{"id":944,"date":"2019-04-26T18:09:23","date_gmt":"2019-04-26T18:09:23","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/?post_type=chapter&#038;p=944"},"modified":"2024-04-24T22:42:00","modified_gmt":"2024-04-24T22:42:00","slug":"models-of-change-management","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-organizationalbehavior\/chapter\/models-of-change-management\/","title":{"raw":"Models of Change Management","rendered":"Models of Change Management"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Analyze models and process for change management<\/li>\r\n<\/ul>\r\n<\/div>\r\nNavigating change is a constant organizational issue, whether it\u2019s on a small or large level. When it\u2019s planned change, managers can stay ahead of change resistance and create a calculated plan to put change in place. There are several models and processes for managing organizational change. Let\u2019s take a look at them now.\r\n<h2>Lewin\u2019s Three-Step Model<\/h2>\r\nKurt Lewin, a researcher and psychologist we studied earlier when we talked about leadership styles, proposed that successful change in an organization should be conducted in three steps: unfreezing, movement, and refreezing.\r\n\r\n<img class=\"aligncenter wp-image-960 size-full\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4052\/2019\/04\/26173534\/LewinsThreeStepModel.jpg\" alt=\"An arrow with the three steps in Lewin's model: Unfreezing, Movement, and Refreezing\" width=\"1400\" height=\"696\" \/>\r\n\r\nIn the \u201cunfreezing\u201d process, the equilibrium state can be unfrozen in one of three ways. The driving forces, which direct behavior away from the status quo, can be increased. The restraining forces, which hinder movement from the existing equilibrium, can be decreased. Or, managers can put a combination of the two to use.\r\n\r\nThe second part of the process, \u201cmovement,\u201d is the actual implementation of change. New practices and policies are implemented.\r\n\r\nIn the third step, \u201crefreezing,\u201d the newly adopted behaviors and processes are encouraged and supported to become a part of the employees\u2019 routine activities. Coaching, training and an appropriate awards system help to reinforce.\r\n\r\n<img class=\"aligncenter wp-image-965\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4052\/2019\/04\/26180703\/LewinsThreeStepChart.jpg\" alt=\"A chart showing Lewin's three step model. The x-axis shows time, while the y-axis shows the status quo and the desired state. There are driving forces pushing up, and restraining forces pushing down. The beginning of the chart shows freezing at the status quo, the middle shows moving, and the ending shows refreezing and the desired state.\" width=\"600\" height=\"328\" \/>\r\n\r\nLewin\u2019s model of change has four characteristics:\r\n<ul>\r\n \t<li>It emphasizes the importance of recognizing the need for change and being motivated to implement it.<\/li>\r\n \t<li>It acknowledges that resistance to change is inevitable.<\/li>\r\n \t<li>It focuses on people as the source of change and learning.<\/li>\r\n \t<li>It highlights the need to support new behaviors.<\/li>\r\n<\/ul>\r\n<h2>Kotter\u2019s Eight Step Plan for Implementing Change<\/h2>\r\nJohn Kotter, whom we studied earlier when we talked about the difference between managers and leaders, embellished Lewin\u2019s three step model into a more detailed eight step model.\r\n\r\nKotter studied all of the places where failures could occur in Lewin\u2019s model. Kotter recognized that several things needed to be added in:\r\n<ul>\r\n \t<li>a sense of urgency around change<\/li>\r\n \t<li>a coalition for managing the change<\/li>\r\n \t<li>a communicated vision for the change<\/li>\r\n \t<li>the removal of obstacles to accomplishing change<\/li>\r\n \t<li>the continued pursuit of change in spite of apparent victory<\/li>\r\n \t<li>an anchoring of the changes into the organization\u2019s culture<\/li>\r\n<\/ul>\r\nHis revised eight steps of change are as follows:\r\n\r\n<img class=\"aligncenter wp-image-966 size-full\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4052\/2019\/04\/26180809\/KottersEightStepPlan.jpg\" alt=\"A set of stairs showing Kotter's eight steps of change. 1: Create a sense of urgency. 2: Build a guiding coalition. 3: Form a strategic vision and initiatives. 4: Enlist a volunteer army. 5: Enable action by removing barriers. 6: Generate short-term wins. 7: Sustain acceleration. 8: Institute change.