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ORGANISATION CHANGE
MANAGEMENT
( BM209)
BY: WILLIAM MAKUMBE
LECTURER: DEPARTMENT OF
MANAGEMENT STUDIES
+ 263 713 803 275
MAKUMBE.WILLIAM@GMAIL.COM
INTRODUCTION
THIS MODULE IS OFFERED TO STUDENTS IN THE FOLLOWING
DEGREE PROGRAMMES:
BUSINESS MANAGEMENT: LEVEL 2.2
OFFICE MANAGEMENT: LEVEL 2.2
OVERVIEW
• WE ARE LIVING TODAY IN A CONSTANTLY GROWING GLOBAL BUSINESS
ENVIRONMENT, WHERE CHANGE HAS BECOME THE NORM FOR ORGANIZATIONS TO
SUSTAIN THEIR SUCCESS AND EXISTENCE. INDUSTRIAL AND GOVERNMENTAL
ORGANIZATIONS ARE CONSTANTLY STRIVING TO ALIGN THEIR OPERATIONS WITH A
CHANGING ENVIRONMENT (ACKOFF, 2006; BURNES, 2004A; BY, 2005; HAILEY AND
BALOGUN, 2002; KOTTER, 1996; MINTZBERG, 1979; MORAN AND BRIGHTMAN, 2001).
• ORGANIZATIONS AND THEIR LEADERS ARE ALSO CHANGING AS A NATURAL
RESPONSE TO THE SHIFT IN STRATEGIC IMPORTANCE, FROM EFFECTIVELY
MANAGING MASS MARKETS AND TANGIBLE PROPERTIES TO INNOVATION,
KNOWLEDGE MANAGEMENT AND HUMAN RESOURCES (DESS AND
• PICKEN, 2000).
WHAT IS ORGANISATION CHANGE
MANAGEMENT
WHAT IS ORGANISATION CHANGE MANAGEMENT?
1.CHANGE MANAGEMENT IS A COMPREHENSIVE, CYCLIC AND
STRUCTURED APPROACH FOR TRANSITIONING INDIVIDUALS,
GROUPS AND ORGANIZATIONS FROM A CURRENT STATE TO A
FUTURE STATE WITH INTENDED BUSINESS BENEFITS.
• BY (2005) DEFINES CHANGE MANAGEMENT AS ‘THE PROCESS
OF CONTINUALLY RENEWING AN ORGANIZATION’S DIRECTION,
STRUCTURE, AND CAPABILITIES TO SERVE THE EVER-
CHANGING NEEDS OF EXTERNAL AND INTERNAL CUSTOMERS’
INTRODUCTION
GENERALLY ORGANISATION CHANGE
MANAGEMENT CAN BE CATEGORISED
INTO PLANNED CHANGE & EMERGENT
CHANGE
PLANNED CHANGE VS. EMERGENT
CHANGE
• PLANNED CHANGE MANAGEMENT INVOLVE THE
SEQUENTIAL STEPS FOR ALTERING ORGANISATIONAL AND
INDIVIDUAL BEHAVIOUR ONCE DECISION MAKERS IDENTIFY
A NEED FOR CHANGE (LIVNE-TARANDACH AND BARTUNEK,
2009; BURNS, 2006)
• EMERGENT CHANGE IS DESCRIBED AS UNPREDICTABLE,
OFTEN UNINTENTIONAL, CAN COME FROM ANYWHERE
(WEICK AND QUINN, 1999)
PLANNED CHANGE
• THE PLANNED APPROACH EMPHASISES THE IMPORTANCE
OF UNDERSTANDING THE DIFFERENT STATES WHICH AN
ORGANISATION WILL HAVE TO GO THROUGH IN ORDER TO
MOVE FROM AN UNSATISFACTORY STATE TO AN
IDENTIFIED DESIRED STATE (ELDROD II AND TIPPETT,
2002).
• THE PLANNED APPROACH WAS INITIATED BY KURT LEWIN
WHO PROPOSED THAT BEFORE CHANGE AND NEW
BEHAVIOUR CAN BE ADOPTED SUCCESSFULLY, THE
PREVIOUS BEHAVIOUR HAS TO BE DISCARDED.
PLANNED ORGANISATIONAL
CHANGE
• ACCORDING TO LEWIN (1952 IN ELDROD II AND TIPPETT,
2002) A SUCCESSFUL CHANGE PROJECT MUST, THEREFORE,
INVOLVE THE THREE STEPS
UNFREEZING THE PRESENT LEVEL,
MOVING TO THE NEW LEVEL AND
REFREEZING THIS NEW LEVEL
UNFREEZING THE PRESENT LEVEL
: KEY ISSUES
o MANAGEMENT FOCUSES ON WHAT NEEDS TO CHANGE
o PREPARATION OF THE CHANGE MANAGEMENT TEAM, AND
o DEVELOPMENT OF THE CHANGE MANAGEMENT AND
COMMUNICATION PLAN
MOVING TO THE NEW LEVEL
1. COMMUNICATING THE VISION & PLAN FOR THE CHANGE
PROGRAMME
2. SECURE EMPLOYEE COMMITMENT BY CLARIFYING THE
EFFECTS & BENEFITS OF CHANGE. THIS HELPS TO DISPEL
NEGATIVE CONSEQUENCES OF CHANGE.
3. EMPLOYEE INVOLVEMENT: DEVELOP INDIVIDUAL ACTION
PLANS
MOVING TO THE NEW LEVEL
4. IMPLEMENTATION OF CHANGE PLANS
• THIS ABOUT TAKING ACTION AND IMPLEMENTING PLANS
BY MANAGING THE IMPLEMENTATION SCHEDULE
• IDENTIFYING BARRIERS TO CHANGE AND PROVIDING
SOLUTIONS
• TRAINING PEOPLE WHERE NECESSARY
REFREEZING THE NEW LEVEL
THIS STAGE INVOLVES AND EVALUATION OF THE CHANGE.
KEY ISSUES:
CHANGE EVALUATION
o POST CHANGE IMPLEMENTATION REVIEW
o EMPLOYEE FEEDBACK ANALYSIS
REINFORCING THE CHANGE
SUSTAINING THE CHANGE
1. GETTING THE SUPPORT OF THE LEADERSHIP OF THE
ORGANISATION
2. EMBEDDING THE NEW CHANGES INTO THE
ORGANISATION CULTURE
CRITICISM OF THE PLANNED
APPROACH
• ALTHOUGH THE PLANNED APPROACH TO CHANGE IS LONG
ESTABLISHED AND HELD TO BE HIGHLY EFFECTIVE
(BAMFORD AND FORRESTER, 2003; BURNES, 2004), IT HAS
COME UNDER INCREASING CRITICISM SINCE THE EARLY
1980S (KANTER ET AL., 1992; BURNES,1996). FIRSTLY, IT IS
SUGGESTED THAT THE APPROACH’S EMPHASIS IS ON
SMALL-SCALE AND INCREMENTAL CHANGE, AND IT IS,
THEREFORE, NOT APPLICABLE TO SITUATIONS THAT
REQUIRE RAPID AND TRANSFORMATIONAL CHANGE
(BURNES, 1996, 2004; SENIOR, 2002).
CRITICISM OF THE PLANNED
APPROACH TO CHANGE
MANAGEMENT
• SECONDLY, THE PLANNED APPROACH IS BASED ON THE
ASSUMPTIONS THAT ORGANISATIONS OPERATE UNDER
CONSTANT CONDITIONS, AND THAT THEY CAN MOVE IN A
PRE-PLANNED MANNER FROM ONE STABLE STATE TO
ANOTHER (BAMFORD AND FORRESTER, 2003). THESE
ASSUMPTIONS ARE, HOWEVER, QUESTIONED BY SEVERAL
AUTHORS (BURNES, 1996, 2004; WILSON, 1992) WHO
ARGUE THAT THE CURRENT FAST-CHANGING
ENVIRONMENT INCREASINGLY WEAKENS THIS THEORY.
CRITICISM OF THE PLANNED
APPROACH
• MOREOVER, IT IS SUGGESTED THAT ORGANISATIONAL
CHANGE IS MORE AN OPEN-ENDED AND CONTINUOUS
PROCESS THAN A SET OF PRE-IDENTIFIED SET OF DISCRETE
AND SELF-CONTAINED EVENTS (BURNES, 1996, 2004). BY
ATTEMPTING TO LAY DOWN TIMETABLES, OBJECTIVES AND
METHODS IN ADVANCE IT IS SUGGESTED THAT THE
PROCESS OF CHANGE BECOMES TOO DEPENDENT ON
SENIOR MANAGERS, WHO IN MANY INSTANCES DO NOT
HAVE A FULL UNDERSTANDING OF THE CONSEQUENCES OF
THEIR ACTIONS (WILSON, 1992).
CRITICISM OF THE PLANNED
APPROACH
• THE APPROACH OF PLANNED CHANGE IGNORES SITUATIONS WHERE
MORE DIRECTIVE APPROACHES ARE REQUIRED. THIS CAN BE A
SITUATION OF CRISIS, WHICH REQUIRES MAJOR AND RAPID CHANGE,
AND DOES NOT ALLOW SCOPE FOR WIDESPREAD CONSULTATION OR
INVOLVEMENT (BURNES, 1996, 2004; KANTER ET AL., 1992).
• FINALLY, THE CRITICS ARGUE THAT THE PLANNED APPROACH TO
CHANGE PRESUMES THAT ALL STAKEHOLDERS IN A CHANGE PROJECT
ARE WILLING AND INTERESTED IN IMPLEMENTING IT, AND THAT A
COMMON AGREEMENT CAN BE REACHED (BAMFORD AND FORRESTER,
2003). THIS PRESUMPTION CLEARLY IGNORES ORGANISATIONAL
POLITICS AND CONFLICT, AND ASSUMES THESE CAN BE EASILY
IDENTIFIED AND RESOLVED (BURNES, 1996, 2004)
EMERGENT APPROACH TO
CHANGE
• THE EMERGENT APPROACH HAS GAINED GROUND IN
RESPONSE TO THE CRITICISM OF THE PLANNED APPROACH
TO ORGANISATIONAL CHANGE ( BY, 2005).
• ACCORDING TO THE ADVOCATES OF THE EMERGENT
APPROACH TO CHANGE IT IS THE UNCERTAINTY OF BOTH
THE EXTERNAL AND INTERNAL ENVIRONMENT THAT MAKES
THIS APPROACH MORE PERTINENT THAN THE PLANNED
APPROACH (BAMFORD AND FORRESTER,2003).
MAJOR FEATURES OF EMERGENT
CHANGE
• RATHER THAN SEEING CHANGE TO BE TOP-DOWN DRIVEN, THE
EMERGENT APPROACH TENDS TO SEE CHANGE DRIVEN FROM THE
BOTTOM UP (BAMFORD AND FORRESTER, 2003; BURNES, 1996, 2004).
• THE APPROACH SUGGESTS CHANGE TO BE SO RAPID THAT IT IS
IMPOSSIBLE FOR SENIOR MANAGERS EFFECTIVELY TO IDENTIFY, PLAN AND
IMPLEMENT THE NECESSARY ORGANISATIONAL RESPONSES (KANTER ET
AL., 1992). THEREFORE, THE RESPONSIBILITY FOR ORGANISATIONAL
CHANGE HAS TO BECOME INCREASINGLY DEVOLVED (WILSON, 1992).
• THE EMERGENT APPROACH TO CHANGE EMPHASISES THAT CHANGE
SHOULD NOT BE PERCEIVED AS A SERIES OF LINEAR EVENTS WITHIN A
GIVEN PERIOD OF TIME, BUT AS A CONTINUOUS, OPEN-ENDED PROCESS
OF ADAPTATION TO CHANGING CIRCUMSTANCES AND CONDITIONS
(BURNES, 1996, 2004; DAWSON, 1994)
MAJOR FEATURES OF THE
EMERGENT APPROACH TO
CHANGE
• THIS APPROACH ADVOCATES THAT ORGANISATIONS NEED TO
BECOME OPEN LEARNING SYSTEMS. ORGANISATIONS HAVE TO
SCAN THE ENVIRONMENT AND MAKE INFORMED DECISIONS
FROM THE INFORMATION COMING FROM BOTH THE EXTERNAL
AND INTERNAL ENVIRONMENT (DUNPHY AND STACE, 1993).
• THE APPROACH STRESSES A PROMOTION OF ‘EXTENSIVE AND
IN-DEPTH UNDERSTANDING OF STRATEGY, STRUCTURE,
SYSTEMS, PEOPLE, STYLE AND CULTURE, AND HOW THESE CAN
FUNCTION EITHER AS SOURCES OF INERTIA THAT CAN BLOCK
CHANGE, OR ALTERNATIVELY, AS LEVERS TO ENCOURAGE AN
EFFECTIVE CHANGE PROCESS’ (BURNES, 1996: 14).
KEY SUCCESS FACTORS IN
CHANGE MANAGEMENT
• REVISING REWARD AND MOTIVATION SYSTEMS
• STAFF MOTIVATION THROUGH A REWARD PROGRAMME
HAS A CRUCIAL ROLE IN FACILITATING RE-ENGINEERING
EFFORTS AND SMOOTHING THE INSERTION OF NEW
PROCESSES IN THE WORKPLACE. THE NEW REWARD AND
INCENTIVE SYSTEM MUST BE WIDESPREAD, FAIR AND
ENCOURAGE HARMONY AMONG EMPLOYEES
KEY SUCCESS FACTORS IN
ORGANISATION CHANGE
MANAGEMENT
EFFECTIVE COMMUNICATION
• EFFECTIVE COMMUNICATION IS CONSIDERED A MAJOR KEY
TO SUCCESSFUL CHANGE RELATED EFFORTS (DAVENPORT,
1993; JACKSON, 1997; ZAIRI AND SINCLAIR, 1995;
HAMMER AND STANTON, 1995; CARR AND JOHANSSON,
1995; ARENDT ET AL., 1995;DAWE, 1996).
COMMUNICATION IS NEEDED THROUGHOUT THE CHANGE
PROCESS AT ALL LEVELS AND FOR ALL AUDIENCES
(DAVENPORT, 1993A), EVEN WITH THOSE NOT INVOLVED
DIRECTLY IN THE CHANGE EFFORT
KEY SUCCESS FACTORS IN
ORGANISATION CHANGE
MANAGEMENT
EMPOWERMENT
• AS CHANGE EFFORTS GATHER MOMENTUM, EMPOWERMENT
OF BOTH INDIVIDUALS AND TEAMS BECOMES A CRITICAL
FACTOR FOR CHANGE SUCCESS (THOMAS, 1994; COOPER
AND MARKUS, 1995; BASHEIN ET AL., 1994;HINTERHUBER,
1995; DAWE, 1996) SINCE IT ESTABLISHES A CULTURE IN
WHICH STAFF AT ALL LEVELS FEEL MORE RESPONSIBLE AND
ACCOUNTABLE (ROHM, 1992/93) AND IT PROMOTES A
SELF-MANAGEMENT AND COLLABORATIVE TEAMWORK
CULTURE (MUMFORD, 1995).
KEY SUCCESS FACTORS IN
ORGANISATION CHANGE
MANAGEMENT
• HUMAN INVOLVEMENT
IN CHANGE EFFORTS, ALL PEOPLE MUST BE OPENLY AND
ACTIVELY INVOLVED (BERRINGTON AND OBLICH, 1995;
JACKSON, 1997; BASHEIN ET AL., 1994; HINTERHUBER, 1995;
BRUSS AND ROOS, 1993; ARENDT ET AL., 1995; DAWE, 1996)
AND SHOULD BE CONSULTED AT ALL STAGES ON THE
PROCESS AND ITS LEADERS. THIS INCLUDES LINE MANAGERS
(HARRISON AND PRATT, 1993), PROCESS OWNERS (FUREY,
1993), THOSE INVOLVED IN IT AND HUMAN RESOURCES
(BASHEIN ET AL., 1994), AND WORKERS (JANSON, 1992).
KEY SUCCESS FACTORS IN
ORGANISATION CHANGE
MANAGEMENT
TRAINING AND EDUCATION
MANY RESEARCHERS CONSIDER TRAINING AND EDUCATION TO
BE AN IMPORTANT COMPONENT OF SUCCESSFUL CHANGE
IMPLEMENTATION (TOWERS, 1994; BERRINGTON AND OBLICH,
1995; ZAIRI AND SINCLAIR, 1995; WORSLEY, 1994; BASHEIN ET
AL., 1994;CLEMMER, 1994; COOPER AND MARKUS, 1995;
ARENDT ET AL., 1995; DAWE, 1996). ORGANISATIONS THAT
UNDERTAKE CHANGE EFFORTS SUCH AS RE-ENGINEERING
PROJECTS MAY HAVE TO INCREASE THEIR TRAINING BUDGET BY
30-50 PERCENT (TOWERS, 1994). BPR-RELATED CONCEPT,
SKILLS, AND TECHNIQUES (COOPER AND MARKUS, 1995;
BERRINGTON AND OBLICH, 1995; WORSLEY, 1994)
KEY SUCCESS FACTORS IN
ORGANISATION CHANGE
MANAGEMENT
• CREATING AN EFFECTIVE CULTURE FOR ORGANISATIONAL
CHANGE ORGANISATIONAL CULTURE IS A DETERMINING
FACTOR IN SUCCESSFUL CHANGE IMPLEMENTATION (HAMMER
AND CHAMPY, 1993; DAVENPORT, 1993; ZAIRI AND SINCLAIR,
1995; CSC INDEX, 1994). ORGANISATIONAL CULTURE
INFLUENCES THE ORGANISATION'S ABILITY TO ADAPT TO
CHANGE. THE EXISTING CULTURE CONTAINS BELIEFS AND
VALUES THAT ARE OFTEN NO LONGER APPROPRIATE OR
USEFUL IN THE RE-ENGINEERED ENVIRONMENT. THEREFORE,
THE ORGANISATION MUST UNDERSTAND AND CONFORM TO
THE NEW VALUES, MANAGEMENT PROCESSES, AND THE
COMMUNICATION STYLES THAT ARE CREATED BY THE NEWLY-
REDESIGNED PROCESSES
KEY SUCCESS FACTORS IN
ORGANISATION CHANGE
MANAGEMENT
STIMULATING THE ORGANISATION'S RECEPTIVENESS TO CHANGE
PREPARING THE ORGANISATION TO RESPOND POSITIVELY TO
CHANGE IS CRITICAL TO SUCCESS (BENJAMIN AND LEVINSON,
1993; BARRETT, 1994; BRUSS AND ROOS, 1993). WHEN PEOPLE
ARE MADE RESILIENT TO CHANGE, THEY REMAIN POSITIVE
DURING UNCERTAINTY, FOCUSED, FLEXIBLE, ORGANISED, AND
PRO-ACTIVE (JACKSON, 1997). LEVERAGING ORGANISATIONAL
CHANGE REQUIRES EFFECTIVE ONE-TO-ONE AND ONE-TO MANY
INTERACTIONS TO ENROL KEY INFLUENCERS OF BOTH
INDIVIDUALS AND GROUPS WITHIN AND WITHOUT THE
ORGANISATION
ORGANISATION CHANGE DRIVERS
A CHANGE DRIVER IS AN INTERNAL OR EXTERNAL PRESSURE
THAT INFLUENCE CHANGE IN AN ORGANIZATION. THIS
INCLUDES CHANGE TO STRATEGY, PLANS, DESIGNS,
PRODUCTS, SERVICES AND OPERATIONS. THE NEXT PAGE
SHOWS COMMON CHANGE DRIVERS -
INTERNAL DRIVERS AND EXTERNAL PRESSURES
CHANGE DRIVERS
External Forces
1.Globalisation
2.New
Technology
3. Power of
Markets
4. Government
Regulation
Internal Forces
1.Low Employee
Morale
2.Change In
Objectives
3.New
Information
Systems
4. Declining
product sales
These forces
put pressure
on
management
to change
AREAS THAT CAN BE CHANGED IN
AN ORGANISATION?
• CONNOR AND LAKE (1988: 28-51) IDENTIFY FOUR MAJOR
AREAS WHERE CHANGE MAY OCCUR, NAMELY:
INDIVIDUAL TASK BEHAVIOUR: CHANGE EVENTS WILL BE
FOCUSED ON TASK CHARACTERISTICS, SUCH AS SKILL
VARIETY, TASK IDENTITY, TASK SIGNIFICANCE, DEGREE OF
AUTONOMY, FEEDBACK PROVIDED, AND OPPORTUNITY FOR
EMPLOYEE INTERACTION.
AREAS THAT CAN BE CHANGED IN
AN ORGANISATION?
 ORGANIZATIONAL PROCESSES: CHANGE EVENTS WILL BE
FOCUSED ON THE CONTROL, REWARD, APPRAISAL AND
DECISION PROCESSES WITHIN THE ORGANIZATION.
 STRATEGIC DIRECTION: CHANGE IS IMPLEMENTED IN THE
OVERALL DIRECTION THAT AN ORGANIZATION FOLLOWS. A
CHANGE IN STRATEGY ENTAILS A CHANGE IN STRUCTURE
 ORGANIZATIONAL CULTURE: THIS CONSISTS OF THE SHARED
VALUES, BELIEFS AND EXPECTATIONS WHICH CREATE NORMS
THAT SHAPE INDIVIDUAL AND GROUP BEHAVIOUR IN THE
ORGANIZATION.
METHODS/ APPROACHES OF
CHANGE
CONNOR AND LAKE (1988: 54-88) IDENTIFY FOUR DISTINCT
APPROACHES OR METHODS OF CHANGE:
 TECHNOLOGICAL METHOD: THIS METHOD CONCERNS THE
PRODUCTION PROCESSES OF THE ORGANIZATION. IT IS AIMED
AT IMPROVING EITHER THE QUALITY OR QUANTITY OF
OUTPUT THROUGH INTRODUCING NEW EQUIPMENT OR
TECHNIQUES
 STRUCTURAL METHOD: THIS METHOD CONCERNS THE
MODIFICATION OF CERTAIN ROLES OR RELATIONSHIPS. THE
CHANGE PERTAINS TO THE DIVISION AND COORDINATION OF
THE LABOUR IN THE ORGANIZATION
METHODS/ APPROACHES OF
CHANGE
MANAGERIAL METHOD :THIS METHOD EFFECTS CHANGE
THROUGH ADMINISTRATIVE ACTIONS, SUCH AS THE
REWARD SYSTEM OR THROUGH JOINT COOPERATION
BETWEEN EMPLOYEES AND MANAGEMENT.
HUMAN-ORIENTED METHODS : THIS METHOD EFFECTS
CHANGE THROUGH THE PEOPLE WHO WORK IN THE
ORGANISATION THROUGH PARTICIPATION IN
EDUCATION/TRAINING PROGRAMMES AND
ORGANIZATION-DEVELOPMENT INTERVENTIONS.
