education

1. 1

2.  Definition
Change management is an aspect of management
focusing on and ensuring that the firm responds to
the environment in which it operates
2

3. 3

4. 4

5.  Change is the result of dissatisfaction with
the present strategies
 It is essential to develop a vision for a better
alternative
 It is necessary to develop strategies to
implement change
 Resistance to the proposals at some stage
5

6. 6

7. 7

8.  Change often arises from:
› The development of new products
› The entry of new competition
› Changes in consumer tastes & preferences
› Changes in the cultural, political, economic,
legal and social framework
› Changes in technology leading to technological
obsolescence or new product opportunities
8

9.  Change affects all aspect of people
management
› Organizational structure
› Personnel of teams
› Process
› Location
› Work load
› Work role
› Work practices
› Supervision
› Work teams
9

10. 10

11. Forces for change in business –
11
 Internal forces
 To increase profitability
 To increase efficiency
 Conflict between departments
 To change organizational culture
 External forces
 Customer demand
 Competition
 Cost of inputs (Direct materials, direct labor, and factory
overhead)
 Tax changes
 New technology
 Political
 Technological obsolescence

12. 12

13. 13

14.  Self interest
 Misunderstanding
 Low tolerance of change
 Disagreement over the need for change
14

15. 15
 Tradition and set ways
 Loyalty to existing relationships
 Failure to accept the need for change
 Insecurity
 Preference for the existing arrangements
 Break up of work groups
 Different person ambitions
 Fear of:
 Loss of power
 Loss of skills
 Loss of income
 The unknown
 Inability to perform as well in the new situation

16.  Change is often resisted because of failures
in the way it is introduced
 Failure to explain the need for change
 Failure to provide information
 Failure to consult, negotiate and offer
support and training
 Lack of involvement in the process
 Failure to build trust and sense of security
 Poor employee relations
16

17.  Change can produce positive benefits for the
individual
 Opportunities for personal change and
development
 Provides a new challenge
 Reduces the boredom of work
 Opportunity to participate and shape the
outcome
17

18. O
R
G
A
N
I
Z
A
T
I
O
N
18

19. 19
Example Force Field Analysis

20. 20

21.  This model defines three stages in the
process of change:
› Unfreezing
› Change
› Refreezing
21

22. 22

23. › Environmental analysis.
› Set out the strengths and weaknesses of the organization
› Current provisions
› Resources
› Identify the change required
› Determine the major issues
› Identify and assess the key stakeholders
› Win the support of key individuals
› Identify the obstacles
› Determine the degree of risk and the cost of change
› Understand why change is resisted
› Recognize the need for change, identify current position
devise a suitable method
23

24.  Building the vision
› Develop a clear vision
› Make it people clear about what a change
involves and how they are involved in it
› What is involved
› What is the proposed change
› Why should we do it
› What the major effects will be
› How we can manage the change
24

25.  Plan the change
› Devise appropriate strategies to introduce change
› Design the change
› Identify the significant steps in the change process
› Discuss the need for change and the full details of what is
involved
› Allow people to participate in planning change
› Communicate the plan to all concerned
› Produce a policy statement
› Devise a sensible time scale
› Produce action plans for monitoring the change
› Allow people to participate in planning change
› Get all parties involved in and committed to the change
› Inspire confidence by forestalling problems and communicating
regularly
› Devise a sensible time scale for implementation of change
› Anticipate the problems of implementation
› Understand why change is resisted
25

26.  Implementing the change
› Check on and record progress
› Make sure that change is permanent
› Evaluate the change
› Improve on any weak areas
› Overcome resistance
› Involve all personnel affected
› Keep everyone informed
› Devise an appropriate reward system
› Be willing to compromise on detail
› Ensure that strategies are adaptable
› Select people to champion change
› Provide support and training
› Monitor and review
26

27.  Step change
› Dramatic or radical change in one shot
› Radical alternation in the organization
› Gets it over with quickly
› May require some coercion
27

28.  Incremental change
› Ongoing piecemeal change which takes place as
part of an organization’s evolution and
development
› Tends to be more inclusive
28

29. 29

30.  Allowing too much complexity
 Failing to build a substantial coalition
 Failing to understand the need for a clear vision
 Failure to clearly communicate that vision
 Permitting roadblocks against that vision
 Not planning for short term results and not
realizing them
 Declaring victory too soon
 Failure to anchor changes in corporate culture
30