Approaches to Managing Organizational Change

We now turn to several approaches to managing change: Lewin’s classic three-step model of the change process, Kotter’s eight-step plan, action research, and organizational development.

Lewin’s Three-Step Model

Kurt Lewin argued that successful change in organizations should follow three steps: unfreezing the status quo, movement to a desired end state, and refreezing the new change to make it permanent20 (see Exhibit 17-2).

An illustration depicts Lewin's three-step change model.

Exhibit 17-2

Lewin’s Three-Step Change Model

By definition, status quo is an equilibrium state. To move from equilibrium—to overcome the pressures of both individual resistance and group conformity—unfreezing must happen in one of three ways (see Exhibit 17-3). For one, the driving forces, which direct behavior away from the status quo, can be increased. For another, the restraining forces, which hinder movement away from equilibrium, can be decreased. A third alternative is to combine the first two approaches. Companies that have been successful in the past are likely to encounter restraining forces because people question the need for change.21

A graph depicts how unfreezing the status quo happens in organizations.

Exhibit 17-3

Unfreezing the Status Quo

Once the movement stage begins, it’s important to keep the momentum going. Organizations that build up to change do less well than those that get to and move through the movement stage quickly. When change has been implemented, the new situation must be refrozen so it can be sustained over time. Without this last step, change will likely be short-lived and employees will attempt to revert to the previous equilibrium state. The objective of refreezing, then, is to stabilize the new situation by balancing the driving and restraining forces.

Kotter’s Eight-Step Plan

John Kotter built on Lewin’s three-step model to create a more detailed approach for implementing change.22 Kotter began by listing common mistakes managers make when trying to initiate change. They may fail to do one or more of the following: to create a sense of urgency about the need for change, to create a coalition for managing the change process, to have a vision for change and effectively communicate it, and/or to anchor the changes into the organization’s culture. They also may fail to remove obstacles that could impede the vision’s achievement and/or provide short-term and achievable goals. Finally, they may declare victory too soon.

Kotter established eight sequential steps to overcome these problems. They’re listed in Exhibit 17-4. Notice how Kotter’s first four steps essentially extrapolate Lewin’s “unfreezing” stage. Steps 5, 6, and 7 represent “movement,” and the final step works on “refreezing.” So Kotter’s contribution lies in providing managers and change agents with a more detailed guide for successfully implementing change.

An exhibit lists Koetler's eight-step plan for implementing change.

Exhibit 17-4

Kotter’s Eight-Step Plan for Implementing Change

Source: Based on M. du Plessis, “Re-implementing an Individual Performance Management System as a Change Intervention at Higher Education Institutions Overcoming Staff Resistance,” Proceedings of the 7th European Conference on Management Leadership and Governance, 2011, 105–15.

Action Research

Action research is a change process based on the systematic collection of data and selection of a change action based on what the analyzed data indicate.23 Its value is in providing a scientific methodology for managing planned change. Action research consists of five steps (note how they closely parallel the scientific method): diagnosis, analysis, feedback, action, and evaluation.

Action research provides at least two specific benefits. First, it’s problem-focused. The change agent objectively looks for problems, and the type of problem determines the type of change action. A second benefit of action research is the lowering of resistance. Because action research engages employees so thoroughly in the process, it reduces resistance to change. Once employees have actively participated in the feedback stage, the change process typically takes on a momentum of its own.

Organizational Development

Organizational development (OD) is a collection of change methods that try to improve organizational effectiveness and employee well-being.24

OD methods value human and organizational growth, collaborative and participative processes, and a spirit of inquiry.25 Contemporary OD borrows heavily from postmodern philosophy in placing heavy emphasis on the subjective ways people see and make sense of their work environment. The change agent may take the lead in OD, but there is a strong emphasis on collaboration.

What are some OD techniques or interventions for bringing about change? Here are six.