PEOPLES’ REACTION TO CHANGE
THE CHANGE CURVE
• THE CHANGE CURVE MODEL DESCRIBES THE FOUR STAGES
MOST PEOPLE GO THROUGH AS THEY ADJUST TO CHANGE.
SOMETIMES THIS IS GIVEN THE ACRONYM SARA.
• THE CHANGE CURVE IS BASED ON A MODEL ORIGINALLY
DEVELOPED IN THE 1960S BY ELISABETH KUBLER-ROSS TO
EXPLAIN THE GRIEVING PROCESS. SINCE THEN IT HAS BEEN
WIDELY UTILISED AS A METHOD OF HELPING PEOPLE
UNDERSTAND THEIR REACTIONS TO SIGNIFICANT CHANGE
OR UPHEAVAL
THE CHANGE CURVE
DENIAL
THE FIRST PHASE OF CHANGE BEGINS WHEN PEOPLE HEAR
ABOUT THE CHANGE. THIS MAY TAKE THE FORM OF RUMOUR
OR RUMBLINGS BEFORE THE ACTUAL ANNOUNCEMENT, OR IT
MAY BE A SUDDEN AND UNEXPECTED ANNOUNCEMENT OF A
CHANGE INITIATIVE. DENIAL BEGINS WITH THE AWARENESS
THAT CHANGE IS ON THE HORIZON BUT USUALLY ENTAILS
ACTING AS IF IT ISN’T. DENIAL IS A DEFENSE AGAINST
CHANGE THAT TAKES THE FORM OF IGNORING OR NOT
RESPONDING TO INFORMATION THAT DEMANDS A CHANGE.
THE CHANGE CURVE
FRUSTRATION AND ANGER
• AS PEOPLE START TO REACT TO THE CHANGE, THEY MAY
START TO FEEL CONCERN, ANGER, RESENTMENT OR FEAR.
THEY MAY RESIST THE CHANGE ACTIVELY OR PASSIVELY. THEY
MAY FEEL THE NEED TO EXPRESS THEIR FEELINGS AND
CONCERNS, AND VENT THEIR ANGER. FOR THE
ORGANIZATION, THIS STAGE IS THE “DANGER ZONE.” IF THIS
STAGE IS BADLY MANAGED, THE ORGANIZATION MAY
DESCEND INTO CRISIS OR CHAOS. SO THIS STAGE NEEDS
CAREFUL PLANNING AND PREPARATION. AS SOMEONE
RESPONSIBLE FOR CHANGE, YOU SHOULD PREPARE FOR THIS
STAGE BY CAREFULLY CONSIDERING THE IMPACTS AND
OBJECTIONS THAT PEOPLE MIGHT HAVE
THE CHANGE CURVE
• EXPERIMENT
• PEOPLE MOVE INTO EXPLORATION WHEN THEY ACKNOWLEDGE
THEIR FEELINGS AND ACCEPT THAT CHANGE IS NECESSARY
AND IMPORTANT, EVEN IF THEY DON’T PERSONALLY WELCOME
IT. AT THIS POINT PEOPLE ARE MORE THAN HALFWAY
THROUGH THE TRANSITION. THEY ARE READY TO THINK
ABOUT WHAT THEY CAN DO, WHAT IS POSSIBLE. THEY DECIDE
TO MAKE THE BEST OF IT, LEARN NEW SKILLS, AND SEEK NEW
IDEAS. THEY MAY EXPERIENCE CHAOS, BE STIMULATED BY
DISCOVERY, AND BE OVERWHELMED BY WHAT NEEDS TO BE
LEARNED ALL AT THE SAME TIME. EXPLORATION SIGNALS A
SHIFT FROM SEEING CHANGE AS A THREAT TO SEEING IT AS
AN OPPORTUNITY.
THE CHANGE CURVE
• DECISION AND INTERGRATION
• THIS PHASE IS REACHED WHEN PEOPLE MAKE A CHOICE TO
ACCEPT THE CHANGE. THEY ADOPT THE NEW WAY AFTER A
PROCESS OF LEARNING AND TESTING AND HAVE BECOME
CAPABLE OF WORKING EFFECTIVELY WITHIN THE NEW
SITUATION. IDEALLY, PEOPLE WHO REACH INTERGRATION ARE
BOTH MOTIVATED AND CAPABLE OF ACHIEVING SUCCESS
AFTER A CHANGE. THEY HAVE REGAINED PRODUCTIVITY AND
FEEL A SENSE OF MASTERY, RELIEF, ACCOMPLISHMENT, AND
GROWTH THROUGH THE CHANGE. PEOPLE WHO HAVE MOVED
THROUGH ALL FOUR PHASES OF CHANGE ARE STRONGER AND
BETTER ABLE TO FACE THE NEXT CHANGE.
TRANSFORMING ORGANISATIONS:
WHY FIRMS FAIL
COMMON ERRORS IN CHANGE MANAGEMENT
1. ALLOWING TOO MUCH COMPLACENCY
THE BIGGEST MISTAKE PEOPLE MAKE WHEN
TRYING TO CHANGE ORGANISATIONS IS TO
PLUNGE AHEAD WITHOUT ESTABLISHING A
HIGH ENOUGH SENSE OF URGENCY IN FELLOW
MANAGERS & EMPLOYEES.
2. FAILING TO CREATE A SUFFICIENTLY POWERFUL
GUIDING COALITION
MAJOR CHANGE IS OFTEN SAID TO BE
IMPOSSIBLE UNLESS THE HEAD OF THE
ORGANISATION IS AN ACTIVE SUPPORTER.
STRONG TEAM WORK & LEADERSHIP IS
REQUIRED FOR EFFECTIVE TRANSFORMATIONS
3. UNDERESTIMATING THE POWER OF VISION
VISIONS HELPS PLAY A KEY ROLE BY HELPING
TO DIRECT ,ALIGN AND INSPIRE ACTIONS ON
THE PART OF LARGE NUMBERS OF PEOPLE. A
VISION SHOULD BE UNDERSTOOD BY ALL.
4. UNDER COMMUNICATING THE VISION
WITHOUT CREDIBLE COMMUNICATION
EMPLOYEES HEARTS & MINDS ARE NEVER
CAPTURED. PEOPLE HAVE TO KNOW THE
POTENTIAL BENEFITS OF THE CHANGE
PROGRAMMES SO AS TO ALIGN THEMSELVES
WITH THE CHANGE.
5. PERMITTING OBSTACLES TO BLOCK THE NEW
VISION
ORGANISATION STRUCTURE,NARROIW JOB
CATEGORIES , COMPENSATION SYSTEMS CAN
FORCE PEOPLE TO CHOOSE BETWEEN THE NEW
WAYS & OLD
TRANSFORMING
ORGANISATIONS:WHY FIRMS FAIL?
6. FAILING TO CREATE SHORT TERM WINS
MANAGERS OFTEN FAIL TO ESTABLISH
CLEAR SHORT-TERM GOALS THAT ARE
ACHIEVABLE.MANAGERS HAVE TO
ACTIVELY LOOK FOR WAYS TO OBTAIN
CLEAR PERFORMANCE IMPROVEMENTS
,ESTABLISH GOALS & REWARD PEOPLE FOR
ACHIEVING THE OBJECTIVES.
7. DECLARING VICTORY TOO SOON
MANY A TIME PEOPLE CAN BE TEMPTED TO
DECLARE VICTORY IN A MAJOR CHANGE
EFFORT WITH THE FIRST MAJOR
PERFORMANCE IMPROVEMENT. UNTIL
CHANGES ARE PART OF AN ORGANISATION
CULTURE , NEW APPROACHES ARE FRAGILE
AND SUBJECT TO REGRESSION.
8.NEGLECTING ANCHOR NEW
CHANGES FIRMLY IN THE
CORPORATE CULTURE
CHANGE STICKS ONLY WHEN IT
BECOMES THE ‘’ WAY WE DO
THINGS AROUND HERE’’.UNTIL
NEW BEHAVIOURS ARE ROOTED IN
SOCIAL NORMS AND SHARED
VALUES ,THEY ARE ALWAYS
SUBJECT TO DEGRADATION AS
SOON AS THE PRESSURE
ASSOCIATED WITH A CHANGE
EFFORT ARE REMOVED.
TRANSFORMING ORGANISATIONS:
WHY FIRMS FAIL
• 8 ERRORS & CONSEQUENCES Allowing too much complacency
Failing to create a sufficiently powerful
guiding coalition
Underestimating the power of vision
Under communicating the vision
Permitting obstacles to block the new
vision
Failing to create short term wins
Declaring victory too soon
Neglecting to anchor changes firmly in the
corporate culture
CONSEQUENCES
New strategies are not
implemented well
Acquisitions don’t achieve
expected results
Reengineering takes too long &
costs too much
Downsizing does not get costs
under control
Quality programs do not deliver
hoped for results
Eight
Errors
Consequences
ORGANISATION CHANGE MODELS
THEORIES OF PLANNED CHANGE:
1. LEWIN’S CHANGE MODEL
2. ACTION RESEARCH MODEL
3. THE POSITIVE MODEL
LEWIN’S THREE STEP MODEL
THE PHASES IN THE CHANGE PROCESS ARE:
UNFREEZING: THIS STAGE ENTAILS THE RECOGNITION
AND ACKNOWLEDGEMENT OF THE NEED TO
CHANGE. BY TAKING ACTION, EXISTING
ATTITUDES AND BEHAVIOUR CAN BE UNFROZEN.
THIS IS ESSENTIAL IN ORDER TO SUPPORT
EMPLOYEES AND MINIMISE RESISTANCE TO
CHANGE (LINSTEAD ET AL., 2009).
CHANGING:- MOVING THE ORGANISATION TO
THE DESIRED STATE INVOLVES ACTUAL
IMPLEMENTATION OF NEW SYSTEMS OF
OPERATION. THIS MAY INVOLVE
EXPERIMENTATION, MODIFICATION OF SYSTEMS
OR PATTERNS OF BEHAVIOUR, TECHNOLOGY OR
SYSTEMS; MAY ALSO BE WHERE PEOPLE NEED TO
LEAVE OR NEW PEOPLE JOIN THE ORGANISATION
AS THE FULL NATURE OF TRANSITION EMERGES.
REFREEZING: THIS STAGE INVOLVES THE POSITIVE
REINFORCEMENT OF DESIRED OUTCOMES. THE
CHANGE PROGRAMME HAS TO BE APPRAISED AT
THIS STAGE TO ENSURE THAT THE NEW WAY THE
NEW WAY OF OPERATING BECOMES A MATTER OF
HABIT NOT A REGULATION. REFREEZING SEEKS TO
STABILISE THE GROUP AT A NEW QUASI-
STATIONARY EQUILIBRIUM IN ORDER TO ENSURE
THAT THE NEW BEHAVIOUR IS RELATIVELY SAFE
FROM REGRESSION”.
ORGANISATION CHANGE MODELS
ACTION RESEARCH MODEL
MODEL FOCUSES ON PLANNED CHANGE
AS A CYCLICAL PROCESS IN WHICH
INITIAL RESEARCH ABOUT THE
ORGANIZATION PROVIDES INFORMATION
TO GUIDE SUBSEQUENT ACTION. . IT
PLACES HEAVY EMPHASIS ON DATA
GATHERING AND DIAGNOSIS PRIOR TO
ACTION PLANNING AND
IMPLEMENTATION, AS WELL AS CAREFUL
EVALUATION OF RESULTS AFTER ACTION
IS TAKEN.
POSITIVE MODEL
IT INVOLVES INITIALLY
DETERMINING THE SUBJECT
OF CHANGE AND THE
GETTING MEMBERS
INVOLVEMENT TO IDENTIFY
THE ORGANIZATIONAL ISSUE
THEY HAVE THE MOST
ENERGY TO ADDRESS
ORGANISATION CHANGE MODELS
KOTTER’S EIGHT STEP MODEL
HE BELIEVES THAT CHANGE FAILS BECAUSE SENIOR
MANAGEMENT MAKES A HOST OF IMPLEMENTATION
ERRORS. HIS MODEL PRESCRIBES HOW MANAGERS
SHOULD LEAD THE CHANGE PROCESS. THE FIRST FOUR
STEPS REPRESENT LEWIN’S ‘UNFREEZING STAGE’ ,5,7
REPRESENT ‘CHANGING’ AND STEP 8 CORRESPONDS TO
‘REFREEZING’:
1. INCREASE URGENCY- MAKE OBJECTIVES AS CLEAR AS
POSSIBLE SO AS TO INSPIRE AND ENCOURAGE PEOPLE
TO WORK TOWARDS THEM.
2. BUILD THE GUIDING TEAM- GET THE RIGHT PEOPLE IN
PLACE WITH THE RIGHT EMOTIONAL COMMITMENT,
AND THE RIGHT MIX OF SKILLS AND LEVELS.
3. GET THE VISION RIGHT - GET THE TEAM TO ESTABLISH
A SIMPLE VISION AND STRATEGY FOCUS ON
EMOTIONAL AND CREATIVE ASPECTS NECESSARY TO
DRIVE SERVICE AND EFFICIENCY
4. COMMUNICATE FOR BUY-IN - INVOLVE AS MANY
PEOPLE AS POSSIBLE, COMMUNICATE THE
ESSENTIALS SIMPLY, AND TO APPEAL AND
RESPOND TO PEOPLE'S NEEDS.
5. EMPOWER ACTION - REMOVE OBSTACLES, ENABLE
CONSTRUCTIVE FEEDBACK AND LOTS OF SUPPORT
FROM LEADERS - REWARD AND RECOGNISE PROGRESS
AND ACHIEVEMENTS.
6. CREATE SHORT-TERM WINS - SET AIMS THAT ARE
EASY TO ACHIEVE - IN BITE-SIZE CHUNKS.
7. DON’T LET UP: - BUT MAINTAIN THE MOMENTUM,
CONSOLIDATE EARLY CHANGES AND CREATE WAVE
AFTER WAVE OF CHANGE.
8. MAKE CHANGE STICK - REINFORCE THE VALUE OF
SUCCESSFUL CHANGE BY NURTURING A NEW CULTURE,
AND DEVELOPING GROUP NORMS OF BEHAVIOUR AND
SHARED VALUES.
RESISTANCE TO CHANGE
• BARRIERS TO UNDERSTANDING. THE RESISTANCE MAY BE TRACED TO A
• MISUNDERSTANDING OF THE PROPOSED CHANGE. THE CHANGE TARGETS
RESIST
• THE CHANGE BECAUSE THEY DO NOT UNDERSTAND THE NEED FOR THE
CHANGE,
• THE DETAILS OR SUBSTANCE, OR THE CONSEQUENCES OF THE CHANGE.
THE LACK
• OF KNOWLEDGE OR UNDERSTANDING OF A CHANGE MAY BE (1)
INTELLECTUAL
• (INFORMATION NOT COMMUNICATED) (2) CULTURAL (CHANGE EXPLAINED
FROM A
• UNFAMILIAR POINT OF VIEW) OR (3) CAUSED BY INCONSISTENT
BEHAVIOUR FROM
• EXECUTIVES, MANAGERS OR THE CHANGE AGENT (ONE COURSE IS
RESISTANCE TO CHANGE
• BARRIERS TO ACCEPTANCE. THIS TYPE OF RESISTANCE FOLLOWS WHEN
THE
• CHANGE TARGETS CANNOT OR WILL NOT ACCEPT THE CHANGE.
ACCEPTANCE
• REQUIRES BELIEVING IN THE NECESSITY FOR THE CHANGE AND A
WILLINGNESS TO
• FOLLOW THROUGH IN ACCOMPLISHING IT. THE BARRIERS TO ACCEPTANCE
ARE
• CAUSED BY (1) A THREAT TO EMPLOYEES' SECURITY OVER THEIR
ORGANIZATIONAL
• LIVES, WHICH RESULTS IN UNEASINESS AND ANXIETY ABOUT THE NEW
ROLES AND
• CONDITIONS REQUIRED (2) THE THREAT TO THEIR SELF-CONFIDENCE OR
(3) ANXIETY
RESISTANCE TO CHANGE
• BARRIERS TO ACTING. THIS TYPE OF RESISTANCE OCCURS AT THE
STAGE WHEN THE CHANGE SHOULD BE IMPLEMENTED. IT STEMS FROM
EITHER THE CHANGE TARGETS THEMSELVES OR FROM OTHER PEOPLE
WITHIN OR OUTSIDE THE ORGANIZATION. THE BARRIERS TO ACTING
MAY RESULT FROM (1) THE LACK OF SKILLS OR ABILITIES WHICH WILL
BE REQUIRED IN THE NEW ORGANIZATION (2) THE LACK OF OR
INADEQUATE RESOURCES TO CONDUCT THE RANGE OF ACTIVITIES
NEEDED FOR THE CHANGE (3) THE PRESENCE OF EXISTING
PROHIBITIVE OR CONTRACTUAL ARRANGEMENTS WITH EMPLOYEE
UNIONS OR ASSOCIATIONS THAT REQUIRE SPECIFIC METHODS WHICH
MAY NOT BE REVISED OR (4) ORGANIZATIONS MAY SIMPLY, THROUGH
HABIT OR CONVENTION, SUPPORT THE STATUS QUO WITH EXISTING
MANAGERIAL PROCEDURES, JOB DESCRIPTIONS AND CULTURES.
MANAGING RESISTANCE TO
CHANGE
STRATEGIES TO OVERCOME RESISTANCE TO CHANGE
1. NEGOTIATING STRATEGY: THIS STRATEGY INVOLVES A WILLINGNESS TO NEGOTIATE WITH INDIVIDUALS AND TEAMS AFFECTED BY
THE CHANGE AND TO ACCEPT THAT ADJUSTMENTS AND CONCESSIONS MAY HAVE TO BE MADE. OPTING FOR THIS APPROACH DOES
NOT REMOVE THE MANAGEMENT ’ S RESPONSIBILITY FOR THE DIRECTION AND INITIATION OF CHANGE BUT ACKNOWLEDGES THAT
THOSE AFFECTED HAVE THE RIGHT TO HAVE SOME INPUT IN THE CHANGES PROPOSED, OR THAT THEY HAVE SOME POWER TO
RESIST IT IF THEY ARE NOT SUPPORTIVE. THE ADVANTAGE OF SELECTING THIS APPROACH IS THAT RESISTANCE TO THE PROPOSED
CHANGE IS LIKELY TO BE REDUCED. HOWEVER, SUCH NEGOTIATION WILL ADD TO THE OVERALL PROGRAMME AND THE PRE-
IMPLEMENTATION TIME MAY TAKE LONGER. CHANGING WORK PRACTICES IN RETURN FOR INCREASED PAY AND/OR OTHER BENEfiTS
IS A CLASSIC EXAMPLE OF THE NEGOTIATING STRATEGY.
2. EDUCATIVE STRATEGY: THIS APPROACH INVOLVES CHANGING PEOPLE ’ S VALUES AND BELIEFS SO THAT THEY SUPPORT THE
CHANGE AND ARE COMMITTED TO A SHARED SET OF ORGANIZATIONAL VALUES. WINNING “ HEARTS AND MINDS ” IS A COMPLEX
PROCESS THAT INVOLVES A MIXTURE OF ACTIVITIES SUCH AS: COMMUNICATION, PERSUASION, EDUCATION, TRAINING AND
SELECTION. THE ADVANTAGE OF SUCH AN APPROACH, IF SUCCESSFUL, IS THAT PEOPLE WILL BE POSITIVELY COMMIT- TED TO THE
CHANGE. IN GENERAL, THIS APPROACH TYPICALLY TAKES MUCH LONGER AND REQUIRES MORE RESOURCES THAN THE PREVIOUS
THREE STRATEGIES DESCRIBED ABOVE.
3. PARTICIPATIVE STRATEGY: THIS STRATEGY HAS A NUMBER OF ADVANTAGES IN ITS IMPLEMENTATION: CHANGES ARE MORE LIKELY
TO BE WIDELY ACCEPTABLE OVER THE OTHER STRATEGIES; IT PROMOTES AN ACTIVE INVOLVEMENT OF PEOPLE AND
IS LIKELY TO INCREASE THEIR COMMITMENT TO, AND ENTHUSIASM FOR, THE CHANGE PROCESS. ADDITIONALLY, THERE WILL BE
OPPORTUNITIES FOR BOTH MANAGERS AND EMPLOYEES TO LEARN FROM THE EXPERIENCES AND SKILLS OF THIS WIDE
PARTICIPATION. WHILE THIS HAS A NUMBER OF ADVANTAGES DUE TO THE PARTICIPATION OF STAFF, THE IDENTIFIED CHANGES ARE
LIKELY TO TAKE LONGER AND REQUIRE ADDITIONAL RESOURCES TO SUPPORT THE CHANGE
MANAGING RESISTANCE TO
CHANGE
STRATEGIES TO OVERCOME RESISTANCE TO CHANGE
4.DIRECTIVE STRATEGY: IN THIS STRATEGY THE MANAGEMENT CAN USE ITS
AUTHORITY TO IMPOSE THE CHANGES REQUIRED AND BE ABLE TO CARRY THEM OUT
QUICKLY. HOWEVER, THE DISADVANTAGE OF THIS APPROACH IS THAT IT IS LIKELY
TO INCREASE RESISTANCE BY THOSE INVOLVED OR EVEN UNDERMINE THE OVERALL
SUCCESS OF THE CHANGE IMPLEMENTATION.
5. EXPERT STRATEGY: THIS APPROACH IS USUALLY APPLIED WHEN A “ TECHNICAL ”
PROBLEM REQUIRES SOLVING, SUCH AS THE INTRODUCTION OF A NEW IT SYSTEM,
AND AS SUCH IS BETTER SUITED TO SMALLER TECHNICAL OR OPERATIONAL CHANGE
THAN A WIDER CULTURAL- CHANGE REQUIREMENT. IT IS ALSO APPROPRIATE THAT
INTRODUCING TECHNICAL CHANGES DOES NOT EASILY LEND ITSELF TO WIDER
CONSULTATION AS KNOWLEDGE OF THE TECHNICAL NUANCES MAY RESIDE ONLY
WITH A LIMITED NUMBER OF INDIVIDUALS.
DETAIL FULLY THE
CONSEQUENCES OF RESISTANCE
TO CHANGE
THE CHANGE AGENT
WHAT IS A CHANGE AGENT?
CHANGES WITHIN AN ORGANISATION
DEMAND A CATALYST (CONNOR &
LAKE, 1994). THE PERSONS WHO
HAVE THE RESPONSIBILITY OF
MANAGING THE CHANGE PROCESS
WITHIN AN ORGANISATION AND WHO
ACT AS CATALYSTS ARE CALLED
‘CHANGE AGENTS’ (FOX, 2006).
CHANGE MANAGERS DESIGN, OVERSEE
AND DIRECT CHANGE (CONNOR &
LAKE, 1994). CHANGE AGENTS CAN
COME FROM WITHIN THE
ORGANISATION OR BE EXTERNAL
CONSULTANTS (NAHAVANDI &
MALEKZADEH, 1999).
