MHRM

1. Change Management
MBA 715

2. Prepared and presented
By
Dr E. Muresherwa

3.  The foolish dove flies with the eagles; the foolish fly
follows the corpse into the grave.
 If you have never stepped on anyone's toes then you
have not started walking. Unknown
 Superior people take both the credit and the blame for
everything that happens to them. Brian Tracy
 Success in life consists of going from one mistake to
the next without losing your enthusiasm. Winston Churchill
 Constraint, effort and frequent mistakes are stepping
stones of genius. Elbert Hubbard
 The winners are those who learn to take full responsibility
for their actions. Ron Bedriff
 The only sure thing in life is change. If you don’t change with
the times, then times will change you.

4.  An organisation can be defined as a group of
people who come together, and pull resources
together to achieve a given set of goals.
 These can be classified into public sector or
private sector organisations.

6.  Robbins and Coulter (1999) defines change
as any alteration in people, structure, or
technology.
 Armstrong (2009) has defined change as any
changes in structure, management,
employees, processes, and other related
activities.
 Hanson (1989) defines organisational change
as the way in which structure, behaviour,
procedures and organisations are altered.

7. Change can be defined differently depending on how it occurs, its
magnitude and/or the part of the organisation affected. Examples are:
 Happened change
 Reactive change/Emergent change
 Anticipatory change
 Planned Change
 Incremental change
 Operational change
 Strategic change
 Directional change
 Fundamental change
 Total change
NB: Every business organisation should be prepared to manage all
the types of change.

8. What does change, changes in an
organisations?
 People
 Structure
 Technologies
 Processes
 Systems
 Policies
 Markets

9. Change options available to organisations
are: Structure, technology and people
changes
(a) Change in Structure
 Work specialisation
 Departmentation
 Chain of command
 Span of control
 Centralisation/Decentralisation

10. (b) Changes in Technology:
 Work process
 Methods
 Equipment, e.g. introduction of computerised
technology

11. c) Changes in People: This includes, changing:
 Attitudes
 Skills
 Expectations
 Perceptions and
 Behaviour
 Bringing in new people and/or separation
(d) Changing Policies: This results in adopting
policy programmes e.g. the Labour
Relations Act.
(e) Markets: e.g. Internationalisation,
emergence of competition, etc.

12. Forces/drivers of change classified into external and internal
forces of change.
(a) External forces: Compelling circumstances that come
from outside the organisation. These include:
(i) Market forces, e.g. competition
(ii) Government laws and regulations, e.g. The new
curriculum
(iii) Changing technology, e.g. E-learning
(iv) Economic forces, e.g. Inflation
(v) Environmental forces, e.g. Covid 19 and the new normal

13. (b) Internal forces: These are forces emanating from within an
organisation, and include:
(i) Dissatisfaction with customer service levels
(ii) Dissatisfaction with employee
(iii) Loss of key staff
(iv) Brilliant idea for a better way
(v) General feeling that things should be reorganised
NB: Internal force tend to originate primarily from the internal
operation of the organisation or from the impact of external changes.

14. Managing Change: This involves coordinating and integrating
various activities involved in the implementation of
transformation so that the change process is completed
effectively and efficiently.
Transformation skills needed: Managers responsible for
spearheading transformation require the following skills:
(a)Ability to shape a viable future for the organisation.
(b) Ability to mobilise employees and subordinates behind a
common vision
(c) Ability to guide the organisation’s different systems towards
the achievement of stated vision
(d) Ability to learn and to create a learning organisation

15. NB: Managers need the following skills to be effective
(i) Human skills
(ii) Technical skills
(iii) Conceptual skills
- These skills will enable effective and efficient
implementation through creating supportive environments
to change, avoiding the downside risks of managing the
change process, e.g.
- Isolating employees, thereby creating resentment,
emotional hostility, resistance and sabotage

16. The role and tasks in the change process: Kanter et al., (1992)
identified 3 distinctive players in executing change:
(a) Transformation strategists: Top management establishes vision and
lay the foundation for transformation
- They manage the organisation’s internal stakeholders i.e. unions,
employees, relevant government bodies, etc.
(b) Transformation implementers: Middle management who are
responsible
with coordinating and integrating various subsystems and apply
interpersonal (human skills) to build supportive relationships among
employees.
- These facilitate the development of a shared vision and culture that is
necessary for change.

