementation and evaluation of
change process.
Change agents also play an important role in the whole process of managing change. They are the
ones who anticipate possible need for change and suggest strategies to manage them. According to
Robbins change agents are individuals who act as catalyst and assume responsibility for change
management activities. Change agents are required in order to ensure smooth implementation of change
process.
PREPERATION BEFORE IMPLEMENTING CHANGE:
The following care needs to be taken before implementing change in an organisation:
1) Ensure Effective Participation of the Employees: For the success of any change process, the effective
participation of the employees is of utmost importance. This will ensure commitment to the change
process and lack of resistance.
2) Plan Effectively: Effective planning is required before the change process is initiated in order to foresee
the possible problems like resistance from the employees and negative attitudes. Planning needs to be
carried out not only for smooth implementation of change process but also in order to develop suitable
intervention to deal with certain obstacles and problems.
3) Employee’s Interest should be Considered: While bringing out change the employee’s interest should be
foremost as they are the most important unit of an organisation and the overall development of an
organisation depends on them.
4) Focus on Group Dynamics: In any organisations there are various groups, both formal and informal.
While implementing change the group dynamics in such groups should be identified.
5) Systematic Implementation of Change: Caution and patience should be maintained while implementing
change. Also it should be implemented in a systematic fashion in order to avoid any negative outcome.
6) Motivation: The employees and also the management should be motivated in the direction of change in
order to ensure its successful implementation.
7) Highlighting the Benefits Of Change: In order to ensure the commitment and interest of the employees
in the change process, the benefits of the change should be highlighted. This will discourage the employees
from resisting to change and will ensure their cooperation.
8) Training and Developmental Activities: Any change will require the employees to develop new skills and
techniques. Thus training and other developmental programmes should be organised for the employees.
This will also take care of any insecurity amongst the employee that occurs due to lack of skills required
after implementation of change.
9) Understanding the Purpose of Change, the Risks and Benefits involved and Communicating the Same
to the Employees: An open communication should be promoted during the change process where the
employees have complete idea about the risks and benefits of the change. Once employees understand the
purpose of the change and its benefits then it would be easier to ensure their cooperation.
10) Anticipating Possible Reasons for Resistance to Change and Making Suitable Preparation: During the
planning stage, the change agents should take to consideration the possible reasons for resistance that may
arise and plan suitable interventions for the same.
11) Constantly Focusing on the Process of Change: The change process should be constantly focused on in
order to identify any obstacles and take suitable measures.
12) Interacting with Leaders/ Supervisors in the Organisation: Leaders and supervisors play an utmost
important role in the change process as they are the ones who are constantly interacting with the
employees. Thus the change agents should keep in touch with the leaders in the organisation, seek their
cooperation and suitably train them to encourage and support employees through the change process.
RESISTANCE TO CHANGE
Change no matter how dynamic and constant a phenomenon is often received with resistance from
the employees. This is mainly due to the insecurities and lack of clear idea about the consequences of
change. Some of the factors that cause resistance to change are as follows:
1) Economic Factors: Economic fear may be one of the major factors for resistance. There is fear amongst
the employees that they may lose their jobs as a result of change in technology and due to lack of skills to
work with the new technology. This insecurity that they may be demoted, or may not be able to perform
their jobs and that they may even lose their jobs as a result of this can create resistance towards change in
minds of the employees.
2) Psychological Factors: Different psychological factors like ego defensiveness, status quo, of trust, low
tolerance, unknown fear etc. This makes the person to defend their ego and resist change. The change is
perceived as an instrument for exposing the weakness of the people. The reason behind is people don’t
want to get disturbed in their existing equilibrium of life and work, and they try to avoid it. This shows that
people have very low level of tolerance for change and ambiguity as compared to others. When people
have low degree of confidence then person also fears for unknown and show resistance to change efforts.
3) Social Factors: People desire to maintain existing social interaction and feel satisfied. If there is any
change, their existing social interactions are also likely to change which people do not want and therefore
resist for change.
4) Group Resistance: Group dynamics like forces in the group who determines behaviour of its members.
An employee may resist change just to maintain the conformity of the group and not because he/ she really
wants to resist change. Change in an organisation is the vital need for its functioning and going profit in
varied terms. It becomes the responsibility of the change agent or the organisational development expert
to implement the changes and provide interventions so that weak areas are improved in a phase manner.
Resistance may be possible not only from employees, but even manager may resist changing due to above
reasons.
