MN 3053: Industrial

Management & Marketing

Nadeesha Perera
Faculty of Engineering
University of Moratuwa

Change Perspectives,
Levels &Types
CONTENTS
• What is change?
• What is organizational change?
• Organizational change management
• Levels of organizational change
• Varieties of change
• Change continuum
• Types of organizational change
• Four roles in organizational change
 What is
Change ?
Different perspective!
Making things different !

Transformation !
Organizational Change
Management
Process of planning, organizing, leading
and controlling the compositions of the
environment- internal and external, to
ensure that the process changes are
implemented according to approved plans
and the overall objectives of introducing the
changes are achieved with as little
disruption as possible.
Organizational Change
Management Contd..
• What is Change Management?
https://www.youtube.com/watch?v=e4jnFqlUMmM

• How to Lead Change Management:

https://www.youtube.com/watch?v=PQ0doKfhecQ

McKinsey on Change Management ( Real life

examples of change management ):
https://www.youtube.com/watch?v=k69i_yAhEcQ
Levels of Organizational Change
• Organizational change can occur at different levels
which require different change strategies and
techniques, i.e.

− changing the individuals who work in the

organization,
− changing organizational structures and systems,
− directly changing the organizational climate.
 Varieties of Change
• Based on the nature and pace of change that
organisations experience, following classification
can be made.

1. The incremental change

2. The punctuated change
3. The continuous change
1. The Incremental Change

• Change takes place through successive, limited and negotiated shifts.

• Japanese companies have an enviable track record of achieving fierce

competitiveness through pursuing incremental change year in, year out.

Toyota Kaizen Clip https://www.youtube.com/watch?v=wot9DFzFRLU

2. The Punctuated Change
• The punctuated change illustrates organizations
as evolving through relatively long periods of
stability (equilibrium periods) in their basic
patterns of activity that are punctuated by
relatively short bursts of fundamental change
(revolutionary periods).

• Revolutionary periods substantively disrupt

established activity patterns and install the basis
for new equilibrium periods.
2. The Punctuated Change Contd..
• Punctuated discontinuities are typically triggered
by modifications in environmental or internal
conditions, for example, new technology,
process redesign, or industry deregulation.
3. The Continuous Change
• Change is a pattern of endless modifications in
work processes and social practice.

• It is driven by organizational instability and alert

reactions to daily contingencies.

• Numerous small accommodations accumulate

and amplify.
3. The Continuous Change Contd..
• The argument put forward by proponents of this
model is that, in order to survive, organisations
must develop the ability to change themselves
continuously in a fundamental manner.
 3. The Continuous Change Contd..
• The underpinning rationale for the continuous
transformation change model is that the
environment in which organisations operate is
changing, and will continue to change, rapidly,
radically and unpredictably.

• Only by continuous change and adaptation will

organisations be able to keep aligned with their
environment and thus survive.
 3. The Continuous Change Contd..
E.g.:
For firms such as Intel, Wal-Mart, 3M, Hewlett-Packard and
Gillette, the ability to change rapidly and continuously,
especially by developing new products, is not only a core
competence, it is also at the heart of their cultures. For these
firms, change is not the rare, episodic phenomenon described
by the punctuated equilibrium model but, rather, it is endemic
to the way these organizations compete. Moreover, in high-
velocity industries with short product cycles and rapidly-
shifting competitive landscapes, the ability to engage in rapid
and relentless continuous change is a crucial capability for
survival.
3. The Continuous Change Contd..
• However, empirical research has shown that the
success of leading European companies which
have remained in business for more than 100
years can be partly attributed to their
conservatism about change; they seldom make
radical changes.
Change Continuum
• Depending on the their scale and importance,
Pettigrew et al (1992) has put forward the
following classification.

❖ Operational change – small-scale, relatively

unimportant;

❖ Strategic change – major and important

structural changes.
Change Continuum Contd..
• Change can be seen as running along a
continuum from small-scale incremental change
to large scale transformational change.

• This, of course, is no surprise; intuitively, one

would expect change to range from small-scale to
large-scale and from operational to strategic.
Types of Organizational Change
1. Developmental Change:

• This type of organizational change improves upon

something that is already being done, rather than
creating something new.

E.g.: It can involve improving office communications

or changes to improve sales and lead generation.
Types of Organizational Change
Contd..

2. Transitional Change:

• This is a change that is replacing the “old way”

something is done with a completely “new way” of
doing things.

• It involves already knowing the desired future

state and the need to change people and culture
to adopt the new processes/procedures.
 Types of Organizational Change
Contd..

3. Transformational Change:

• This type of organizational change differs from

transitional in that it’s much more challenging
because the future state is unknown when the
change project is begun.

E.g.: Radical change i.e. to adjust to a global

pandemic or large economic downturn.
Four Roles in Organizational
Change
• Organizational change management strategies
revolve around four key roles in organizational
change.

• Each role plays an important part in change

projects, and each can either hinder or help a
change project.
 Four Roles in Organizational
Change Contd..
1. Change Management Team:

• Made up of the change manager and others, such

as the change project manager.

• This is the team that lays out the organizational

change management strategies and implements
the change game plan.
Four Roles in Organizational
Change Contd..
2. Organizational Leaders:
• Executives, managers, supervisors and other
leaders play an important part in the change
management process.

• They receive leadership coaching from the change

team that guides them in coaching the employees
they lead through the change.

• Employees often respond best when mentored

through a change by their direct supervisor.
Four Roles in Organizational
Change Contd..
3. Change Champions Network:
• One part of the change management process
steps is to set up a Change Champions
Network.

• These are employees that support the change

and are well respected by their colleagues and
can help drive the change within their individual
departments.
Four Roles in Organizational
Change Contd..
4. Employees/Participants:
• For an organization to change, the employees
and other participants in the change process
must change.

• The main tactics summed up in the different

types of change management models are all
about getting the employees in an organization
pass any resistance and supporting the change
project.