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Shadrack Okemba

ORGANIZATIONAL CHANGE AND
MANAGEMENT THEORIES

International Business
2022

CONTENTS
ABSTRACT
1

THEORETICAL FRAMEWORK
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1 The Concept of Change and Management
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2 Different/Common types of Organizational Changes
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3 Reasons for Change
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4 Kurt Lewin’s model on Change
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6 McKinsey 7 S Model
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7 Kotter’s Change Management Theory
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8 Kübler-Ross Five Stage Model
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9 Summary of the theories
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REFERENCES
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Mehta, (2013)
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The models used aim to help the reader to understand change processes, implementation, role of leadership and management as well as understanding resistance to change
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Before delving into the theories used, the chapter will introduce the concept of change and management in relation to this study, types of changes in organizations and the various underlying
reasons why organizations opt for change, deviating from their status quo commonly
know as the comfort zone
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1
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Van den Ven, (2005)
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They fashion an environment where change can be implemented
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The test faced by these organizations which operate in an aggressive and tremulous environment are brought about by the desire to respond to changes in consumer needs, hightech and competition
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In support of this statement, Chartered Institute of Personnel and Development, CIPD, (2011) has demonstrated that 60%
of change initiatives fail with reasons such as job pressure and stress linked to the negative
response to change by employees
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To drive a
company in the desired direction and achieve intended goals, employees must be affiliated to the planning process because they are the prosecutors of the changes in the organization
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The advantage therefore is that they gain a competitive
edge over competitors and clutch onto market opportunities
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Toffler, (1970)
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Business, like humans, have a life and a reason for existence
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Kash, (2002)
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Management is thus the sole leader in the entire change
project as it identifies both internal and external environments that will help in initiating
the future projects
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1
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These Changes usually
occur over a given period
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Developmental change is one that is
either planned for or unplanned for and redresses existing aspects of an organization by
revamping of skills and processes
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Transformational is a stringent approach to change that
deviates from the assumptions made by the organization in terms of structure and processes, culture or strategies
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An Unplanned change is one that usually occur due to happenings within the business
which are gratuitous thereby forcing the responsible personnel to react in a topsy-turvy
and jumbled manner
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Noelle Aarts, (2008)
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These are the two

5
reasons given by Ackerman, (1997) to explain the grounds for planned and emergent
changes
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To digest the concept of change, there must be rigorous
planning and analysis and a sensitized stage of implementation
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•

Episodic Versus Continuous Change

According to Weick and Quinn (1999), the distinction between episodic and continuous
change is ‘infrequent, discontinuous and intentional
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On the contrary, a continuous change is
‘ongoing, evolving and cumulative
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Implementing these ideas in
the right manner has the potential to bring about a considerable change
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Many organizations have demonstrated the fear to implement an exclusively continuous
change approach and have therefore capitalized on carefully selected principles of the
continuous change while allowing adequate room for flexibility to accommodate and experiment changes unintended in an organizational life
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(1996)
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Pennington, (2003)
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Radical changes implemented on the core
business of an organization, result into lofty levels of disturbance
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’ Pennington, (2003)
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6

Figure 1: illustration of change traits when plotted on scales
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jisc
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uk)

1
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According to Tetenbaum as adduced in Macmillan (2004), there are six underlying reasons
why changes in organizations take place
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✓ The world has become a global village; world is now considered as one community
✓ Swelling competition in various markets
✓ Introduction of new ways of doing businesses and new practices
✓ Increase in speed in businesses that is brought about by technological changes
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Studies have suggested that these changes could occur either externally or internally
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External forces to change may be brought about by political
and economic environments
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Harris (1997) further states that social and technological factors similarly form a reason
for change in organizations
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These changes have a
profound effect of the method of outsourcing employees and targeting potential customers
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For instance, amalgamation of companies may be brought about by the need to get extra supplies to facilitate
growth into new markets
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The central factors that are responsible for organizational changes have been simplified
into: ‘Environment’ (social, political and legal), ‘Diversification’ (the pursuit to satisfy
customers), ‘Technology’ and ‘People’ (new skills and competencies)
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It is
therefore relevant for companies to identify the reasons supporting the need for change
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8
Kurt Lewin’s model on Change