17. Transformation recipients: These are employees at the operation level
or “coal face” who either adopt resist change.
- Kanter however left out an important player, i.e. the change agent,
who has a vital and very specific role to play at least in the initial
stage of the change effort.
The change agent: Planned change in its various forms currently known
to us is impossible without a competent change agent.
- The person may have various official titles in different organisations.
However, the term consultant is almost always used among change
management practitioners.
- Change agents may be either from outside the organisation (external
consultants) or from within the organisation (internal consultants).

18. Depending with the nature of change, the following are some
of the tactics and methods of interventions or standard
operation procedures that can be followed in the
transformation process:
(i) Analyse the organisation and its need for strategic
change.
(ii) Create a shared vision and common direction
(iii) Create a sense of urgency
(iv) Create conditions for successful transformation
(Change).
(v) Craft an implementation plan
(vi) Re-enforce and institutionalise the transformation.
NB: These tactics are related to action research as a change
management process.

19. Critical success factors are the conditions that must be put in
place to guarantee success of change management
interventions. These include:
(i) Commitment of all levels stakeholders (management &
staff)
(ii) High level of motivation to achieve
(iii) Use of change agent
(iv) Fluid communication system in all directions, free from all
distortions
(v) Acceptance and management of resistance to change
(vi) Adherence to action research and its scientific orientation.
(vii) Effective monitoring & evaluation of the process: There is
need to monitor & evaluate the process at various stages ,
giving feedback to correct and adjust the process

20. This is the situation which arises when people refuse to
accept change and occurs at three levels, i.e.
(i) Individual
(ii) group, and
(iii) organisational level.

21. Individual resistance: This is caused by the following factors:
(i) Fear of the unknown
(ii) Insecurity
(iii) Status: Any perceived threat to status and prestige and our
ability to satisfy our needs e.g. loss of income will be resisted
(i) Economic hardships
(ii) Predictability: Desire to control our own destiny i.e. to have
an idea of where we are going and how we can get there .

22. (vi) Habits: Human beings are creatures of habits. Any change
which tend to affect our normal way of doing things is resisted.
(vii) Selective information processing: Individuals shape their
world through their perceptions. Once they have created this
image, it will not change.
(viii) Social relationships: People resist change for fear of losing
old friends and contacts, fear the difficulties of making new
friends, and adapting to new social demands.

23. Sources of organisational resistance:
Include the following:
(i) Structural inertia
(ii) Limited forces of change
(iii) Group inertia
(iv) Threat to expertise
(v) Threat to established power relationships
(vi) Threat to resource allocation
(vii) Need to maintain status quo

24. NB:
(i) Tolerance for change diminishes with age.
(ii) People and organisations have varying degrees of tolerance
for stress and change.
(i) Degree of tolerance depends on what aspects of the
organisation is changed. It is more difficult to culture than
anything else.
Best approach to change is to face it: The only constant thing in
life is that change is certain. Change is happening continuously
and in stead of throwing your hands in frustration, face the
change, regardless of the frustrations.

