Management of change
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Management of change Document Transcript

  • 1. PROJECT ON “MANAGEMENT OF CHANGE” ACADEMIC YEAR: SUBMITTED BY: ROLL NO. SUBJECT: STRATEGIC MANAGEMENT PROJECT GUIDE: COLLEGE NAME (AFFILIATED TO____ UNIVERSITY) 1|Page
  • 2. COLLEGE NAME CERTIFICATE This is to certify that ________ has successfully completed the project on Management of Change under the guidance of ____. Course Co-ordinator Principal Project guide/Internal Examiner External Examiner 2|Page
  • 3. DECLARATION I ___ a student of _____ hereby declare that I have completed the project on Management of Change. The information submitted is true and original to the best of my knowledge. Signature 3|Page
  • 4. ACKNOWLEDGEMENT I would sincerely like to give my heartfelt acknowledgement and thanks to my parents. I would sincerely like to thank our Principal __. I would also like to thank my project guide for his valuable support. Last, but not the least, I would like to thank my friends & colleagues for always being there. 4|Page
  • 5. INDEX CONTENTS PAGE NO. Management of change 6 Factors that may cause change in an organization 8 Perspective of change management 12 Participants in change management process 13 Process of organizational change 15 Models of change management 19 Types of changes in an organisation 21 Techniques to manage change in an organization 23 Resistance to change 24 Overcoming resistance to change 27 Benefits of change management 31 The disadvantages of organizational changes 33 Summary and conclusion 35 Bibliography & webliography 36 5|Page
  • 6. MANAGEMENT OF CHANGE Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level. For an organization, change management means defining and implementing procedures and/or technologies to deal with changes in the business environment and to profit from changing opportunities. Definition:  According to Stephen P. Robbins- Change is concerned with making things different. Things must be different because they change constantly.  Change can be defined as – when an organizational system is disturbed by some internal or external force, change frequently occurs. Change as a process, is simply modification of the structure or process of a system. It may be good or bad, the concept is descriptive only." Successful adaptation to change is as crucial within an organization as it is in the natural world. Just like plants and animals, organizations and the individuals in them inevitably encounter changing conditions that they are powerless to control. The more effectively you deal with change, the more likely you are to thrive. Adaptation might involve establishing a structured methodology for responding to changes in the business environment (such as a fluctuation in the economy, or a threat from a competitor) or establishing coping mechanisms for responding to changes in the workplace (such as new policies, or technologies). Terry Paulson, the author of Paulson on Change, quotes an uncle's advice: "It's easiest to ride a horse in the direction it is going." In other words, don't struggle against change; learn to use it to your advantage. Outside environment of the organization is ever changing, even socially and politically we are always on the move, looking for newer and better ways of doing things. The industrial revolution & shareholders and other stakeholders demand in an organization today also presses the organizations to move. Added to this, the globalization and inter-cultural exchange had made us even more susceptible to change than ever before. We are becoming increasingly expected to adopt new techniques, due to the fast additions & changes in technology and even in 6|Page
  • 7. management theories and practices. Competition and changing management focus also makes it inevitable. The strategic emphasis on cost cutting and being innovative and competitive makes it even more important to be open to change rather to resist it. Accepting change whether it is structural, operational, functional, role oriented, compensatory or strategic is important. Change is inevitable in the life of an organization. Change is difficult to define because each organization will face its own challenges and, therefore, its own rationale for change. Equally, each organization has differing resources, company culture and personal dynamics. The leaders of individual organizations have varying aims. Among all differences, one point remains intact and that is Change is the only permanent thing that modern day organizations of varying businesses, sizes and ethnicity have to adopt in order to survive and sustain. A somewhat ambiguous term, change management has at least three different aspects, including: adapting to change, controlling change, and effecting change. A proactive approach to dealing with change is at the core of all three aspects. 7|Page
  • 8. FACTORS THAT MAY CAUSE CHANGE IN AN ORGANIZATION As societies continue to evolve and changing demand creates the need for new products and services, businesses often are forced to make changes to stay competitive. The businesses that continue to survive and even thrive are usually the ones that most readily adapt to change. A variety of factors can cause a business to reevaluate its methods of operation. There are a number of factors both internal and external which affect organizational functioning. Any change in these factors necessitates changes in an organisation. The more important factors are as follows: External Forces Every organization exists in some context; no organization is an island in itself. Each must continually interact with other organizations and individuals- the consumers, suppliers, unions, shareholders, government and many more. Each organization has goals and responsibilities related to each other in the environment. The present day environment is dynamic and will continue to be dynamic. Changes in social, political, economic, technology, and legal environment force organizations to change themselves. Such changes may result in organizational changes like major functions production process, labour-management relations, nature of competitions, economic constraints, organizational methods etc. In order to survive in the changing environment, organization must change. How the change in various environmental, organizations, must change. How the changes in various environmental factors necessitate change in the organization may be seen in following context:Technology: When there is a change in technology in the organizational environment and other organizations adopt the new technology, the organizations under focus become less cost effective and its competitive position weakens. Therefore, it has to adopt new technology, its work structure is affected and a new equilibrium has to be established. Competition: The entrance of a new competitor into a market can cause a business to change its marketing strategy. For example, a small electronics store that was the only game in town might have to change its image in the 8|Page
