Organisational Change Management

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Table of Contents

1.

Introduction......................................................................................................................3

2.

Strategic Change.............................................................................................................3

Organisational Change Management

2.1 External factors............................................................................................................4

2.2 Internal Factors.............................................................................................................5
2.3 Complexity Theory and Strategic Change.............................................................6
2.3.1 Dynamics of Complex Systems.........................................................................7
3.

Resistance to Change.....................................................................................................8
3.1 Lewins Theory of Planned Change..........................................................................8
3.2 Reasons of Resistance to Change............................................................................9
3.3 Impact of Resistance on Organisational Change................................................11
3.4 Overcoming Resistance............................................................................................11

4.

Employees Involvement.............................................................................................13
4.1 How Employee Involvement Helps Achieve Organisational Change ..............14
4.2 Increasing Employee Involvement.........................................................................15

5.

Conclusion......................................................................................................................16

References.............................................................................................................................18

Organizational Change Management

1. Introduction

Organisational Change Management

Today, companies are changing in response to external and internal business

environment. Organisational change can arise from minor-scale modifications such as
implementation of new software in a company, to large-scale organizational re-modelling,
such as new business ventures, ending the old ones (CEFIMS, 2011, p. 3). Organizational
change materializes in a response to continuous changes in environment, reaction to crises, or
is promoted by a leader. Successful organizational change is not only a procedure of
modifications, but it needs adequate and effective managing skills and abilities (Chen et. al.,
2001, p. 1).
The implementation of organizational change can be deliberate or unintended. Change
resistance in organization can be experienced on the basis of individuals, groups and teams
working on change in an organization (Senior and Swailes, 2010, p. 65). Leaders and
employees play a key role in through involvement in change process. This paper discusses
three aspects of organizational change:

Strategic Change
Resistance to change
Employee involvement

2. Strategic Change
In organizations, the word change refers to the external change in terms of
technological advancements, customers behaviour, market competition, market structure, or
socio-political surroundings and reflects to in-house change, such as a policy of restructuring
or re-engineering (Mutihac, 2010, p. 13). Many external and internal factors force
organizations to change their processes or policies. According to Lunenburg (2010, p. 2),
these factors are as follows:

2.1 External factors

2.1.1 Marketplace

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The increased competition in the market causes the organization to think and
strategize in order to survive in the market. This includes the strategies of change in
organizational structures, reengineering, reorganizing and remodelling the internal processes
of the business organizations. Innovations are required on each step due to the technological
advancements in the marketplace and business environment (Lunenburg, 2010).

2.1.2 Government laws and regulations

Government laws and regulations are the powerful sources that cause frequent
changes in policies and strategies in the organization in order to meet the achievement of
business goals. Enforcement of legal policies and regulations on the commercial and
industrial sectors influences the whole business sector of a country. So the organizations are
forced to change their planned activities and structures accordingly to be competent in the
current business environment (Lunenburg, 2010).

2.1.3 Technology
Today, technology is changing and advancing on the daily basis. In order to be
competent and thrive in the current business environment, organizations have to change and
innovate frequently. If an organization is reluctant to the adaption of the technology
advancement, it may find it difficult to survive in the fast growing business market
(Lunenburg, 2010).
2.1.4 Labour Market
The instability in the labour market forces organizational change. One of the keys of
success of organizations is their labour. The businesses rely on the effective and skilled
professionals whose abilities and skills lead the organizations towards the achievement of

Organisational Change Management

goals. So the labour market should be the focus for business managers to implement change
in their organizations according to the external labour markets (Lunenburg, 2010).

2.1.5 Economic Changes

Economic changes force not only the organization but each individual to change in
their professional activities. Economic environment of country influences the industry which
leads the businesses towards change strategies and implementations (Lunenburg, 2010).

2.2 Internal Factors

Internal forces and internal environment of organizations also cause the organizations
to change or restructure their business. Some of the common internal factors which cause the
change are as follows:

2.2.1 Administration Processes

Management and administrative processes such as communications, decision making,
leadership and motivational strategies can also force the organization to change. Breakdown
or slowdown in these processes pressurises the business to change its structures in order to
motivate the employees and not letting them leave the organization (Lunenburg, 2010).