25. (i) Reduced organisational commitment
(ii) Increased hostility to those initiating the change
(iii) Increased absenteeism, lateness or even sabotage of
production systems
(i) Reinforcement of group norms and pressure, resulting in
reduced performance and inter group conflict.
(i) Increased propensity for unionism and trade union activities
(ii) Spill-over conflicts resulting from the projection of
resistance into other areas negotiation

26. (i) Planning for change
(ii) Education and communication
(iii) Participation by employees e.g. teachers in decision
making
(iv) Promote group decision making
(v) Minimise the significance of change processes
(vi) Use economic incentives: Sweeten the pill
(vii) Use of change agents
(viii) Coercion: People may be coerced to accept the change

27. (i) Planning for change
(ii) Education and communication
(iii) Participation by employees e.g. workers in decision
making
(iv) Promote group decision making
(v) Minimise the significance of change processes
(vi) Use economic incentives: Sweeten the pill
(vii) Use of change agents
(viii) Coercion: People may be coerced to accept the change

28. Understanding organisational culture
- Organisational culture is a set of shared taken for granted
- implicit assumptions that a group holds and that determines
- how it perceives, thinks about and reacts to its various environments.
- Culture of a society is a way of life of its members; collection
- of ideas and habits which they learn, share and transport
- from generation to generations.
- Organisational culture manifests itself manifests itself in
- various forms: Objects (shared things); talks (shared
- sayings), behaviour (shared doings); emotions (shared feelings)

29. (i) Culture is learnt: Culture is man made in the sense that
it is formed through events which take place in history in
order to help individuals cope with their environment
(ii) It is shared: Organisation culture is a set of norms, roles
and values that are shared by all members of the
organisation.
(i) NB: For lasting change to occur in our organisations,
cultural sensitivity should be part of any meaningful
change management process

30. (i) Since man has no instincts to direct their action, behaviour
must be based on guidelines which are learnt.
(ii) Culture gives organisational members collective identity
cohesion. It gives members of an organisation collective
commitment to shared goals. It creates unit of purpose.
(iii) Culture shapes behaviour by helping members to make sense of
their surroundings. It determines how members of a given
organisation think, and feel.
(iv) It defines acceptable ways of behaviour for members of a
particular organisation. It directs their actions and defines
their outlook.

31. Attributes of change supporting culture
(i) Encouraging experimentation
(ii) Rewarding both success and failure
(iii) Celebrate mistakes
(iv) Team building and support
NB: An organisation with these characteristics is considered to be a
learning organisation.

32.  In their book called In Search of Excellence published in
1982, Peters and Waterman set out to discover the real
secrets of effective management.
 They came up with the ‘eight attributes of excellence’ and
these put together provide the bedrock of change
management in organisations.
 NB: The eight attributes are rooted in management of
organisational culture.

34. 1. A bias for action
2. Close to the customer
3. Autonomy and entrepreneurship,
4. Productivity through people,
5. Hands-on, value driven
6. Stick to the knitting
7. Simple form, lean staff,
8. Simultaneous loose

39. 1. Lack of vision
2. Lack of clear goals
3. Goal shifting
4. Poor environmental scanning
5. Lack of ownership
6. Absence of an implementation plan
7. Failure create a change supporting culture e.g. Lack of
communication
8. Inadequate resources
9. Pleasing the wrong people
10. Overreaching
11. Lack of professional ethics & integrity
12. Lack of implementation skills
13. Lack of team effort.
14. Lack of feedback and control
15. Failure to manage resistance

40. The company should first come up with a vision
A vision is a pen picture of the business of more than 3 years in
terms of its likely physical appearance, size and activities. It
considers its future products, markets, processes, location etc.
A mission is then crafted
 A mission is useful for putting into the spotlight what business a
company is presently in and the customer needs it is
endeavoring to serve.
 Pierce and Robinson defined the mission as the fundamental
unique purpose that sets the business apart from other firms of
its type and identifies the scope of its operation in production
and marketing terms.

41.  What is our business?
 Who are our customers?
 Spells the competence you have as an organization
 Must be future oriented.
 Varies from time to time depending on the environment .
 Its time frame is short.

