Organizational Change
Forces for Change
Case Study – General Motors
Planned vs Unplanned Change
Case Study – Coca Cola
Resistance to Change
Dealing with Resistance
Case Study – Uber
Approaches to Change Management
Case Study – Merger of ING Vysa and Kotak Mahindra Bank
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Organizational Change Management
1. Organizational Change
August 12, 2015
NAME ROLL. No
MUFADDAL NULLWALA 15-I-131
Master of Information Management (MIM)
(2015 - 2018)
PRINCIPLES OF MANAGEMENT
2. 2
Topics to be Discussed
• Organizational Change
• Forces for Change
• Case Study – General Motors
• Planned vs Unplanned Change
• Case Study – Coca Cola
• Resistance to Change
• Dealing with Resistance
• Case Study – Uber
• Approaches to Change Management
• Case Study – Merger of ING Vysa and Kotak Mahindra Bank
3. 3
Agenda of the Presentation
OrganizationChange
Managing
Change
Resistance to
Change
Approaches to
Change
Conclusion
4. 4
Organizational Change
Organisational changes can be Reactive OR Proactive :
In structure of an organisation
In organisational operation/ size of workforce
In technology & working practices
In the way role are carried out
In terms & condition or environment
“Organizational change refers to a modification or transformation of the
organisation’s structure, process or goods for desired future growth.”
5. 5
Forces for Change
Forces
External Forces
Technology
Marketing Condition
Globalization
Social & Political Changes
Internal Forces
Crisis
Managerial Personnel
Work Climate/ Environment
Deficiencies in existing system
8. 8
History & Heritage of General Motors
• At the turn of the 20th century there were fewer than 8,000 automobiles in America, many of them
powered by steam or electricity, others had gasoline engines.
• An unexpected turnout at the first New York Auto Show in 1900, showed the magnitude of the
public’s fascination with the automobile.
• General Motors was founded by William “Billy” Durant on September 16, 1908.
• At its inception GM held only the Buick Motor Company, but in a matter of years would acquire
more than 20 companies including Oldsmobile, Cadillac, and Oakland, today known as Pontiac.
9. 9
Change at General Motor
General motor till 1920 it was becoming the world largest motor manufacturing company.
But with emerging of the Japan’s automakers the company felt threatened, specially the
emerging of Toyota Japan, who with great extent disturbed the profitability of the GM,
especially in the North American market
During 2009 the company had faced a bankruptcy and had closed several brand and sold out
to china based company
10. 10
Case Study – Planned and Unplanned change
PLANNED CHANGES
General Motors Paid high salaries to his employees to
about $74 as compared to its rival.
UNPLANNED CHANGE:
General Motors was greately affected by Japan based
Toyota. This became sudden & unforeseen threat to
General Motors profitability.
11. 11
REASON AND FORCES FOR CHANGE OF GM
Forces For
Change
External
Forces
Internal Forces
14. 14
Planned Changes and Unplanned Change
PLANNED CHANGE
• Change resulting from a deliberate decision
to alter the organization
• Companies that wish to move from a
traditional hierarchical structure to one that
facilitates self-managed teams must use a
proactive, carefully orchestrated approach.
UNPLANNED CHANGE
• Not all changes are planned.
• Unplanned change is imposed on the
organization and is often unforeseen. E.g.
Changes in government regulations and
changes in the economy,
• Responsiveness to unplanned change
requires tremendous flexibility and
adaptability on the part of the
organizations.
• Managers must be prepared to handle both
planned and unplanned forms of change in
organizations.
15. 15
Changes In Product or Services
Changes In Administration System
Changes In Organizational Size & Structure
Introduction Of New Technology
Planned Organization Changes
16. 16
Changing Employee Behaviour / Demographics
Performance Gaps
Government Regulation
Economic Competition in the Global Arena
Unplanned Organization Changes
19. 19
CUSTOMER DRIVEN CHANGE AT CONTINENTAL AIRLINES
CONTINENTAL AIRLINES EXECUTIVES CREATED AN
URGENCY TO CHANGE BY LISTENING TO CUSTOMERS &
COMMUNICATING THEIR CONCERNS TO
EMPLOYEES.CUSTOMER DRIVEN CHANGE MOTIVATES
EMPLOYEES TO ENGAGE IN CONTINOUS CHANGE.