INTERNAL CHANGE AGENTS ARE
TYPICALLY SENIOR EXECUTIVES,
MANAGERS, INTERNAL STAFF DEVELOPERS
OR POWERFUL LOWER LEVEL EMPLOYEES
(CONNOR & LAKE, 1994). EXTERNAL
CHANGE AGENTS CAN BE CONSULTANTS
BROUGHT IN FROM OUTSIDE THE
COMPANY AND HAVE MORE
CREDIBILITY SINCE THEY ARE NOT
INVOLVED IN COMPANY POLITICS
(NAHAVANDI & MALEKZADEH, 1999).
ANY MANAGER MAY ACT AS A CHANGE
AGENT, ALTHOUGH A CHANGE AGENT
MAY ALSO BE A NON-MANAGER, A STAFF
SPECIALIST OR OUTSIDE SPECIALIST
WHOSE AREA OF EXPERTISE IS IN THE
IMPLEMENTATION OF CHANGE (BHENGU,
2007).
THE CHANGE AGENT
ACTIVITIES CONTRIBUTING TO EFFECTIVE CHANGE
MANAGEMENT
THERE ARE FIVE KINDS OF ACTIVITIES THAT
CHANGE AGENTS MUST CARRY OUT WHEN
PLANNING & IMPLEMENTING CHANGES FOR THEM
TO BE EFFECTIVE.
1) MOTIVATING CHANGE
IT INVOLVES CREATING A READINESS FOR
CHANGE AMONG ORGANISATIONAL MEMBERS
.THIS INVOLVES OVERCOMING AND HELPING
THEM TO ADDRESS THE RESISTANCE TO CHANGE.
2) CREATING A VISION
IT DESCRIBES AN ENVISIONED FUTURE THAT
INCLUDES A BOLD AND VALUED OUTCOME AND A
VIVIDLY DESIRED FUTURE STATE. THE ENVISIONED
FUTURE ARTICULATE A COMPELLING REASON FOR
IMPLEMENTING CHANGE.
3) DEVELOPING POLITICAL SUPPORT
CHANGE AGENTS FIRST MUST ASSESS THEIR
OWN SOURCE OF POWER , THEN IDENTIFY KEY
STAKEHOLDERS WHOSE SUPPORT IS NEEDED
FOR CHANGE AND DEVISE STRATEGIES TO
GAIN THEIR SUPPORT. CHANGE AGENTS MUST
HAVE POWER TO SOLVE POTENTIAL
CONFLICTS.
4) MANAGING TRANSITION
THE FOURTH ACTIVITY IS MANAGING THE
TRANSITION OF THE ORGANISATION FROM
ITS CURRENT STATE TO A DESIRED FUTURE
STATE. THIS REQUIRES PLANNING A ROAD
MAP FOR THE CHANGE ACTIVITIES AS WELL
AS PLANNING HOW TO GAIN COMMITMENT
TO THE CHANGES .IT ALSO INVOLVES
CREATING SPECIAL CHANGE MANAGEMENT
STRUCTURES.
CHANGE AGENT
5) SUSTAINING MOMENTUM
THE FIFTH CHANGE TASK IS TO SUSTAIN MOMENTUM FOR THE CHANGES
TO ENSURE THAT THEY ARE SUCCESSFULLY IMPLEMENTED. THIS INCLUDES
PROVIDING RESOURCES FOR THE CHANGE PROGRAMME, CREATING A
SUPPORT SYSTEM FOR THE CHANGE AGENTS. SUSTAINING THE
MOMENTUM WOULD INCLUDE PROVING RESOURCES FOR CHANGE ,
BUILDING A SUPPORT SYSTEM FOR CHANGE AGENTS, REINFORCING NEW
BEHAVIOURS AND STAYING THE COURSE.
Motivating change
Creating Vision
Developing political
support
Managing transition
Sustaining
Momentum
Effective
Change
Manageme
nt
CHANGE AGENT SKILLS PROFILE
( SUSAN GEBELEIN LISTS SIX KEY SKILLS THAT ARE CRITICAL TO THE
SUCCESS OF THE INTERNAL PRACTITIONER.)
Practitioner
Skills Profile
Personal
Skills
Leadership
Skills
Project
Manageme
nt Skills
Interperson
al Sills
Communicati
on Skills
Problem
Solving
Skills
THE CHANGE AGENT
LEADERSHIP SKILLS
LEADERS KEEP MEMBERS FOCUSED ON KEY COMPANY
VALUES AND OPPORTUNITIES AND NEED FOR
IMPROVEMENT. A LEADERS JOB IS TO RECOGNIZE WHEN
A COMPANY IS HEADED IN THE WRONG DIRECTION
AND TO GET IT BACK ON THE RIGHT TRACK.
PROJECT MANAGEMENT SKILLS
THIS MEANS INVOLVING ALL THE RIGHT PEOPLE AND
DEPARTMENTS TO KEEP THE CHANGE PROGRAMME ON
TRACK.
COMMUNICATION SKILLS
IT IS VITAL TO COMMUNICATE THE KEY VALUES TO
EVERYONE IN THE ORGANISATION.
PROBLEM SOLVING SKILLS
THE REAL CHALLENGE IS TO IMPLEMENT A SOLUTION
TO AN ORGANISATION PROBLEM.
INTERPERSONAL SKILLS
THE NUMBER PRIORITY IS TO GIVE
EVERYBODY IN THE ORGANISATION
THE TOOLS AND THE CONFIDENCE
TO BE INVOLVED IN THE CHANGE
PROCESS. THIS INCLUDES
FACILITATING ,BUILDING
RELATIONSHIPS AND PROCESS
SKILLS.
PERSONAL SKILLS
THE CONFIDENCE TO HELP THE
ORGANISATION MAKE TOUGH
DECISIONS AND INTRODUCING NEW
TECHNIQUES.
KEY PLAYERS IN ORGANISATION
CHANGE
• ORGANISATION CHANGE IS A, COLLABORATIVE EFFORT BY
SEVERAL INDIVIDUALS AND TEAMS IN AN ORGANISATION.
HERE WE LOOK AT THE ROLES OF DIFFERENT
STAKEHOLDERS IN AN ORGANISATION:
A. CORPORATE MANAGEMENT
CORPORATE MANAGEMENT INCLUDES THE CHIEF EXECUTIVE
AND SEVERAL TOP EXECUTIVES WHO ARE INVOLVED IN
POLICY DECISIONS. THE FOLLOWING ARE THE MAIN
FUNCTIONS OF CORPORATE MANAGEMENT IN RELATION TO
ORGANISATIONAL CHANGE.
KEY PLAYERS IN ORGANISATION
CHANGE
1. LEGITIMIZING FUNCTION
CORPORATE MANAGEMENT LEGITIMIZES THE CHANGE BEING PLANNED, RECOMMENDED AND
IMPLEMENTED. THE MORE ACTIVELY THE CORPORATE MANAGEMENT PROMOTES THE
CHANGE THE MORE LEGITIMATE IT BECOMES AND THE QUICKER IT IS LIKELY TO BE
ACCEPTED
2. ENERGIZING FUNCTION
THE ROLE OF THE CORPORATE MANAGEMENT IN SITUATIONS WHERE ORGANISATION
CHANGE PACE IS SLACKENING .AT SUCH CRITICAL POINTS IS CRUCIAL CORPORATE
MANAGEMENT ENERGISES THE SLACKENING PACE AND INTEREST BY TAKING UP PROBLEMS
FOR DISCUSSION AND BY SHOWING CONCERN.
3. GATE-KEEPING FUNCTION
CORPORATE MANAGEMENT HELPS IN ESTABLISHING THE RELATIONSHIP BETWEEN THE
CONSULTANTS AND VARIOUS GROUPS IN THE ORGANISATION. THIS IS USUALLY DONE BY
CALLING VARIOUS MEETINGS IN WHICH THE PURPOSE IS EXPLAINED AND THEN THE
CONSULTANTS GET AN ENTRY INTO THE ORGANISATION
KEY PLAYERS IN ORGANISATION
CHANGE
B. THE CONSULTANT(S)
A CONSULTANT OR A TEAM OF CONSULTANTS USUALLY COMES FROM
OUTSIDE BUT THEY CAN ALSO BE INSIDERS. THE CONSULTANT’S ROLE
IS THAT OF EXPERTS, WHO HAVE BOTH KNOWLEDGE AND EXPERIENCE
IN THE FIELD IN WHICH CHANGE IS PROPOSED.
1. IMPLANTING FUNCTION
THE CONSULTANT DOES NOT LOOK DOWN UPON THE INTERNAL
EXPERTISE AVAILABLE BUT SUPPLEMENTS SUCH EXPERTISE. IT IS
NECESSARY THAT THE CONSULTANT CARRIES ALONG WITH HIM THE
VARIOUS PEOPLE AT DIFFERENT STATES OF THE PROCESS OF
ORGANISATIONAL CHANGE TO MAKE CHANGE SUCCESSFUL
KEY PLAYERS IN ORGANISATION
CHANGE
2. TRANSCENDING FUNCTION
THE TAKES AN OVERALL VIEW OF THE BUSINESS. HE TRANSCENDS BOTH THE ECOLOGY OF THE
ORGANISATION, I.E. THE VARIOUS UNITS AND DEPARTMENT, TO BE ABLE TO TAKE AN OVERALL VIEW OF THE
ORGANISATION, AND ALSO TRANSCENDING FUNCTION MAKES THE ROLE OF THE CONSULTANT MORE
CREATIVE. HE THINKS ABOUT THE TOTAL ORGANISATION, NOT ONLY AS IT IS NOW, BUT ALSO AS IT IS LIKELY
TO BE IN THE FUTURE. THIS HELPS TO GIVE A WIDER PERSPECTIVE TO ORGANISATIONAL UNDERSTANDING
3. ALTERNATIVES GENERATING FUNCTION
THE CONSULTANT HAS TO GENERATE SEVERAL ALTERNATIVES. HE ALSO DEVELOPS THE ABILITY TO DESIGN
INTERVENTIONS AND WAYS OF SOLVING PROBLEMS
4. RESOURCE BUILDING FUNCTION
THE CONSULTANT HELPS IN GENERATING RESOURCES WITHIN THE ORGANISATION BY BUILDING THE
NECESSARY EXPERTISE AS HE WORKS WITH THE ORGANISATION. BY SHARING HIS KNOWLEDGE AND -
EXPERIENCE AND BY CONTINUOUSLY DISCUSSING MATTERS WITH THE CONCERNED PEOPLE HE HELPS IN
BUILDING INTERNAL RESOURCES
KEY PLAYERS IN ORGANISATION
CHANGE
INTERNAL RESOURCE PERSONS
THESE ARE INTERNAL PEOPLE WHO WORK WITH THE CHANGE AGENT. THEY
ARE RESPONSIBLE FOR IMPLEMENTING THE POLICIES AND DETAILS OF THE
CHANGE PROCESS.
IMPLEMENTATION TEAM
THE IMPLEMENTATION TEAM CONSISTS OF A GROUP OF PEOPLE FROM VARIOUS
DEPARTMENTS OR AREAS OF THE ORGANISATION WHO ARE GIVEN THE
RESPONSIBILITY FOR MONITORING, DELIBERATING AND MAKING NECESSARY
RECOMMENDATIONS FROM TIME TO TIME. SUCH A TEAM ENSURES PROPER
MOTIVATION OF PEOPLE THROUGHOUT THE ORGANISATION, AND TAKES NECESSARY
STEPS FOR EFFECTIVE IMPLEMENTATION.
CHIEF IMPLEMENTOR
SOMEONE WHO IS ASSISTED BY THE IMPLEMENTATION TEAM BUT WHO HAS EXECUTIVE
AUTHORITY TO PUSH CHANGES THROUGH MONITORING & DIAGNOSIS
THE DIAGNOSTIC PROCESS
WHAT IS A DIAGNOSIS?
TODAY’S INTENSE GLOBAL COMPETITION AND
DEREGULATION HAVE CREATED A GREAT
UNCERTAINTY FOR FIRMS IN VIRTUALLY EVERY
INDUSTRY . INCREASED COMPETITION REQUIRES
CONSTANT RESPONSE TO INITIATIVES BY OTHER
FIRMS . IT CALLS FOR CONTINUOUS
IMPROVEMENT OF QUALITY AND PRODUCTS
WHILE DECREASING COSTS. DIAGNOSIS IS A
METHOD OF ANALYSING ORGANISATIONAL
PROBLEMS AND LEARNING NEW PATTERNS OF
BEHAVIOUR. ITS A SYSTEMATIC APPROACH TO
UNDERSTANDING AND DESCRIBING THE PRESENT
STATE OF THE ORGANISATION.
ADVANTAGES OF DIAGNOSIS
 IT ENHANCES THE ORGANISATIONS CAPACITY
TO ASSESS AND CHANGE ITS CULTURE.
 IT PROVIDES AN OPPORTUNITY FOR
ORGANISATIONAL MEMBERS TO ACQUIRE NEW
INSIGHTS INTO THE DYSFUNCTIONAL ASPECTS.
OF THEIR CULTURE AND
PATTERNS OF BEHAVIOUR AS A
BASIS FOR DEVELOPING A MORE
EFFECTIVE CULTURE
 IT ENSURES THAT THE
ORGANISATION REMAINS
ENGAGED IN A PROCESS OF
CONTINUOUS IMPROVEMENT
THE PROCESS
DIAGNOSIS IS A CYCLICAL PROCESS THAT INVOLVES DATA GATHERING , INTERPRETATIONS AND IDENTIFICATION OF PROBLEM AREAS AND
POSSIBLE ACTION PROGRAMMES.
STEP1
TENTATIVE PROBLEM AREAS IDENTIFIED
STEP 2
COLLECT DATA
STEP 3
ANALYZE DATA
STEP 4
DATA FEEDBACK
STEP 5
MORE DATE NEEDED NOW
STEP 6
PROBLEM AREAS IDENTIFIED
STEP 7
CLIENT TARGET MOTIVATED TO WORK ON PROBLEM
STEP 8
DIAGNOSIS. WORK ON PROBLEM CAUSES. RESULT IS CHANGE
STEP 9 – RESULTS MONITORED
STEP 1 INVOLVES IDENTIFYING THE PROBLEM AREAS. THE
IDEA IS TO BRING OUT SYMPTOMS AS WELL AS
POSSIBLE PROBLEM AREAS
• THE SECOND STEP INVOLVES GATHERING DATA BASED
ON THE PRELIMINARY PROBLEM IDENTIFIED IN THE
PRECEDING STEP. THESE DATA ARE CATEGORIZED ,
ANALYZED AND PRESENTED TO THE CLIENT IN A
FEEDBACK SESSION( STEPS 3 & 4)
• IF IT IS DETERMINED THAT ENOUGH DATA IS
AVAILABLE ( STEP 5) THE CLIENT & THE PRACTITIONER
JOINTLY DIAGNOSE AND IDENTIFY LIKELY PROBLEM
AREAS(STEP 6). AT THIS POINT , THE CLIENT LEVEL OF
MOTIVATION TO WORK ON THE PROBLEM IS
DETERMINED(STEP 7)
• BASED ON THE DIAGNOSIS , THE TARGET SYSTEMS ARE
IDENTIFIED AND THE CHANGE STRATEGY IS DESIGNED.(
STEP 8)
• FINALLY STEP 9 THE RESULTS ARE MONITORED TO
DETERMINE THE DEGREE OF CHANGE THAT HAS BEEN
ATTAINED VERSUS THE DESIRED CHANGE GOALS.
DIAGNOSIS
SOURCES OF DATA
1) EMPLOYEE SURVEYS: INVOLVES THE USE OF
QUESTIONNAIRES TO PROVIDE INFORMATION ON THE
PAST , PRESENT AND FUTURE IMPROVEMENT EFFORTS
2) DIRECT OBSERVATION
THE CHANGE AGENT OBSERVES HOW EMPLOYEES GO
ABOUT IN THEIR TASK PERFORMANCE AND HOW THEY
ACT OR REACT IN RESPONSE TO SPECIFIC SITUATIONS.
THE NORMS AND ATTITUDES EXPRESSED BY MEMBERS
ARE ALSO AN IMPORTANT SOURCE OF DATA.
3) INTERVIEWS
THE MOST WIDELY USED TECHNIQUE. IT CAN BE A
DIRECTED INTERVIEW OR NON- DIRECTED INTERVIEW.
IN A DIRECTED INTERVIEW CERTAIN KINDS OF DATA
ARE DESIRED THEREFORE SPECIFIC QUESTIONS ARE
ASKED.. IN A NON DIRECTED INTERVIEW, THE
DIRECTION OF THE INTERVIEW IS CHOSEN BY THE
RESPONDENT
DIAGNOSTIC MODELS
OD PRACTITIONERS USE DIAGNOSTIC MODELS TO
ASSESS ORGANISATIONS.
1. THE ANALYTICAL MODEL
IT STRESSES THE IMPORTANCE OF A SOUND
ANALYTICAL DIAGNOSIS AS THE BASIS FOR PLANNED
CHANGE IN ORGANISATIONS. IT WAS DEVELOPED TO
STUDY AND UNDERSTAND INTERDEPARTMENTAL
ISSUES BY CONDUCTING A CAREFUL DIAGNOSIS OF
ORGANISATION PROBLEM AREAS. THE ORG IS MADE OF
DIFFERENT DEPARTMENTS AND THEY CAN BE
EXAMINED IN TERMS OF
1) DEGREE OF DEPARTMENTAL STRUCTURE
2) THE TIME ORIENTATION OF MEMBERS
3) INTERPERSONAL ORIENTATION OF MEMBERS TOWARDS
OTHERS
4) ORG MEMBERS ORIENTATION TOWARDS GOALS
DIAGNOSIS
2. THE EMERGENT GROUP BEHAVIOUR MODEL
IT PROVIDES A CONCEPTUAL SCHEME OF FOR
ANALYSING BEHAVIOUR IN WORK GROUPS,
PARTICULARLY THE INTERDEPENDENCE OF
GROUPS. THE MODEL HELPS IN
UNDERSTANDING HOW TEAMS OPERATE. THE
MODEL GATHERS OBSERVATIONS &
INFORMATION THE FOLLOWING FOUR
CHARACTERISTICS AND USES THEM TO
DIAGNOSE PROBLEMS AMONG OR WITHIN
TEAMS :
1) ACTIVITIES
2) SENTIMENTS
3) INTERACTIONS
4) NORMS
3. THE MANAGEMENT PRACTITIONER MODEL
ITS A MODEL THAT ANALYSES SIX BASIC FACTORS:
1) BASIC PLANNING:- DO THEY HAVE A MISSION , VISION AND
GOALS
2) GENERAL BUSINESS PRACTICES:- DO THEY HAVE
APPROPRIATE MANAGEMENT SYSTEMS
3) FINANCE: ARE THEY OPERATING WITH TIMELY , ACCURATE
FINANCIAL DATA & PLANS
4) ADVERTISING & PROMOTION: ARE THEY AWARE OF THE LINK
BETWEEN ADVERTISING & SALES
5) MARKET RESEARCH: ARE THEY AWARE OF THEIR
COMPETITORS STRATEGIES AND POLICIES AND THEIR
CUSTOMERS NEEDS.
6) PERSONNEL: DO THEY HAVE APPROPRIATE SYSSTEMS FOR
RECRUTING , TRAINING AND RETAINING HUMAN RESOURCES.
IT IS THEREFORE POSSIBLE TO ASK A FEW BASIC QUESTIONS IN
EACH AREA TO GET AN INDICATION OF WHERE THE PROBLEM
IS LOCATED.
DIAGNOSIS
4. FORCE-FIELD ANALYSIS MODEL
IT IS A GENERAL PURPOSE DIAGNOSTIC
TECHNIQUE. THIS MODEL VIEWS
ORGANISATION BEHAVIOUR AS A DYNAMIC
BALANCE OF FORCES WORKING IN OPPOSITE
DIRECTIONS. IN ANY ORGANISATION THERE
ARE FORCES THAT PUSH FOR CHANGE AND
FORCES THAT HINDER CHANGE. THE FORCES
ACTING TO KEEP THE ORGANISATION STABLE
ARE CALLED RESTRAINING FORCES, THEY PUT
PRESSURE ON THE ORGANISATION NOT TO
CHANGE .OPPOSITE FORCES ,CALLED DRIVING
FORCES PUT PRESSURE ON THE
ORGANISATION TO CHANGE. IF THE TWO
FORCES ARE EQUAL, THIS RESULTS IN A STATE
OF EQUILIBRIUM & THE ORGANISATION
REMAIN STABLE. THE TECHNIQUE ASSUMES
THAT AT ANY GIVEN MOMENT THE
ORGANISATION IS IN A STATE OF
EQUILIBRIUM.
CHANGE TAKES PLACE WHEN THERE
IS AN IMBALANCE BETWEEN THE
TWO TYPES OF FORCES UNTIL
OPPOSING FORCES ARE BROUGHT
BACK INTO EQUILIBRIUM. IN USING
THE FORCE FIELD ANALYSIS THE
STRENGTH OF RESTRAINING
FORCES CAN BE REDUCED WHILST
THE STRENGTH OF DRIVING FORCES
SHOULD BE INCREASED TO CLOSE A
PERFORMANCE GAP.
QUESTION :
HOW CAN YOU USE THE FORCE
FIELD ANALYSIS TO REDUCE THE
LEVEL OF ABSENTEE RATE FROM 6%
TO ABOUT 3%.
DIAGNOSIS
CAUSE MAPS
CAUSE MAPS ARE MATHEMATICAL
REPRESENTATIONS OF PERCEIVED
CAUSAL RELATIONSHIPS AMONG
VARIABLES. FIRST A LIST OF THE
IMPORTANT FACTORS( QUANTITY,
SPEED, FREQUENCY, QUALITY AND
MORALE) IS GENERATED
THROUGH GROUP DISCUSSION.
THEN PARTICIPANTS ARE ASKED
TO IDENTIFY THE CAUSAL
RELATIONSHIPS AMONG THE
VARIABLES
CHANGE INTERVENTIONS
INTERVENTIONS: REFER TO A SET OF SEQUENCED
AND PLANNED ACTIONS OR EVENTS INTENDED TO
HELP THE ORGANISATION INCREASE ITS
EFFECTIVENESS.
INDIVIDUAL INTERVENTION ACTIVITIES
THESE ARE AIMED AT CHANGING INDIVIDUALS.
THE FOLLOWING ACTIVITIES CAN BE
IMPLEMENTED:
1) SENSITIVITY/ LABORATORY TESTING. THESE ARE
USED TO INCREASE UNDERSTANDING , INSIGHT
AND SELF AWARENESS ABOUT ONE’S BEHAVIOUR
AND ITS IMPACT ON OTHERS. THE CHANGE
AGENT WILL ASK MEMBERS TO DISCUSS ISSUES
LIKE LEADERSHIP STYLES & PHILOSOPHY AND
PEOPLE EXCHANGE IDEAS.