  • 9. marketplace when a large chain store opens nearby. While the smaller store might not be able to compete in price, it can use advertising to position itself as the friendly, service-oriented local alternative. Social changes: Social changes reflect in terms of people‟s aspirations, the needs, and their ways of working. Social changes have taken place because of the several forces like level of education, urbanization, feeling of autonomy, and international impact due to new information sources. These social changes affect the behavior of people in the organization. There, it is required to make adjustment in its working so that it matches with people. Government Regulations: Changes in government regulations can have an impact on how a company does business. Newly mandated safety procedures can force a factory to change its production process to create a safer work environment. Changes in laws and government regulations have to be mandatorily adhered by the company. Customer Needs: Change is important for any organization because, without change, businesses would likely lose their competitive edge and fail to meet the needs of what most hope to be a growing base of loyal customers. As the world evolves, customer needs change and grow, creating new demand for new types of products and services -- and opening up new areas of opportunity for companies to meet those needs. The Economy: The economy can impact organizations in both positive and negative ways and both can be stressful. A strong economy and increasing demand for products and services will mean that companies must consider expansion that might involve the addition of staff and new facilities. A weak economy can create even more problems as companies find themselves needing to make difficult decisions that can impact employees' salaries and benefits and even threaten their jobs. The ability to manage both ends of the spectrum are critical for organizations that want to maintain a strong brand and strong relationships with customers as well as employees. 9|Page
  • 10. Internal Forces It is not only the changes in external factors, which may necessitate organizational changes; any change in organization‟s internal factors may also necessitate changes. Such a change is required because of two reasons: changes in managerial personnel and deficiency in existing organizational practices. Changes in the managerial personnel: Besides environmental changes there is a change in managerial personnel. Old managers are replaced by new mangers, which necessitated because of retirement, promotion, transfer or dismissal. Each new manager brings his own ideas and way of working in the organization. The relationships, more in the organization. The relationships, more particularly informal ones, changes because of changes in managerial personnel. Moreover, attitude of the personnel change even though there is no changes in them. The result in that an organization has to change accordingly. Deficiency in Existing organization: Sometimes, changes are necessary because of deficiency in the present organizational arrangement and process. These deficiencies may be in the form of unmanageable span of management, large number of managerial levels, lack in co-ordination between various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation between the line and staff, and so on. Nature of the work force: The nature of work force has changed over a passage of time. Different work values have been expressed by different generations. Workers who are in the age group of 50 plus value loyalty to their employers. Workers in their mid thirties to forties are loyal to themselves only. The youngest generation of workers is loyal to their career. The profile of the workforce is also changing fast. The new generation of workers has better educational; they place greater emphasis on human values 10 | P a g e
  • 11. and questions authority of managers. Their behavior has also become very complex and leading them towards organizational goals is a challenge for the managers. The employee turnover is also very high which again put strain on the management. To avoid developing inertia: In many cases, organizational changes take place just to avoid developing inertia or inflexibility. Conscious manager take into account this view of organization that organization should be dynamic because any single method is not the best tool of management every time. Thus, changes are incorporated so that the personnel develop liking for change and there is no unnecessary resistance when major change in the organization are brought about. Growth Opportunities: Change is important in organizations to allow employees to learn new skills, explore new opportunities and exercise their creativity in ways that ultimately benefit the organization through new ideas and increased commitment. Preparing employees to deal with these changes is important. Also, organizations need to do a good job of evaluating employees' capabilities and then taking steps to fill the gaps between current skills and the skills required to respond to growth. 11 | P a g e
  • 12. PERSPECTIVE OF CHANGE MANAGEMENT Change management requires both an individual and an organizational perspective Individual change management Organizational change management Understanding how one person makes a change successfully Understanding what tools we have to help individuals make changes successfully Organizations don't change, individuals do. No matter how large of a project you are taking on, the success of that project ultimately lies with each employee doing their work differently, multiplied across all of the employees impacted by the change. Effective change management requires an understanding for and appreciation of how one person makes a change successfully. Without an individual perspective, we are left with activities but no idea of the goal or outcome that we are trying to achieve. While change happens one person at a time, there are processes and tools that can be used to facilitate this change. Tools like communication and training are often the only activities when no structured approach is applied. When there is an organizational change management perspective, a process emerges for how to scale change management activities and how to use the complete set of tools available for project leaders and business managers. 12 | P a g e