\" width=\"1400\" height=\"617\" \/>\r\n\r\nKotter expanded Lewin\u2019s \u201cunfreezing\u201d step with his first four recommendations. His steps five, six, and seven correspond with Lewin\u2019s \u201cmovement\u201d stage and step eight is parallel with the \u201crefreezing\u201d process.\r\n<h2>Nadler\u2019s System Model<\/h2>\r\nDavid Nadler, an American organizational theorist, proposed a system model that suggests that any change within an organization has a ripple effect on all the other areas of the organization. He suggests that, to implement change successfully, a manager must consider four elements:\r\n<ul>\r\n \t<li><strong>Informal organizational elements:<\/strong> communication patterns, leadership, power<\/li>\r\n \t<li><strong>Formal organizational elements:<\/strong> formal organizational structures and work processes<\/li>\r\n \t<li><strong>Individuals:<\/strong> employees and managers, and their abilities, weaknesses, characteristics, etc.<\/li>\r\n \t<li><strong>Tasks:<\/strong> assignments given to employees and managers<\/li>\r\n<\/ul>\r\nIn accordance with a systems view, if a change impacts one area, it will have a domino effect on the other areas.\r\n\r\nAs an example, a company may put out a new travel and entertainment policy. That policy, a formal organizational element, has an impact on information organizational elements, individuals and tasks. A new CEO joins and creates changes throughout the organization, impacting items at every level.\r\n\r\nUltimately, though, outputs are positively impacted. The travel and entertainment policy minimizes work processes and saves the company money. The CEO increases shareholder value.\r\n<h2>Action Research<\/h2>\r\nAction research is a change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate. The process of action research consists of five steps, very similar to the scientific method:\r\n\r\n<img class=\"aligncenter wp-image-967 size-full\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4052\/2019\/04\/26180845\/ActionResearch.jpg\" alt=\"A chart showing the five steps of Action Research, each flowing into the next: diagnosis, analysis, feedback, action, and evaluation.\" width=\"1400\" height=\"176\" \/>\r\n\r\nIn the diagnosis stage, information is gathered about the problem or concerns. During analysis, the change agent determines what information is of primary concern and develops a plan of action, often involving those that will be impacted by the change. Feedback includes sharing with employees what has been discovered during diagnosis and analysis with the intent of getting their thoughts and developing action plans.\r\n\r\nFinally, there is action. Employees and the change agent (this is a person who champions and sees change management from start to successful finish) carry out the actions required to solve the problem. Then, the final step is evaluation, where the action plan\u2019s effectiveness is reviewed and, if necessary, tweaked for better performance.\r\n\r\nThis approach is very problem focused, where many people approach a problem with a more solution-centered outlook. It also minimizes resistance to change because it involves affected employees all along the process.\r\n<h2>Organizational Development<\/h2>\r\nRemember earlier when we said that these models for change don\u2019t usually solve for organizational inertia? To a certain extent, organizational development addresses that. Organizational development is a collection of planned-change interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being.\r\n\r\nThe guiding principles of organizational development are:\r\n<ul>\r\n \t<li>Commitment to long-lasting change<\/li>\r\n \t<li>Humanistic approach<\/li>\r\n \t<li>Action research tools<\/li>\r\n \t<li>Focus on process<\/li>\r\n<\/ul>\r\nOrganizational development requires the organization to invest a good deal of time and research and it isn\u2019t as much a fix for organizational inertia as it is a prevention of it. Some of the techniques and interventions employed by organizational development departments include the following:\r\n<ul>\r\n \t<li><strong>Sensitivity training.<\/strong> This is training that seeks to change behavior through unstructured group interaction. The objective is to provide subjects with increased awareness of their own behavior and how others perceive them, to facilitate better integration between individuals and organization.<\/li>\r\n \t<li><strong>Survey feedback.<\/strong> The use of questionnaires to identify discrepancies among member perceptions, with discussion and remedies following.