2. BEHAVIOUR MODELLING
THIS IS WHEN EMPLOYEES VIEW
FILMS & VIDEO TAPES OF MODEL
PERSONS PERFORMING DESIRED
BEHAVIOURS. THE FILMS OR TAPES
GENERALLY SHOW ACCEPTABLE AND
UNACCEPTABLE BEHAVIOUR. THE
PARTICIPANTS ARE EXPECTED TO
LEARN THE BEHAVIOUR IN THE FILM,
FOR EXAMPLE A TRAINING PROGRAM
DESIGNED TO IMPROVE SUPERVISORS
SKILLS IN CONDUCTING
PERFORMANCE APPRAISAL –
EMPLOYEES ARE SHOWN A FILM OF
HOW THE PROCESS OCCURS.
CHANGE INTERVENTIONS
GROUP & TEAM INTERVENTION ACTIVITIES
1. TEAM BUILDING
A PLANNED EVENT WITH A GROUP OF PEOPLE
WHO SHARE THE DESIRE TO IMPROVE THE WAY
THE WORK IS DONE. TEAM BUILDING
INTERVENTIONS ARE TYPICALLY DIRECTED
TOWARDS DIAGNOSIS , TASK
ACCOMPLISHMENT, TEAM RELATIONSHIPS AND
ORGANISATION PROCESS. IT INVOLVES THE
FOLLOWING:
i. DIAGNOSTIC MEETING
MEANT TO DISCUSS THE GROUPS
PERFORMANCE OPENLY. THE DISCUSSION
SHOULD UNCOVER PROBLEMS THAT ARE
HINDERING GROUP PERFORMANCE AND THEN
COME UP WITH AN ACTION PLAN.
II ROLE ANALYSIS
IT IS DESIGNED TO CLARIFY THE ROLE
EXPECTATIONS AND RESPONSIBILITIES OF
TEAM MEMBERS.
2. SURVEY FEEDBACK RESEARCH
IT INVOLVES SYSTEMATICALLY
COLLECTING DATA ABOUT A GROUP OR
THE ORGANISATION PRIMARILY THROUGH
SELF-REPORT QUESTIONNAIRE. THE
COLLECTED DATA ARE FED BACK TO THE
GROUP FOR ANALYSIS AND DISCUSSION.
IT IDENTIFIES WHERE CHANGE IS NEEDED
AND THE SELECTION OF AN
INTERVENTION TECHNIQUES.
CHANGE INTERVENTIONS
ORGANISATIONAL INTERVENTION
ACTIVITIES
APPROACHES USED INCLUDE:
1. QUALITY OF WORK LIFE ( QWL)
DESIGNED TO IMPROVE THE QUALITY OF
LIFE OF EMPLOYEES THROUGH
DEVELOPING MECHANISMS TO ALLOW
THEM IMPROVE FULLY THEIR WORK LIFE;
FOR EXAMPLE – FAIR COMPENSATION,
SAFE WORKING ENVIRONMENT,
DEVELOPING HUMAN CAPACITIES &
CHANCE FOR PERSONAL GROWTH. THE
INTENDED OBJECTIVE IS TO IMPROVE
MOTIVATION SO THAT ORGANISATION
TARGETS ARE ACHIEVED.
2. RESTRUCTURING
THIS INVOLVES REDESIGNING THE
ORGANISATION STRUCTURE SO THAT IT
BECOMES EFFICIENT & EFFECTIVE.
ORGANISATION DEVELOPMENT CHANGE
AGENTS PREFER FLATTER STRUCTURES
BECAUSE THEY CAN RESPOND QUICKLY
TO THE EVER-CHANGING ENVIRONMENT.
3. CORPORATE ENTREPRENEURSHIP
AN APPROACH USED BY MANAGERS TO
RENEW THEIR ORGANISATIONS. LARGER
ORGANISATIONS HAVE BECOME
INTERESTED IN ENTREPRENEURIAL
THINKING FOR REASONS THAT RELATE TO
SEARCH FOR AVENUES FOR GROWTH.
CHANGE INTERVENTIONS
4. CHANGING ORGANISATIONAL CULTURE
CHANGES ARE MADE TOWARDS INTRODUCING
CULTURAL VALUES THAT SUPPORT LESS
MANAGEMENT CONTROL , INCREASED
TOLERANCE FOR RISK AND OPENING UP
COMMUNICATION CHANNELS. CULTURES
SHOULD BE MORE FLEXIBLE , MORE RESPONSIBLE
AND MORE FOCUSED ON CUSTOMER NEEDS,
SERVICE & QUALITY.
5. NEW REWARD SYSTEMS
ORGS CAN COME UP WITH AN EFFECTIVE
REWARD SYSTEM WHICH:
i. SATISFY THE BASIC NEEDS OF ALL EMPLOYEES.
ii. ARE COMPETITIVE AND MATCHING THOSE OF
COMPETING ORGANIZATIONS IN THE SAME
INDUSTRY.
III ARE EQUITABLE.. EXPERIENCE, ABILITY, EFFORT
AND OTHER CONSIDERATIONS SHOULD EXPLAIN
THE DIFFERENCES IN PAY & OTHER OBVIOUS
OUTCOMES.
6. JOB REDESIGN
INVOLVES MATCHING THE JOB TO THE PERSON
DOING IT. IT HAS BASICALLY 2 ELEMENTS;
i. JOB ENLARGEMENT: -INCREASING THE VARIETY
OR THE NUMBER OF TASKS A JOB INCLUDES.
ii. JOB ENRICHMENT: INTRODUCE NEW AND MORE
DIFFICULT TASKS NOT PREVIOUSLY HANDLED,
INCREASE THE ACCOUNTABILITY OF
INDIVIDUALS FOR THEIR OWN WORK AND
ASSIGN INDIVIDUALS TASKS THAT ENABLE
THEM TO BECOME EXPERTS.
CHANGE INTERVENTIONS
7.MANAGEMENT BY OBJECTIVES
IT IS A PROGRAM THAT ENCOMPASSES SPECIFIC GOALS SET WITH
COOPERATION OF EMPLOYEES, FOR AN EXPLICIT TIME PERIOD, WITH
FEEDBACK ON GOAL PROGRESS. MBO EMPHASIZES SETTING GOALS
PARTICIPATIVELY THAT ARE TANGIBLE, VARIABLE, MEASURABLE,
REALISTIC AND TIMELY. THE MAIN FOCUS OF MBO IS CONVERTING
OVERALL ORGANIZATIONAL OBJECTIVES INTO SPECIFIC OBJECTIVES
FOR THE ORGANIZATIONAL UNITS AND INDIVIDUAL MEMBERS. THE
OBJECTIVES ARE FLOWING FROM TOP TO BOTTOM IN THE HIERARCHY
AS CORPORATE GOALS, DIVISIONAL GOALS, DEPARTMENTAL GOALS
AND INDIVIDUAL GOALS IN THE ORGANIZATION. LOWER UNIT
MANAGERS JOINTLY PARTICIPATE IN SETTING THEIR OWN GOALS.
MBO WORKS FROM THE BOTTOM UP AS WELL AS FROM THE TOP
DOWN
LEADERSHIP & CHANGE
MANAGEMENT
CHANGE MANAGEMENT
LEADERSHIP - A RELATIONSHIP THROUGH WHICH
ONE PERSON INFLUENCES THE BEHAVIOUR OR
ACTIONS OF OTHER PEOPLE( MULLINS,2006).
MOST OF THE ORGANIZATIONS AGREE NOW A
DAYS THAT EFFECTIVE LEADERSHIP IS ONE OF
THE MOST IMPORTANT CONTRIBUTORS TO
THE OVERALL ORGANIZATIONAL
PERFORMANCE AND CHANGE. INTELLIGENT
LEADERS ARE THOSE WHO HAVE A STORE OF
SKILLS AND KNOWLEDGE GAINED FROM
EXPERIENCE THAT ALLOWS THEM TO MANAGE
EFFECTIVELY AND EFFICIENTLY THE TASKS OF
DAILY LIFE. EFFECTIVE LEADERSHIP IS ALWAYS
REQUIRED TO BRING EFFECTIVE CHANGES
(KENNEDY, 2000).
CHANGE MANAGEMENT
LEADERSHIP & CHANGE
MANAGEMENT
LEADERSHIP COMPETENCIES FOR EFFECTIVE CHANGE MANAGEMENT ( SOURCE: PAGON,BANUTAI, B & B
BIZJACK,2008)
Cognitive
Competence
1.Creativity
2.Self Reliance
3.Problem
solving skills
4.Analytical
skills
5.Good
Consultation
Successful
Change
1.Increase in
productivity
2.Increase in
relationship
quality
3.Reduced
conflicts
4.Employees
satisfaction
Social Competences
1.Interpersonal
skills
2.Team working
abilities
3. Stress
Management Skills
4.Motivativational
skills
Functional
Competencies
1.Communication
skills
2.Special
knowledge skills
3.Strong decision
making schools
4.Career planning
skills
LEADERSHIP & CHANGE
MANAGEMENT
THE ROLE OF LEADERSHIP IN CHANGE MANAGEMENT
1.OVERCOMING RESISTANCE TO CHANGE
ANY CHANGE PROCESS MOSTLY FACE THE CERTAIN LEVEL OF RESISTANCES, THE EFFECTIVE LEADER IS ONE WHO CAN MANAGE THE
RESISTANCE AND IMPLEMENT SUCCESSFUL CHANGES. RECOGNIZING, ADDRESSING AND OVERCOMING THE RESISTANCE IS ALWAYS
LENGTHY IS A CRITICAL ROLE OF LEADERSHIP IN CHANGE MANAGEMENT. RADICAL CHANGES REQUIRE PRIVATE ACCEPTANCE AND
IT IS A ROLE OF SENIOR LEADERS TO MAKE PEOPLE REALIZE THE NEED OF CHANGE AND THEREFORE TO CREATE WILLINGNESS TO
RELINQUISH OLD STYLE OF WORKING IN FAVOUR OF NEW ONES.
2. CREATING & COMMUNICATING THE VISION
THE EFFECTIVE LEADERS HAVE TO COME UP WITH A CLEAR AND STRAIGHT VISION ABOUT FUTURE AND SUCCESSFUL CHANGE
NEEDS TO HAVE A CLEAR PICTURE OF FUTURE. WITHOUT VISION THE SUCCESSFUL CHANGES ARE VERY DIFFICULT. KOTTER CLAIMS
THAT IT IS VERY IMPORTANT FOR THE LEADERS TO COMMUNICATE THE VISION (KOTTER, 1995). COMMUNICATION INCREASES THE
ACCEPTANCE OF A VISION.
3. CREATING A SUPPORTING CULTURE
THE ROLE OF LEADER/LEADERSHIP IS ALSO VERY IMPORTANT FOR DEVELOPING AND MANAGING CHANGE IN ANY ORGANIZATION BY
CREATING THE SUITABLE ATMOSPHERE WITHIN THE ORGANIZATION TO ADOPT CHANGE. ORGANIZATIONAL CULTURE HAS A ROLE
IN DEVELOPMENT OF CHANGES IN ANY ORGANIZATION, AND IT IS THE LEADER WHO BRINGS NEW STRATEGIES FOR DEVELOPING OR
MANAGING CULTURE.
LEADERSHIP & CHANGE
MANAGEMENT
4. PROVIDING REWARDS
FOR EMPLOYEES TO BE MOTIVATED IN AN ORGANISATION THEY NEED TO BE RECOGNISED FOR THEIR
PERFORMANCE. THE LEADERSHIP SHOULD ESTABLISH A LINKAGE BETWEEN REWARDS & PERFORMANCE.
DURING CHANGE TARGETS ARE SET, THOSE EMPLOYEES WHO ACHIEVE THE TARGETS SHOULD BE REWARDED
. IT IS THE DUTY OF THE LEADERSHIP TO SET THE TARGETS AND THE ASSOCIATED REWARDS TO ELICIT HIGH
LEVELS OF MOTIVATION.
5. TRAINING
CHANGE PROCESSES USUALLY COME WITH NEW METHODS OF WORKING. OLD METHODS ARE DISCARDED
AND NEW WAYS ARE ADOPTED. EMPLOYEES THEREFORE NEED TO BE TRAINED TO BE ABLE TO FUNCTION
IN A NEW ENVIRONMENT. IT CALLS FOR THE LEADERSHIP TO TRAIN EMPLOYEES SO THAT THEY GET
SKILLS REQUIRED IN THE NEW ERA. FOR EXAMPLE WHEN NEW EQUIPMENT IS PURCHASED , EMPLOYEES
HAVE TO BE TRAINED TO USE THE NEW EQUIPMENT.
6. PROVISION OF RESOURCES
RESOURCES ARE ORGANISATIONAL ASSETS USED IN THE PRODUCTION OF GOODS & SERVICES, E.G
PEOPLE, FINANCE , EQUIPMENT AND INFORMATION. FOR CHANGE TO BE SUCCESSFUL, THE LEADERSHIP
HAS TO PROVIDE THESE RESOURCES AS AND WHEN THEY ARE REQUIRED.
THE ORGANISATION OF THE
FUTURE:
IMPLICATIONS OF THE 21ST
CENTURY !
• THE RATE OF CHANGE IN THE BUSINESS
WORLD IS NOT GOING TO SLOW DOWN ANY
TIME SOON. COMPETITION IN MOST
INDUSTRIES WILL PROBABLY SPEED UP OVER
THE NEXT FEW DECADES. SO WHAT WILL THE
WINNING ENTERPRISE OF THE 21ST CENTURY
LOOK ALIKE ?
• PROFESSOR KOTTER CAME UP WITH THE
FOLLOWING STRATEGIES:
THE ORGANISATION OF THE
FUTURE:
IMPLICATIONS OF THE 21ST
CENTURY !
A PERSISTENT SENSE OF URGENCY
MAJOR CHANGE IS NEVER
SUCCESSFUL UNLESS COMPLACENCY
LEVEL IS LOW. A HIGH SENSE OF
URGENCY MEANS THAT PEOPLE ARE
ALWAYS LOOKING FOR BOTH
OPPORTUNITIES AND CHALLENGES
CONFRONTING THE ORGANISATION.
MORE PEOPLE WILL NEED
INFORMATION ON
CUSTOMERS,EMPLOYEES,COMPETITO
RS,FINANCIAL RESULTS AND
TECHNOLOGICAL DEVELOPMENTS.
THIS INFORMATION HAS TO BE
PROVIDED TIMEOUSLY.
2.TEAM WORK AT THE TOP
IN AN ENVIRONMENT OF
CONSTANT CHANGE
,INDIVIDUALS EVEN IF
SUPREMELY TALENTED WONT
HAVE ENOUGH TIME OR
EXPERTISE TO ABSORB RAPIDLY
SHIFTING COMPETITOR
,CUSTOMER AND
TECHNOLOGICAL
INFORMATION. THEY WILL NOT
HAVE ENOUGH TIME TO
COMMUNICATE WITH
HUNDREDS OF WORKERS HENCE
THE NEED TO OPERATE AS A
TEAM
THE ORGANISATION OF THE
FUTURE:
IMPLICATIONS OF THE 21ST
CENTURY !
3. PEOPLE WHO CAN CREATE AND COMMUNICATE VISION.
THE ORGANISATION OF THE FUTURE NEED PEOPLE WHO CAN CREATE AND
COMMUNICATE VISIONS AND STRATEGIES. BECAUSE MANAGEMENT DEALS
WITH STATUS QUO AND LEADERS DEAL MOSTLY WITH CHANGE- IN THE NEXT
CENTURY WE HAVE TO BE SKILLED IN CREATING LEADERS. THE DEVELOPMENT
OF LEADERSHIP WILL REQUIRE FLATTER AND LEANER STRUCTURES ALONG WITH
LESS CONTROLLING AND MORE RISK TAKING CULTURES.
4. BROAD BASED EMPOWERMENT
EMPOWERMENT OF EMPLOYEES SHOULD BE PRIORITISED IN THE 21ST CENTURY.
FLATTER HIERARCHIES, LESS BUREAUCRACY AND A GREATER WILLINGNESS TO
TAKE RISKS SHOULD BE PROMOTED IN ORGANISATIONS OF TODAY. MANAGERS
SHOULD FOCUS ON LEADERSHIP IN WHICH THEY DELEGATE RESPONSIBILITIES (
WITH SUFFICIENT AUTHORITY )TO LOWER LEVELS.
THE ORGANISATION OF THE
FUTURE:
IMPLICATIONS OF THE 21ST
CENTURY !
DELEGATED MANAGEMENT FOR EXCELLENT SHORT –TERM
PERFORMANCE
DELEGATION IS IMPORTANT IN A FAST CHANGING ENVIRONMENT.
LOWER LEVEL EMPLOYEES HAVE TO BE GIVEN SUFFICIENT TRAINING &
EDUCATION TO PERFORM BETTER IN THEIR POSITIONS . THE VISION IS
ACHIEVED BY CREATING SHORT TARGETS TO MAKE SURE THAT THE
ORGANISATION IS IN THE RIGHT PATH.
6 NO UNNECESSARY INTERDEPENDENCE
ALL ORGANISATIONS HAVE UNNEEDED INTERNAL INTERCONNECTIONS
BETWEEN PEOPLE & GROUPS. THE EFFECTIVE ORGANISATION OF THE
21ST CENTURY WILL RE-EXAMINE LINKAGES ON A MORE REGULAR
BASIS AND ELIMINATE THOSE THAT NO LONGER RELEVANT.
THE ORGANISATION OF THE
FUTURE:
IMPLICATIONS OF THE 21ST
CENTURY !
5. AN ADAPTIVE CORPORATE
CULTURE
THE CHANGES THAT HAVE
BEEN DESCRIBED ABOVE WILL
REQUIRE A CORPORATE
CULTURE FOR THEM TO
STICK. CULTURES CAN
FACILITATE ADAPTATION –
IF THEY SUPPORT
COMPETENT LEADERSHIP,
ENCOURAGE TEAM WORK &
IF THEY DEMAND MINIMUM
MANAGERIAL LAYERS.
CHANGE CAPABLE
ORGANISATIONS
• IN ADDITION TO WHAT PROF KOTTER SAID THE FOLLOWING
POINTS ARE ALSO IMPORTANT IN THE 21ST CENTURY
MANAGEMENT:
• WHAT DOES IT TAKE TO BE A CHANGE CAPABLE
ORGANISATION?
1. MAKE LEARNING A WAY OF LIFE: CHANGE FRIENDLY
ORGANISATIONS EXCEL AT KNOWLEDGE SHARING AND
MANAGEMENT.
2. LINK THE PRESENT AND THE FUTURE: MANAGERS NEED TO
THINK ABOUT FUTURE OPPORTUNITIES AND ISSUES AND
FACTOR THEM INTO TODAYS DECISIONS
CHANGE CAPABLE
ORGANISATIONS
• 3.TEAM WORKING – MANAGERS SHOULD ENSURE THAT
THERE ARE DIVERSE TEAMS AT THE WORK PLACE.
DIVERSITY ENSURES THERE IS ALWAYS A CHANGE IN THE
WAY THINGS ARE DONE.
• 4.INTERGRATE TECHNOLOGY-THERE IS NEED TO USE
TECHNOLOGY TO IMPLEMENT CHANGES. ALWAYS EMBRACE
TECHNOLOGICAL CHANGES.
• 5. BUILD AND DEEPEN TRUST- PEOPLE WILL SUPPORT
CHANGES WHEN THE CULTURE OF THE ORGANISATION IS
TRUSTING AND MANAGERS HAVE CREDIBILITY
STIMULATING INNOVATION
• WEST AND FARR (1990) DEFINED INNOVATION AS AN “INTENTIONAL
INTRODUCTION AND APPLICATION OF NEW PRODUCTS, PROCESSES,
PROCEDURES, OR IDEAS THAT ARE DESIGNED TO SIGNIFICANTLY
BENEFIT THE INDIVIDUAL, THE GROUP, THE ORGANIZATION OR WIDER
SOCIETY”.
• INNOVATION IS THE KEY TO CONTINUED SUCCESS.
• SUCCESS TODAY DEPENDS ON INNOVATION BECAUSE THE TODAYS
BUSINESS ENVIRONMENT IS ALWAYS CHANGING, ORGANISATIONS
MUST THEREFORE CREATE NEW PRODUCTS AND PRODUCTS AND
SERVICES AND ADOPT STATE OF THE ART TECHNOLOGY
•
STIMULATING INNOVATION
• HOW ORGANISATIONS BECOME INNOVATIVE?
Stimulate
Innovation
Human Resources
Variables
1.Creative People
2.Training &
Development
3.High Job
Security
Structural
Variables:
1.Organic
structures
2.Abundant
Resources
3.Communication
Cultural Variables:
1.Tolerance of risks
2.Tolerance of
conflict
3.Positive Feedback
STIMULATING INNOVATION
• STRUCTURAL VARIABLES
RESEARCH INTO THE EFFECT OF STRUCTURE ON INNOVATION SHOW THE FOLLOWING:
1. ORGANIC STRUCTURE POSITIVELY INFLUENCES INNOVATION BECAUSE IT ALLOWS
FLEXIBILITY & KNOWLEDGE SHARING – ANTECEDENTS THAT ARE CRITICAL IN
INNOVATION.
2. ABUNDANT RESOURCES PROVIDES A KEY BUILDING BLOCK FOR INNOVATION. THE
AVAILABILITY OF RESOURCES ALLOWS MANAGERS TO PURCHASE INNOVATIONS AND
AFFORD THE COSTS OF INSTITUTING INNOVATIONS
3. COMMUNICATION-THIS HELPS TO BREAK DOWN BARRIERS TO INNOVATION. CROSS
FUNCTIONAL TEAMS AND TASK FORCES HELP TO FACILITATE INTERACTION ACROSS
DEPARTMENTAL LINES.
4. WORK & NON WORK SUPPORT – EMPLOYEES CREATIVE PERFORMANCE IS ENHANCED BY
AN ORGANISATION STRUCTURE THAT SUPPORTS CREATIVITY FOR EXAMPLE MANAGERIAL
ENCOURAGEMENT, OPEN COMMUNICATION & USEFUL FEEDBACK.
STIMULATING INNOVATION
• CULTURAL VARIABLES
1.TOLERANCE FOR RISKS
EMPLOYEES SHOULD BE ALLOWED TO EXPERIMENT WITHOUT THE FEAR OF FAILURE SHOULD THEY FAIL.
MISTAKES SHOULD BE TREATED AS LEARNING OPPORTUNITIES
2. TOLERANCE FOR CONFLICT
DIVERSITY OF OPINIONS IS ENCOURAGED. HARMONY AND AGREEMENT BETWEEN INDIVIDUALS OR UNITS ARE
NOT ASSUMED TO EVIDENCE OF HIGH PERFORMANCE
3. POSITIVE FEEDBACK
MANAGERS HAVE TO PROVIDE POSITIVE FEEDBACK, ENCOURAGEMENT AND SUPPORT SO EMPLOYEES FEEL
THAT THEIR CREATIVE IDEAS RECEIVE ATTENTION.