2.2.2 Employees Issues

Employees performances, employees activities and all those issues of employees
which can cause an organization a failure in achieving the strategic goals force the business to

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change. Those changes can be beneficial for the employees directly and motivating for them
to work efficiently (Lunenburg, 2010).

2.3 Complexity Theory and Strategic Change

The above factors which can cause the change in organizations have to be addressed
and managed effectively to meet the organizational goals. Complexity theory should be
implemented by the management of an organization to effectively implement the
organizational change process. Complexity theory was developed by the meteorologists,
biologists, chemists, physicists and other natural researchers in order to form quantitative
models of structures in nature. The theory classifies an organization as a structure which is
tangled by complexities of the system where companies are adapted to a sound environment
while arguing about the uncertainties (Burnes, 2005, p. 73).
Frederick (1998) debated that organizations which follow a way of continuous change
flourish due to their operations at the edge of chaos and due to their implementation of
innovations and change and their risk taking abilities (as cited in Burnes, 2004, p. 315-316).
Complexity theory is a measure of variation or diversity in internal and external
environmental features such as departmental sections, clients, suppliers, political, sociocultural and technology. It emphasises on the impact of complex micro-level aspects on the
macro-level factors in an organization (Amagoh, 2008, p. 6).

2.3.1 Dynamics of Complex Systems

A prime aspect of the complexity theory model is the notion of Complex Adaptive
Systems (CAS). The systems which engross information of their environment and stores

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knowledge to assist activities in need are known as Complex Adaptive Systems (Amagoh,
2008, p. 6). These systems help in implementation of change through the transparency in
information sharing. Information storage programs let the management and employees
integrating with each other and interact frequently to work on innovations according to the
environmental changes. Since, the organizational structures are complex to operate, these
information sharing systems are essential to implement changes.
There are a number of characteristics of complex systems in organizations. One of
those features is the existence of numerous of interrelating factors inside the system. Those
elements interrelate and communicate with each other mostly on the existing feedback
mechanism in system. These communications in return cause non-linearity in the system.
Another characteristic of the complex system is semi-firm configurations which do
not get influenced by the outside forces. Third characteristic of the complex system is that it
can self-organize and adjust. Chunks of the system can organize itself without any external
pressure or imposition and the last characteristic of the complex system is that complex
systems have inclined to revelation emerging properties (Amagoh, 2008, p. 7-8).
Complexity reflects a more significant change in context of ontological and
epistemological approaches. In complex systems, there is a network of interconnection of not
only simpler, straight associations and acceptability of the inherited complexity of economic
systems, rather than depending on the traditional reductionist models. The key role in
adaption and implementation of the complexity theory is played by the leadership and the
management of the company. Idea of change includes rise, dependency and interdependency,
dis-organization, self-management endorsing communal progression. The part of leadership
and management is vital in implementing the planned organizational change (Andrews,
Cameron and Harris, 2008, p. 300).

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3. Resistance to Change
3.1 Lewins Theory of Planned Change
Kurt Lewins work on organisational change has been dominating the practice and
theory of change management for over decades. The key elements of his approach to planned
change include Field theory, Group dynamics, action research and his 3-step model of
planned change (Burnes, 2004, p.977). Lewins 3-step model is his key contribution to the
management literature (p.985). For Lewin, the integrated approach using all the four above
mentioned elements was the key to analyse, understand and bring about change in an
organisation.
Successful change, according to Lewin, involves three steps; unfreezing, moving (or
change) and refreezing. The model assumes that change will face resistance; therefore,
implementing change without preparing the employees will most likely result in failure.
Unfreezing is ensuring employees readiness and openness to change. Next step is moving
towards change i.e. executing or implementing the planned change. Refreezing means
making sure that the change is permanent and becomes a norm and a part of the
organisational culture (Baesu and Bejunaru, 2014, p.150).

Figure 1: Lewins 3-step Model of Planned Change

Source: Baesu and Bejunaru (2014 p.150)

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3.2 Reasons of Resistance to Change

There are three dimensions in which resistance to change can be considered,
behaviour, emotional factors and beliefs or attitudes (as cited in Mutihac, 2010, p. 23).
Resistance to change is considered as a risk of failure for the planned and systematic
organizational change. It is a human behaviour of resisting the change, as it pressurises
people to do something in a new manner. There are many reasons due to which the resistance
occurs in organisations:

3.2.1 Uncertainty
In times of change, there is an uncertainty of being unable to work accordingly to the
newly changed environment and effect on the performance. This is why employees usually
hesitate to participate in change process. Since the change is generally because of the
development and advancements according to the external surroundings, employees consider
it difficult to adjust with those changes (Lunenberg, 2010, p. 4).