<\/li>\r\n \t<li><strong>Team building.<\/strong> High interaction among team members to increase trust and openness.<\/li>\r\n \t<li><strong>Intergroup development.<\/strong> These are efforts to change the attitudes, stereotypes and perceptions that groups have of each other.<\/li>\r\n \t<li><strong>Appreciative inquiry.<\/strong> This process seeks to identify the qualities and strengths of an organization, on which performance improvement can be built. The inquiry usually involves strategizing with employees on performance improvement and \u201cfuture state\u201d ideals.<\/li>\r\n<\/ul>\r\n<h2>Crisis Management<\/h2>\r\nCrisis management is really just the management of unplanned change. When managers unsuccessfully anticipate their competitor\u2019s next move or don\u2019t accurately read the environment, a crisis can occur. It can also occur as the result of organizational inertia.\r\n\r\nCrisis management can be avoided by keeping the organization healthy. That is, not allowing it to become inflexible, infusing a certain amount of conflict in order to stave off complacency, and keeping innovation fresh by encouraging experimentation and bringing in new people with new ideas.\r\n\r\nPlease note that this is not referring in any way to a public relations crisis. \u201cCrises\u201d like Volkswagen's issue covering up their vehicles\u2019 excessive emissions, or Les Moonves\u2019 poor judgement with the opposite gender at CBS, are a different kind of animal altogether and not what we\u2019re talking about here.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/f46f0653-7043-49d3-ae5a-e225e686bca3\r\n\r\n<\/div>\r\nOrganizations that can anticipate change, minimize resistance and come out on the other side are far more likely to be successful. Almost always, those companies that suffer from poor change management suffer the consequences financially, often leading to the organization closing its doors. In the next section, we\u2019ll take a look at a few companies that faced change, the decisions they made, and how it worked out for them.","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Analyze models and process for change management<\/li>\n<\/ul>\n<\/div>\n<p>Navigating change is a constant organizational issue, whether it\u2019s on a small or large level. When it\u2019s planned change, managers can stay ahead of change resistance and create a calculated plan to put change in place. There are several models and processes for managing organizational change. Let\u2019s take a look at them now.<\/p>\n<h2>Lewin\u2019s Three-Step Model<\/h2>\n<p>Kurt Lewin, a researcher and psychologist we studied earlier when we talked about leadership styles, proposed that successful change in an organization should be conducted in three steps: unfreezing, movement, and refreezing.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-960 size-full\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4052\/2019\/04\/26173534\/LewinsThreeStepModel.jpg\" alt=\"An arrow with the three steps in Lewin's model: Unfreezing, Movement, and Refreezing\" width=\"1400\" height=\"696\" \/><\/p>\n<p>In the \u201cunfreezing\u201d process, the equilibrium state can be unfrozen in one of three ways. The driving forces, which direct behavior away from the status quo, can be increased. The restraining forces, which hinder movement from the existing equilibrium, can be decreased. Or, managers can put a combination of the two to use.<\/p>\n<p>The second part of the process, \u201cmovement,\u201d is the actual implementation of change. New practices and policies are implemented.<\/p>\n<p>In the third step, \u201crefreezing,\u201d the newly adopted behaviors and processes are encouraged and supported to become a part of the employees\u2019 routine activities. Coaching, training and an appropriate awards system help to reinforce.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-965\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4052\/2019\/04\/26180703\/LewinsThreeStepChart.jpg\" alt=\"A chart showing Lewin's three step model. The x-axis shows time, while the y-axis shows the status quo and the desired state. There are driving forces pushing up, and restraining forces pushing down. The beginning of the chart shows freezing at the status quo, the middle shows moving, and the ending shows refreezing and the desired state.\" width=\"600\" height=\"328\" \/><\/p>\n<p>Lewin\u2019s model of change has four characteristics:<\/p>\n<ul>\n<li>It emphasizes the importance of recognizing the need for change and being motivated to implement it.