  • 13. PARTICIPANTS IN CHANGE MANAGEMENT PROCESS The quote from Charles Darwin, the famous naturalist and “father of evolution” points out that “survival of the fittest” is not about I.Q., or brute strength, but more about adaptability. Species that are able to adapt quickly and efficiently are the fittest for the long-term. The dinosaurs are a good example of this. Even though the dinosaurs once dominated the earth, were often huge in size and certainly fierce enough, they died out and became extinct because they could not adapt to changes that occurred on Earth. This rule applies to all of us in today‟s world – we must try to adapt to change not only to survive, but to thrive, or grow because of it. “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” The change management process flow diagram shown here offers a simple model for how people typically react to change: Pioneers Pioneers like change and often all things “new” because it‟s new and gives them something to explore. They are generally perceived a little too curious, but they account for a large majority of the new approaches and inventions of the world, even though this may be only 2-5% of the population. Early Adopters Early Adopters pay close attention to the Pioneers, and have the ability to more widely communicate the best of the Pioneer‟s feedback to the rest of the population. The early adopters are a little more cautious about new approaches and 13 | P a g e
  • 14. change than pioneers but not by much. However they will typically make up 1520% of any given population. Followers (sometimes also called Late Adopters) Followers want the things they use to be mainstream before they will accept a change. Usually this is done by watching the early adopter experience over a reasonable amount of time and making sure that any problems and difficulties have been “ironed out”. About 60% of a given population are Followers. Resistors (sometimes also called Laggards) Resistors will generally stay with what they have “always done” even if it is fairly obvious to everyone else that newer ways are better. Some may even actively resist a change to hold on to the familiar or the tried and trusted ways. Resistors typically account for around 15-20% of any given population. 14 | P a g e
  • 15. PROCESS OF ORGANIZATIONAL CHANGE Managing change is itself a term that has at least two meanings. One meaning of managing change refers to the making of changes in a planned and managed or systematic fashion. The aim is to more effectively implement new methods and systems in an ongoing organization. The changes to be managed lie within and are controlled by the organization. However, these internal changes might have been triggered by events originating outside the organization, in what is usually termed “the external environment.” Hence, the second meaning of managing change, which is the response to changes over which the organization exercises little or no control (e.g., legislation, social and political upheaval, the actions of competitors, shifting economic tides and currents, and so on). Change management researchers and practitioners alike typically distinguish between a “knee-jerk” or reactive response and an anticipative or proactive response. So, what is the organizational change process? There is a simple cycle that will help you identify where organizational change seems to be needed and plan its introduction (establish where we are now), set a vision for the future and implement (establish where we are going and how we get there) and just to make sure that we have learned from our experience, review the success of our efforts. Being a natural cycle the process typically goes around again and again, continuously of course. 1. Establish: Where are we now? The first stage in the cycle is to identify “where you are now”. You may feel that this is pretty simple: just list what we do, how we do it and where it fits in and that part of the process is done. However, this is not the end of the story. If think about the analogy of a tree, what you see at first glance are the leaves, branches and at appropriate times, flowers and berries. However, below the surface is another set of structures that holds the visible parts down and gives them their foundation. 15 | P a g e
  • 16. There is a deep-rooted, hidden side of the tree and this applies just as much when thinking about organizational change too. What you will see in a team or a department or even a whole organization is the outward and obvious part of the reality. Tasks, equipment, work flow and procedures are clearly visible, as are the structures between jobs, the connecting “lines” between inputs and outputs. These things are typically managed in a very active way and are discussed regularly by managers. What you will not see are the values, the culture and the operating norms of individual work groups. You will also not see the informal relationships or the loyalties that may exist between people and unless you take a “sideways” look, you may well miss the real motivating factors that affect performance and thereby potentially inhibit or accelerate a future change or transition. 2. Establish: Where are we going? How would you start to identify where you should be and where you are going to better cope in the future (again as an individual, a team or a whole organization) and criteria would you possible use to measure how big the gap is likely to be? Whatever you decide, your change management strategies have to be SMART (specific, measurable, achievable, relevant and time-bound). In other words, you need to set very clear objectives. A simple and practical way of setting objectives about where you are going is to use the following: What, specifically, is the outcome we want? By when? How will we know when we have got there? 16 | P a g e
