Odc managing_change


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Odc managing_change

  1. 1. Managing Change
  2. 2. <ul><li>It is not the strongest of the species </li></ul><ul><li>that survives, nor the most intelligent, </li></ul><ul><li>but the one most responsive to </li></ul><ul><li>change. </li></ul><ul><li>- Charles Darwin </li></ul>
  3. 3. There is nothing in a caterpillar that tells you it is going to be a butterfly -Buckminster Fuller Every act of creation is first of all an act of destruction - Picasso
  4. 4. Organizational Change <ul><li>“ The illiterate of the 21 st century will not be those who cannot read or write, but those who cannot learn, unlearn, and relearn.” </li></ul><ul><li>Alvin Toffler </li></ul><ul><li>What is he saying to us? We must learn how to change to increase our knowledge. </li></ul>
  5. 5. Changing the face can change nothing but facing the change can change everything.
  6. 6. Organizational Change <ul><li>“ The trouble with the future is that it usually arrives before we’re ready for it.” Arnold H. Glasow </li></ul>
  7. 7. Organizational Change Management <ul><li>What is Organizational Change? </li></ul><ul><ul><li>It is generally considered to be an organization-wide change, as opposed to smaller changes such as adding a new person. </li></ul></ul><ul><ul><li>It includes the management of changes to the organizational culture, business processes, physical environment, job design / responsibilities, staff skills / knowledge and policies / procedures. </li></ul></ul><ul><ul><li>When the change is fundamental and radical, one might call it organizational transformation </li></ul></ul>
  8. 8. Organizational Change <ul><li>Change is the single most important factor in business today: </li></ul><ul><ul><li>every business is an ongoing source of change. </li></ul></ul><ul><ul><li>every professional discipline is a process of change. </li></ul></ul><ul><ul><li>every fundamental business principle directs us to change. </li></ul></ul>
  9. 9. Organizational Change <ul><li>Every market force (customers, competitors, technology, regulations, distribution channels, suppliers, etc.) creates change that forces our change in response. </li></ul><ul><li>Globalization of markets demands globalization of businesses. </li></ul>
  10. 10. Organizational Change <ul><li>Change with times, or get left behind. </li></ul><ul><li>You will be hired to bring about change; not to just maintain the status quo. </li></ul><ul><li>You will need to become a change agent. </li></ul>
  11. 11. Why do we need to change? <ul><li>Because: </li></ul><ul><li>We are living in a new economy which is: </li></ul><ul><li>POWERED BY TECHNOLOGY </li></ul><ul><li>FUELED BY INFORMATION; and </li></ul><ul><li>DRIVEN BY KNOWLEDGE </li></ul>
  13. 13. Organizational Change Management <ul><li>What provokes Organizational Change? Examples: </li></ul><ul><ul><li>Management adopts a strategy to accomplish some overall goal </li></ul></ul><ul><ul><li>May be provoked by some major outside driving force, e.g., substantial cuts in funding </li></ul></ul><ul><ul><li>An Organization may wish to evolve to a different level in their life cycle, e.g. from traditional government to e-government </li></ul></ul><ul><ul><li>Transition to a new chief executive can provoke organization-wide change when his or her new and unique personality pervades the entire organization </li></ul></ul>
  14. 14. Forces for change <ul><li>EXTERNAL FORCES </li></ul><ul><li>INTERNAL FORCES </li></ul>
  15. 15. Forces for change <ul><li>EXTERNAL FORCES: </li></ul><ul><li>Competition Laws and Regulations </li></ul><ul><li>New Technologies </li></ul><ul><li>Labour Market shifts </li></ul><ul><li>Business cycles </li></ul><ul><li>Social change </li></ul>
  16. 16. Forces for change <ul><li>INTERNAL FORCES: </li></ul><ul><li>Strategy modifications </li></ul><ul><li>New equipments </li></ul><ul><li>New processes </li></ul><ul><li>Workforce composition </li></ul><ul><li>Job restructuring </li></ul><ul><li>Compensation and benefits </li></ul><ul><li>Labour surpluses and shortages </li></ul><ul><li>Employee attitutde </li></ul>
  17. 17. Organizational Change Management <ul><li>Why is Organization-wide Change difficult to accomplish? </li></ul><ul><ul><li>Organizations go through four stages on the way to achieving their strategic objective: </li></ul></ul><ul><ul><ul><li>Denial </li></ul></ul></ul><ul><ul><ul><li>Resistance </li></ul></ul></ul><ul><ul><ul><li>Exploration </li></ul></ul></ul><ul><ul><ul><li>Renewal </li></ul></ul></ul>
  18. 18. Organizational Change Management <ul><ul><li>As the Organization works its way through these stages, there can be a negative impact on Productivity. This is referred to as the Productivity Dip and is portrayed on the next slide. </li></ul></ul>
  19. 19. Organizational Change Management
  20. 20. Organizational Change Management <ul><ul><li>Minimizing the size and duration of this Productivity Dip is dependent upon quickly creating acceptance to the strategic plan and all that it entails. </li></ul></ul><ul><ul><li>But gaining that acceptance is often a difficult process, as some employees will, for various reasons, seek to block the change </li></ul></ul>
  21. 21. TYPES OF CHANGE <ul><li>Happened Change </li></ul><ul><li>Anticipatory Change </li></ul><ul><li>Reactive Change </li></ul><ul><li>Incremental Change </li></ul><ul><li>Directional Change </li></ul><ul><li>Operational Change </li></ul><ul><li>Strategic Change </li></ul><ul><li>Transformational Change </li></ul><ul><li>Planned Change </li></ul><ul><li>Fundamental Change </li></ul>
  22. 22. Happened Change: This is rather unpredictable change. It occurs when an org. reaches a plateau in its life-cycle and falls prey to unwieldy demands from the environment. It is out of direct control. For example: currency devaluation, over which it has no control.
