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’
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.
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.