  • 17. 3. Establish: How do we get there? Your overall plan in the previous step is an overall organizational change strategy or describes the broad intentions for getting to where in the future you may want to be. However, “what” needs to change is only one part of the equation and you now need to add “how” the change is to be carried out. How we get to the future is the “means” of getting you there or the tactics that underpin the overall change strategy. The simple task here therefore is to put the “flesh on the bones” of you overall change plan and describe each step and milestone along the way very carefully. 4. Review success In this final step in the cycle, we look back at the plan we originally established and its actual implementation and determine where better strategies could have been employed, so that this can be taken into account next time a major change comes along. There are many change management tools and change planning techniques available to managers. However, there are some common factors that apply whichever techniques you use. The most important and most difficult factor relates to the impact of change on individuals and on the emotional well-being of the people. It is fundamental to effective organizational change management that people experience the absolute minimum trauma and distress. This is not just so that you seem to be a caring boss or executive team; it is effective management that works towards change with minimal disruption to systems and output. Two other key points to consider are: Involve other people so they can help plan the journey, see what the issues are and share ownership of the process If you can‟t involve them all, communicate as you have never done before, to avoid speculation and rumor, and to raise overall levels of cooperation and commitment. If people are with you in the planning, they are more likely to support you in the implementation and monitoring. 17 | P a g e
  • 18. Determining the right organizational change strategy Once we are clear about the nature of the change that we are about to face, it is always tempting to rush out and take action, just to get things moving. Whilst we shouldn‟t stifle our enthusiasm to deal with it, it is also critical to ensure that our efforts are as focused as possible. In order to choose the most appropriate change strategy you need to consider where you are starting out from in terms of a range of factors including: Your present position: What is the current state or situation as we understand it? Available resources: Have we got enough resources to cope for as long as necessary? Time available: Some organizations fail to factor in the degree of change already under way when planning the timing of another significant change. Personal preference: Some changes may not fit the expectations, abilities needs, wants and desires of existing employees, suppliers or customers. 18 | P a g e
  • 19. MODELS OF CHANGE MANAGEMENT Lewin’s Change Management Model This change management model was created in the 1950s by psychologist Kurt Lewin. Lewin noted that the majority of people tend to prefer and operate within certain zones of safety. He recognized three stages of change: 1. Unfreeze – Lewin explains that people‟s mindsets are “frozen” around the current approach (“we‟ve always done it that way”). So first, we have to dismantle those existing structures that reinforce the status quo – what he called the process of “unfreezing,” showing, for example, how or why something isn‟t working well, creating an awareness of a better possibility. 2. Change – we have to actively introduce the change – we can‟t simply let go of something secure and try to grasp nothing; there must be a new way, new approach, or new structure to grab hold of. We also have to expect that the change experience will typically be confusing and uncertain. We don‟t know how things work, processes are unfamiliar, and unexpected challenges or issues will confront us. Once change is initiated, the company moves into a transition period, which may last for some time. Adequate leadership and reassurance is necessary for the process to be successful. 3. Refreeze – After change has been accepted and successfully implemented, the company becomes stable again, and staff refreezes as they operate under the new guidelines. While this change management model remains widely used today, it is takes time to implement. Of course, since it is easy to use, most companies tend to prefer this model to enact major changes. 19 | P a g e
  • 20. Kubler-Ross: Stages of Change Elisabeth Kubler-Ross became well-known for her work on grief, especially her 1969 book, “On Death and Dying,” in which she introduced the stages people typically go through when grieving a loss – which can include loss of familiar ways of working, colleagues, or responsibilities. Even when there is something new to work with and new opportunities, it is typical for us to grieve what we‟ve had to let go of. Kubler-Ross identified five stages of grief: Denial…Anger…Bargaining…Depression…Acceptance. However, later psychologists not only saw her work to be applicable to any major change, but added other steps in the process, such as the initial “shock” phase and the addition of an “Testing/Experiment” phase. These extra steps, and some more commonly used change-coping terms are shown in the diagram below: 20 | P a g e
  • 21. TYPES OF CHANGES IN AN ORGANISATION Planning No organization can be prepared for every change. Unforeseeable events will occur, catching even the most prepared organizations by surprise. However, most changes are more predicable. When sudden change does occur, organizations typically react instinctively and in a disorganized manner. That is why planning and preparation are so important, allowing organizations to react proactively. Organization Change Most changes in an organization are minor and only require simple adjustments. A new manager may need to be trained or a different product produced or service offered. More significant changes, such as restructuring the organization or working in collaboration with another partner, require organization-wide change. Such changes take time to both plan and monitor, often necessitating a change in the organization‟s culture. For major organizational changes, it is often costeffective to hire an outside firm to develop and monitor the restructuring. Transformational Change When an organization discovers that its structure and culture are not working well, or no longer reflect its needs, transformational change is usually needed. A company may want to change from a top-down, hierarchical structure to a more cooperative structure. Or it may also want a more flat structure that relies largely on departmental decision making. Again, this type of change will take a great deal of planning and time to initiate and monitor. It is also important to review the existing structure and culture to make sure they are causing the problem before investing the time and money needed to change them. Remedial Change This type of change is designed to fix an existing problem, such as poor productivity, employee burnout or a large budget deficit. To do so, the cause of the problem must be identified. A common mistake is to assume causation and start trying to fix the problem right away. As with any other change, the root cause of the problem needs to be identified before any changes are initiated. Sometimes, the 21 | P a g e
