Chapter 09 – Individual and Organizational Change
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CHAPTER 9
Individual and Organizational Change
Learning Objectives
After studying this chapter, students will be able to:
1. Discuss why change is a fact of life in the 21st century.
3. Describe the seven stages of personal change.
5. Give reasons for why employees resist change.
7. Discuss organizational development.
Key Terms
Beginning: The last of three general steps in the acceptance of personal loss. This is
where “experimenting” and “completion” take place.
Change agent: The person responsible for an organizational change effort.
Ending: The first of three general steps in the acceptance of personal loss. This is where
“emotional standstill,” “denial,” and “anger” take place.
Kaizen: Involves employees’ participation and feedback in operational and change
decisions, and encourages active communication among top managers and workers. A
literal translation of the term is “to become good through change.”
Lewin change model: A workplace change model with three steps: unfreezing the status
quo, making changes, then refreezing to the previous work mode.
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OD change agent: A company’s formal change agent, often an outside consultant who
specializes in planned change.
OD interventions: Training tools that teach members of the organization how to solve
the problems they face.
Quality Circles: Bring employees and managers together to brainstorm and find ways to
improve quality and performance.
Regression: Slipping backward to an earlier stage of growth; it can be either temporary
or permanent.
Lecture Outline
I. Change as a Fact of Life
Change is a reality everyone lives with. Swift, radical changes can be overwhelming.
Since the beginning of the Industrial Revolution, change has become a way of life in
Western civilization. Centuries ago, it was very likely that one would spend his/her entire
life in the same social class or occupational group—even the same geographic area.
Whatever was meaningful to one generation would remain so in the next. The changes
that did take place were usually so gradual that one hardly noticed them.
II. The Seven Major Life Changes
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Severe change can create tremendous stress and is usually accompanied by a great sense
of loss. But stress-causing events aren’t always negative; they could also include
marriage, promotion, or relocation. Figure 9.1 presents the Holmes–Rahe readjustment
scale—a tool that measures the relative impact of many kinds of changes, which are rated
from 100 to 0 on the basis of their intensity and the adjustment problems they can create.
The most important dramatic changes in a person’s life can be placed in seven categories:
• Loss
• Separation
Not all of these changes are negative. In fact, some—such as personal growth—are
almost completely positive. Often the effects of change are both positive and negative,
and yet the impacts are similar. These seven major life changes—loss, separation,
relocation, a change in relationship, a change in direction, a change in health, and
personal growth—have basic characteristics in common:
• They happen to everyone.
III. The Seven Stages of Personal Change
Humans process major transitions through basic, recognizable steps. Figure 9.2 shows a
diagram of the seven stages of personal change that make up the process of healthy
reaction to such change. An emotionally healthy person takes each of these steps in order.
Failing to go through each of these steps is often detrimental. If one step is skipped, one
will likely have to return to it at some time. Following are the steps:
• Emotional standstill—the first reaction someone usually has to the news of a
sudden death, for example, is to come to an emotional standstill; in shock there is
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• Helplessness—at this step in the process, the individual is trying but still failing to
move forward; with this step the individual enters the neutral zone—a transition
phase in which uncomfortable feelings of ”helplessness” and ”bottoming out”
One danger with the seven-step recovery diagram is that people might be tempted to
think they should passively let these steps happen to them. The process is a natural
IV. Models of Organizational Change
Organizational change is change that a group of people must learn to accept and
implement. It is a real challenge for a manager. Members of an organization can get so
comfortable with the status quo that it becomes easy to ignore warning signs that
something has to change. One common mistake is that many companies have spent too
much money on traditional strategies, instead of changing their style to adopt newer and
more creative approaches.
A. The Lewin Change Model
One of the most popular workplace change models is the Lewin change model.
According to Kurt Lewin, there are three different levels where any change has to
happen:
• The individuals who work for a company must be convinced that a change is
essential, and then be guided to the necessary attitudes and behaviors.
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The Lewin change model contains three steps:
• Unfreezing the status quo—in the unfreezing process, fear in some form is
nearly always one of the major obstacles.
B. Current Criticism of Lewin’s Change Model.
The most important criticism has been that refreezing is not a realistic concept in
today’s business world. The 21st century faces a growing number of change situations,
where taking time to refreeze would simply hinder progress. The refreezing step is
C. Force Field Analysis
Another approach to change that was developed by Lewin is the concept of force field
analysis. According to this model, the status quo is like a battlefield being fought for
by two armies: the driving forces and the restraining forces. The driving forces are
trying to take over and change the status quo, and the restraining forces are trying to
defend it. If driving and restraining forces are equal in strength, no change will take
place.
The driving forces can be strengthened in several ways. If resistance takes place, more
driving forces must be added. Another method is to improve the quality of the driving
forces. Diminishing the restraining forces involves persuasion by showing the benefits
of change.
Force field analysis is positive in three ways:
• It gets the changers to plan for the change.
• It allows those who are organizing the change to take a close look at the forces
D. Logical Incrementalism
Logical incrementalism acknowledges that bringing about changes in a large
organization is usually time-consuming and complicated. Like the Lewin model,
logical incrementalism can address change at the individual or corporate levels. The
five stages of logical incrementalism are:
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• General concern—a vague feeling or awareness of a threat or opportunity.
• Broadcasting a general concern or idea without details—trial balloon procedure
is used.
V. Why Employees Resist Change
People resist change for a number of different reasons. For one thing, the status quo is
often just too comfortable. Among the other reasons people resist change are:
• Hearing only what they want or expect to hear.
• Fear of the unknown.