4.EMPOWERING LEADERSHIP
MANAGERS SHOULD LET ORGANISATIONAL MEMBERS KNOW THAT THEIR JOB IS SIGNIFICANT ,OFFER
OPPORTUNITIES FOR DECISION MAKING.
STIMULATING INNOVATION
• HUMAN RESOUCES VARIABLES
1. TRAINING & DEVELOPMENT
INNOVATIVE ORGANISATIONS ACTIVELY PROMOTE THE TRAINING &
DEVELOPMENT OF THEIR MEMBERS SO THEIR KNOWLEDGE REMAINS CURRENT
2. JOB SECURITY
THIS REDUCES THE FEAR OF GETTING FIRED FOR MAKING MISTAKES
3. CREATIVE PEOPLE
INNOVATIVE ORGANISATIONS ENCOURAGE INDIVIDUALS TO BECOME IDEA
CHAMPIONS. THESE ARE THE PEOPLE WITH WHO ARE ENERGIZED AND HAVE A
HIGH TOLERANCE TOWARDS RISKS.

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Change Management Notes 2017.pptx

  • 1. ORGANISATION CHANGE MANAGEMENT ( BM209) BY: WILLIAM MAKUMBE LECTURER: DEPARTMENT OF MANAGEMENT STUDIES + 263 713 803 275 MAKUMBE.WILLIAM@GMAIL.COM
  • 2. INTRODUCTION THIS MODULE IS OFFERED TO STUDENTS IN THE FOLLOWING DEGREE PROGRAMMES: BUSINESS MANAGEMENT: LEVEL 2.2 OFFICE MANAGEMENT: LEVEL 2.2
  • 3. OVERVIEW • WE ARE LIVING TODAY IN A CONSTANTLY GROWING GLOBAL BUSINESS ENVIRONMENT, WHERE CHANGE HAS BECOME THE NORM FOR ORGANIZATIONS TO SUSTAIN THEIR SUCCESS AND EXISTENCE. INDUSTRIAL AND GOVERNMENTAL ORGANIZATIONS ARE CONSTANTLY STRIVING TO ALIGN THEIR OPERATIONS WITH A CHANGING ENVIRONMENT (ACKOFF, 2006; BURNES, 2004A; BY, 2005; HAILEY AND BALOGUN, 2002; KOTTER, 1996; MINTZBERG, 1979; MORAN AND BRIGHTMAN, 2001). • ORGANIZATIONS AND THEIR LEADERS ARE ALSO CHANGING AS A NATURAL RESPONSE TO THE SHIFT IN STRATEGIC IMPORTANCE, FROM EFFECTIVELY MANAGING MASS MARKETS AND TANGIBLE PROPERTIES TO INNOVATION, KNOWLEDGE MANAGEMENT AND HUMAN RESOURCES (DESS AND • PICKEN, 2000).
  • 4. WHAT IS ORGANISATION CHANGE MANAGEMENT WHAT IS ORGANISATION CHANGE MANAGEMENT? 1.CHANGE MANAGEMENT IS A COMPREHENSIVE, CYCLIC AND STRUCTURED APPROACH FOR TRANSITIONING INDIVIDUALS, GROUPS AND ORGANIZATIONS FROM A CURRENT STATE TO A FUTURE STATE WITH INTENDED BUSINESS BENEFITS. • BY (2005) DEFINES CHANGE MANAGEMENT AS ‘THE PROCESS OF CONTINUALLY RENEWING AN ORGANIZATION’S DIRECTION, STRUCTURE, AND CAPABILITIES TO SERVE THE EVER- CHANGING NEEDS OF EXTERNAL AND INTERNAL CUSTOMERS’
  • 5. INTRODUCTION GENERALLY ORGANISATION CHANGE MANAGEMENT CAN BE CATEGORISED INTO PLANNED CHANGE & EMERGENT CHANGE
  • 6. PLANNED CHANGE VS. EMERGENT CHANGE • PLANNED CHANGE MANAGEMENT INVOLVE THE SEQUENTIAL STEPS FOR ALTERING ORGANISATIONAL AND INDIVIDUAL BEHAVIOUR ONCE DECISION MAKERS IDENTIFY A NEED FOR CHANGE (LIVNE-TARANDACH AND BARTUNEK, 2009; BURNS, 2006) • EMERGENT CHANGE IS DESCRIBED AS UNPREDICTABLE, OFTEN UNINTENTIONAL, CAN COME FROM ANYWHERE (WEICK AND QUINN, 1999)
  • 7. PLANNED CHANGE • THE PLANNED APPROACH EMPHASISES THE IMPORTANCE OF UNDERSTANDING THE DIFFERENT STATES WHICH AN ORGANISATION WILL HAVE TO GO THROUGH IN ORDER TO MOVE FROM AN UNSATISFACTORY STATE TO AN IDENTIFIED DESIRED STATE (ELDROD II AND TIPPETT, 2002). • THE PLANNED APPROACH WAS INITIATED BY KURT LEWIN WHO PROPOSED THAT BEFORE CHANGE AND NEW BEHAVIOUR CAN BE ADOPTED SUCCESSFULLY, THE PREVIOUS BEHAVIOUR HAS TO BE DISCARDED.
  • 8. PLANNED ORGANISATIONAL CHANGE • ACCORDING TO LEWIN (1952 IN ELDROD II AND TIPPETT, 2002) A SUCCESSFUL CHANGE PROJECT MUST, THEREFORE, INVOLVE THE THREE STEPS UNFREEZING THE PRESENT LEVEL, MOVING TO THE NEW LEVEL AND REFREEZING THIS NEW LEVEL
  • 9. UNFREEZING THE PRESENT LEVEL : KEY ISSUES o MANAGEMENT FOCUSES ON WHAT NEEDS TO CHANGE o PREPARATION OF THE CHANGE MANAGEMENT TEAM, AND o DEVELOPMENT OF THE CHANGE MANAGEMENT AND COMMUNICATION PLAN
  • 10. MOVING TO THE NEW LEVEL 1. COMMUNICATING THE VISION & PLAN FOR THE CHANGE PROGRAMME 2. SECURE EMPLOYEE COMMITMENT BY CLARIFYING THE EFFECTS & BENEFITS OF CHANGE. THIS HELPS TO DISPEL NEGATIVE CONSEQUENCES OF CHANGE. 3. EMPLOYEE INVOLVEMENT: DEVELOP INDIVIDUAL ACTION PLANS
  • 11. MOVING TO THE NEW LEVEL 4. IMPLEMENTATION OF CHANGE PLANS • THIS ABOUT TAKING ACTION AND IMPLEMENTING PLANS BY MANAGING THE IMPLEMENTATION SCHEDULE • IDENTIFYING BARRIERS TO CHANGE AND PROVIDING SOLUTIONS • TRAINING PEOPLE WHERE NECESSARY
  • 12. REFREEZING THE NEW LEVEL THIS STAGE INVOLVES AND EVALUATION OF THE CHANGE. KEY ISSUES: CHANGE EVALUATION o POST CHANGE IMPLEMENTATION REVIEW o EMPLOYEE FEEDBACK ANALYSIS
  • 13. REINFORCING THE CHANGE SUSTAINING THE CHANGE 1. GETTING THE SUPPORT OF THE LEADERSHIP OF THE ORGANISATION 2. EMBEDDING THE NEW CHANGES INTO THE ORGANISATION CULTURE
  • 14. CRITICISM OF THE PLANNED APPROACH • ALTHOUGH THE PLANNED APPROACH TO CHANGE IS LONG ESTABLISHED AND HELD TO BE HIGHLY EFFECTIVE (BAMFORD AND FORRESTER, 2003; BURNES, 2004), IT HAS COME UNDER INCREASING CRITICISM SINCE THE EARLY 1980S (KANTER ET AL., 1992; BURNES,1996). FIRSTLY, IT IS SUGGESTED THAT THE APPROACH’S EMPHASIS IS ON SMALL-SCALE AND INCREMENTAL CHANGE, AND IT IS, THEREFORE, NOT APPLICABLE TO SITUATIONS THAT REQUIRE RAPID AND TRANSFORMATIONAL CHANGE (BURNES, 1996, 2004; SENIOR, 2002).
  • 15. CRITICISM OF THE PLANNED APPROACH TO CHANGE MANAGEMENT • SECONDLY, THE PLANNED APPROACH IS BASED ON THE ASSUMPTIONS THAT ORGANISATIONS OPERATE UNDER CONSTANT CONDITIONS, AND THAT THEY CAN MOVE IN A PRE-PLANNED MANNER FROM ONE STABLE STATE TO ANOTHER (BAMFORD AND FORRESTER, 2003). THESE ASSUMPTIONS ARE, HOWEVER, QUESTIONED BY SEVERAL AUTHORS (BURNES, 1996, 2004; WILSON, 1992) WHO ARGUE THAT THE CURRENT FAST-CHANGING ENVIRONMENT INCREASINGLY WEAKENS THIS THEORY.
  • 16. CRITICISM OF THE PLANNED APPROACH • MOREOVER, IT IS SUGGESTED THAT ORGANISATIONAL CHANGE IS MORE AN OPEN-ENDED AND CONTINUOUS PROCESS THAN A SET OF PRE-IDENTIFIED SET OF DISCRETE AND SELF-CONTAINED EVENTS (BURNES, 1996, 2004). BY ATTEMPTING TO LAY DOWN TIMETABLES, OBJECTIVES AND METHODS IN ADVANCE IT IS SUGGESTED THAT THE PROCESS OF CHANGE BECOMES TOO DEPENDENT ON SENIOR MANAGERS, WHO IN MANY INSTANCES DO NOT HAVE A FULL UNDERSTANDING OF THE CONSEQUENCES OF THEIR ACTIONS (WILSON, 1992).
  • 17. CRITICISM OF THE PLANNED APPROACH • THE APPROACH OF PLANNED CHANGE IGNORES SITUATIONS WHERE MORE DIRECTIVE APPROACHES ARE REQUIRED. THIS CAN BE A SITUATION OF CRISIS, WHICH REQUIRES MAJOR AND RAPID CHANGE, AND DOES NOT ALLOW SCOPE FOR WIDESPREAD CONSULTATION OR INVOLVEMENT (BURNES, 1996, 2004; KANTER ET AL., 1992). • FINALLY, THE CRITICS ARGUE THAT THE PLANNED APPROACH TO CHANGE PRESUMES THAT ALL STAKEHOLDERS IN A CHANGE PROJECT ARE WILLING AND INTERESTED IN IMPLEMENTING IT, AND THAT A COMMON AGREEMENT CAN BE REACHED (BAMFORD AND FORRESTER, 2003). THIS PRESUMPTION CLEARLY IGNORES ORGANISATIONAL POLITICS AND CONFLICT, AND ASSUMES THESE CAN BE EASILY IDENTIFIED AND RESOLVED (BURNES, 1996, 2004)
  • 18. EMERGENT APPROACH TO CHANGE • THE EMERGENT APPROACH HAS GAINED GROUND IN RESPONSE TO THE CRITICISM OF THE PLANNED APPROACH TO ORGANISATIONAL CHANGE ( BY, 2005). • ACCORDING TO THE ADVOCATES OF THE EMERGENT APPROACH TO CHANGE IT IS THE UNCERTAINTY OF BOTH THE EXTERNAL AND INTERNAL ENVIRONMENT THAT MAKES THIS APPROACH MORE PERTINENT THAN THE PLANNED APPROACH (BAMFORD AND FORRESTER,2003).
  • 19. MAJOR FEATURES OF EMERGENT CHANGE • RATHER THAN SEEING CHANGE TO BE TOP-DOWN DRIVEN, THE EMERGENT APPROACH TENDS TO SEE CHANGE DRIVEN FROM THE BOTTOM UP (BAMFORD AND FORRESTER, 2003; BURNES, 1996, 2004). • THE APPROACH SUGGESTS CHANGE TO BE SO RAPID THAT IT IS IMPOSSIBLE FOR SENIOR MANAGERS EFFECTIVELY TO IDENTIFY, PLAN AND IMPLEMENT THE NECESSARY ORGANISATIONAL RESPONSES (KANTER ET AL., 1992). THEREFORE, THE RESPONSIBILITY FOR ORGANISATIONAL CHANGE HAS TO BECOME INCREASINGLY DEVOLVED (WILSON, 1992). • THE EMERGENT APPROACH TO CHANGE EMPHASISES THAT CHANGE SHOULD NOT BE PERCEIVED AS A SERIES OF LINEAR EVENTS WITHIN A GIVEN PERIOD OF TIME, BUT AS A CONTINUOUS, OPEN-ENDED PROCESS OF ADAPTATION TO CHANGING CIRCUMSTANCES AND CONDITIONS (BURNES, 1996, 2004; DAWSON, 1994)
  • 20. MAJOR FEATURES OF THE EMERGENT APPROACH TO CHANGE • THIS APPROACH ADVOCATES THAT ORGANISATIONS NEED TO BECOME OPEN LEARNING SYSTEMS. ORGANISATIONS HAVE TO SCAN THE ENVIRONMENT AND MAKE INFORMED DECISIONS FROM THE INFORMATION COMING FROM BOTH THE EXTERNAL AND INTERNAL ENVIRONMENT (DUNPHY AND STACE, 1993). • THE APPROACH STRESSES A PROMOTION OF ‘EXTENSIVE AND IN-DEPTH UNDERSTANDING OF STRATEGY, STRUCTURE, SYSTEMS, PEOPLE, STYLE AND CULTURE, AND HOW THESE CAN FUNCTION EITHER AS SOURCES OF INERTIA THAT CAN BLOCK CHANGE, OR ALTERNATIVELY, AS LEVERS TO ENCOURAGE AN EFFECTIVE CHANGE PROCESS’ (BURNES, 1996: 14).
  • 21. KEY SUCCESS FACTORS IN CHANGE MANAGEMENT • REVISING REWARD AND MOTIVATION SYSTEMS • STAFF MOTIVATION THROUGH A REWARD PROGRAMME HAS A CRUCIAL ROLE IN FACILITATING RE-ENGINEERING EFFORTS AND SMOOTHING THE INSERTION OF NEW PROCESSES IN THE WORKPLACE. THE NEW REWARD AND INCENTIVE SYSTEM MUST BE WIDESPREAD, FAIR AND ENCOURAGE HARMONY AMONG EMPLOYEES
  • 22. KEY SUCCESS FACTORS IN ORGANISATION CHANGE MANAGEMENT EFFECTIVE COMMUNICATION • EFFECTIVE COMMUNICATION IS CONSIDERED A MAJOR KEY TO SUCCESSFUL CHANGE RELATED EFFORTS (DAVENPORT, 1993; JACKSON, 1997; ZAIRI AND SINCLAIR, 1995; HAMMER AND STANTON, 1995; CARR AND JOHANSSON, 1995; ARENDT ET AL., 1995;DAWE, 1996). COMMUNICATION IS NEEDED THROUGHOUT THE CHANGE PROCESS AT ALL LEVELS AND FOR ALL AUDIENCES (DAVENPORT, 1993A), EVEN WITH THOSE NOT INVOLVED DIRECTLY IN THE CHANGE EFFORT
  • 23. KEY SUCCESS FACTORS IN ORGANISATION CHANGE MANAGEMENT EMPOWERMENT • AS CHANGE EFFORTS GATHER MOMENTUM, EMPOWERMENT OF BOTH INDIVIDUALS AND TEAMS BECOMES A CRITICAL FACTOR FOR CHANGE SUCCESS (THOMAS, 1994; COOPER AND MARKUS, 1995; BASHEIN ET AL., 1994;HINTERHUBER, 1995; DAWE, 1996) SINCE IT ESTABLISHES A CULTURE IN WHICH STAFF AT ALL LEVELS FEEL MORE RESPONSIBLE AND ACCOUNTABLE (ROHM, 1992/93) AND IT PROMOTES A SELF-MANAGEMENT AND COLLABORATIVE TEAMWORK CULTURE (MUMFORD, 1995).
  • 24. KEY SUCCESS FACTORS IN ORGANISATION CHANGE MANAGEMENT • HUMAN INVOLVEMENT IN CHANGE EFFORTS, ALL PEOPLE MUST BE OPENLY AND ACTIVELY INVOLVED (BERRINGTON AND OBLICH, 1995; JACKSON, 1997; BASHEIN ET AL., 1994; HINTERHUBER, 1995; BRUSS AND ROOS, 1993; ARENDT ET AL., 1995; DAWE, 1996) AND SHOULD BE CONSULTED AT ALL STAGES ON THE PROCESS AND ITS LEADERS. THIS INCLUDES LINE MANAGERS (HARRISON AND PRATT, 1993), PROCESS OWNERS (FUREY, 1993), THOSE INVOLVED IN IT AND HUMAN RESOURCES (BASHEIN ET AL., 1994), AND WORKERS (JANSON, 1992).
  • 25. KEY SUCCESS FACTORS IN ORGANISATION CHANGE MANAGEMENT TRAINING AND EDUCATION MANY RESEARCHERS CONSIDER TRAINING AND EDUCATION TO BE AN IMPORTANT COMPONENT OF SUCCESSFUL CHANGE IMPLEMENTATION (TOWERS, 1994; BERRINGTON AND OBLICH, 1995; ZAIRI AND SINCLAIR, 1995; WORSLEY, 1994; BASHEIN ET AL., 1994;CLEMMER, 1994; COOPER AND MARKUS, 1995; ARENDT ET AL., 1995; DAWE, 1996). ORGANISATIONS THAT UNDERTAKE CHANGE EFFORTS SUCH AS RE-ENGINEERING PROJECTS MAY HAVE TO INCREASE THEIR TRAINING BUDGET BY 30-50 PERCENT (TOWERS, 1994). BPR-RELATED CONCEPT, SKILLS, AND TECHNIQUES (COOPER AND MARKUS, 1995; BERRINGTON AND OBLICH, 1995; WORSLEY, 1994)
  • 26. KEY SUCCESS FACTORS IN ORGANISATION CHANGE MANAGEMENT • CREATING AN EFFECTIVE CULTURE FOR ORGANISATIONAL CHANGE ORGANISATIONAL CULTURE IS A DETERMINING FACTOR IN SUCCESSFUL CHANGE IMPLEMENTATION (HAMMER AND CHAMPY, 1993; DAVENPORT, 1993; ZAIRI AND SINCLAIR, 1995; CSC INDEX, 1994). ORGANISATIONAL CULTURE INFLUENCES THE ORGANISATION'S ABILITY TO ADAPT TO CHANGE. THE EXISTING CULTURE CONTAINS BELIEFS AND VALUES THAT ARE OFTEN NO LONGER APPROPRIATE OR USEFUL IN THE RE-ENGINEERED ENVIRONMENT. THEREFORE, THE ORGANISATION MUST UNDERSTAND AND CONFORM TO THE NEW VALUES, MANAGEMENT PROCESSES, AND THE COMMUNICATION STYLES THAT ARE CREATED BY THE NEWLY- REDESIGNED PROCESSES
  • 27. KEY SUCCESS FACTORS IN ORGANISATION CHANGE MANAGEMENT STIMULATING THE ORGANISATION'S RECEPTIVENESS TO CHANGE PREPARING THE ORGANISATION TO RESPOND POSITIVELY TO CHANGE IS CRITICAL TO SUCCESS (BENJAMIN AND LEVINSON, 1993; BARRETT, 1994; BRUSS AND ROOS, 1993). WHEN PEOPLE ARE MADE RESILIENT TO CHANGE, THEY REMAIN POSITIVE DURING UNCERTAINTY, FOCUSED, FLEXIBLE, ORGANISED, AND PRO-ACTIVE (JACKSON, 1997). LEVERAGING ORGANISATIONAL CHANGE REQUIRES EFFECTIVE ONE-TO-ONE AND ONE-TO MANY INTERACTIONS TO ENROL KEY INFLUENCERS OF BOTH INDIVIDUALS AND GROUPS WITHIN AND WITHOUT THE ORGANISATION
  • 28. ORGANISATION CHANGE DRIVERS A CHANGE DRIVER IS AN INTERNAL OR EXTERNAL PRESSURE THAT INFLUENCE CHANGE IN AN ORGANIZATION. THIS INCLUDES CHANGE TO STRATEGY, PLANS, DESIGNS, PRODUCTS, SERVICES AND OPERATIONS. THE NEXT PAGE SHOWS COMMON CHANGE DRIVERS - INTERNAL DRIVERS AND EXTERNAL PRESSURES
  • 29. CHANGE DRIVERS External Forces 1.Globalisation 2.New Technology 3. Power of Markets 4. Government Regulation Internal Forces 1.Low Employee Morale 2.Change In Objectives 3.New Information Systems 4. Declining product sales These forces put pressure on management to change
  • 30. AREAS THAT CAN BE CHANGED IN AN ORGANISATION? • CONNOR AND LAKE (1988: 28-51) IDENTIFY FOUR MAJOR AREAS WHERE CHANGE MAY OCCUR, NAMELY: INDIVIDUAL TASK BEHAVIOUR: CHANGE EVENTS WILL BE FOCUSED ON TASK CHARACTERISTICS, SUCH AS SKILL VARIETY, TASK IDENTITY, TASK SIGNIFICANCE, DEGREE OF AUTONOMY, FEEDBACK PROVIDED, AND OPPORTUNITY FOR EMPLOYEE INTERACTION.
  • 31. AREAS THAT CAN BE CHANGED IN AN ORGANISATION?  ORGANIZATIONAL PROCESSES: CHANGE EVENTS WILL BE FOCUSED ON THE CONTROL, REWARD, APPRAISAL AND DECISION PROCESSES WITHIN THE ORGANIZATION.  STRATEGIC DIRECTION: CHANGE IS IMPLEMENTED IN THE OVERALL DIRECTION THAT AN ORGANIZATION FOLLOWS. A CHANGE IN STRATEGY ENTAILS A CHANGE IN STRUCTURE  ORGANIZATIONAL CULTURE: THIS CONSISTS OF THE SHARED VALUES, BELIEFS AND EXPECTATIONS WHICH CREATE NORMS THAT SHAPE INDIVIDUAL AND GROUP BEHAVIOUR IN THE ORGANIZATION.
  • 32. METHODS/ APPROACHES OF CHANGE CONNOR AND LAKE (1988: 54-88) IDENTIFY FOUR DISTINCT APPROACHES OR METHODS OF CHANGE:  TECHNOLOGICAL METHOD: THIS METHOD CONCERNS THE PRODUCTION PROCESSES OF THE ORGANIZATION. IT IS AIMED AT IMPROVING EITHER THE QUALITY OR QUANTITY OF OUTPUT THROUGH INTRODUCING NEW EQUIPMENT OR TECHNIQUES  STRUCTURAL METHOD: THIS METHOD CONCERNS THE MODIFICATION OF CERTAIN ROLES OR RELATIONSHIPS. THE CHANGE PERTAINS TO THE DIVISION AND COORDINATION OF THE LABOUR IN THE ORGANIZATION
  • 33. METHODS/ APPROACHES OF CHANGE MANAGERIAL METHOD :THIS METHOD EFFECTS CHANGE THROUGH ADMINISTRATIVE ACTIONS, SUCH AS THE REWARD SYSTEM OR THROUGH JOINT COOPERATION BETWEEN EMPLOYEES AND MANAGEMENT. HUMAN-ORIENTED METHODS : THIS METHOD EFFECTS CHANGE THROUGH THE PEOPLE WHO WORK IN THE ORGANISATION THROUGH PARTICIPATION IN EDUCATION/TRAINING PROGRAMMES AND ORGANIZATION-DEVELOPMENT INTERVENTIONS.