Sensitivity Training

A variety of names—sensitivity training, laboratory training, encounter groups, and T-groups (training groups)—all refer to an early method of changing behavior through unstructured group interaction.26 Current organizational interventions such as diversity training, executive coaching, and team-building exercises are descendants of this early OD intervention technique.

Survey Feedback

One tool for assessing the attitudes of organizational members, identifying discrepancies among member perceptions, and solving differences is the survey feedback approach.27 Basically, data collected from strategic surveys is then used to spur problem identification and discussion.

The survey feedback approach can be helpful to keep decision makers informed about the attitudes of employees toward the organization. However, individuals are influenced by many factors when they respond to surveys, which may make some findings unreliable. Second, a high number of nonresponses may indicate organizational dysfunction or decreased job satisfaction, which the absence of data will not show. Managers who use the survey feedback approach should therefore monitor their organization’s current events and employee response rates.

Process Consultation

Managers often sense their unit’s performance can be improved but are unable to identify what to improve and how. The purpose of process consultation (PC) is for an outside consultant to assist a client, usually a manager, “to perceive, understand, and act upon process events” with which the manager must deal.28 These events might include those surrounding the workflow, informal relationships among unit members, and formal communication channels in the organization.

PC is similar to sensitivity training in assuming we can improve organizational effectiveness by dealing with interpersonal problems and in emphasizing involvement. But PC is more task-directed, and consultants do not solve the organization’s problems, but rather guide or coach the client to solve his or her own problems after jointly diagnosing what needs improvement. The client develops the skill to analyze processes within his or her unit and can therefore use the skill long after the consultant is gone. Because the client actively participates in both the diagnosis and the development of alternatives, he or she arrives at a greater understanding of the process and the remedy, and becomes less resistant to the action plan chosen.

Team Building

We’ve noted throughout this text that organizations increasingly rely on teams to accomplish work tasks. Team building uses high-interaction group activities to increase trust and openness among team members, improve coordination efforts, and increase team performance.29

Team building typically includes goal-setting, development of interpersonal relations among team members, role analysis to clarify each member’s role and responsibilities, and team process analysis. It may emphasize or exclude certain activities, depending on the purpose of the development effort and the specific problems the team is confronting. Basically, however, team building uses high interaction among members to increase trust and openness. In these times when organizations increasingly rely on teams, team building is an important topic.

Intergroup Development

A major area of concern in OD is dysfunctional conflict among groups. Intergroup development seeks to change groups’ attitudes, stereotypes, and perceptions about each other. Here, training sessions closely resemble diversity training, except rather than focusing on demographic differences, they focus on differences among occupations, departments, or divisions within an organization. Among several approaches for improving intergroup relations, a popular one emphasizes problem solving.30 Each group meets independently to list its perceptions of itself and another group and how it believes the other group perceives it. The groups then share their lists, discuss similarities and differences, and look for causes of disparities.

Once they have identified the causes of discrepancies, the groups move to the integration phase—developing solutions to improve relations between them. Subgroups can be formed of members from each of the conflicting groups to conduct further diagnoses and formulate alternative solutions.

Appreciative Inquiry

Most OD approaches are problem-centered. They identify a problem or set of problems, then look for a solution. Appreciative inquiry (AI) instead accentuates the positive.31 Rather than looking for problems to fix, it seeks to identify the unique qualities and special strengths of an organization, which members can build on to improve performance. That is, AI focuses on an organization’s successes rather than its problems.

The AI process consists of four steps—discovery, dreaming, design, and destiny—often played out in a large-group meeting over two to three days and overseen by a trained change agent. Discovery sets out to identify what people think are the organization’s strengths. Employees recount times they felt the organization worked best or when they specifically felt most satisfied with their jobs. In dreaming, employees use information from the discovery phase to speculate on possible futures, such as what the organization will be like in five years. In design, participants find a common vision of how the organization will look in the future and agree on its unique qualities. For the fourth step, participants seek to define the organization’s destiny or how to fulfill their dream, and they typically write action plans and develop implementation strategies.

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