VI. The Japanese Approach
Many Japanese businesses seem to be remarkably adaptive to change. One of the reasons
for Japan’s economic success has been its companies’ approach to business. This
approach, termed kaizen, involves employees’ participation and feedback in operational
and change decisions, and encourages active communication among top managers and
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Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Under the kaizen concept, business productivity is viewed as an ongoing, continual
process. Increased productivity, therefore, is thought to result from constantly bettering
one’s relation to his or her workplace, as well as bettering one’s self as a person. And
unlike many Western management techniques, kaizen essentially proposes that happy
employees are productive employees. Once a mostly Japanese phenomenon, kaizen is
now used by businesses across the globe. It has become a model that can be modified by
each culture to best suit its own business needs.
VII. Organizational Development
Organizational development is a planned, companywide, systematic method of
achieving change in an organization. It requires the participation and support of top
management. Usually the change agent is an outside consultant who specializes in
planned change. This person is called an OD change agent. This agent’s job is to use OD
interventions, which are training tools that teach members of the organization how they
can solve the problems they are facing. OD change agents base their procedures on
specific ideals concerning organizations. These specific ideals usually involve the
following values:
• Participative operations—the more the employees are involved with a change
effort, the stronger will be their commitment to putting that change into effect.
Review Questions
1. Many major changes are listed in the Holmes–Rahe Readjustment Scale. What
characteristics do they all have in common? Explain. What factors would you add or
otherwise change in this scale?
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Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
All the changes on the scale usually involve something coming to an end. This
question will create lively discussion in the group. Students’ answers will vary.
2. Explain the seven steps of personal change management. Why are they all essential?
Answer: The seven steps of personal changes are:
• Emotional standstill—the first reaction someone usually has to the news of a
sudden death, for example, is to come to an emotional standstill; in shock there
is a gap between rational thinking and emotions.
3. Imagine yourself as a manager with an employee who is going through a painful
divorce that is affecting his or her quality of job performance. How could the
material in this chapter be helpful to you?
4. Do you agree with the critics of the Lewin change model who say that it is no longer
relevant—especially refreezing? Why or why not?
Chapter 09 – Individual and Organizational Change
5. Briefly explain how force field analysis can be helpful to someone attempting change
in an organization.
6. Someone once said that recognizing the need for change is the most difficult step in
the change process. Why would that be true? Explain.
7. Explain the concepts behind logical incrementalism. Make sure to discuss the
different steps that organizations go through based on James Brian Quinn’s research
of meaningful changes within organizations. Do you find this model helpful? Why or
why not? Do you think it would ever be helpful in managing change in a smaller
company? Why or why not?
Answer: Students’ answers will vary. Logical incrementalism acknowledges that
bringing about changes in a large organization is usually time-consuming and
complicated. The five stages of logical incrementalism are:
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8. What is organizational development? How is it used in a company that wants
change? On what types of change does it usually focus?
Answer: Organizational development (OD) is a planned, companywide, systematic
method of achieving change in an organization. It requires the participation and
Critical Thinking Questions
9. How has change impacted your own life? When you reflect on your past, which
changes were positive? Which changes were negative? Did changes that you
originally thought would be negative turn out to be positive? In general, do you see
change as mostly a positive or negative force? Explain why.
10. Identify organizations you have seen or heard about that resisted change. Why did
they resist change? What consequences did such companies suffer, if any?
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Case Studies
Case Study 9.1: The Web Page Fiasco
Jack Monroe is the Director of Marketing for Minor Motors, a small, boutique
automobile maker that specializes in the design and limited production of hybrid and
electric vehicles. For the past two years there have been growing concerns from clients
about the pace of technological development, specifically at how Minor Motors has lost
ground to larger automakers and newer “up–starts” such as Tesla Motors. Jack agrees
with his clients that the situation calls for urgent changes to be brought in and also
wonders why Hugh and Dean, the two senior partners in the company have not thought of
driverless technology, and they have not been very interested in talking about solar
powered, hydrogen, or all-electric cars, either. At this point Doris, his assistant informs
Jack that the future of the company depends upon convincing the senior partners to bring
in changes.
Questions
1. What is likely the main issue here with the senior partners and their reluctance
toward the new technology? What other factors play into their reluctance?
Suggested Answer: Students’ answers will vary. Hugh and Dean, the two senior
partners in the company, maybe finding the status quo just too comfortable. They
2. Assume for a moment that fear is at least one issue here. What can Jack and Doris
do, as marketing specialists, to attack the fear that seems to be dangerously delaying
progress on their company’s Research and Development into important new
technologies?
Suggested Answer: Students’ answers will vary. Hugh and Dean may be delaying
the progress on the company’s Research and Development into the new driverless
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3. Briefly evaluate the Client Council Conference as a tool for obtaining suggestions
from major clients. How well does such a strategy work to drive change in an
organization such as Minor Motors, in your view? Would such an approach work in
other types of organizations? Why or why not?
Suggested Answer: Students’ answers will vary. Client Council Conference allows
Case Study 9.2: The Family Tragedy
After losing her partner Carlos Garcia to an auto accident, Juanita’s numbness was
understandable to her colleagues who also shared the shock of losing a former employee.
When Juanita’s behavior seemed to be confusing with sporadic bursts of anger between
periods of nonchalance, Devi Ramasamy, CEO of Javca Insurance, decides to seek
professional assistance from a grief counselor, who, upon hearing the situation remarks
that she felt that everybody at Javca needed assistance, not just Juanita.
Questions
1. How could an understanding of the seven steps of personal change help everyone at
Javca?
2. Explain the grief counselor’s statement, “It sounds like everybody at Javca needs
this, not just Juanita.”
3. There are some obvious disadvantages to the company in keeping Juanita at work at
this time. What are some advantages of having her remain on the job during her
healing process?
Chapter 09 – Individual and Organizational Change