  • 35. THE CHANGE CURVE • THE CHANGE CURVE MODEL DESCRIBES THE FOUR STAGES MOST PEOPLE GO THROUGH AS THEY ADJUST TO CHANGE. SOMETIMES THIS IS GIVEN THE ACRONYM SARA. • THE CHANGE CURVE IS BASED ON A MODEL ORIGINALLY DEVELOPED IN THE 1960S BY ELISABETH KUBLER-ROSS TO EXPLAIN THE GRIEVING PROCESS. SINCE THEN IT HAS BEEN WIDELY UTILISED AS A METHOD OF HELPING PEOPLE UNDERSTAND THEIR REACTIONS TO SIGNIFICANT CHANGE OR UPHEAVAL
  • 36.
  • 37. THE CHANGE CURVE DENIAL THE FIRST PHASE OF CHANGE BEGINS WHEN PEOPLE HEAR ABOUT THE CHANGE. THIS MAY TAKE THE FORM OF RUMOUR OR RUMBLINGS BEFORE THE ACTUAL ANNOUNCEMENT, OR IT MAY BE A SUDDEN AND UNEXPECTED ANNOUNCEMENT OF A CHANGE INITIATIVE. DENIAL BEGINS WITH THE AWARENESS THAT CHANGE IS ON THE HORIZON BUT USUALLY ENTAILS ACTING AS IF IT ISN’T. DENIAL IS A DEFENSE AGAINST CHANGE THAT TAKES THE FORM OF IGNORING OR NOT RESPONDING TO INFORMATION THAT DEMANDS A CHANGE.
  • 38. THE CHANGE CURVE FRUSTRATION AND ANGER • AS PEOPLE START TO REACT TO THE CHANGE, THEY MAY START TO FEEL CONCERN, ANGER, RESENTMENT OR FEAR. THEY MAY RESIST THE CHANGE ACTIVELY OR PASSIVELY. THEY MAY FEEL THE NEED TO EXPRESS THEIR FEELINGS AND CONCERNS, AND VENT THEIR ANGER. FOR THE ORGANIZATION, THIS STAGE IS THE “DANGER ZONE.” IF THIS STAGE IS BADLY MANAGED, THE ORGANIZATION MAY DESCEND INTO CRISIS OR CHAOS. SO THIS STAGE NEEDS CAREFUL PLANNING AND PREPARATION. AS SOMEONE RESPONSIBLE FOR CHANGE, YOU SHOULD PREPARE FOR THIS STAGE BY CAREFULLY CONSIDERING THE IMPACTS AND OBJECTIONS THAT PEOPLE MIGHT HAVE
  • 39. THE CHANGE CURVE • EXPERIMENT • PEOPLE MOVE INTO EXPLORATION WHEN THEY ACKNOWLEDGE THEIR FEELINGS AND ACCEPT THAT CHANGE IS NECESSARY AND IMPORTANT, EVEN IF THEY DON’T PERSONALLY WELCOME IT. AT THIS POINT PEOPLE ARE MORE THAN HALFWAY THROUGH THE TRANSITION. THEY ARE READY TO THINK ABOUT WHAT THEY CAN DO, WHAT IS POSSIBLE. THEY DECIDE TO MAKE THE BEST OF IT, LEARN NEW SKILLS, AND SEEK NEW IDEAS. THEY MAY EXPERIENCE CHAOS, BE STIMULATED BY DISCOVERY, AND BE OVERWHELMED BY WHAT NEEDS TO BE LEARNED ALL AT THE SAME TIME. EXPLORATION SIGNALS A SHIFT FROM SEEING CHANGE AS A THREAT TO SEEING IT AS AN OPPORTUNITY.
  • 40. THE CHANGE CURVE • DECISION AND INTERGRATION • THIS PHASE IS REACHED WHEN PEOPLE MAKE A CHOICE TO ACCEPT THE CHANGE. THEY ADOPT THE NEW WAY AFTER A PROCESS OF LEARNING AND TESTING AND HAVE BECOME CAPABLE OF WORKING EFFECTIVELY WITHIN THE NEW SITUATION. IDEALLY, PEOPLE WHO REACH INTERGRATION ARE BOTH MOTIVATED AND CAPABLE OF ACHIEVING SUCCESS AFTER A CHANGE. THEY HAVE REGAINED PRODUCTIVITY AND FEEL A SENSE OF MASTERY, RELIEF, ACCOMPLISHMENT, AND GROWTH THROUGH THE CHANGE. PEOPLE WHO HAVE MOVED THROUGH ALL FOUR PHASES OF CHANGE ARE STRONGER AND BETTER ABLE TO FACE THE NEXT CHANGE.
  • 41. TRANSFORMING ORGANISATIONS: WHY FIRMS FAIL COMMON ERRORS IN CHANGE MANAGEMENT 1. ALLOWING TOO MUCH COMPLACENCY THE BIGGEST MISTAKE PEOPLE MAKE WHEN TRYING TO CHANGE ORGANISATIONS IS TO PLUNGE AHEAD WITHOUT ESTABLISHING A HIGH ENOUGH SENSE OF URGENCY IN FELLOW MANAGERS & EMPLOYEES. 2. FAILING TO CREATE A SUFFICIENTLY POWERFUL GUIDING COALITION MAJOR CHANGE IS OFTEN SAID TO BE IMPOSSIBLE UNLESS THE HEAD OF THE ORGANISATION IS AN ACTIVE SUPPORTER. STRONG TEAM WORK & LEADERSHIP IS REQUIRED FOR EFFECTIVE TRANSFORMATIONS 3. UNDERESTIMATING THE POWER OF VISION VISIONS HELPS PLAY A KEY ROLE BY HELPING TO DIRECT ,ALIGN AND INSPIRE ACTIONS ON THE PART OF LARGE NUMBERS OF PEOPLE. A VISION SHOULD BE UNDERSTOOD BY ALL. 4. UNDER COMMUNICATING THE VISION WITHOUT CREDIBLE COMMUNICATION EMPLOYEES HEARTS & MINDS ARE NEVER CAPTURED. PEOPLE HAVE TO KNOW THE POTENTIAL BENEFITS OF THE CHANGE PROGRAMMES SO AS TO ALIGN THEMSELVES WITH THE CHANGE. 5. PERMITTING OBSTACLES TO BLOCK THE NEW VISION ORGANISATION STRUCTURE,NARROIW JOB CATEGORIES , COMPENSATION SYSTEMS CAN FORCE PEOPLE TO CHOOSE BETWEEN THE NEW WAYS & OLD
  • 42. TRANSFORMING ORGANISATIONS:WHY FIRMS FAIL? 6. FAILING TO CREATE SHORT TERM WINS MANAGERS OFTEN FAIL TO ESTABLISH CLEAR SHORT-TERM GOALS THAT ARE ACHIEVABLE.MANAGERS HAVE TO ACTIVELY LOOK FOR WAYS TO OBTAIN CLEAR PERFORMANCE IMPROVEMENTS ,ESTABLISH GOALS & REWARD PEOPLE FOR ACHIEVING THE OBJECTIVES. 7. DECLARING VICTORY TOO SOON MANY A TIME PEOPLE CAN BE TEMPTED TO DECLARE VICTORY IN A MAJOR CHANGE EFFORT WITH THE FIRST MAJOR PERFORMANCE IMPROVEMENT. UNTIL CHANGES ARE PART OF AN ORGANISATION CULTURE , NEW APPROACHES ARE FRAGILE AND SUBJECT TO REGRESSION. 8.NEGLECTING ANCHOR NEW CHANGES FIRMLY IN THE CORPORATE CULTURE CHANGE STICKS ONLY WHEN IT BECOMES THE ‘’ WAY WE DO THINGS AROUND HERE’’.UNTIL NEW BEHAVIOURS ARE ROOTED IN SOCIAL NORMS AND SHARED VALUES ,THEY ARE ALWAYS SUBJECT TO DEGRADATION AS SOON AS THE PRESSURE ASSOCIATED WITH A CHANGE EFFORT ARE REMOVED.
  • 43. TRANSFORMING ORGANISATIONS: WHY FIRMS FAIL • 8 ERRORS & CONSEQUENCES Allowing too much complacency Failing to create a sufficiently powerful guiding coalition Underestimating the power of vision Under communicating the vision Permitting obstacles to block the new vision Failing to create short term wins Declaring victory too soon Neglecting to anchor changes firmly in the corporate culture CONSEQUENCES New strategies are not implemented well Acquisitions don’t achieve expected results Reengineering takes too long & costs too much Downsizing does not get costs under control Quality programs do not deliver hoped for results Eight Errors Consequences
  • 44. ORGANISATION CHANGE MODELS THEORIES OF PLANNED CHANGE: 1. LEWIN’S CHANGE MODEL 2. ACTION RESEARCH MODEL 3. THE POSITIVE MODEL LEWIN’S THREE STEP MODEL THE PHASES IN THE CHANGE PROCESS ARE: UNFREEZING: THIS STAGE ENTAILS THE RECOGNITION AND ACKNOWLEDGEMENT OF THE NEED TO CHANGE. BY TAKING ACTION, EXISTING ATTITUDES AND BEHAVIOUR CAN BE UNFROZEN. THIS IS ESSENTIAL IN ORDER TO SUPPORT EMPLOYEES AND MINIMISE RESISTANCE TO CHANGE (LINSTEAD ET AL., 2009). CHANGING:- MOVING THE ORGANISATION TO THE DESIRED STATE INVOLVES ACTUAL IMPLEMENTATION OF NEW SYSTEMS OF OPERATION. THIS MAY INVOLVE EXPERIMENTATION, MODIFICATION OF SYSTEMS OR PATTERNS OF BEHAVIOUR, TECHNOLOGY OR SYSTEMS; MAY ALSO BE WHERE PEOPLE NEED TO LEAVE OR NEW PEOPLE JOIN THE ORGANISATION AS THE FULL NATURE OF TRANSITION EMERGES. REFREEZING: THIS STAGE INVOLVES THE POSITIVE REINFORCEMENT OF DESIRED OUTCOMES. THE CHANGE PROGRAMME HAS TO BE APPRAISED AT THIS STAGE TO ENSURE THAT THE NEW WAY THE NEW WAY OF OPERATING BECOMES A MATTER OF HABIT NOT A REGULATION. REFREEZING SEEKS TO STABILISE THE GROUP AT A NEW QUASI- STATIONARY EQUILIBRIUM IN ORDER TO ENSURE THAT THE NEW BEHAVIOUR IS RELATIVELY SAFE FROM REGRESSION”.
  • 45. ORGANISATION CHANGE MODELS ACTION RESEARCH MODEL MODEL FOCUSES ON PLANNED CHANGE AS A CYCLICAL PROCESS IN WHICH INITIAL RESEARCH ABOUT THE ORGANIZATION PROVIDES INFORMATION TO GUIDE SUBSEQUENT ACTION. . IT PLACES HEAVY EMPHASIS ON DATA GATHERING AND DIAGNOSIS PRIOR TO ACTION PLANNING AND IMPLEMENTATION, AS WELL AS CAREFUL EVALUATION OF RESULTS AFTER ACTION IS TAKEN. POSITIVE MODEL IT INVOLVES INITIALLY DETERMINING THE SUBJECT OF CHANGE AND THE GETTING MEMBERS INVOLVEMENT TO IDENTIFY THE ORGANIZATIONAL ISSUE THEY HAVE THE MOST ENERGY TO ADDRESS
  • 46. ORGANISATION CHANGE MODELS KOTTER’S EIGHT STEP MODEL HE BELIEVES THAT CHANGE FAILS BECAUSE SENIOR MANAGEMENT MAKES A HOST OF IMPLEMENTATION ERRORS. HIS MODEL PRESCRIBES HOW MANAGERS SHOULD LEAD THE CHANGE PROCESS. THE FIRST FOUR STEPS REPRESENT LEWIN’S ‘UNFREEZING STAGE’ ,5,7 REPRESENT ‘CHANGING’ AND STEP 8 CORRESPONDS TO ‘REFREEZING’: 1. INCREASE URGENCY- MAKE OBJECTIVES AS CLEAR AS POSSIBLE SO AS TO INSPIRE AND ENCOURAGE PEOPLE TO WORK TOWARDS THEM. 2. BUILD THE GUIDING TEAM- GET THE RIGHT PEOPLE IN PLACE WITH THE RIGHT EMOTIONAL COMMITMENT, AND THE RIGHT MIX OF SKILLS AND LEVELS. 3. GET THE VISION RIGHT - GET THE TEAM TO ESTABLISH A SIMPLE VISION AND STRATEGY FOCUS ON EMOTIONAL AND CREATIVE ASPECTS NECESSARY TO DRIVE SERVICE AND EFFICIENCY 4. COMMUNICATE FOR BUY-IN - INVOLVE AS MANY PEOPLE AS POSSIBLE, COMMUNICATE THE ESSENTIALS SIMPLY, AND TO APPEAL AND RESPOND TO PEOPLE'S NEEDS. 5. EMPOWER ACTION - REMOVE OBSTACLES, ENABLE CONSTRUCTIVE FEEDBACK AND LOTS OF SUPPORT FROM LEADERS - REWARD AND RECOGNISE PROGRESS AND ACHIEVEMENTS. 6. CREATE SHORT-TERM WINS - SET AIMS THAT ARE EASY TO ACHIEVE - IN BITE-SIZE CHUNKS. 7. DON’T LET UP: - BUT MAINTAIN THE MOMENTUM, CONSOLIDATE EARLY CHANGES AND CREATE WAVE AFTER WAVE OF CHANGE. 8. MAKE CHANGE STICK - REINFORCE THE VALUE OF SUCCESSFUL CHANGE BY NURTURING A NEW CULTURE, AND DEVELOPING GROUP NORMS OF BEHAVIOUR AND SHARED VALUES.
  • 47. RESISTANCE TO CHANGE • BARRIERS TO UNDERSTANDING. THE RESISTANCE MAY BE TRACED TO A • MISUNDERSTANDING OF THE PROPOSED CHANGE. THE CHANGE TARGETS RESIST • THE CHANGE BECAUSE THEY DO NOT UNDERSTAND THE NEED FOR THE CHANGE, • THE DETAILS OR SUBSTANCE, OR THE CONSEQUENCES OF THE CHANGE. THE LACK • OF KNOWLEDGE OR UNDERSTANDING OF A CHANGE MAY BE (1) INTELLECTUAL • (INFORMATION NOT COMMUNICATED) (2) CULTURAL (CHANGE EXPLAINED FROM A • UNFAMILIAR POINT OF VIEW) OR (3) CAUSED BY INCONSISTENT BEHAVIOUR FROM • EXECUTIVES, MANAGERS OR THE CHANGE AGENT (ONE COURSE IS
  • 48. RESISTANCE TO CHANGE • BARRIERS TO ACCEPTANCE. THIS TYPE OF RESISTANCE FOLLOWS WHEN THE • CHANGE TARGETS CANNOT OR WILL NOT ACCEPT THE CHANGE. ACCEPTANCE • REQUIRES BELIEVING IN THE NECESSITY FOR THE CHANGE AND A WILLINGNESS TO • FOLLOW THROUGH IN ACCOMPLISHING IT. THE BARRIERS TO ACCEPTANCE ARE • CAUSED BY (1) A THREAT TO EMPLOYEES' SECURITY OVER THEIR ORGANIZATIONAL • LIVES, WHICH RESULTS IN UNEASINESS AND ANXIETY ABOUT THE NEW ROLES AND • CONDITIONS REQUIRED (2) THE THREAT TO THEIR SELF-CONFIDENCE OR (3) ANXIETY
  • 49. RESISTANCE TO CHANGE • BARRIERS TO ACTING. THIS TYPE OF RESISTANCE OCCURS AT THE STAGE WHEN THE CHANGE SHOULD BE IMPLEMENTED. IT STEMS FROM EITHER THE CHANGE TARGETS THEMSELVES OR FROM OTHER PEOPLE WITHIN OR OUTSIDE THE ORGANIZATION. THE BARRIERS TO ACTING MAY RESULT FROM (1) THE LACK OF SKILLS OR ABILITIES WHICH WILL BE REQUIRED IN THE NEW ORGANIZATION (2) THE LACK OF OR INADEQUATE RESOURCES TO CONDUCT THE RANGE OF ACTIVITIES NEEDED FOR THE CHANGE (3) THE PRESENCE OF EXISTING PROHIBITIVE OR CONTRACTUAL ARRANGEMENTS WITH EMPLOYEE UNIONS OR ASSOCIATIONS THAT REQUIRE SPECIFIC METHODS WHICH MAY NOT BE REVISED OR (4) ORGANIZATIONS MAY SIMPLY, THROUGH HABIT OR CONVENTION, SUPPORT THE STATUS QUO WITH EXISTING MANAGERIAL PROCEDURES, JOB DESCRIPTIONS AND CULTURES.
  • 50. MANAGING RESISTANCE TO CHANGE STRATEGIES TO OVERCOME RESISTANCE TO CHANGE 1. NEGOTIATING STRATEGY: THIS STRATEGY INVOLVES A WILLINGNESS TO NEGOTIATE WITH INDIVIDUALS AND TEAMS AFFECTED BY THE CHANGE AND TO ACCEPT THAT ADJUSTMENTS AND CONCESSIONS MAY HAVE TO BE MADE. OPTING FOR THIS APPROACH DOES NOT REMOVE THE MANAGEMENT ’ S RESPONSIBILITY FOR THE DIRECTION AND INITIATION OF CHANGE BUT ACKNOWLEDGES THAT THOSE AFFECTED HAVE THE RIGHT TO HAVE SOME INPUT IN THE CHANGES PROPOSED, OR THAT THEY HAVE SOME POWER TO RESIST IT IF THEY ARE NOT SUPPORTIVE. THE ADVANTAGE OF SELECTING THIS APPROACH IS THAT RESISTANCE TO THE PROPOSED CHANGE IS LIKELY TO BE REDUCED. HOWEVER, SUCH NEGOTIATION WILL ADD TO THE OVERALL PROGRAMME AND THE PRE- IMPLEMENTATION TIME MAY TAKE LONGER. CHANGING WORK PRACTICES IN RETURN FOR INCREASED PAY AND/OR OTHER BENEfiTS IS A CLASSIC EXAMPLE OF THE NEGOTIATING STRATEGY. 2. EDUCATIVE STRATEGY: THIS APPROACH INVOLVES CHANGING PEOPLE ’ S VALUES AND BELIEFS SO THAT THEY SUPPORT THE CHANGE AND ARE COMMITTED TO A SHARED SET OF ORGANIZATIONAL VALUES. WINNING “ HEARTS AND MINDS ” IS A COMPLEX PROCESS THAT INVOLVES A MIXTURE OF ACTIVITIES SUCH AS: COMMUNICATION, PERSUASION, EDUCATION, TRAINING AND SELECTION. THE ADVANTAGE OF SUCH AN APPROACH, IF SUCCESSFUL, IS THAT PEOPLE WILL BE POSITIVELY COMMIT- TED TO THE CHANGE. IN GENERAL, THIS APPROACH TYPICALLY TAKES MUCH LONGER AND REQUIRES MORE RESOURCES THAN THE PREVIOUS THREE STRATEGIES DESCRIBED ABOVE. 3. PARTICIPATIVE STRATEGY: THIS STRATEGY HAS A NUMBER OF ADVANTAGES IN ITS IMPLEMENTATION: CHANGES ARE MORE LIKELY TO BE WIDELY ACCEPTABLE OVER THE OTHER STRATEGIES; IT PROMOTES AN ACTIVE INVOLVEMENT OF PEOPLE AND IS LIKELY TO INCREASE THEIR COMMITMENT TO, AND ENTHUSIASM FOR, THE CHANGE PROCESS. ADDITIONALLY, THERE WILL BE OPPORTUNITIES FOR BOTH MANAGERS AND EMPLOYEES TO LEARN FROM THE EXPERIENCES AND SKILLS OF THIS WIDE PARTICIPATION. WHILE THIS HAS A NUMBER OF ADVANTAGES DUE TO THE PARTICIPATION OF STAFF, THE IDENTIFIED CHANGES ARE LIKELY TO TAKE LONGER AND REQUIRE ADDITIONAL RESOURCES TO SUPPORT THE CHANGE
  • 51. MANAGING RESISTANCE TO CHANGE STRATEGIES TO OVERCOME RESISTANCE TO CHANGE 4.DIRECTIVE STRATEGY: IN THIS STRATEGY THE MANAGEMENT CAN USE ITS AUTHORITY TO IMPOSE THE CHANGES REQUIRED AND BE ABLE TO CARRY THEM OUT QUICKLY. HOWEVER, THE DISADVANTAGE OF THIS APPROACH IS THAT IT IS LIKELY TO INCREASE RESISTANCE BY THOSE INVOLVED OR EVEN UNDERMINE THE OVERALL SUCCESS OF THE CHANGE IMPLEMENTATION. 5. EXPERT STRATEGY: THIS APPROACH IS USUALLY APPLIED WHEN A “ TECHNICAL ” PROBLEM REQUIRES SOLVING, SUCH AS THE INTRODUCTION OF A NEW IT SYSTEM, AND AS SUCH IS BETTER SUITED TO SMALLER TECHNICAL OR OPERATIONAL CHANGE THAN A WIDER CULTURAL- CHANGE REQUIREMENT. IT IS ALSO APPROPRIATE THAT INTRODUCING TECHNICAL CHANGES DOES NOT EASILY LEND ITSELF TO WIDER CONSULTATION AS KNOWLEDGE OF THE TECHNICAL NUANCES MAY RESIDE ONLY WITH A LIMITED NUMBER OF INDIVIDUALS.