42.  The business environment is divided into 2 sub environments
a) Micro environment
 Looks at the internal environment of the organisation to include
the following;
 Mission and objectives
 Resources e.g. manpower, know how, capital etc
 Management, culture and structure
 Scanning should be done regularly as changes are always
occurring and it exposes the firm’s strengths and weaknesses
which in turn affects business strategy

43. Political / Legal environment
 Consists of laws, government agencies and pressure groups that
influence the activities of the firm.
 These include;
-Black empowerment issues
-Monopolies and mergers commission
-Pressure groups AAG, Upfumi Kuvadiki etc
-Watchdogs e.g. CCZ, ZNCC, CZI,CFU, NECs

44. Economic Environment
Composed of such factors as:
 economic growth,
 consumers incomes,
 inflation,
 monetary and fiscal policy.
NB: The economic environment is also affected by other
environments notably the political and technological
environments.
This shows that the factors as we discuss here are inter related

45. Technological environment
The change manager should watch the following technological
trends;
 Accelerating pace of technological change
 Unlimited innovation opportunities
 Increased research and development
 Increased regulation of the technological change (enforcement of
standards, e.g. ZIMRA enforced technologies)

46. Demographic (social) Environment
The following demographic trends are of concern to strategists;
 Population growth
 Population age mix
 Ethnic composition
 Education
 Household patterns
 Shifts from mass market to micro market

47. Physical (natural) Environment
Refers to the environment from which the business obtains its
raw materials and those environmental elements to which it
discharges its waste. Strategists should track the following
physical environmental trends;
 Continued scarcity of raw materials
 Increased cost of energy
 Increased levels of pollution
 Environmentalism ( government and pressure groups)

48. Social (cultural) environment
Refers to the basic beliefs, norms and values that are generally
held by a particular society
Hofstede G (1980) simply defines cultures as ‘collective mental
programming.’’ Some of the variables to consider are;
 Language
 Religion
 Material culture, e.g. dressing, food etc.
NB: Some cultural values do change over time and this has
implications to marketers e.g. the influence of western culture
on African culture

49.  It can be a broad ranging effort to monitor and interpret social,
political, economic, technological and global events in an effort
to spot budding trends and conditions that could eventually
impact the industry.
 It can also be the monitoring, evaluation and dissemination of
information from the external and internal environment to keep
people within the organisation informed.
 According to Hunger and Wheeler the purpose for environmental
scanning is to raise consciousness of managers about potential
developments that would have important input on industry
conditions and pose new opportunities and threats.

50.  To match the organization’s distinctive competence to
opportunities in the environment.
 To hedge the firm’s valuable position against environmental
threats.
 Helps an organization capitalize on opportunities rather than
leave these to competitors.
 It provides an early signal of an impending problem which can be
diffused if recognized well in advance.
 Provides a base of objective qualitative information about the
environment that strategies can utilize

51.  Scanning and analyzing the external environment for
opportunities and threats is not enough to enable an organisation
to keep running in order to keep a head of competitive
advantage.
 Change agents must also look within the organization itself to
identify internal strategic factors. (i.e.) those critical strengths
and weaknesses that are likely to determine if the company will
be able to take advantage of opportunities while avoiding
threats.
 This internal scanning is often referred to as organizational
analysis and is concerned with identifying and developing an
organizational resource.

52. a) Environmental influences audit
 This is an audit of the environmental factors that have influenced
the firm’s past and present performances.
 The idea is to come up with a possible prediction of future
influences.
 PESTEL analysis is done.
b) Environmental nature assessment: It entails answering the
following questions
 How uncertain is the environment? (static, dynamic)
 What are the sources of this uncertainty?
 How should this uncertainty be dealt with?

53. c) Key environmental factors assessment
 Here management focuses on key environmental factors that
impinge on the firm’s performance such as structure and nature
of the market.
 Factors considered are consumers, competitors, intermediaries
and suppliers.
d) Competitive position identification
 This entails an analysis of competitors vis-a-vis the firm via such
approaches as strategic group analysis and/or bench making.
 An effective competitive analysis would entail answering the
following questions.
 Who are our competitors?
 What are their strategies?
 What are their objectives?
 What are their strengths and weaknesses?
 What are their reaction patterns?