  • 22. entire organizational structure will have to be changed. At other times, a new program or change in leadership may be required. Strategic Changes When a company must drastically adapt to external factors, it may undergo a major strategic change. Strategic organizational changes are usually quite transformative, as they typically include major adjustments or complete upheavals of the current way the company operates. For example, when a company changes its fundamental approach of doing business, such as changing from an in-person retail environment to a heavy web presence, it is considered a strategic change. Other strategic changes include changing the target market, level of global activity and long-time partnerships. Process Changes Process changes are usually an attempt to improve overall workflow efficiency and productivity. They may include implementing technology changes, such as robotics in manufacturing, or requiring sales teams to begin documenting and reporting activities in a new way. Another example of this type of change is when a grocery store chain implements self-scanning checkout counters to improve customer processing times. Companies that implement these types of changes are more successful when the new process is proposed to employee focus groups. People Changes People changes can be large-scale or incremental. Large-scale people changes include replacing the top executives with new employees in order to change the entire company culture. Smaller-scale or incremental people changes may include sending management personnel to team-building workshops and classes. People changes may be planned or unplanned, and they can impact the overall employee attitudes, behaviors and performances, according to Free Management Library. 22 | P a g e
  • 23. TECHNIQUES TO MANAGE CHANGE IN AN ORGANIZATION Businesses and organizations must be able to adapt to changes in the marketplace, world, political climate and other areas. Managing change can be difficult, because most people become accustomed to one way of doing things, and change can cause stress for individuals. You can use some proven techniques to manage change in an organization and help to diminish the stress and potentially damaging effects on the organization and its members, employees and customers. Introduce Changes Gradually One effective technique for managing change in an organization is to introduce changes gradually. By phasing in new techniques, procedures or responsibilities over time, the shock of the new will be lessened. Focus on Training Another effective method of reducing the stress of change in an organization is to focus on training. Determine what new skills will be necessary to properly implement the desired changes, and train, train, train. Make sure people feel confident and comfortable with the new roles they are playing, and they will be less likely to become disgruntled or discouraged by their new responsibilities. By creating a training plan ahead of time, you will be able to bring people up to speed and help make the transition to their new roles more seamless. Communicate One important method for managing change in an organization is to communicate. Have open meetings to discuss the new requirements. Network with employees individually and as a group to get input on what they feel could be done to effectively change the organization with a minimum of drama and stress. Keep an open communication structure throughout the changing process so that individuals can come to you with questions or concerns, without feeling as though they are being bothersome or out of line. 23 | P a g e
  • 24. RESISTANCE TO CHANGE Despite the potential positive outcomes, change is often resisted at both the individual and the organisational level. Resistance to change – or the thought of the implications of the change – appears to be a common phenomenon. There is the psychological dimension of „future shock‟, and that people are naturally wary of change. „Among many there is an uneasy mood – a suspicion that change is out of control.‟ Resistance to change can take many forms and it is often difficult to pinpoint the exact reasons. The forces against change in work organisations include: ignoring the needs and expectations of members; when members have insufficient information about the nature of the change; or if they do not perceive the need for change. Resistance can be on Individual level or organizational level. Individual resistance Some common reasons for individual resistance to change within organisations include the following: ■ Selective perception: People‟s interpretation of stimuli presents a unique picture or image of the „real‟ world and can result in selective perception. This can lead to a biased view of a particular situation, which fits most comfortably into a person‟s own perception of reality, and can cause resistance to change. For example, trade unionists may have a stereotyped view of management as untrustworthy and therefore oppose any management change, however well founded might have been the intention. ■ Habit: People tend to respond to situations in an established and accustomed manner. Habits may serve as a means of comfort and security, and as a guide for easy decision-making. Proposed changes to habits, especially if the habits are well established and require little effort, may well be resisted. However, if there is a clearly perceived advantage, for example a reduction in working hours without loss of pay, there is likely to be less, if any, resistance to the change, although some 24 | P a g e