<\/li>\n<li>It acknowledges that resistance to change is inevitable.<\/li>\n<li>It focuses on people as the source of change and learning.<\/li>\n<li>It highlights the need to support new behaviors.<\/li>\n<\/ul>\n<h2>Kotter\u2019s Eight Step Plan for Implementing Change<\/h2>\n<p>John Kotter, whom we studied earlier when we talked about the difference between managers and leaders, embellished Lewin\u2019s three step model into a more detailed eight step model.<\/p>\n<p>Kotter studied all of the places where failures could occur in Lewin\u2019s model. Kotter recognized that several things needed to be added in:<\/p>\n<ul>\n<li>a sense of urgency around change<\/li>\n<li>a coalition for managing the change<\/li>\n<li>a communicated vision for the change<\/li>\n<li>the removal of obstacles to accomplishing change<\/li>\n<li>the continued pursuit of change in spite of apparent victory<\/li>\n<li>an anchoring of the changes into the organization\u2019s culture<\/li>\n<\/ul>\n<p>His revised eight steps of change are as follows:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-966 size-full\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4052\/2019\/04\/26180809\/KottersEightStepPlan.jpg\" alt=\"A set of stairs showing Kotter's eight steps of change. 1: Create a sense of urgency. 2: Build a guiding coalition. 3: Form a strategic vision and initiatives. 4: Enlist a volunteer army. 5: Enable action by removing barriers. 6: Generate short-term wins. 7: Sustain acceleration. 8: Institute change.\" width=\"1400\" height=\"617\" \/><\/p>\n<p>Kotter expanded Lewin\u2019s \u201cunfreezing\u201d step with his first four recommendations. His steps five, six, and seven correspond with Lewin\u2019s \u201cmovement\u201d stage and step eight is parallel with the \u201crefreezing\u201d process.<\/p>\n<h2>Nadler\u2019s System Model<\/h2>\n<p>David Nadler, an American organizational theorist, proposed a system model that suggests that any change within an organization has a ripple effect on all the other areas of the organization. He suggests that, to implement change successfully, a manager must consider four elements:<\/p>\n<ul>\n<li><strong>Informal organizational elements:<\/strong> communication patterns, leadership, power<\/li>\n<li><strong>Formal organizational elements:<\/strong> formal organizational structures and work processes<\/li>\n<li><strong>Individuals:<\/strong> employees and managers, and their abilities, weaknesses, characteristics, etc.<\/li>\n<li><strong>Tasks:<\/strong> assignments given to employees and managers<\/li>\n<\/ul>\n<p>In accordance with a systems view, if a change impacts one area, it will have a domino effect on the other areas.<\/p>\n<p>As an example, a company may put out a new travel and entertainment policy. That policy, a formal organizational element, has an impact on information organizational elements, individuals and tasks. A new CEO joins and creates changes throughout the organization, impacting items at every level.<\/p>\n<p>Ultimately, though, outputs are positively impacted. The travel and entertainment policy minimizes work processes and saves the company money. The CEO increases shareholder value.<\/p>\n<h2>Action Research<\/h2>\n<p>Action research is a change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate. The process of action research consists of five steps, very similar to the scientific method:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-967 size-full\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4052\/2019\/04\/26180845\/ActionResearch.jpg\" alt=\"A chart showing the five steps of Action Research, each flowing into the next: diagnosis, analysis, feedback, action, and evaluation.\" width=\"1400\" height=\"176\" \/><\/p>\n<p>In the diagnosis stage, information is gathered about the problem or concerns. During analysis, the change agent determines what information is of primary concern and develops a plan of action, often involving those that will be impacted by the change. Feedback includes sharing with employees what has been discovered during diagnosis and analysis with the intent of getting their thoughts and developing action plans.<\/p>\n<p>Finally, there is action. Employees and the change agent (this is a person who champions and sees change management from start to successful finish) carry out the actions required to solve the problem. Then, the final step is evaluation, where the action plan\u2019s effectiveness is reviewed and, if necessary, tweaked for better performance.