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Although there are many types of organizational changes, the critical aspect is a company's ability to win the buy-in of their organization's employees on the change. Effectively managing organizational change is a four-step process: [36] Recognizing the changes in the broader business environment
The formula for change (or "the change formula") provides a model to assess the relative strengths affecting the likely success of organisational change programs. The formula was created by David Gleicher while he was working at management consultants Arthur D. Little in the early 1960s, [1] refined by Kathie Dannemiller in the 1980s, [2] and further developed by Steve Cady.
Organization development (OD) is the study and implementation of practices, systems, and techniques that affect organizational change. The goal of which is to modify a group's/organization's performance and/or culture. The organizational changes are typically initiated by the group's stakeholders.
Whatever the type of change – restructuring, new processes, organizational merger, new systems, change of leadership, and so on – the model can be used to understand how the organizational elements are interrelated, and so ensure that the wider impact of changes made in one area is taken into consideration.
Organizational culture influences the organization's ability to adapt to change. Culture in an organization is a self-reinforcing set of beliefs, attitudes, and behavior. Culture is one of the most resistant elements of organizational behavior and is extremely difficult to change.
In Leading Change (1996), and subsequently in The Heart of Change (2002), Kotter describes an eight stage model of successful change in which he seeks to support managers to lead change and to understand how people accept, engage with and maintain successful organisational change. The eight stages or steps include the creation of "a sense of ...
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The fourth step is to modify the organization to support change. This includes identifying systems, policies, procedures and rules accordingly. This may include changes to accountability systems, compensation, benefits/reward structures, and recruitment and retention programs. Select and socialize newcomers and expel deviants (stage 7 and 8). [67]