54. e) Key opportunities and threats analysis
 An analysis of opportunities and threats is carried out
on the information acquired in the previous stages.
 At this stage the firm’s current strategic position should
now be clear and management should be in a position to
initiate planned change interventions that will drive
the firm into the future.

55. Potential resource strengths and competitive capabilities
assessment and design in the context of change management
should focus on creating the following business conditions:
 A powerful strategy
 A product that is strongly differentiated
 Strong financial condition
 An attractive customer base
 Economies of scale or learning and experience curve advantages
over rivals

56.  Superior technology
 Superior intellectual capital
 Good supply chain management capabilities
 Wide geographic coverage
 Alliances/ joint ventures with other firms that provide access to
valuable technology, competencies and /or attractive geographic
markets

57. Marketing opportunities that can be taken advantage of include:
 Openings to win market share from rivals
 Sharply rising demand
 Expanding into new geographic markets
 Expanding the company’s product line to meet a broader range of
customer needs
 Integrating forward or backward
 Openings to exploit emerging new technologies

58.  Lack of clear strategic direction
 Resources that are not well matched to industry key success
factors
 Lack of well developed or product innovation capabilities
 Too narrow a product line relative to rivals
 Weak brand image or reputation
 Diminishing market share
 Lack of management depth

59.  Inferior intellectual capital relative to rivals
 Lots of internal operating problems and obsolete facilities
 Lack of financial resources to grow the business and pursue
promising opportunities
 Lots of underutilised plant capacity

60.  Increasing intensity of competition among industry rivals
resulting in squeezed profit margins
 Likely entry of potent new competitors
 Growing bargaining powers of customers or suppliers
 A shift in buyer needs and tastes
 Loss of sales to substitute products
 Vulnerability of industry driving forces
 Costly new regulatory requirements

61.  Developed in the early 1980s by Tom Peters and Robert Waterman,
two consultants working at the McKinsey & Company consulting firm.
 the basic premise of the model is that there are seven internal aspects
of an organization that need to be aligned if it is to be successful.

63. The McKinsey 7S model involves seven interdependent factors which
are categorized as either "hard" or "soft" elements:
Hard Elements
 Strategy
 Structure
 Systems
Soft Elements
 Shared Values
 Skills
 Style
 Staff

64.  "Hard" elements are easier to define or identify and management
can directly influence them: These are strategy statements;
organization charts and reporting lines; and formal processes
and IT systems.
 "Soft" elements, on the other hand, can be more difficult to
describe, and are less tangible and more influenced by culture.
NB: The soft elements are as important as the hard
elements if the organization is going to be successful.

65.  Strategy: the plan devised to maintain and build competitive
advantage over the competition.
 Structure: the way the organization is structured and who reports
to whom.
 Systems: the daily activities and procedures that staff members engage
in to get the job done.
 Shared Values: called "super ordinate goals" when the model was first developed, these
are the core values of the company that are evidenced in the corporate culture and the
general work ethic.
 Style: the style of leadership adopted.
 Staff: the employees and their general capabilities.
 Skills: the actual skills and competencies of the employees working for the company.

66.  The model is based on the theory that, for an organization to perform
well, these seven elements need to be aligned and mutually reinforcing.
So, the model can be used to help identify what needs to be realigned to improve
performance, or to maintain alignment (and performance) during other types of
change.
 Whatever the type of change – restructuring, new processes, organizational
merger, new systems, change of leadership, and so on – the model can be used to
understand how the organizational elements are interrelated, and so ensure that
the wider impact of changes made in one area is taken into consideration.
Once this understanding is available, transformation strategists (Change agents)
And change implementers will be able to employ their skills, namely, human,
technical and conceptual skills to manage the change process.

67. Strategy:
 What is our strategy?
 How do we intend to achieve our objectives?
 How do we deal with competitive pressure?
 How are changes in customer demands dealt with?
 How is strategy adjusted for environmental issues?

