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Organisational Change Management

Causes and Pressures for Change

Change in organisations arises due to various internal and external factors, which create pressures that push businesses to adapt in order to survive and thrive.

I

INTERNAL CHANGE

Change originates from within the organisation. Triggered by shifts in leadership, strategic changes, operational inefficiencies, employee issues, or the introduction of new technology.
E

EXTERNAL CHANGE

Change stems from outside the organisation and includes factors such as competitive pressures, technological advancements, economic shifts, political/legal changes, social trends, or changing customer preferences.

Types of Change: Incremental vs Disruptive

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INCREMENTAL CHANGE Small, continuous improvements or adjustments over time. These changes tend to be evolutionary rather than revolutionary. They allow organisations to gradually fine-tune processes and improve efficiency.
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DISRUPTIVE CHANGE Sudden, radical, and often transformational. It fundamentally alters the way a business operates, either through new technologies, market entrants, or shifts in regulation.

Lewin’s Force Field Analysis

Understanding Change Dynamics

Kurt Lewin’s Force Field Analysis is a useful tool for understanding and managing change. It views any situation as the result of two opposing sets of forces: Driving Forces (pushing for change) and Restraining Forces (resisting change). The goal is to increase driving forces and/or reduce restraining forces to achieve successful change.

Lewin’s 3 Stages of Change

Lewin’s model provides a framework for managing the transition, ensuring the organisation is ready for change and that changes become permanent.

1

UNFREEZE

Preparing the organisation for change by overcoming inertia and building awareness that change is needed.
2

CHANGE

Implementing the planned changes.
3

REFREEZE

Solidifying the change as the new status quo to prevent regression to old ways.

The Value of Change

Change is essential for business survival and success. It allows firms to adapt to the evolving external environment and improve competitiveness.

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IMPROVED EFFICIENCY AND PRODUCTIVITY

Change can introduce better technologies or processes that reduce costs and increase output.
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CUSTOMER SATISFACTION

Responding to changing customer demands maintains or improves market share.
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EMPLOYEE MOTIVATION

Developing new roles or skills can enhance job satisfaction and retention.
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SUSTAINABILITY

Continual change helps businesses stay relevant in a fast-moving world.

Key Elements of Organisational Flexibility

A flexible organisation can respond quickly and effectively to both internal and external changes, providing a competitive advantage:

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RESTRUCTURING

Adjusting organisational structure to improve communication, reduce costs, or enhance collaboration.
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DELAYERING

Removing levels of management to reduce bureaucracy, lower costs, and empower frontline staff.
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FLEXIBLE EMPLOYMENT CONTRACTS

Using part-time, temporary, or freelance workers to scale labour up or down rapidly in response to demand fluctuations.
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ORGANIC STRUCTURES

Decentralised and adaptable structures that promote teamwork and innovation, suitable for environments where rapid change occurs.

Managing Information and Knowledge

In a rapidly changing business environment, managing information and knowledge is vital for strategic success:

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COMPETITIVE INTELLIGENCE

Gathering information about competitors, customer trends, and market changes to detect threats or opportunities early.
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DECISION-MAKING

Accurate, timely data supports better strategic and operational decisions.
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INNOVATION

Capturing and sharing knowledge allows organisations to develop new products or processes and maintain learning culture.
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AVOIDING REPETITION

Organisations that document and share lessons learned prevent costly mistakes and duplication.

Barriers to Change

Key Sources of Resistance

Resistance is a common obstacle to implementing change successfully. These barriers often include FEAR OF THE UNKNOWN (uncertainty about roles, job security), LACK OF TRUST in management’s motives, HABIT (comfort with existing routines), and POOR COMMUNICATION about the change, its need, or its benefits.

Kotter and Schlesinger’s Four Reasons for Resistance

These reasons focus on individual perceptions and motivations, which managers must address proactively to ensure successful implementation.

1

PAROCHIAL SELF-INTEREST

Individuals resist change if they believe it threatens their personal interests, such as job security or status.
2

MISUNDERSTANDING AND LACK OF TRUST

If employees do not understand the change or doubt leadership’s objectives, they are likely to resist.
3

DIFFERENT ASSESSMENTS

People may accept that change is needed but disagree with its nature or timing.
4

LOW TOLERANCE FOR CHANGE

Some individuals simply prefer stability and find change stressful or overwhelming.
Causes of and Pressures for Change Deck
Term
Main Categories of Causes

What are the two main categories of causes for organisational change?

Answer
Answer

Internal change and external change.

Term
Example of Internal Cause

Give an example of an internal cause of change.

Answer
Examples

Leadership shifts or operational inefficiencies.

Term
Triggers for External Change

What triggers external change in organisations?

Answer
Factors

Competition, economic shifts, technological advances, and legal changes.

Term
Incremental Change

Define incremental change.

Answer
Definition

Small, continuous improvements over time that are evolutionary.

Term
Disruptive Change

What is disruptive change?

Answer
Definition

Sudden, radical change that fundamentally alters an organisation.

Term
Driving Forces

What are the driving forces in Lewin’s Force Field Analysis?

Answer
Driving Forces

Forces pushing for change such as competition and innovation.

Term
Restraining Forces

What are restraining forces in Lewin’s model?

Answer
Restraining Forces

Forces resisting change like employee fear and organisational culture.

Term
Lewin’s Three Stages

Name the three stages in Lewin’s model.

Answer
Stages

Unfreeze, Change, Refreeze.

Term
Value of Change

Why is change valuable to organisations?

Answer
Value

It improves efficiency, customer satisfaction, employee motivation, and sustainability.

Term
Flexible Organisation Advantage

What is the advantage of a flexible organisation?

Answer
Advantage

It responds quickly and effectively to change, reducing uncertainty.

Term
Methods to Increase Flexibility

List two organisational methods that increase flexibility.

Answer
Methods

Restructuring and delayering.

Term
Organic Organisational Structure

What is an organic organisational structure?

Answer
Definition

Decentralised and adaptable, promoting innovation and teamwork.

Term
Mechanistic Structure

What is a mechanistic structure?

Answer
Definition

Hierarchical, rigid, focused on control and efficiency.

Term
Knowledge Management Benefits

How does knowledge management benefit organisations in change?

Answer
Benefits

Supports decision-making, innovation, and prevents repeated mistakes.

Term
Common Barrier to Change

Identify a common barrier to change.

Answer
Barrier

Fear of the unknown or poor communication.

Term
Reasons for Resistance

What are Kotter and Schlesinger’s four reasons for resistance to change?

Answer
Reasons

Parochial self-interest, misunderstanding/lack of trust, different assessments, and low tolerance for change.

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🌸 Causes of and Pressures for Change Quiz

1. What is an example of an external pressure for change?

External pressures come from outside the organisation, such as competition.

2. Which stage of Lewin’s Force Field Analysis involves implementing the planned changes?

The “Change” stage is when the new processes or behaviours are introduced.

3. Incremental change is characterized by sudden, radical shifts in the organisation.

Incremental change involves gradual, small improvements over time.

4. Which of the following is NOT a barrier to change?

Poor communication is a barrier, while effective communication facilitates change.

5. What structure is more suitable for organisations needing flexibility and innovation?

Organic structures promote adaptability and teamwork essential in fast-changing environments.

📊 Results

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  • Business
  • AS & A Level
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  • AQA