3.2.2 Fear of Personal Loss

Suitable change can be beneficial for the overall organization, but for few employees,
the change is costly for them in terms of losing powers, respect, income, quality of work or
other benefits which will not be adequately offset by the rewards of change. Employees
perceive change as it will decrease their decision-making powers, approachability to
information, independence, and the intrinsic features of the job (Lunenberg, 2010, p. 4).

3.2.3 Group resistance

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The employees can group themselves as their mutual understanding about the change
is to resist. If the majority of employees are reluctant towards the change, it will become very
difficult for an organization to implement change strategies (Lunenberg, 2010, p. 4).

3.2.4 Dependence
Too much dependence can be very dangerous in any aspect of life. Dependence is also
a reason of resistance to change. If employees depend on the leadership too much, they will
resist changing as long as the leadership personally endorses the change (Lunenberg, 2010, p.
5).

3.2.5 Lack of Trust on Management

Change process is totally based on the trust of management and employees on each
other. Communication, networking and motivation from top management to employees are
keys to building trust. If there is a lack of trust of employees on management or management
on employees, the change process cannot be implemented which will develop the resistance
(Lunenberg, 2010, p. 5).

3.2.6 Awareness of Weaknesses in Proposed Change

Employees may resist change due to their knowledge about the possible glitches in
the planned change. In this case, employees should acknowledge the management about their
concerns so the management can take their recommendations to reorganize their change
procedure to be more effective (Lunenberg, 2010, p. 5).

3.3 Impact of Resistance on Organisational Change

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It is unfortunate that the term resistance generally has a negative perception. It is

obviously a delusion. Resistance is the most effective reaction sometimes in a particular
scenario. If employees beliefs, values, attitude and behaviours are delivering with positive
ways of meeting the needs of an organization as a whole, then it is appropriate and vigorous
to resist the change.
Certain changes, however, could disturb the whole organization and cause it to
become less productive. In this case, it is not in the best interests of an organization to resist
change. Therefore, sometimes resistance is considered as a problem and sometimes it is the
solution to a problem (Lunenberg, 2010, p. 5).

3.4 Overcoming Resistance

According to Hultman (2014), resistance to organizational change can be generally
overcome by following these steps:

Figure 2: Steps for Overcoming Resistances

Source: Hultman (2014, p.11)

3.4.1 Define the change

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It is crucial to be comprehensive, concrete and particular as much as possible in

defining the change. Not only the outcomes and final results but the whole process and the
long-term benefits of change should be described from top to the lowest level of the
employees of organization (p.11).

3.4.2 Determine causes of resistance

After defining the change process, reasons of resistance to change should be
determined. Management has an ability to sense the upcoming resistance before it arises in
the process or change, so the reasons of the resistance in context of the organizational
environment should be determined as addressed with the employees (p.11).

3.4.4 Develop the strategy

The third step to avoid the change resistance is development of a strategy. After
determining the causes of resistance, a strategy should be developed accordingly to remove
the causes of resistance so that the organization can overcome the possible resistance to the
planned organizational change (p.12).

3.4.5 Implement the strategy

The implementation of the strategy is very important to avoid the probable resistance
to organizational change. Application of the strategies successfully is based on the previous
steps. If the definition, determination and development of strategy have been done correctly,
it becomes easy to implement the strategy effectively (p.17).

3.4.6 Evaluate results of strategy

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Implementation of the strategy is not the end. The results and outcomes produced by
those strategies are important and need to be evaluated. The resistance affects the whole
process of change and the implementation of the planned organizational change can fail due
to the resistance (p.18).