21. 21
Resistance to Change in an Organization
Resistance to change is the act
of opposing or struggling with
modifications or transformations
that alter the status quo in the
workplace.
22. 22
Resistance to Change in an Organization
Early signs of resistance
•Gossip
•Testing
Collectivism of resistance
•Individual action
•Collective action
23. 23
Resistance to Change in an Organization
Visibility of resistance
•Covert resistance
•Overt resistance
Activity of resistance
•Passive resistance
•Active resistance
24. 24
Common reasons why people resist change
Loss of Job
Bad Communication Strategy
Shock and Fear of the Unknown
Loss of Control
Lack of Competence
Poor Timing
25. 25
Common reasons why people resist change.
Lack of Reward
Office Politics
Loss of Support System
Former Change Experience
Empathy and Peer Pressure
Lack of trust and support
28. 28
Uber – Resistance to Change
• Ugly war is being fought by “traditional” taxi companies against a new form of competition from Uber
and other ride-sharing services
• Historically taxis have fought for their place in the urban transportation spectrum by staging strikes
and paralysing citiesEvaluation of the change
• Taxi industry’s resistance to the rise of Uber and similar services is a futile attempt to put the brakes
on innovation.
• Traditional taxi drivers are complaining about Uber’s “illegal” activities, saying their drivers don’t have
official permits and can’t charge by the kilometre since they don’t have meters.
• This is a perfect example of industry players being prisoners of an old way of thinking and
entrenched in the defence of an aging system.
• Uber succeeding because it is responding to customers’ needs and offering a unique and
innovative experience.
• Investors took notice: the company has an estimated value of $17 billion (R182bn) after an
influx of funds in June.
30. 30
Approaches - Change Management
Approach for a Change
• Appoint Change Agent
• Determine what should be changed
• Kind of Change
• Individual Affected by Change
• Evaluation of the change
31. 31
Change Vs Stability
• Stability and change, both are important
• Stability complements change
32. 32
What’s changed in an organization?
• People – attitudes, leadership skills,
communication skills
• Structure – Organizational Controls, policies
and procedures
• Technology – types of equipment or process
that assist organization members in
performance if their job
33. 33
Kind of Change
• Structural Change
• Clarifying and defining jobs
• Change Org structure do meet communication needs
• De-centralizing organization to meet cost
• People Change
• Organizations development
• Training
• Reduce Resistance to change
• Technological Change
• Deploy tool to increase effectiveness
34. 34
Evaluation of the Change
• To gain insight into how change itself might be modified to further increase organization
effectiveness
• To determine where steps taken to make the change need to modified to increase
effectiveness
• To watch signs that further indicate change is necessary.
37. 37
ORGANISATIONAL CHANGE IN CASE OF MERGER
Kotak decided to expand their business by acquiring ING Vysya Bank
since ING Vysya Bank had a stronger presence in South India while
Kotak had an extended franchise in the West and North India.
The merger created a large financial institution with a vast national
footprint.
Together, the new entity will have over 1,200 branches and 1,900 ATMs
across the country and will become India’s 4th largest private sector
bank.
38. 38
RESISTANCE FACED FROM ING VYSYA BANK EMPLOYEES
Threatened to go on strike on
January 7 — the day on which
the ING Vysya Bank was to
seek shareholders’ nod to
approve the Rs 15,000-crore
merger deal.
S A Sridhar from the ING Vysya Bank
officers’ association said a “tri-
partite agreement” between Kotak
Mahindra Bank (KMB), ING Vysya
Bank, and employees and officers,
be signed which will lay out all
points in detail.
The new management at Kotak
Mahindra Bank does not have a
Union and believes in outsourcing
its work. What will be the fate of
our employees after the merger?
ING employees and officers wanted
internal MoUs to continue post-
merger, and also stressed that perks
and benefits decided by industry body
IBA be continued
40. 40
CONCLUSION
1. WHAT IS ORGANISATIONAL CHANGE
2.FORCES FOR CHANGE-INTERNAL OR
EXTERNAL
3. TYPES OF CHANGE-PLANNED OR
UNPLANNED
4. RESISTANCE TO CHANGE
5. APPROACHES FOR CHANGE
MANAGEMENT