  • 25. people may, because of habit, still find it difficult to adjust to the new times. ■ Inconvenience or loss of freedom: If the change is seen as likely to prove inconvenient, make life more difficult, reduce freedom of action or result in increased control, there will be resistance. ■ Economic implications: People are likely to resist change that is perceived as reducing either directly or indirectly their pay or other rewards, requiring an increase in work for the same level of pay or acting as a threat to their job security. People tend to have established patterns of working and a vested interest in maintaining the status quo. ■ Fear of the unknown: Changes which confront people with the unknown tend to cause anxiety or fear. Many major changes in a work organisation present a degree of uncertainty, for example the introduction of new technology or methods of working. A person may resist promotion because of uncertainty over changes in responsibilities or the increased social demands of the higher position. ■ Security in the past: There is a tendency for some people to find a sense of security in the past. In times of frustration or difficulty, or when faced with new or unfamiliar ideas or methods, people may reflect on the past. There is a wish to retain old and comfortable ways. For example, in bureaucratic organisations, officials often tend to place faith in well-established („tried and trusted‟) procedures and cling to these as giving a feeling of security. ■ Security in the past: There is a tendency for some people to find a sense of security in the past. In times of frustration or difficulty, or when faced with new or unfamiliar ideas or methods, people may reflect on the past. There is a wish to retain old and comfortable ways. For example, in bureaucratic organisations, officials often tend to place faith in well-established („tried and trusted‟) procedures and cling to these as giving a feeling of security. Organisational resistance Although organisations have to adapt to their environment, they tend to feel comfortable operating within the structure, policies and procedures which have been formulated to deal with a range of present situations. To ensure operational effectiveness, organisations often set up defences against change and prefer to 25 | P a g e
  • 26. concentrate on the routine things they perform well. Some of the main reasons for organisational resistance against change are as follows: ■ Organisation culture: Culture of an organisation develops over time and may not be easy to change. The pervasive nature of culture in terms of „how things are done around here‟ also has a significant effect on organisational processes and the behaviour of staff. An ineffective culture may result in a lack of flexibility for, or acceptance of, change. ■ Maintaining stability: Organisations, especially large-scale ones, pay much attention to maintaining stability and predictability. The need for formal organisation structure and the division of work, narrow definitions of assigned duties and responsibilities, established rules, procedures and methods of work, can result in resistance to change. The more mechanistic the structure, the less likely it is that the organisation will be responsive to change. ■ Investment in resources: Change often requires large resources that may already be committed to investments in other areas or strategies. Assets such as buildings, technology, equipment and people cannot easily be altered. For example, a car manufacturer may not find it easy to change to a socio-technical approach and the use of autonomous work groups because it cannot afford the cost of a new purpose-built plant and specialised equipment. ■ Past contracts or agreements: Organisations enter into contracts or agreements with other parties, such as the government, other organisations, trade unions, suppliers and customers. These contracts and agreements can limit changes in behaviour – for example, organisations operating under a special licence or permit, or a fixed-price contract to supply goods/services to a government agency. ■ Threats to power or influence. Change may be seen as a threat to the power or influence of certain groups within the organisation, such as their control over decisions, resources or information. For eg. managers may resist the introduction of quality circles or worker-directors because they see this as increasing the role and influence of non-managerial staff, and a threat to the power in their own positions. Where a group of people have, over a period of time, established what they perceive as their „territorial rights‟, they are likely to resist change. 26 | P a g e
  • 27. OVERCOMING RESISTANCE TO CHANGE Problem of overcoming resistance to change can be handled at two levels:1. At the individual level. 2. At the group level through group dynamics. 1. Efforts at the Individual Level The management can use the following strategies to overcome resistance by the people and to introduce changes successfully: Participation and Involvement: Individuals often find it difficult to accept changes. Prior to making a change, all those persons who are going to the affected by the change, can be brought into the decision making process. Their doubts and objectives should be removed to win their cooperation. Getting opinions out in the open, so that they are looked at and evaluated is an important trust building task. This involvement of the workers can overcome resistance, obtain personal commitment and increase the quality of the change decisions. Effective Communication: Inaccurate information can be a reason for the resistance to change. An appropriate communication program can help in overcoming this resistance. Workers can give necessary education about the change, its process and its working through training class, meeting and conferences. The reasons about change must be communicated very clearly and without ambiguity. Communication can help dissipate some fear of unknown elements. Management should also see that there is a two way communication between the management and workers so that the so former comes to know about the reactions of the latter directly without delay. Facilitation and support: Experts can offer facilitation and supportive efforts to overcome resistance. Facilitative support means removing physical barriers in implementing change by providing appropriate training, tools, machinery etc. Supportive efforts include listening, providing guidance, allowing time off after a difficult period and providing emotional support. 27 | P a g e