1
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Back, (1992)
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Barbara Reinhold holds the
view that change is a patient process that effects slowly
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He presents
that under certain happenings, which he equates to personal, organizational and societal
elements, forces in this sphere could veer so fast and radically thus dismantling the status
quo because of the emergence of a ‘new equilibrium
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Bernstein, (1968); Dent & Goldberg, (1999) reiterates that changes in group behaviour
should be treated with utmost focus in comparison to the individualistic change
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Pressure emanating from groups compel the individual to adhere to such changes
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To establish a state imbalance and effect change, group level dynamics taken
into consideration must include norms, roles, interaction and socialization processes
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To understand how change processes can be implemented without continued resistance,
Kurt Lewin designed a three (3) Step Model to help understand the phases of the change
project
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The steps mentioned in his theory are (1) Unfreezing (2) Moving/Change and (3) Refreezing
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This phase first identifies that human behaviour is founded on status
quo with several resisting forces allied to it
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Schein (1996, p
...
’ He further
points out to three critical points that must be considered to aid the unfreezing
process
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Should these factors be omitted, he maintains that no change will take
place
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61)
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Unfreezing is not the ultimate solution but rather stimulates the learning
process but fails to control or predict the direction
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62)
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Lewin (1947)

•

Refreezing
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Its main aim is to ensure that the new
set of acquired traits are shielded from reverting
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Schein, (1996)
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In business environment, refreezing demands a change in organizational culture, standards, rules and practices
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The diagram below summarizes the model for change by
Kurt Lewin
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tipschief
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They based their arguments on the
foundation that Lewin’s approach to change was too simple to be implemented in a world
where changes within organisations are continuous and are open-ended processes
...
,

1992; Nonaka,

1988; Pettigrew,

1990a, 1990b; Pettigrew et al
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It is also argued that Lewin’s theory focused on the magnitude of change while ignoring
the speed of change hence not applicable in radical processes
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Quinn
opines that it is often a question of time before incremental change results into comprehensive transformations
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Cummings & Worley (1997)
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Dawson,
(1994); Hatch, (1997); Wilson, (1992)
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Bargal et al
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8)
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Dawson, (1994); Wilson, (1992)
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(Bargal et al
...
6

McKinsey 7 S Model

The McKinsey 7S model is a framework that was invented by both Tom Peters and Robert
Waterman in the earlier years of 1980
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The model comprises of structure,
strategy, systems, skills, style, staff and shared values
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This is an extensive model that is applicable in almost if not all types
of changes within an organization
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&Tom Peters (1980)
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The
image is obtained from the book ‘Structure is Not Organization’ written by Robert H
...
, Thomas J
...
Phillips, (1980)
...
www
...
com)

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The model was further divided into two classes, ‘Hard S’ (Strategy, Structure and Systems) and ‘Soft S’ (Style, Staff, Skills and Shared Values)
...

•

Structure: the theory of structure suggests that structure has a way of segregating
tasks and later integrates it with specialization
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In practice,
he suggests that as the number of staff in an organization continue to build so does
the rate of interactions that is intended to make things work in the organization
increase
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Du Pont, (1921)
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Vladimir Kvint describes strategy as a ‘a system of finding, formulating and developing a doctrine that will ensure a long-term success if followed
faithfully
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Alfred Chandler (1962) points out that structure follows
strategy
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Short-lived strategies haven proven futile to companies, however, when properly aligned with the other six elements of this model, it is likely
to produce a visible footprint
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Systems will make the things work in an organization or disrupt activities
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Robert H
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Companies that do not spend ample time in the planning phase
on customers, marketing and market shares among other valuables which is supported by allocation of the right infrastructure to each of these sectors but fails to
change the systems that support these market orientation goals, risks achieving
such goals
...