  • 52. DETAIL FULLY THE CONSEQUENCES OF RESISTANCE TO CHANGE
  • 53. THE CHANGE AGENT WHAT IS A CHANGE AGENT? CHANGES WITHIN AN ORGANISATION DEMAND A CATALYST (CONNOR & LAKE, 1994). THE PERSONS WHO HAVE THE RESPONSIBILITY OF MANAGING THE CHANGE PROCESS WITHIN AN ORGANISATION AND WHO ACT AS CATALYSTS ARE CALLED ‘CHANGE AGENTS’ (FOX, 2006). CHANGE MANAGERS DESIGN, OVERSEE AND DIRECT CHANGE (CONNOR & LAKE, 1994). CHANGE AGENTS CAN COME FROM WITHIN THE ORGANISATION OR BE EXTERNAL CONSULTANTS (NAHAVANDI & MALEKZADEH, 1999). INTERNAL CHANGE AGENTS ARE TYPICALLY SENIOR EXECUTIVES, MANAGERS, INTERNAL STAFF DEVELOPERS OR POWERFUL LOWER LEVEL EMPLOYEES (CONNOR & LAKE, 1994). EXTERNAL CHANGE AGENTS CAN BE CONSULTANTS BROUGHT IN FROM OUTSIDE THE COMPANY AND HAVE MORE CREDIBILITY SINCE THEY ARE NOT INVOLVED IN COMPANY POLITICS (NAHAVANDI & MALEKZADEH, 1999). ANY MANAGER MAY ACT AS A CHANGE AGENT, ALTHOUGH A CHANGE AGENT MAY ALSO BE A NON-MANAGER, A STAFF SPECIALIST OR OUTSIDE SPECIALIST WHOSE AREA OF EXPERTISE IS IN THE IMPLEMENTATION OF CHANGE (BHENGU, 2007).
  • 54. THE CHANGE AGENT ACTIVITIES CONTRIBUTING TO EFFECTIVE CHANGE MANAGEMENT THERE ARE FIVE KINDS OF ACTIVITIES THAT CHANGE AGENTS MUST CARRY OUT WHEN PLANNING & IMPLEMENTING CHANGES FOR THEM TO BE EFFECTIVE. 1) MOTIVATING CHANGE IT INVOLVES CREATING A READINESS FOR CHANGE AMONG ORGANISATIONAL MEMBERS .THIS INVOLVES OVERCOMING AND HELPING THEM TO ADDRESS THE RESISTANCE TO CHANGE. 2) CREATING A VISION IT DESCRIBES AN ENVISIONED FUTURE THAT INCLUDES A BOLD AND VALUED OUTCOME AND A VIVIDLY DESIRED FUTURE STATE. THE ENVISIONED FUTURE ARTICULATE A COMPELLING REASON FOR IMPLEMENTING CHANGE. 3) DEVELOPING POLITICAL SUPPORT CHANGE AGENTS FIRST MUST ASSESS THEIR OWN SOURCE OF POWER , THEN IDENTIFY KEY STAKEHOLDERS WHOSE SUPPORT IS NEEDED FOR CHANGE AND DEVISE STRATEGIES TO GAIN THEIR SUPPORT. CHANGE AGENTS MUST HAVE POWER TO SOLVE POTENTIAL CONFLICTS. 4) MANAGING TRANSITION THE FOURTH ACTIVITY IS MANAGING THE TRANSITION OF THE ORGANISATION FROM ITS CURRENT STATE TO A DESIRED FUTURE STATE. THIS REQUIRES PLANNING A ROAD MAP FOR THE CHANGE ACTIVITIES AS WELL AS PLANNING HOW TO GAIN COMMITMENT TO THE CHANGES .IT ALSO INVOLVES CREATING SPECIAL CHANGE MANAGEMENT STRUCTURES.
  • 55. CHANGE AGENT 5) SUSTAINING MOMENTUM THE FIFTH CHANGE TASK IS TO SUSTAIN MOMENTUM FOR THE CHANGES TO ENSURE THAT THEY ARE SUCCESSFULLY IMPLEMENTED. THIS INCLUDES PROVIDING RESOURCES FOR THE CHANGE PROGRAMME, CREATING A SUPPORT SYSTEM FOR THE CHANGE AGENTS. SUSTAINING THE MOMENTUM WOULD INCLUDE PROVING RESOURCES FOR CHANGE , BUILDING A SUPPORT SYSTEM FOR CHANGE AGENTS, REINFORCING NEW BEHAVIOURS AND STAYING THE COURSE. Motivating change Creating Vision Developing political support Managing transition Sustaining Momentum Effective Change Manageme nt
  • 56. CHANGE AGENT SKILLS PROFILE ( SUSAN GEBELEIN LISTS SIX KEY SKILLS THAT ARE CRITICAL TO THE SUCCESS OF THE INTERNAL PRACTITIONER.) Practitioner Skills Profile Personal Skills Leadership Skills Project Manageme nt Skills Interperson al Sills Communicati on Skills Problem Solving Skills
  • 57. THE CHANGE AGENT LEADERSHIP SKILLS LEADERS KEEP MEMBERS FOCUSED ON KEY COMPANY VALUES AND OPPORTUNITIES AND NEED FOR IMPROVEMENT. A LEADERS JOB IS TO RECOGNIZE WHEN A COMPANY IS HEADED IN THE WRONG DIRECTION AND TO GET IT BACK ON THE RIGHT TRACK. PROJECT MANAGEMENT SKILLS THIS MEANS INVOLVING ALL THE RIGHT PEOPLE AND DEPARTMENTS TO KEEP THE CHANGE PROGRAMME ON TRACK. COMMUNICATION SKILLS IT IS VITAL TO COMMUNICATE THE KEY VALUES TO EVERYONE IN THE ORGANISATION. PROBLEM SOLVING SKILLS THE REAL CHALLENGE IS TO IMPLEMENT A SOLUTION TO AN ORGANISATION PROBLEM. INTERPERSONAL SKILLS THE NUMBER PRIORITY IS TO GIVE EVERYBODY IN THE ORGANISATION THE TOOLS AND THE CONFIDENCE TO BE INVOLVED IN THE CHANGE PROCESS. THIS INCLUDES FACILITATING ,BUILDING RELATIONSHIPS AND PROCESS SKILLS. PERSONAL SKILLS THE CONFIDENCE TO HELP THE ORGANISATION MAKE TOUGH DECISIONS AND INTRODUCING NEW TECHNIQUES.
  • 58. KEY PLAYERS IN ORGANISATION CHANGE • ORGANISATION CHANGE IS A, COLLABORATIVE EFFORT BY SEVERAL INDIVIDUALS AND TEAMS IN AN ORGANISATION. HERE WE LOOK AT THE ROLES OF DIFFERENT STAKEHOLDERS IN AN ORGANISATION: A. CORPORATE MANAGEMENT CORPORATE MANAGEMENT INCLUDES THE CHIEF EXECUTIVE AND SEVERAL TOP EXECUTIVES WHO ARE INVOLVED IN POLICY DECISIONS. THE FOLLOWING ARE THE MAIN FUNCTIONS OF CORPORATE MANAGEMENT IN RELATION TO ORGANISATIONAL CHANGE.
  • 59. KEY PLAYERS IN ORGANISATION CHANGE 1. LEGITIMIZING FUNCTION CORPORATE MANAGEMENT LEGITIMIZES THE CHANGE BEING PLANNED, RECOMMENDED AND IMPLEMENTED. THE MORE ACTIVELY THE CORPORATE MANAGEMENT PROMOTES THE CHANGE THE MORE LEGITIMATE IT BECOMES AND THE QUICKER IT IS LIKELY TO BE ACCEPTED 2. ENERGIZING FUNCTION THE ROLE OF THE CORPORATE MANAGEMENT IN SITUATIONS WHERE ORGANISATION CHANGE PACE IS SLACKENING .AT SUCH CRITICAL POINTS IS CRUCIAL CORPORATE MANAGEMENT ENERGISES THE SLACKENING PACE AND INTEREST BY TAKING UP PROBLEMS FOR DISCUSSION AND BY SHOWING CONCERN. 3. GATE-KEEPING FUNCTION CORPORATE MANAGEMENT HELPS IN ESTABLISHING THE RELATIONSHIP BETWEEN THE CONSULTANTS AND VARIOUS GROUPS IN THE ORGANISATION. THIS IS USUALLY DONE BY CALLING VARIOUS MEETINGS IN WHICH THE PURPOSE IS EXPLAINED AND THEN THE CONSULTANTS GET AN ENTRY INTO THE ORGANISATION
  • 60. KEY PLAYERS IN ORGANISATION CHANGE B. THE CONSULTANT(S) A CONSULTANT OR A TEAM OF CONSULTANTS USUALLY COMES FROM OUTSIDE BUT THEY CAN ALSO BE INSIDERS. THE CONSULTANT’S ROLE IS THAT OF EXPERTS, WHO HAVE BOTH KNOWLEDGE AND EXPERIENCE IN THE FIELD IN WHICH CHANGE IS PROPOSED. 1. IMPLANTING FUNCTION THE CONSULTANT DOES NOT LOOK DOWN UPON THE INTERNAL EXPERTISE AVAILABLE BUT SUPPLEMENTS SUCH EXPERTISE. IT IS NECESSARY THAT THE CONSULTANT CARRIES ALONG WITH HIM THE VARIOUS PEOPLE AT DIFFERENT STATES OF THE PROCESS OF ORGANISATIONAL CHANGE TO MAKE CHANGE SUCCESSFUL
  • 61. KEY PLAYERS IN ORGANISATION CHANGE 2. TRANSCENDING FUNCTION THE TAKES AN OVERALL VIEW OF THE BUSINESS. HE TRANSCENDS BOTH THE ECOLOGY OF THE ORGANISATION, I.E. THE VARIOUS UNITS AND DEPARTMENT, TO BE ABLE TO TAKE AN OVERALL VIEW OF THE ORGANISATION, AND ALSO TRANSCENDING FUNCTION MAKES THE ROLE OF THE CONSULTANT MORE CREATIVE. HE THINKS ABOUT THE TOTAL ORGANISATION, NOT ONLY AS IT IS NOW, BUT ALSO AS IT IS LIKELY TO BE IN THE FUTURE. THIS HELPS TO GIVE A WIDER PERSPECTIVE TO ORGANISATIONAL UNDERSTANDING 3. ALTERNATIVES GENERATING FUNCTION THE CONSULTANT HAS TO GENERATE SEVERAL ALTERNATIVES. HE ALSO DEVELOPS THE ABILITY TO DESIGN INTERVENTIONS AND WAYS OF SOLVING PROBLEMS 4. RESOURCE BUILDING FUNCTION THE CONSULTANT HELPS IN GENERATING RESOURCES WITHIN THE ORGANISATION BY BUILDING THE NECESSARY EXPERTISE AS HE WORKS WITH THE ORGANISATION. BY SHARING HIS KNOWLEDGE AND - EXPERIENCE AND BY CONTINUOUSLY DISCUSSING MATTERS WITH THE CONCERNED PEOPLE HE HELPS IN BUILDING INTERNAL RESOURCES
  • 62. KEY PLAYERS IN ORGANISATION CHANGE INTERNAL RESOURCE PERSONS THESE ARE INTERNAL PEOPLE WHO WORK WITH THE CHANGE AGENT. THEY ARE RESPONSIBLE FOR IMPLEMENTING THE POLICIES AND DETAILS OF THE CHANGE PROCESS. IMPLEMENTATION TEAM THE IMPLEMENTATION TEAM CONSISTS OF A GROUP OF PEOPLE FROM VARIOUS DEPARTMENTS OR AREAS OF THE ORGANISATION WHO ARE GIVEN THE RESPONSIBILITY FOR MONITORING, DELIBERATING AND MAKING NECESSARY RECOMMENDATIONS FROM TIME TO TIME. SUCH A TEAM ENSURES PROPER MOTIVATION OF PEOPLE THROUGHOUT THE ORGANISATION, AND TAKES NECESSARY STEPS FOR EFFECTIVE IMPLEMENTATION. CHIEF IMPLEMENTOR SOMEONE WHO IS ASSISTED BY THE IMPLEMENTATION TEAM BUT WHO HAS EXECUTIVE AUTHORITY TO PUSH CHANGES THROUGH MONITORING & DIAGNOSIS
  • 63. THE DIAGNOSTIC PROCESS WHAT IS A DIAGNOSIS? TODAY’S INTENSE GLOBAL COMPETITION AND DEREGULATION HAVE CREATED A GREAT UNCERTAINTY FOR FIRMS IN VIRTUALLY EVERY INDUSTRY . INCREASED COMPETITION REQUIRES CONSTANT RESPONSE TO INITIATIVES BY OTHER FIRMS . IT CALLS FOR CONTINUOUS IMPROVEMENT OF QUALITY AND PRODUCTS WHILE DECREASING COSTS. DIAGNOSIS IS A METHOD OF ANALYSING ORGANISATIONAL PROBLEMS AND LEARNING NEW PATTERNS OF BEHAVIOUR. ITS A SYSTEMATIC APPROACH TO UNDERSTANDING AND DESCRIBING THE PRESENT STATE OF THE ORGANISATION. ADVANTAGES OF DIAGNOSIS  IT ENHANCES THE ORGANISATIONS CAPACITY TO ASSESS AND CHANGE ITS CULTURE.  IT PROVIDES AN OPPORTUNITY FOR ORGANISATIONAL MEMBERS TO ACQUIRE NEW INSIGHTS INTO THE DYSFUNCTIONAL ASPECTS. OF THEIR CULTURE AND PATTERNS OF BEHAVIOUR AS A BASIS FOR DEVELOPING A MORE EFFECTIVE CULTURE  IT ENSURES THAT THE ORGANISATION REMAINS ENGAGED IN A PROCESS OF CONTINUOUS IMPROVEMENT
  • 64. THE PROCESS DIAGNOSIS IS A CYCLICAL PROCESS THAT INVOLVES DATA GATHERING , INTERPRETATIONS AND IDENTIFICATION OF PROBLEM AREAS AND POSSIBLE ACTION PROGRAMMES. STEP1 TENTATIVE PROBLEM AREAS IDENTIFIED STEP 2 COLLECT DATA STEP 3 ANALYZE DATA STEP 4 DATA FEEDBACK STEP 5 MORE DATE NEEDED NOW STEP 6 PROBLEM AREAS IDENTIFIED STEP 7 CLIENT TARGET MOTIVATED TO WORK ON PROBLEM STEP 8 DIAGNOSIS. WORK ON PROBLEM CAUSES. RESULT IS CHANGE STEP 9 – RESULTS MONITORED STEP 1 INVOLVES IDENTIFYING THE PROBLEM AREAS. THE IDEA IS TO BRING OUT SYMPTOMS AS WELL AS POSSIBLE PROBLEM AREAS • THE SECOND STEP INVOLVES GATHERING DATA BASED ON THE PRELIMINARY PROBLEM IDENTIFIED IN THE PRECEDING STEP. THESE DATA ARE CATEGORIZED , ANALYZED AND PRESENTED TO THE CLIENT IN A FEEDBACK SESSION( STEPS 3 & 4) • IF IT IS DETERMINED THAT ENOUGH DATA IS AVAILABLE ( STEP 5) THE CLIENT & THE PRACTITIONER JOINTLY DIAGNOSE AND IDENTIFY LIKELY PROBLEM AREAS(STEP 6). AT THIS POINT , THE CLIENT LEVEL OF MOTIVATION TO WORK ON THE PROBLEM IS DETERMINED(STEP 7) • BASED ON THE DIAGNOSIS , THE TARGET SYSTEMS ARE IDENTIFIED AND THE CHANGE STRATEGY IS DESIGNED.( STEP 8) • FINALLY STEP 9 THE RESULTS ARE MONITORED TO DETERMINE THE DEGREE OF CHANGE THAT HAS BEEN ATTAINED VERSUS THE DESIRED CHANGE GOALS.
  • 65. DIAGNOSIS SOURCES OF DATA 1) EMPLOYEE SURVEYS: INVOLVES THE USE OF QUESTIONNAIRES TO PROVIDE INFORMATION ON THE PAST , PRESENT AND FUTURE IMPROVEMENT EFFORTS 2) DIRECT OBSERVATION THE CHANGE AGENT OBSERVES HOW EMPLOYEES GO ABOUT IN THEIR TASK PERFORMANCE AND HOW THEY ACT OR REACT IN RESPONSE TO SPECIFIC SITUATIONS. THE NORMS AND ATTITUDES EXPRESSED BY MEMBERS ARE ALSO AN IMPORTANT SOURCE OF DATA. 3) INTERVIEWS THE MOST WIDELY USED TECHNIQUE. IT CAN BE A DIRECTED INTERVIEW OR NON- DIRECTED INTERVIEW. IN A DIRECTED INTERVIEW CERTAIN KINDS OF DATA ARE DESIRED THEREFORE SPECIFIC QUESTIONS ARE ASKED.. IN A NON DIRECTED INTERVIEW, THE DIRECTION OF THE INTERVIEW IS CHOSEN BY THE RESPONDENT DIAGNOSTIC MODELS OD PRACTITIONERS USE DIAGNOSTIC MODELS TO ASSESS ORGANISATIONS. 1. THE ANALYTICAL MODEL IT STRESSES THE IMPORTANCE OF A SOUND ANALYTICAL DIAGNOSIS AS THE BASIS FOR PLANNED CHANGE IN ORGANISATIONS. IT WAS DEVELOPED TO STUDY AND UNDERSTAND INTERDEPARTMENTAL ISSUES BY CONDUCTING A CAREFUL DIAGNOSIS OF ORGANISATION PROBLEM AREAS. THE ORG IS MADE OF DIFFERENT DEPARTMENTS AND THEY CAN BE EXAMINED IN TERMS OF 1) DEGREE OF DEPARTMENTAL STRUCTURE 2) THE TIME ORIENTATION OF MEMBERS 3) INTERPERSONAL ORIENTATION OF MEMBERS TOWARDS OTHERS 4) ORG MEMBERS ORIENTATION TOWARDS GOALS
  • 66. DIAGNOSIS 2. THE EMERGENT GROUP BEHAVIOUR MODEL IT PROVIDES A CONCEPTUAL SCHEME OF FOR ANALYSING BEHAVIOUR IN WORK GROUPS, PARTICULARLY THE INTERDEPENDENCE OF GROUPS. THE MODEL HELPS IN UNDERSTANDING HOW TEAMS OPERATE. THE MODEL GATHERS OBSERVATIONS & INFORMATION THE FOLLOWING FOUR CHARACTERISTICS AND USES THEM TO DIAGNOSE PROBLEMS AMONG OR WITHIN TEAMS : 1) ACTIVITIES 2) SENTIMENTS 3) INTERACTIONS 4) NORMS 3. THE MANAGEMENT PRACTITIONER MODEL ITS A MODEL THAT ANALYSES SIX BASIC FACTORS: 1) BASIC PLANNING:- DO THEY HAVE A MISSION , VISION AND GOALS 2) GENERAL BUSINESS PRACTICES:- DO THEY HAVE APPROPRIATE MANAGEMENT SYSTEMS 3) FINANCE: ARE THEY OPERATING WITH TIMELY , ACCURATE FINANCIAL DATA & PLANS 4) ADVERTISING & PROMOTION: ARE THEY AWARE OF THE LINK BETWEEN ADVERTISING & SALES 5) MARKET RESEARCH: ARE THEY AWARE OF THEIR COMPETITORS STRATEGIES AND POLICIES AND THEIR CUSTOMERS NEEDS. 6) PERSONNEL: DO THEY HAVE APPROPRIATE SYSSTEMS FOR RECRUTING , TRAINING AND RETAINING HUMAN RESOURCES. IT IS THEREFORE POSSIBLE TO ASK A FEW BASIC QUESTIONS IN EACH AREA TO GET AN INDICATION OF WHERE THE PROBLEM IS LOCATED.
  • 67. DIAGNOSIS 4. FORCE-FIELD ANALYSIS MODEL IT IS A GENERAL PURPOSE DIAGNOSTIC TECHNIQUE. THIS MODEL VIEWS ORGANISATION BEHAVIOUR AS A DYNAMIC BALANCE OF FORCES WORKING IN OPPOSITE DIRECTIONS. IN ANY ORGANISATION THERE ARE FORCES THAT PUSH FOR CHANGE AND FORCES THAT HINDER CHANGE. THE FORCES ACTING TO KEEP THE ORGANISATION STABLE ARE CALLED RESTRAINING FORCES, THEY PUT PRESSURE ON THE ORGANISATION NOT TO CHANGE .OPPOSITE FORCES ,CALLED DRIVING FORCES PUT PRESSURE ON THE ORGANISATION TO CHANGE. IF THE TWO FORCES ARE EQUAL, THIS RESULTS IN A STATE OF EQUILIBRIUM & THE ORGANISATION REMAIN STABLE. THE TECHNIQUE ASSUMES THAT AT ANY GIVEN MOMENT THE ORGANISATION IS IN A STATE OF EQUILIBRIUM. CHANGE TAKES PLACE WHEN THERE IS AN IMBALANCE BETWEEN THE TWO TYPES OF FORCES UNTIL OPPOSING FORCES ARE BROUGHT BACK INTO EQUILIBRIUM. IN USING THE FORCE FIELD ANALYSIS THE STRENGTH OF RESTRAINING FORCES CAN BE REDUCED WHILST THE STRENGTH OF DRIVING FORCES SHOULD BE INCREASED TO CLOSE A PERFORMANCE GAP. QUESTION : HOW CAN YOU USE THE FORCE FIELD ANALYSIS TO REDUCE THE LEVEL OF ABSENTEE RATE FROM 6% TO ABOUT 3%.
  • 68. DIAGNOSIS CAUSE MAPS CAUSE MAPS ARE MATHEMATICAL REPRESENTATIONS OF PERCEIVED CAUSAL RELATIONSHIPS AMONG VARIABLES. FIRST A LIST OF THE IMPORTANT FACTORS( QUANTITY, SPEED, FREQUENCY, QUALITY AND MORALE) IS GENERATED THROUGH GROUP DISCUSSION. THEN PARTICIPANTS ARE ASKED TO IDENTIFY THE CAUSAL RELATIONSHIPS AMONG THE VARIABLES
  • 69. CHANGE INTERVENTIONS INTERVENTIONS: REFER TO A SET OF SEQUENCED AND PLANNED ACTIONS OR EVENTS INTENDED TO HELP THE ORGANISATION INCREASE ITS EFFECTIVENESS. INDIVIDUAL INTERVENTION ACTIVITIES THESE ARE AIMED AT CHANGING INDIVIDUALS. THE FOLLOWING ACTIVITIES CAN BE IMPLEMENTED: 1) SENSITIVITY/ LABORATORY TESTING. THESE ARE USED TO INCREASE UNDERSTANDING , INSIGHT AND SELF AWARENESS ABOUT ONE’S BEHAVIOUR AND ITS IMPACT ON OTHERS. THE CHANGE AGENT WILL ASK MEMBERS TO DISCUSS ISSUES LIKE LEADERSHIP STYLES & PHILOSOPHY AND PEOPLE EXCHANGE IDEAS. 2. BEHAVIOUR MODELLING THIS IS WHEN EMPLOYEES VIEW FILMS & VIDEO TAPES OF MODEL PERSONS PERFORMING DESIRED BEHAVIOURS. THE FILMS OR TAPES GENERALLY SHOW ACCEPTABLE AND UNACCEPTABLE BEHAVIOUR. THE PARTICIPANTS ARE EXPECTED TO LEARN THE BEHAVIOUR IN THE FILM, FOR EXAMPLE A TRAINING PROGRAM DESIGNED TO IMPROVE SUPERVISORS SKILLS IN CONDUCTING PERFORMANCE APPRAISAL – EMPLOYEES ARE SHOWN A FILM OF HOW THE PROCESS OCCURS.