STRATEGIES FOR CHANGE
Strategies for change are discussed as follows:
1) Shaping the Future: This is the first strategy for organisational change. It creates scenarios for the future
of the business. The strengths and weakness of the organisation are considered with respect to how well or
poorly prepared for implementation of the proposed changes. The responsibility of the organisational
change lies on, how much clear sense the organisation has and how it leads to set the stage for second
level.
2) Selecting Core Competencies: In this, management identifies the strength and weakness of that
organisation. Analysis of opportunities and threat also complete in preparation for defining the
organisation may assume that the future will mirror the past. Others may have been involved with working
in the framework of the organisation existing mission statement and not given the freedom to refine and
revise the mission.
3) Making Structural Changes: This strategy takes the form of transformational change. It is radical in
nature and involves big picture changes. This stage also comes as a reengineering for organisational
process. This aims at improving productivity and satisfaction.
4) Changing Work Process: The fourth and final strategy of organisational change involves incremental
changes. It tends to be risk averse and tends to underestimate how much organisation change is actually
require. The levels of changes can become unsuccessful if the small changes are not supported throughout
the organisation.
MODELS OF CHANGE
Managing change may be described as adoption of a new idea or behaviour by an organisation.
Organisations need to continuously adapt to new situations if they are to survive and prosper. Also
constant change keeps organisations agile and is an indicative of learning organisations. Change at all times
involve and agree support from people within system and understand the organisation. Managing
organisational change is the process of planning and implementing change in organisation in a way as to
minimize employees’
resistance and cost to the organisation, at the same time maximizing the effectiveness of the change. A
systematic approach of dealing with change should focus on both the perspective of an organisation and on
the individual level. Thus change is not on micro level but on a macro level. It is generally expected from the
management of the organisation to manage change in a systematic and effective manner. The
responsibility of organisation is to develop adaptability to change otherwise it will either be left behind or
be swept away by the forces of change.
Change calls for the organisation and the employees to make new adjustments. This can give rise to
insecurity and anxiety amongst the employees. Change can reactive or proactive. Proactive change is the
change that is planned and a whole lot of preparation goes in that process to achieve the anticipated
outcome. A reactive change is an automatic or planned response to change occurring in the environment.
In the proactive change, change is not a response to a particular problem or a situation. But it is initiated in
order to further develop the organisation.
With regard to reactive change, it is in response to some kind of problem or situation that arises in the
organisation.

Lewin’s Change Model

The process of change was first put forth by Kurt Lewin. He proposed three stage model of the change
process for any organisation development.
1) Unfreezing: To move people from this “frozen” state, to unfreeze them and to make them “change
ready” significant effort is required. This stage mainly focuses on creating motivation and readiness to
change amongst the employees. The managers as a change agent have to assume the responsibility to
break
open the shell of complacency and self-righteousness among their subordinates. Manager has to identify
the background factors contributing to resistance.
Subordinates may resist change for economic social or personal reasons. The interplay among the several
factors are responsible for resistance have to be isolated. Manager need to discuss with his or her
subordinates, explain them the problem and need for change. This is a process of mutual learning between
the manager and the subordinates. Unfreezing basically cleans the slate so that fresh behavioural pattern,
customs, traditions can be imprinted which becomes a new way of doing things.
2) Movement: A change process that transforms the organisation from the status quo to a desired end
state. Helping the employees to see, feel, judge things. After unfreezing moving means incorporating
change begins. The employees undergo cognitive restructuring. This is done with the help of compliance,
identification and internalisation. Compliance is achieved by introducing rewards and punishments. Under
identification, employees are psychologically impressed upon to select their role model and modify
behaviour.
Internalization involves internal changing of individuals thought process in order to adjust to a new
environment.
3) Refreezing: Putting down roots again and establishing the new place of stability. This relates to
integrating the new behaviour into person’s personality and attitude. It also refers to as stabilization. This
stage comes when new behaviour takes a new form of normal way of life. New behaviour replaces the old
on permanent basis.
Simultaneously Lewin also introduced force field analysis for analysis for implementing change. This
analysis identifies what forces required to push the change what forces are likely to restrain. Lewin
perceived change as occurring due to two forces, those internal to an employee and external forces that
are imposed by the environment. He also categorized external forces in to driving forces and restraining
forces. The equilibrium can be changed by strengthening the driving forces or by weakening the restraining
forces.