68. Structure:
 How is the company/team divided?
 What is the hierarchy?
 How do the various departments coordinate activities?
 How do the team members organize and align themselves?
 Is decision making and controlling centralized or decentralized? Is this as it
should be, given what we're doing?
 Where are the lines of communication? Explicit and implicit?

69. Systems:
 What are the main systems that run the organization? Consider
financial and HR systems as well as communications and
document storage.
 Where are the controls and how are they monitored and evaluated?
 What internal rules and processes does the team use to keep on
track?

70. Shared Values:
 What are the core values?
 What is the corporate/team culture?
 How strong are the values?
 What are the fundamental values that the
company/team was built on?

71. Style:
 How participative is the management/leadership style?
 How effective is that leadership?
 Do employees/team members tend to be competitive or
cooperative?
 Are there real teams functioning within the organization or
are they just nominal groups?

72. Staff:
 What positions or specializations are represented within the team?
 What positions need to be filled?
 Are there gaps in required competencies?
Skills:
 What are the strongest skills represented within the company/team?
 Are there any skills gaps?
 What is the company/team known for doing well?
 Do the current employees/team members have the ability to do the job?
 How are skills monitored and assessed?

73.  Start with your Shared Values: Are they consistent with your structure,
strategy, and systems? If not, what needs to change?
 Then look at the hard elements. How well does each one support the
others? Identify where changes need to be made.
 Next look at the other soft elements. Do they support the desired hard
elements? Do they support one another? If not, what needs to change?

74. NB:
 The 7S model can be used in a wide variety of situations where an
alignment perspective is useful, for example to help you:
 Improve the performance of a company.
 Examine the likely effects of future changes within a company.
 Align departments and processes during a merger or acquisition.
 Determine how best to implement a proposed strategy.

75. GEMINI’S 4 R’S CONCEPTUALISATION

76.  This concept was started by Management consultants Gouillart
and Kelly.
 They describe a four-dimensional process for business
transformation in their book Transforming the Organisation
 This came to be known as the Gemini 4Rs framework.
 This approach aims to cover all the important components of the
organisation's identity that are associated with change
management

77. According to the 4 Rs framework, change involves the four 4 Rs
starting with:
 Reframing: is the process of setting a corporate vision.
This involves fundamental questions about what the organisation is and
what it is for:
i) Achieve mobilization: Create the will and desire to change.
ii) Create the vision of where the organisation is going.
iii) Build a measurement system that will set targets and measure
progress.

78. Restructuring:
 Can be seen as the process of removing the fat from an
organisation. It is about the organisation's structure, but it also can
involve cultural changes:
 Construct an economic model to show in detail how value is created and
where resources should be deployed;
 Align the physical infrastructure with the overall plan;
 Redesign the work architecture so that processes interact to create value

79. Revitalizing
This is the process of finding new products and markets, i.e. the
process of securing a good fit with the environment:
 Achieve market focus.
 Invent new businesses.
 Change the rules of competition by exploiting technology.

80. Renewal
 This is the process of development that focuses on the individuals.
 It is needed to align individual skills with organisational
requirements.
 It ensures that the people in the organisation support the change
process and acquire the necessary skills to contribute to it:
 Renewal also:
 Create a reward system in order to motivate workers.
 Build individual learning.
 Develop the organisation and its adaptive capability to the changing
environment.

81.  Maximize collective energy
 Ensure people can realize their own and their organisation’s needs (Management by integration)
 Break organizational silos
 Nurture a cooperative mind set
 Prompt people to collaborate across boundaries
 Leverage organizational culture its like the DNA of a person
 Understand change as inevitable and necessary evil. Continuously strive
keep the pass. ... Avoid the threat of outliving your period of usefulness.
 Be open minded and adaptable…..think of the different cultures across the world
and create a learning organisation (Here, both the organisation and the people in it
should be open to learning.

82. THANK YOU:
WISH YOU THE GRACE OF ALL TIMES, BOTH IN
LIFE AND IN EXAMINATIONS