•

Style: it illustrates and delves on the management of the company
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It is important part of the business just as in literary work and as such

14
has a slim chance of being ignored
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Organizations will pay
attention to what the management pronounces but what counts is the action the
managers’ Peters (1980)
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Choice must be made on the matters that require urgency thereby calling for the
services of a manager
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•

Staff: this element touches solely on the human resource determining the number
of employees required, the recruitment process, training, motivation and rewards
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Great companies are headed by social managers that often leave a mark on the
recruits based on how they conduct themselves as they help in nurturing the young
talents to assume similar positions in the future
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In other words, companies must focus on developing new
talents in their earlier stages through exposure to management styles
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& T
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Organizations have often characterized individuals while neglecting the business itself
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For example, Du Pont states in his research that Proctor
& Gamble is characterized based on product management, Hewlett- Packard’s innovation and quality and IBM based on market orientation and good customer
service
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A study of these skills is also important in a sense that companies can combine the already existing skills with new skills to achieve greatness
...
’ In organizational

15
context, they are the guiding concepts and values
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The shared values guide on employees’ behavior and company actions, thus leaving a mark behind
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A meaningful
statement results into a positive trajectory and to the desired direction
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This therefore makes it difficult to intuit the competitive prowess of a strategic business unit
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Kotter’s Change Management Theory

1
...
In 1996, he published a book ‘Leading Change’ that contains the eight (8) strategies that he felt that when implemented by organizations, would result into successful
change
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This
strategy is often implemented by companies with sole aim being survival in a competitive
business environment
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For organizations to escape ‘death’ and survive, Kotter identified eight (8) steps: increasing urgency, building the team, getting the vision correct, communication, getting things
moving, focusing on short-term goals, never giving up and incorporating change
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It instills a burning desire and determination
to always make plans and act on them within an abbreviated time span
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Kotter (1995)
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S
...
Hundekar (2009)
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Tasks are handled as a team because it often involves several change projects that cannot be undertaken
by an individual
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Jim
Collins (2001)
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Kotter, (1995)
When building the team, several factors must be put in place implying that the team must
possess certain traits
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(2) all the ideas expressed by members must be taken into consideration from which interpretations and informed decisions will be arrived at
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(4) It should be a flexible team that is free to
adjust to changes whenever need arises
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Kotter (1995)
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Kotter states that a clear change vision
servers three distinct functions, that is, ‘stimulating people to act in the desired direction,
coordinating peoples’ actions and clarifying comprehensive decisions
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Leadership therefore designs a powerful master plan to help achieving the
set ambitions
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Kotter (1995)
...
Claire Lew, (2017)
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Kotter, (1995)
...
S
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As such, the information communicated must be repeated and
referred to in various effective platforms such as emails, meetings and in presentations
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Leadership behavior play a prime role in this
step since they are the role models for change as stated by Tiffany Madison
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In this context Kotter sums it up as the process of eliminating
hurdles thus allowing individuals to excel in their work
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A structural barrier implies issues within an organization that are beyond one’s control
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They therefore can adversely affect the change agenda
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This information is useful to the marketing department
aiming at making a change as it will impact positively how they undertake their duties
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Their actions may not actively undermine operations but there is a sense in which they do not amount to some of the characters that fire
up change
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Kotter (1995)
...
When these short-term goals are achieved within the set timeframe, they motivate
the teams to advance to the next stage
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Monica Mehta (2013)
Kotter suggests that for prosperity, these goals must be visible, unequivocal and in tandem
with the change effort
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People are usually satisfied when their work
pays off thus injecting doubled efforts in their tasks, because their morale is augmented
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Kotter further elaborates that ‘short term wins build momentum
that has the capacity to convert non-partisan individuals into supporters, and unenthusiastic supporters into active helpers
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People will generally celebrate the gains for far too long while adopting a lethargic culture of not ‘jumping’ back
into action
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Kottler (1995); G
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Bernard Bass, (2005)
...
E
...
Williams (1999)
...
Leadership
must therefore ensure that positive practices are incorporated and become part of the business culture
...
Kotter (1995)
...


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Figure 4: Illustration of Kotter’s 8 Step Model
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oneclearmessage
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za)

Although the success can be seen by the employees, leaders must be ready to experience
resistance from within the organization
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Ken Hultman (2003)
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In step one, Kotter’s begins by creating a sense of
urgency without mentioning the vision
...
He
objects that it only creates a ‘fake urgency’ unlike the ‘true urgency’ statement
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However, theory fails to acknowledge that there is no set parameter to legitimize a vision
...


20
1
...
The aim was to explain the various stages undergone during intense sorrow
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This model remains significant
in the business field because it has been used to predict a shift in performance of workers
upon being informed of changes within the organization
...

•

Denial: It is the first stage in the model whereby an individual finds it hard to
process new and factual information but reacts to it by mobilizing defense mechanisms to counter the news
...
The effect is usually felt when there
is a decline in the persons productivity level because of incapacity to think and
act accordingly
...


