Description
Organizational Development & Change
Dec 2026 Examination
Q1 A healthcare provider aims to implement a new electronic health record system across its network using Lewin’s three-stage model: unfreezing, change, and refreezing. While the initial communication campaign succeeds in creating awareness (unfreezing), heavy resistance arises during implementation. Nurses, doctors, and administrative staff voice concerns that their day-to-day challenges and expertise were overlooked in planning. As a result, the rollout stalls and utilization rates remain low. How can the healthcare provider apply the Action Research Model to re-engage stakeholders, leverage frontline knowledge, and co-develop solutions for successful adoption and sustained use of the new system? (10 Marks)
Ans 1.
Introduction
This healthcare provider used Lewin’s three-stage model to guide its new electronic health record rollout, and the unfreezing stage succeeded in creating genuine awareness among staff. However, heavy resistance emerged once implementation actually began, since nurses, doctors, and administrative staff all felt their daily challenges had been overlooked during planning. The rollout has now stalled, and utilization rates remain far below expectations. The Action Research Model offers a practical way forward here, since it treats change as an ongoing, collaborative
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Q2 (A) Following a successful pilot of cross-functional teams and leadership development at a large automotive firm, employee engagement and decision-making speed have both improved. However, concern remains about maintaining momentum and embedding new practices company-wide. Diverse stakeholder groups champion different strategies: some support continuous cycles of action research, while others suggest scaling with a more structured planned change model. Evaluate which change model, continuous action research cycles or a structured planned change approach, would be more effective for sustaining and institutionalizing the improvements in this organization. (5 Marks)
Ans 2(A).
Introduction
This automotive firm’s pilot of cross-functional teams and leadership development has already improved employee engagement and decision-making speed. The real challenge now is choosing the right model to sustain and scale these gains company-wide, since stakeholders are divided
Q2 (B) A financial services company facing shrinking market share decides to redesign its reward systems to accelerate digital transformation. Senior leadership proposes a new incentive scheme that targets employees who support digital initiatives. However, feedback indicates that only certain employees, those already favored by current power holders, are likely to benefit. Others perceive the scheme as reinforcing existing inequalities tied to reward and coercive power, breeding skepticism and further eroding trust. Evaluate the advantages and risks of using reward power to drive organizational change in the context of existing power imbalances. (5 Marks)
Ans 2(B).
Introduction
This financial services company is redesigning its reward system to accelerate digital transformation, but early feedback suggests the new incentive scheme mainly benefits employees who are already favored by current power holders. Other employees now perceive this scheme as reinforcing existing inequalities rather than fairly rewarding genuine digital adoption efforts.
Concept and Application
Understanding Reward Power in Organizational Change