4. Employees Involvement
In employees involvement, each employee is considered as a distinctive human
being, not just a part of organizational machinery; and every employee is engaged in assisting
in achievement of organizational goals. Employees contribution is sought and appreciated by
the management. Management acknowledges the employees contributions and efforts in
running the organization. Employee Involvement in organizational activities has become a
very important topic in the last decade. Everyone has access to technology, finance and new
processes of employment; it is just the level of involvement of an employee that makes the
difference. If an organization wants to lead, it will have to include its employees in debates
and in making decisions. Today, many businesses are paying attention towards involvement
of employees so as to make their employees look important and consider environment in
which they feel free to assist in the decisions and actions which influence their job (Zafar,
Butt and Afzal, 2014, p. 206).
Furthermore, it is not aimed, nor is it an instrument, as implemented in several
organizations. Rather, it is a managements views of how people are most enabled to
contribute in continuous improvement and the on-going successes of their work in
organization. Involvement of employees is a lighter course of contribution and is
emphasizes on being more flexible and assumes a harmony of anxieties between leadership
and employees (Zafar, Butt and Afzal, 2014).

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4.1 How Employee Involvement Helps Achieve Organisational Change

Sense-making refers to the activities to interpret and develop a series for events.
Sense-making becomes very significant for management to accomplish for the purpose of
managing change effectively, which in return makes employee involvement vigorous in the
change process efforts as it can lead towards the required sense-making. Managers, though,
have to communicate their perspectives, mainly in the mid of the change process in
organization, in a manner which gives their employees certainty (Georgiades, 2015, p. 9-10).
This sense-making causes the flow of efforts in organizational changes. As the employees are
involved in organizational activities and decision making through effective information
sharing and communications, the chances to achieve a successful organizational change are
high.
According to the Dunne (2013), there is a positive relation between organizational
change management and degree of employees involvement in organizational activities. The
implication for both managers and employees is the existence of hunger for active
involvement in change management process and will be effective if the support and structures
are offered to employees. Though, it is necessary that plans must be developed at top
management level and must be considered as strategic objectives of the organization (p. 17).

4.2 Increasing Employee Involvement

Employee involvement begins with a change in managements attitude (Dunne, 2013).
Employees who are loyal, proud of their work and have valuable ideas are the ones who are
involved by their management in the organizational activities and decision-makings. This
helps in promoting a smooth flow of activities for the planned organizational change.
Employee involvement can be achievement in the following ways:

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4.2.1 Giving Employees Responsibilities

Giving the responsibilities to the employees is one of the key aspect by which the
employees can be empowered and involved in the business and communicated by the
management about the strategic goals of the organization. It will increase employee
involvement as well as motivation, which helps in implementing the organizational change
smoothly (Dunne, 2013).

4.2.2 Employees Training To Accept Change And Reduce Resistance

Employees should be trained on a continuous basis in order to make them involved in
organizational activities. Usually the employees in organizations lack the skills to change on
the continuous basis even if the change helps the organization survive and thrive in the
market. Management should implement the training policies by which the employees can be
trained to accept the change according to the external environment. It can lead towards
reduction of change resistance as well which will ultimately help the organization in
implementing the change process effectively (Dunne, 2013).
4.2.3 Communication and Feedbacks
Communications and feedbacks both from management to employees and employees
to management side are necessary in order to successfully run an organization. Effective
communication and feedbacks result in improvement in processes of a business. It will
decrease the resistance of change and promote the change activities. Employees should be
provided feedback from management as it can motivate them to work more effectively and
make more efforts to achieve the organizational goals (Dunne, 2013).

4.2.4 Giving Rewards and Recognitions

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Providing rewards and acknowledgement to the employees from their management is

very important. It also assists in encouragement of employees to work and make efforts to
innovate and change according to the outside business environment. Employees tend to work
more effectively when provided the rewards and recognitions by their management.
By above literature, it can be concluded that employee involvement is one of the key
element in the achieving the organizational goals. Organizations generally work on long term
goals. These long term goals can only be achieved by changing according to the external
environment of the corporate world. Change is inevitable and organisations must be open to
change. Today, change is considered only as to reorganize or reengineer the structure of the
organization. It is a wide notion with the approaches of how and why the organization should
change, and how it can be profitable for business in their long term goals.

5. Conclusion
There is a great role of leaders and managers of the organizations in implementing
these concepts of change and execute the policies and strategies to achieve the shift
efficiently and take the business to the next level. Involvement of employees in organization
is very important. It can be increased by the trust between the management and the
employees. The association between the management and the employees depends on the trust
and reliability, which results in employees active participation in planned organizational
change (Srensen, Hasle and Pejtersen, 2011, p. 417). The managers should keep all the
external and internal factors in mind when developing a strategy for planned change and
strategically and systematically remove resistance to change so that employees can be
involved in the process of change.

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