•

Anger: She states that once the news and reality has been confirmed and the depth
of the information understood, they often find someone to blame coupled with
anger manifested in numerous ways
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Kubler-Ross (1960)

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Bargaining: after the anger stage passes, one typically suspends the unavoidable
situation by trying to outsource for various available options
...

Bargaining helps one find a solution either partially or fully resulting into a relief
out of the quagmire
...
Here, one has lost hope
and cannot find a leeway ahead
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Motivation and the energy to work lost at this stage
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Although, the
person moves on, there is no sense of happiness at this stage
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Despite the cardinal role played by this model in explaining the grieving stages, it has
received criticism from scholars
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Kastenbaum (1932/2013) has argued
that the model falls short of the empirical research and empirical evidence that various
phases relied on to approve the theory
...

1
...
offers room for comparison, verification and confirmation of data that will be collected from the respondents in this study
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This therefore implies that the best method of implementing change is tied to the type of change
...

The four theories emphasize on the significant role played by individuals, in this case
both leaders and employees in the process of change implementation
...
Leaders
are the engineers of change and are therefore tasked with the responsibility of designing
visions that will be achieved through rightful approaches
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These stages must be evolved, implemented in
phases to outdo a sense of fatigue from the teams involved, sentiments echoed by Barbara
Reinhold
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Jeff Hiatt, (2006)
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Lewin’s change model states that effective change implementation’s first task is to study
individual behaviors and overcome the status quo
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This is then followed
by bringing the change into effect and lastly ensuring that the change implemented is
protected from reversion
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These attributes have a central coordinator
which he called the superordinate goals
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Connected to these
goals are the style, structure, systems, staff, skills and strategies
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Kotter mentions that majority of
organizations fail to excel in the market because of a leadership that is short of the relevant
skills for change implementation
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A different scope is taken by Elisabeth Kubler- Ross in her model that expands on a person’s behavior, a massive deviation from the other models that speak extensively about
businesses
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6
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Collins (2000)
Kübler-Ross, Elisabeth; Kessler, David (June 5, 2007)
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The Theory and Practice of Change Management
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p
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ISBN 978-1-137-27534-9
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com/2011/03/a-brief-

history-of-the-7-s-mckinsey-7-s-model/
Marrow, Alfred J
...
Marrow studied as one of Lewin's students)
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prosci
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by Mattessich et al
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Hackman, M
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(2009)
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Long
Grove, IL: Waveland Press, Inc
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D
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W
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EW Morrison, CC Phelps - Academy of management Journal, 1999 - amj
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org
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(1955)
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Unpublished manuscript
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Scholar
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P
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Leading change: Why transformation efforts fail
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Google ScholarNelson B: 1001 Ways to Reward Employees
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Silversin J, Kornacki MJ: Leading Physicians Through Change: How to Achieve
and Sustain Results
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Akscin J, Barr TR, Towle EL
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J Oncol Pract
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[PMC free article]
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Implementing change: From ideas to reality
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2003; 10:57–62
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http://onlinelibrary
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com/doi/10
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1467-6486
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00463
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Waterman, Thomas J
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Alfred D
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, Strategy and Structure: Chapters in the History of the
American Industrial Enterprise (Cambridge, Mass
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John Paul Kotter, ‘Leading change: Why Transformation Efforts Fail’ Harvard
Business Review March-April 1995 https://www
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net/profile/Michael_Roberto/publication/8008183_Change_through_persuasion/links/55311dab0cf2f2a588aca7c4
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https://www
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com/understanding-kubler-ross-change-curve/
An Attributional Analysis of Kübler-Ross' Model of Dying, Mark R Brent
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C van Woerkum, ‘ Change, Planned and Unplanned’ 2011, https://www
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net/publication/254839821_Changed_planning_for_planned_and_unplanned_change
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2012
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(2013)
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Turner, Impact of Change Management on Employee Behavior in a University Administrative Office
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Jenni
...
M
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Brian White: Dissertation Skills for Business and Management Students, (2000)
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Hiatt& Timothy J
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(2006)
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Better Evaluation, ‘Collect and/or Retrieve Data’, web page, Better Evaluation,
http://betterevaluation
...


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