  • 28. Emotional support is provided by showing personal concern to the employees during periods of stress and strain. The drawback of this method is that it is time consuming and expensive. Leadership: Leadership plays an important role in overcoming resistance to change. A capable leader can reinforce a climate of psychological support for change. Greater the prestige and credibility of the person who is acting as a change agent, the greater will be the influence upon the employees who are involved in the change process. A strong and effective leader can exert emotional pressure on his subordinates to bring about the desired change. Negotiation and Agreement: Negotiation and Agreement technique is used when costs and benefits must be balanced for the benefit of all concerned parties. If people or groups are losing something significant in the change and if they have enough power to resist strongly. Negotiation before implementation can make the change go much more smoothly, even if at the later stages if some problems arise, the negotiated agreement can be referred to. Manipulation and Co-optation: This method is used in the situation, where other methods are not working or are not available. Managers can resort to manipulation of information, resources and favors to overcome resistance. Or they can resort to co-optation which means to co-opt an individual, perhaps a key person with in a group, by giving him a desirable role in designing or carrying out the change process. This technique has some doubtful ethics and it may also backfire in some cases. Coercion: Managers may resort to coercion if all other methods fail or for some reason are inappropriate. Coercion may be in form of explicit or implicit threats involving loss of jobs, lack of promotion and the like. Managers sometimes dismiss or transfer employees who stand in the way of change. Coercion can seriously affect employee‟s attitudes and have adverse consequences in the long run. Timing of Change: Timing of introduction of change can have a considerable impact on the resistance. The right time will meet less resistance. Therefore, management must be very careful in choosing the time 28 | P a g e
  • 29. when the organizational climate is highly favorable to change. An example of right time is immediately after a major improvement in working conditions. 2. Efforts at the Group Level A group is a cluster of persons related in some way by common interests over a period of time. Members of the group interact with each other and develop group cohesiveness among themselves. That is why although change can be obtained individually; it is more meaningful if it is done through group. Therefore, management should consider the group and not the individual as the basic unit of change. Group dynamics offer some basic help in the regard. Darwin Cartwright has identified the following characteristics of group as a means of overcoming resistance to change: If both the change agent and the people target for change belong to the same group, the role of group is more effective. If the people have more cohesiveness and strong belonging to the group, change is easier to achieve. The more attractive the group is to the numbers, the greater is the influence of the group to accept or resist a change. Group can exert pressure on those factors of the members which are responsible for the group being attractive to the members. Normally attitudes, values and behaviour are more common factors determining the group attractiveness. The degree of prestige of a group, as interpreted by the members will determine the degree of influence the group has over its members. If any attempt is made to change any individual or some individuals who deviates the group norms there is likelihood of the change attempt being resisted by the group. Thus, the management should consider the group as the basic unit of change. Group interactions should be encouraged; it should be provided full information by 29 | P a g e
  • 30. the management. The management should also explain the rationale of change and try to convince that the interests of the group members would not be adversely affected. Group dynamics also help in providing various training programmers for accepting and implementing change. 30 | P a g e
  • 31. BENEFITS OF CHANGE MANAGEMENT The greatest importance of change management is that it provides conceptual scaffolding for the people, the process, and the organisation implementing change. It is a framework used to support and understand the change and its effect on the organization and its people. Benefits of change management to the organization: Change is a planned and managed process. The benefits of the change are known before implementation and serve as motivators and assessment of progress The organization can respond faster to customer demands Helps to align existing resources within the organization Change management allows the organization to assess the overall impact of a change Change can be implemented without negatively effecting the day to day running of business Organizational effectiveness and efficiency is maintained or even improved by acknowledging the concerns of staff The time needed to implement change is reduced The possibility of unsuccessful change is reduced Employee performance increases when staff feel supported and understand the change process Increased customer service and effective service to clients from confident and knowledgeable employees Change management provides a way to anticipate challenges and respond to these efficiently An effective change management process lowers the risk associated with change Managed costs of change: change management helps to contain costs associated with the change Increased return on investment (ROI) 31 | P a g e