  23. 23. Anticipatory Change: Change carried out in expectation of an event or a series of events is called anticipatory change.
  24. 24. Reactive Change These changes are attempted when the demand for a company’s product/service registers an increase or decrease, or a problem/crises occurs or develops. Incremental Change These changes have evolved over a long period of time and have not happened overnight.
  25. 25. Directional Change A change in direction may become imperative for an org. due to severe competition or regulatory shifts in govt. policy and control. (for example: on pricing, import/export restrictions etc.)
  26. 26. <ul><li>Operational Change </li></ul><ul><li>This is necessitated when an org. needs to improve the quality of its products or services due to external competition, customers’ changing requirements and demands. OC may include </li></ul><ul><li>Bringing in new technology; </li></ul><ul><li>Reengineering the work processes; </li></ul><ul><li>Quality management; </li></ul><ul><li>Better distribution and delivery of products; and </li></ul><ul><li>Enhancing interdepartmental coordination. </li></ul>
  27. 27. Strategic Change It can be a strategic change which may take into account an organization’s overall management philosophy in an attempt to create an organization which is less hierarchical, is leaner, flexible, decentralized etc.
  28. 28. Transformational Change Such a change involves the entire or a greater part of the organization. It could be a change in the size, structure, ownership etc. TC takes time to occur and will not happen unless people are uncomfortable in the current state and think and feel change - a must.
  29. 29. Planned Change PC or DC is undertaken to improve upon the current way(s) of operating. It is calculated change. For example: downsizing. Fundamental Change This entails a redefinition of the current purpose or mission of the organization. It may be necessitated by drastic changes in the business environment, the failure of the current corporate leader, problems with employee morale etc.
  30. 30. Attitudinal Continuum <ul><li>Aggressive Resistance </li></ul><ul><li>Complaints about and Criticism of the Change Programme; Non-cooperation in Change Implementation or Withdrawal, and Even Planned Sabotage </li></ul><ul><li>Passive Resistance </li></ul><ul><li>Spreading of Rumors, Reluctance to Cooperate, Delaying Change Implementation </li></ul><ul><li>Neutral </li></ul><ul><li>May tilt to the positive or negative side depending on what is advantageous and how those who propagate or oppose the change influence them. </li></ul><ul><li>Passive Acceptance </li></ul><ul><li>They understand the need for change but may not fully accept the ways it is implemented. </li></ul><ul><li>Active Involvement </li></ul><ul><li>Gets reflected in the words and actions. They also try to convince others of the benefits of change </li></ul>
  31. 31. Change Process Restraining Forces Driving Forces Desired State Status Quo Present State
  32. 32. Response to Change and its Consequences <ul><li>Some people ignore the </li></ul><ul><li>necessity for change </li></ul><ul><li>Will be run-over by the change </li></ul><ul><li>Some accept the necessity but </li></ul><ul><li>have fear of leaving status quo </li></ul><ul><li>They live uselessly in the past </li></ul><ul><li>Some accept the necessity but do </li></ul><ul><li>not know how to change or how </li></ul><ul><li>to go about it </li></ul><ul><li>They continue committing </li></ul><ul><li>mistakes </li></ul><ul><li>Some accept the necessity and </li></ul><ul><li>pretend to change </li></ul><ul><li>They deceive themselves and </li></ul><ul><li>create problems for others also </li></ul><ul><li>Some accept the necessity and </li></ul><ul><li>change themselves as per the </li></ul><ul><li>requirements </li></ul><ul><li>They become the masters of their </li></ul><ul><li>destiny </li></ul>
  33. 33. Characteristics of Inactive Person <ul><li>Always see change as a Threat and react with fear </li></ul><ul><ul><li>Economic : Loss of Job </li></ul></ul><ul><ul><li>Psychological : Loss of Security </li></ul></ul><ul><ul><li>Social: Loss of Power and Authority </li></ul></ul><ul><li>They justify their actions by relying on old tested methods and procedures </li></ul><ul><li>They doubt their ability to change </li></ul>
  34. 34. Characteristics of Reactive Person <ul><li>Likes to maintain Status quo </li></ul><ul><li>Are the first to resist any sort of change within the organisation </li></ul><ul><li>Prefer risk-avoidance tactics </li></ul><ul><li>Conformity to Rules and Regulations is their Protective Device </li></ul><ul><li>Do not want to measure their work against anyone else’s </li></ul><ul><li>Like to Follow directions from others </li></ul>
  35. 35. Characteristics of Proactive Person <ul><li>They feel secure in their jobs </li></ul><ul><li>Confident to handle whatever comes to them </li></ul><ul><li>They see change as a challenge not threat </li></ul><ul><li>They face the “change” and use it to increase their productivity </li></ul><ul><li>Their morale is usually high because they trust the leadership that has instituted the change </li></ul><ul><li>They work best when they are challenged and motivated to deal with conditions that stretch their abilities and move them outside their comfort zones </li></ul>
  36. 36. Thank You