<\/p>\n<p>This approach is very problem focused, where many people approach a problem with a more solution-centered outlook. It also minimizes resistance to change because it involves affected employees all along the process.<\/p>\n<h2>Organizational Development<\/h2>\n<p>Remember earlier when we said that these models for change don\u2019t usually solve for organizational inertia? To a certain extent, organizational development addresses that. Organizational development is a collection of planned-change interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being.<\/p>\n<p>The guiding principles of organizational development are:<\/p>\n<ul>\n<li>Commitment to long-lasting change<\/li>\n<li>Humanistic approach<\/li>\n<li>Action research tools<\/li>\n<li>Focus on process<\/li>\n<\/ul>\n<p>Organizational development requires the organization to invest a good deal of time and research and it isn\u2019t as much a fix for organizational inertia as it is a prevention of it. Some of the techniques and interventions employed by organizational development departments include the following:<\/p>\n<ul>\n<li><strong>Sensitivity training.<\/strong> This is training that seeks to change behavior through unstructured group interaction. The objective is to provide subjects with increased awareness of their own behavior and how others perceive them, to facilitate better integration between individuals and organization.<\/li>\n<li><strong>Survey feedback.<\/strong> The use of questionnaires to identify discrepancies among member perceptions, with discussion and remedies following.<\/li>\n<li><strong>Team building.<\/strong> High interaction among team members to increase trust and openness.<\/li>\n<li><strong>Intergroup development.<\/strong> These are efforts to change the attitudes, stereotypes and perceptions that groups have of each other.<\/li>\n<li><strong>Appreciative inquiry.<\/strong> This process seeks to identify the qualities and strengths of an organization, on which performance improvement can be built. The inquiry usually involves strategizing with employees on performance improvement and \u201cfuture state\u201d ideals.<\/li>\n<\/ul>\n<h2>Crisis Management<\/h2>\n<p>Crisis management is really just the management of unplanned change. When managers unsuccessfully anticipate their competitor\u2019s next move or don\u2019t accurately read the environment, a crisis can occur. It can also occur as the result of organizational inertia.<\/p>\n<p>Crisis management can be avoided by keeping the organization healthy. That is, not allowing it to become inflexible, infusing a certain amount of conflict in order to stave off complacency, and keeping innovation fresh by encouraging experimentation and bringing in new people with new ideas.<\/p>\n<p>Please note that this is not referring in any way to a public relations crisis. \u201cCrises\u201d like Volkswagen&#8217;s issue covering up their vehicles\u2019 excessive emissions, or Les Moonves\u2019 poor judgement with the opposite gender at CBS, are a different kind of animal altogether and not what we\u2019re talking about here.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_f46f0653-7043-49d3-ae5a-e225e686bca3\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/f46f0653-7043-49d3-ae5a-e225e686bca3?iframe_resize_id=assessment_practice_id_f46f0653-7043-49d3-ae5a-e225e686bca3\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<p>Organizations that can anticipate change, minimize resistance and come out on the other side are far more likely to be successful. Almost always, those companies that suffer from poor change management suffer the consequences financially, often leading to the organization closing its doors. In the next section, we\u2019ll take a look at a few companies that faced change, the decisions they made, and how it worked out for them.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-944\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Models of Change Management. <strong>Authored by<\/strong>: Freedom Learning Group. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Image: Lewins Three-Step Model. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Image: Lewins Three-Step Chart. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Image: Kotter Eight Step Plan. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Image: Action Research. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":17,"menu_order":6,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Models of Change 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