  • 70. CHANGE INTERVENTIONS GROUP & TEAM INTERVENTION ACTIVITIES 1. TEAM BUILDING A PLANNED EVENT WITH A GROUP OF PEOPLE WHO SHARE THE DESIRE TO IMPROVE THE WAY THE WORK IS DONE. TEAM BUILDING INTERVENTIONS ARE TYPICALLY DIRECTED TOWARDS DIAGNOSIS , TASK ACCOMPLISHMENT, TEAM RELATIONSHIPS AND ORGANISATION PROCESS. IT INVOLVES THE FOLLOWING: i. DIAGNOSTIC MEETING MEANT TO DISCUSS THE GROUPS PERFORMANCE OPENLY. THE DISCUSSION SHOULD UNCOVER PROBLEMS THAT ARE HINDERING GROUP PERFORMANCE AND THEN COME UP WITH AN ACTION PLAN. II ROLE ANALYSIS IT IS DESIGNED TO CLARIFY THE ROLE EXPECTATIONS AND RESPONSIBILITIES OF TEAM MEMBERS. 2. SURVEY FEEDBACK RESEARCH IT INVOLVES SYSTEMATICALLY COLLECTING DATA ABOUT A GROUP OR THE ORGANISATION PRIMARILY THROUGH SELF-REPORT QUESTIONNAIRE. THE COLLECTED DATA ARE FED BACK TO THE GROUP FOR ANALYSIS AND DISCUSSION. IT IDENTIFIES WHERE CHANGE IS NEEDED AND THE SELECTION OF AN INTERVENTION TECHNIQUES.
  • 71. CHANGE INTERVENTIONS ORGANISATIONAL INTERVENTION ACTIVITIES APPROACHES USED INCLUDE: 1. QUALITY OF WORK LIFE ( QWL) DESIGNED TO IMPROVE THE QUALITY OF LIFE OF EMPLOYEES THROUGH DEVELOPING MECHANISMS TO ALLOW THEM IMPROVE FULLY THEIR WORK LIFE; FOR EXAMPLE – FAIR COMPENSATION, SAFE WORKING ENVIRONMENT, DEVELOPING HUMAN CAPACITIES & CHANCE FOR PERSONAL GROWTH. THE INTENDED OBJECTIVE IS TO IMPROVE MOTIVATION SO THAT ORGANISATION TARGETS ARE ACHIEVED. 2. RESTRUCTURING THIS INVOLVES REDESIGNING THE ORGANISATION STRUCTURE SO THAT IT BECOMES EFFICIENT & EFFECTIVE. ORGANISATION DEVELOPMENT CHANGE AGENTS PREFER FLATTER STRUCTURES BECAUSE THEY CAN RESPOND QUICKLY TO THE EVER-CHANGING ENVIRONMENT. 3. CORPORATE ENTREPRENEURSHIP AN APPROACH USED BY MANAGERS TO RENEW THEIR ORGANISATIONS. LARGER ORGANISATIONS HAVE BECOME INTERESTED IN ENTREPRENEURIAL THINKING FOR REASONS THAT RELATE TO SEARCH FOR AVENUES FOR GROWTH.
  • 72. CHANGE INTERVENTIONS 4. CHANGING ORGANISATIONAL CULTURE CHANGES ARE MADE TOWARDS INTRODUCING CULTURAL VALUES THAT SUPPORT LESS MANAGEMENT CONTROL , INCREASED TOLERANCE FOR RISK AND OPENING UP COMMUNICATION CHANNELS. CULTURES SHOULD BE MORE FLEXIBLE , MORE RESPONSIBLE AND MORE FOCUSED ON CUSTOMER NEEDS, SERVICE & QUALITY. 5. NEW REWARD SYSTEMS ORGS CAN COME UP WITH AN EFFECTIVE REWARD SYSTEM WHICH: i. SATISFY THE BASIC NEEDS OF ALL EMPLOYEES. ii. ARE COMPETITIVE AND MATCHING THOSE OF COMPETING ORGANIZATIONS IN THE SAME INDUSTRY. III ARE EQUITABLE.. EXPERIENCE, ABILITY, EFFORT AND OTHER CONSIDERATIONS SHOULD EXPLAIN THE DIFFERENCES IN PAY & OTHER OBVIOUS OUTCOMES. 6. JOB REDESIGN INVOLVES MATCHING THE JOB TO THE PERSON DOING IT. IT HAS BASICALLY 2 ELEMENTS; i. JOB ENLARGEMENT: -INCREASING THE VARIETY OR THE NUMBER OF TASKS A JOB INCLUDES. ii. JOB ENRICHMENT: INTRODUCE NEW AND MORE DIFFICULT TASKS NOT PREVIOUSLY HANDLED, INCREASE THE ACCOUNTABILITY OF INDIVIDUALS FOR THEIR OWN WORK AND ASSIGN INDIVIDUALS TASKS THAT ENABLE THEM TO BECOME EXPERTS.
  • 73. CHANGE INTERVENTIONS 7.MANAGEMENT BY OBJECTIVES IT IS A PROGRAM THAT ENCOMPASSES SPECIFIC GOALS SET WITH COOPERATION OF EMPLOYEES, FOR AN EXPLICIT TIME PERIOD, WITH FEEDBACK ON GOAL PROGRESS. MBO EMPHASIZES SETTING GOALS PARTICIPATIVELY THAT ARE TANGIBLE, VARIABLE, MEASURABLE, REALISTIC AND TIMELY. THE MAIN FOCUS OF MBO IS CONVERTING OVERALL ORGANIZATIONAL OBJECTIVES INTO SPECIFIC OBJECTIVES FOR THE ORGANIZATIONAL UNITS AND INDIVIDUAL MEMBERS. THE OBJECTIVES ARE FLOWING FROM TOP TO BOTTOM IN THE HIERARCHY AS CORPORATE GOALS, DIVISIONAL GOALS, DEPARTMENTAL GOALS AND INDIVIDUAL GOALS IN THE ORGANIZATION. LOWER UNIT MANAGERS JOINTLY PARTICIPATE IN SETTING THEIR OWN GOALS. MBO WORKS FROM THE BOTTOM UP AS WELL AS FROM THE TOP DOWN
  • 74. LEADERSHIP & CHANGE MANAGEMENT CHANGE MANAGEMENT LEADERSHIP - A RELATIONSHIP THROUGH WHICH ONE PERSON INFLUENCES THE BEHAVIOUR OR ACTIONS OF OTHER PEOPLE( MULLINS,2006). MOST OF THE ORGANIZATIONS AGREE NOW A DAYS THAT EFFECTIVE LEADERSHIP IS ONE OF THE MOST IMPORTANT CONTRIBUTORS TO THE OVERALL ORGANIZATIONAL PERFORMANCE AND CHANGE. INTELLIGENT LEADERS ARE THOSE WHO HAVE A STORE OF SKILLS AND KNOWLEDGE GAINED FROM EXPERIENCE THAT ALLOWS THEM TO MANAGE EFFECTIVELY AND EFFICIENTLY THE TASKS OF DAILY LIFE. EFFECTIVE LEADERSHIP IS ALWAYS REQUIRED TO BRING EFFECTIVE CHANGES (KENNEDY, 2000). CHANGE MANAGEMENT
  • 75. LEADERSHIP & CHANGE MANAGEMENT LEADERSHIP COMPETENCIES FOR EFFECTIVE CHANGE MANAGEMENT ( SOURCE: PAGON,BANUTAI, B & B BIZJACK,2008) Cognitive Competence 1.Creativity 2.Self Reliance 3.Problem solving skills 4.Analytical skills 5.Good Consultation Successful Change 1.Increase in productivity 2.Increase in relationship quality 3.Reduced conflicts 4.Employees satisfaction Social Competences 1.Interpersonal skills 2.Team working abilities 3. Stress Management Skills 4.Motivativational skills Functional Competencies 1.Communication skills 2.Special knowledge skills 3.Strong decision making schools 4.Career planning skills
  • 76. LEADERSHIP & CHANGE MANAGEMENT THE ROLE OF LEADERSHIP IN CHANGE MANAGEMENT 1.OVERCOMING RESISTANCE TO CHANGE ANY CHANGE PROCESS MOSTLY FACE THE CERTAIN LEVEL OF RESISTANCES, THE EFFECTIVE LEADER IS ONE WHO CAN MANAGE THE RESISTANCE AND IMPLEMENT SUCCESSFUL CHANGES. RECOGNIZING, ADDRESSING AND OVERCOMING THE RESISTANCE IS ALWAYS LENGTHY IS A CRITICAL ROLE OF LEADERSHIP IN CHANGE MANAGEMENT. RADICAL CHANGES REQUIRE PRIVATE ACCEPTANCE AND IT IS A ROLE OF SENIOR LEADERS TO MAKE PEOPLE REALIZE THE NEED OF CHANGE AND THEREFORE TO CREATE WILLINGNESS TO RELINQUISH OLD STYLE OF WORKING IN FAVOUR OF NEW ONES. 2. CREATING & COMMUNICATING THE VISION THE EFFECTIVE LEADERS HAVE TO COME UP WITH A CLEAR AND STRAIGHT VISION ABOUT FUTURE AND SUCCESSFUL CHANGE NEEDS TO HAVE A CLEAR PICTURE OF FUTURE. WITHOUT VISION THE SUCCESSFUL CHANGES ARE VERY DIFFICULT. KOTTER CLAIMS THAT IT IS VERY IMPORTANT FOR THE LEADERS TO COMMUNICATE THE VISION (KOTTER, 1995). COMMUNICATION INCREASES THE ACCEPTANCE OF A VISION. 3. CREATING A SUPPORTING CULTURE THE ROLE OF LEADER/LEADERSHIP IS ALSO VERY IMPORTANT FOR DEVELOPING AND MANAGING CHANGE IN ANY ORGANIZATION BY CREATING THE SUITABLE ATMOSPHERE WITHIN THE ORGANIZATION TO ADOPT CHANGE. ORGANIZATIONAL CULTURE HAS A ROLE IN DEVELOPMENT OF CHANGES IN ANY ORGANIZATION, AND IT IS THE LEADER WHO BRINGS NEW STRATEGIES FOR DEVELOPING OR MANAGING CULTURE.
  • 77. LEADERSHIP & CHANGE MANAGEMENT 4. PROVIDING REWARDS FOR EMPLOYEES TO BE MOTIVATED IN AN ORGANISATION THEY NEED TO BE RECOGNISED FOR THEIR PERFORMANCE. THE LEADERSHIP SHOULD ESTABLISH A LINKAGE BETWEEN REWARDS & PERFORMANCE. DURING CHANGE TARGETS ARE SET, THOSE EMPLOYEES WHO ACHIEVE THE TARGETS SHOULD BE REWARDED . IT IS THE DUTY OF THE LEADERSHIP TO SET THE TARGETS AND THE ASSOCIATED REWARDS TO ELICIT HIGH LEVELS OF MOTIVATION. 5. TRAINING CHANGE PROCESSES USUALLY COME WITH NEW METHODS OF WORKING. OLD METHODS ARE DISCARDED AND NEW WAYS ARE ADOPTED. EMPLOYEES THEREFORE NEED TO BE TRAINED TO BE ABLE TO FUNCTION IN A NEW ENVIRONMENT. IT CALLS FOR THE LEADERSHIP TO TRAIN EMPLOYEES SO THAT THEY GET SKILLS REQUIRED IN THE NEW ERA. FOR EXAMPLE WHEN NEW EQUIPMENT IS PURCHASED , EMPLOYEES HAVE TO BE TRAINED TO USE THE NEW EQUIPMENT. 6. PROVISION OF RESOURCES RESOURCES ARE ORGANISATIONAL ASSETS USED IN THE PRODUCTION OF GOODS & SERVICES, E.G PEOPLE, FINANCE , EQUIPMENT AND INFORMATION. FOR CHANGE TO BE SUCCESSFUL, THE LEADERSHIP HAS TO PROVIDE THESE RESOURCES AS AND WHEN THEY ARE REQUIRED.
  • 78. THE ORGANISATION OF THE FUTURE: IMPLICATIONS OF THE 21ST CENTURY ! • THE RATE OF CHANGE IN THE BUSINESS WORLD IS NOT GOING TO SLOW DOWN ANY TIME SOON. COMPETITION IN MOST INDUSTRIES WILL PROBABLY SPEED UP OVER THE NEXT FEW DECADES. SO WHAT WILL THE WINNING ENTERPRISE OF THE 21ST CENTURY LOOK ALIKE ? • PROFESSOR KOTTER CAME UP WITH THE FOLLOWING STRATEGIES:
  • 79. THE ORGANISATION OF THE FUTURE: IMPLICATIONS OF THE 21ST CENTURY ! A PERSISTENT SENSE OF URGENCY MAJOR CHANGE IS NEVER SUCCESSFUL UNLESS COMPLACENCY LEVEL IS LOW. A HIGH SENSE OF URGENCY MEANS THAT PEOPLE ARE ALWAYS LOOKING FOR BOTH OPPORTUNITIES AND CHALLENGES CONFRONTING THE ORGANISATION. MORE PEOPLE WILL NEED INFORMATION ON CUSTOMERS,EMPLOYEES,COMPETITO RS,FINANCIAL RESULTS AND TECHNOLOGICAL DEVELOPMENTS. THIS INFORMATION HAS TO BE PROVIDED TIMEOUSLY. 2.TEAM WORK AT THE TOP IN AN ENVIRONMENT OF CONSTANT CHANGE ,INDIVIDUALS EVEN IF SUPREMELY TALENTED WONT HAVE ENOUGH TIME OR EXPERTISE TO ABSORB RAPIDLY SHIFTING COMPETITOR ,CUSTOMER AND TECHNOLOGICAL INFORMATION. THEY WILL NOT HAVE ENOUGH TIME TO COMMUNICATE WITH HUNDREDS OF WORKERS HENCE THE NEED TO OPERATE AS A TEAM
  • 80. THE ORGANISATION OF THE FUTURE: IMPLICATIONS OF THE 21ST CENTURY ! 3. PEOPLE WHO CAN CREATE AND COMMUNICATE VISION. THE ORGANISATION OF THE FUTURE NEED PEOPLE WHO CAN CREATE AND COMMUNICATE VISIONS AND STRATEGIES. BECAUSE MANAGEMENT DEALS WITH STATUS QUO AND LEADERS DEAL MOSTLY WITH CHANGE- IN THE NEXT CENTURY WE HAVE TO BE SKILLED IN CREATING LEADERS. THE DEVELOPMENT OF LEADERSHIP WILL REQUIRE FLATTER AND LEANER STRUCTURES ALONG WITH LESS CONTROLLING AND MORE RISK TAKING CULTURES. 4. BROAD BASED EMPOWERMENT EMPOWERMENT OF EMPLOYEES SHOULD BE PRIORITISED IN THE 21ST CENTURY. FLATTER HIERARCHIES, LESS BUREAUCRACY AND A GREATER WILLINGNESS TO TAKE RISKS SHOULD BE PROMOTED IN ORGANISATIONS OF TODAY. MANAGERS SHOULD FOCUS ON LEADERSHIP IN WHICH THEY DELEGATE RESPONSIBILITIES ( WITH SUFFICIENT AUTHORITY )TO LOWER LEVELS.
  • 81. THE ORGANISATION OF THE FUTURE: IMPLICATIONS OF THE 21ST CENTURY ! DELEGATED MANAGEMENT FOR EXCELLENT SHORT –TERM PERFORMANCE DELEGATION IS IMPORTANT IN A FAST CHANGING ENVIRONMENT. LOWER LEVEL EMPLOYEES HAVE TO BE GIVEN SUFFICIENT TRAINING & EDUCATION TO PERFORM BETTER IN THEIR POSITIONS . THE VISION IS ACHIEVED BY CREATING SHORT TARGETS TO MAKE SURE THAT THE ORGANISATION IS IN THE RIGHT PATH. 6 NO UNNECESSARY INTERDEPENDENCE ALL ORGANISATIONS HAVE UNNEEDED INTERNAL INTERCONNECTIONS BETWEEN PEOPLE & GROUPS. THE EFFECTIVE ORGANISATION OF THE 21ST CENTURY WILL RE-EXAMINE LINKAGES ON A MORE REGULAR BASIS AND ELIMINATE THOSE THAT NO LONGER RELEVANT.
  • 82. THE ORGANISATION OF THE FUTURE: IMPLICATIONS OF THE 21ST CENTURY ! 5. AN ADAPTIVE CORPORATE CULTURE THE CHANGES THAT HAVE BEEN DESCRIBED ABOVE WILL REQUIRE A CORPORATE CULTURE FOR THEM TO STICK. CULTURES CAN FACILITATE ADAPTATION – IF THEY SUPPORT COMPETENT LEADERSHIP, ENCOURAGE TEAM WORK & IF THEY DEMAND MINIMUM MANAGERIAL LAYERS.
  • 83. CHANGE CAPABLE ORGANISATIONS • IN ADDITION TO WHAT PROF KOTTER SAID THE FOLLOWING POINTS ARE ALSO IMPORTANT IN THE 21ST CENTURY MANAGEMENT: • WHAT DOES IT TAKE TO BE A CHANGE CAPABLE ORGANISATION? 1. MAKE LEARNING A WAY OF LIFE: CHANGE FRIENDLY ORGANISATIONS EXCEL AT KNOWLEDGE SHARING AND MANAGEMENT. 2. LINK THE PRESENT AND THE FUTURE: MANAGERS NEED TO THINK ABOUT FUTURE OPPORTUNITIES AND ISSUES AND FACTOR THEM INTO TODAYS DECISIONS
  • 84. CHANGE CAPABLE ORGANISATIONS • 3.TEAM WORKING – MANAGERS SHOULD ENSURE THAT THERE ARE DIVERSE TEAMS AT THE WORK PLACE. DIVERSITY ENSURES THERE IS ALWAYS A CHANGE IN THE WAY THINGS ARE DONE. • 4.INTERGRATE TECHNOLOGY-THERE IS NEED TO USE TECHNOLOGY TO IMPLEMENT CHANGES. ALWAYS EMBRACE TECHNOLOGICAL CHANGES. • 5. BUILD AND DEEPEN TRUST- PEOPLE WILL SUPPORT CHANGES WHEN THE CULTURE OF THE ORGANISATION IS TRUSTING AND MANAGERS HAVE CREDIBILITY
  • 85. STIMULATING INNOVATION • WEST AND FARR (1990) DEFINED INNOVATION AS AN “INTENTIONAL INTRODUCTION AND APPLICATION OF NEW PRODUCTS, PROCESSES, PROCEDURES, OR IDEAS THAT ARE DESIGNED TO SIGNIFICANTLY BENEFIT THE INDIVIDUAL, THE GROUP, THE ORGANIZATION OR WIDER SOCIETY”. • INNOVATION IS THE KEY TO CONTINUED SUCCESS. • SUCCESS TODAY DEPENDS ON INNOVATION BECAUSE THE TODAYS BUSINESS ENVIRONMENT IS ALWAYS CHANGING, ORGANISATIONS MUST THEREFORE CREATE NEW PRODUCTS AND PRODUCTS AND SERVICES AND ADOPT STATE OF THE ART TECHNOLOGY •
  • 86. STIMULATING INNOVATION • HOW ORGANISATIONS BECOME INNOVATIVE? Stimulate Innovation Human Resources Variables 1.Creative People 2.Training & Development 3.High Job Security Structural Variables: 1.Organic structures 2.Abundant Resources 3.Communication Cultural Variables: 1.Tolerance of risks 2.Tolerance of conflict 3.Positive Feedback
  • 87. STIMULATING INNOVATION • STRUCTURAL VARIABLES RESEARCH INTO THE EFFECT OF STRUCTURE ON INNOVATION SHOW THE FOLLOWING: 1. ORGANIC STRUCTURE POSITIVELY INFLUENCES INNOVATION BECAUSE IT ALLOWS FLEXIBILITY & KNOWLEDGE SHARING – ANTECEDENTS THAT ARE CRITICAL IN INNOVATION. 2. ABUNDANT RESOURCES PROVIDES A KEY BUILDING BLOCK FOR INNOVATION. THE AVAILABILITY OF RESOURCES ALLOWS MANAGERS TO PURCHASE INNOVATIONS AND AFFORD THE COSTS OF INSTITUTING INNOVATIONS 3. COMMUNICATION-THIS HELPS TO BREAK DOWN BARRIERS TO INNOVATION. CROSS FUNCTIONAL TEAMS AND TASK FORCES HELP TO FACILITATE INTERACTION ACROSS DEPARTMENTAL LINES. 4. WORK & NON WORK SUPPORT – EMPLOYEES CREATIVE PERFORMANCE IS ENHANCED BY AN ORGANISATION STRUCTURE THAT SUPPORTS CREATIVITY FOR EXAMPLE MANAGERIAL ENCOURAGEMENT, OPEN COMMUNICATION & USEFUL FEEDBACK.
  • 88. STIMULATING INNOVATION • CULTURAL VARIABLES 1.TOLERANCE FOR RISKS EMPLOYEES SHOULD BE ALLOWED TO EXPERIMENT WITHOUT THE FEAR OF FAILURE SHOULD THEY FAIL. MISTAKES SHOULD BE TREATED AS LEARNING OPPORTUNITIES 2. TOLERANCE FOR CONFLICT DIVERSITY OF OPINIONS IS ENCOURAGED. HARMONY AND AGREEMENT BETWEEN INDIVIDUALS OR UNITS ARE NOT ASSUMED TO EVIDENCE OF HIGH PERFORMANCE 3. POSITIVE FEEDBACK MANAGERS HAVE TO PROVIDE POSITIVE FEEDBACK, ENCOURAGEMENT AND SUPPORT SO EMPLOYEES FEEL THAT THEIR CREATIVE IDEAS RECEIVE ATTENTION. 4.EMPOWERING LEADERSHIP MANAGERS SHOULD LET ORGANISATIONAL MEMBERS KNOW THAT THEIR JOB IS SIGNIFICANT ,OFFER OPPORTUNITIES FOR DECISION MAKING.
  • 89. STIMULATING INNOVATION • HUMAN RESOUCES VARIABLES 1. TRAINING & DEVELOPMENT INNOVATIVE ORGANISATIONS ACTIVELY PROMOTE THE TRAINING & DEVELOPMENT OF THEIR MEMBERS SO THEIR KNOWLEDGE REMAINS CURRENT 2. JOB SECURITY THIS REDUCES THE FEAR OF GETTING FIRED FOR MAKING MISTAKES 3. CREATIVE PEOPLE INNOVATIVE ORGANISATIONS ENCOURAGE INDIVIDUALS TO BECOME IDEA CHAMPIONS. THESE ARE THE PEOPLE WITH WHO ARE ENERGIZED AND HAVE A HIGH TOLERANCE TOWARDS RISKS.