  • 32. Creates an opportunity for the development of "best practices", leadership development, and team development Benefits of change management for individuals / staff: Effective change management supports a smooth transition from the old to the new while maintaining morale, productivity, and even company image Provides management and staff support for concerns regarding changes An efficient change management process creates the correct perception of the change for staff and public Helps to plan efficient communication strategies Minimizes resistance to change Improves morale, productivity and quality of work Improves cooperation, collaboration and communication A carefully planned approach to change reduces stress and anxiety and encourages people to stay loyal to the organization Increased employee acceptance of the change Personal loss/gain to individuals is acknowledged and addressed Change management reduces disruptive aspects and emphasises positive opportunities in the change process Further benefits of change management: Careful planning helps to ensure that the change process is started and managed by the right people at the right time Planned change management allows you to include specific tasks and events that are appropriate for each stage in the change process Change management ensures that customers, suppliers and other stakeholders understand and support the change 32 | P a g e
  • 33. THE DISADVANTAGES OF ORGANIZATIONAL CHANGE Change in business is good, but it's seldom easy and can often be expensive. Managers are often drawn to change by imagining the possibilities and positive impact it can have on their organization. Before launching an idea, however, spend a little time wrestling with the costs and disadvantages also a part of the change. Change Might Not Equal Progress Many companies emphasize a culture of continuous improvement. While never being satisfied with the status quo can drive excellence in your organization, there is some wisdom in the old adage, "If it ain't broke, don't fix it." Mistaking change for progress is similar to the common problem of mistaking activity for productivity. Every organization can be improved, no matter how well it is performing, but a manager should always ask the question, "How is this proposed change going to improve my organization's ability to achieve our key goals?" Cost-to-Benefit Ratio Change is never free. Every change also has opportunity cost. Changing the oil in your car takes time and materials, which cost money. Changing the phone system in your building costs time, money and training; spending your equipment budget on new computers means you have to wait to upgrade the phones. And there are intangible costs such as morale and customer satisfaction during the adjustment period. Determine whether the cost of a change is outweighed by the benefit that change will create. Internal Resistance According to an study on organizational change, the top two reasons people resist change are lack of knowledge about coming changes and fear of the unknown. You can expect some level of resistance to any change, no matter how small or how much benefit it might promise. The key tools for managing this problem are complete, honest, and timely communication with your work force, clear communication of the value of the change, and patience with your team as they go through an inevitable adjustment phase. 33 | P a g e
  • 34. Choosing the Wrong Solution Organizations often initiate change because they have a problem that needs to be solved. But it's dangerous to assume you know the root cause of a problem and implement a solution prematurely. Sometimes management doesn't sufficiently investigate the true cause of a problem, the stakeholders affected by the solution, and potential unintended consequences of change. This approach creates all the costs of change without the intended benefit, plus it can create problems in areas that were functioning properly. 34 | P a g e
  • 35. SUMMARY AND CONCLUSION Can change ever really be managed or controlled? After all, change just inevitably happens doesn‟t it? Sometimes it‟s very slow and almost unnoticeable, and sometimes it happens at breakneck speed and we are suddenly caught up in the whirlwind. It may therefore be more accurate to say then that we can try to better plan for change, small and large-scale, or to manage ourselves to be more prepared for change when it does come along. To do this (even though we can never be fully prepared for all eventualities of course), we need to be much more aware of what could happen as we engage with life, at home or at work (as opposed to developing a “let‟s do as little as possible” approach in the hope that we may be able to “dodge” any changes when they come along). Such awareness may take many forms, such as reading more widely and eclectically, talking with friends and colleagues on broader topics than you may be used to talking about, listening to information from various sources (perhaps with a new source being added each month), researching on the internet widely to educate yourself and any other activities that can alert you to what others have experienced and might apply to your own situation in the short or the longer term. The simple idea here is not that you will necessarily be ready for a particular change but that you will increase your overall levels of mental alertness and adaptability when you get caught up in future change. Today change is the essential of survival and a way of carrying out your business. Every business firm whether big or small has to change with time or it will perish. This change along with it brings insecurities and pain that forces human beings or individuals to come out of their comfort zones to zone of uncomfortable debate and this leads to resistance to change. How effectively and efficiently the top management and leadership within the organization address these issues and how well are they prepare to handle the resistance will decide the faith of the organization and its success in implementing change. The importance of good communication system and the role it plays in make change process smooth and less painful cannot be undermined. “It is not the strongest of the species that survive, nor the most intelligent, but the most responsive to change.” 35 | P a g e
  • 36. BIBLIOGRAPHY & WEBLIOGRAPHY BOOK-Strategic Management- Michael Vaz WEBSITES: http://blog.readytomanage.com/organizational-change-management-strategies/ http://smallbusiness.chron.com/change-in-organizations/ http://www.implementationscience.com/content/4/1/67 http://www.change-management-coach.com/what-is-change-management.html http://www.change-management-coach.com/benefits-of-change-management.html http://www.methodframeworks.com/article/change-management-processaccomplishing-change-and-making-it-stick/index.html 36 | P a g e