Change management

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Change management

  1. 1. Change ManagementPresented by: -Ankur Kejriwal A.K 1
  2. 2. What is “Change Management”?Change management is an important aspect of management that tries to ensure that a business responds to the environment in which it operates. There are four key features of change management:•  Change is the result of dissatisfaction with present strategies•  It is essential to develop a vision for a better alternative•  Management have to develop strategies to implement change•  There will be resistance to change A.K 2
  3. 3. Forces for ChangeInternal forces for change1. A general sense that the business could “do better”2. Desire to increase profitability3. Reorganization to increase efficiency4. Natural ageing and decline in a business (e.g. machinery, products)5. Conflict between departments6. The need for greater flexibility in organizational structures7. Concerns about ineffective communication, de-motivation or poor businessrelationships A.K 3
  4. 4. External forces for change1. Increased demands for higher quality and levels of customer service2. Uncertain economic conditions3. Greater competition4. Higher cost of inputs5. Legislation & taxes6. Political interests7. Ethics & social values8. Technological change9. Globalization10. Scarcity of natural resources11. Changing nature and composition of the workforce A.K 4
  5. 5. Resistance to ChangeDespite the potential positive outcomes, change is nearly always resisted. A degree ofresistance is normal since change is:• Disruptive, and• StressfulManagement trying to implement change will often come across other people in thebusiness responding with phrases such as: “My needs are already being met” “We don’t need to do this” “This sounds like bad news” “The risks outweigh the benefits” “What does this mean for me?”Of course a degree of scepticism can be healthy especially where there are weaknessesin the proposed changes. However resistance will also impede the achievement ofbusiness objectives. A.K 5
  6. 6. Some common reasons why change is resistedinclude:1. Habit Habit provides both comfort and security Habits are often well-established and difficult to change2. Misunderstanding Communications problems Inadequate information3. Low tolerance of change Sense of insecurity4. Different assessment of Disagreement over the need for changethe situation Disagreement over the advantages and disadvantages5. Economic implications Employees are likely to resist change which is perceived as affecting their pay or other rewards Established patterns of working and reward create a vested interest in maintaining the status quo6. Fear of the unknown Proposed changes which confront people tend to generate fear and anxiety Introducing new technology or working practices creates uncertainty A.K 6
  7. 7. We have touched earlier on personal barriers to change – there are also severalorganizational barriers to change, including:•Structural inertia•Existing power structures•Resistance from work groups•Failure of previous change initiativesChange is also resisted because of the poor way in which change is managed!For example, a failure by management responsible for the change to:•Explain the need for change•Provide information•Consult, negotiate and offer support and training•Involve people in the process•Build trust and sense of security•Build employee relations A.K 7
  8. 8. Overcoming Resistance to Change• Involve interested parties in the planning of change by asking them for suggestions andincorporating their ideas.• Clearly define the need for the change by communicating the strategic decision personallyand in written form.• Address the "people needs" of those involved. Disrupt only what needs to be changed. Helppeople retain friendships, comfortable settings and group norms wherever possible.• Design flexibility into change by phasing it in wherever possible. This will allow people tocomplete current efforts and assimilate new behaviours along the way.• Be open and honest.• Focus continually on the positive aspects of the change. Be specific where you can.• Do not leave openings for people to return to the status quo. If you and your organizationare not ready to commit yourselves to the change, dont announce the strategy. A.K 8
  9. 9. Approaches to Managing OrganizationalChange• From several approaches of organizational change, two most important are as under :1. Lewin’s Three-Step Model2. Kotter’s Eight-Step Plan A.K 9
  10. 10. Lewin’s Three-Step Model Refreezin Unfreezing Moving gChange involves a sequence of organizational processes that occurs over time. Lewin(1951) suggests this process typically requires three steps: unfreezing, moving, andrefreezingUnfreezing: This step usually means reducing the forces acting to keep the organization in its current condition. Unfreezing might be accomplished by introducing new information that points out inadequacies in the current state or by decreasing the strength of current values, attitudes, and behaviors. Crises often stimulate unfreezing. Examples of crises are demographic shifts in population, a sudden increase in employee turnover, a costly lawsuit, and an unexpected strike. Unfreezing may occur without crises as well. Climate surveys, financial data, and enrollment projections can be used to determine problem areas in an organization and initiate change to alleviate problems before crises erupt. A.K 10
  11. 11. Cont…Moving: Once the organization is unfrozen, it can be changed by moving. This step usually involves the development of new values, attitudes, and behaviors through internalization, identification, or change in structure. Some changes may be minor and involve a few members—such as changes in recruitment and selection procedures—and others may be major, involving many participants. Examples of the latter include a new evaluation system, restructuring of jobs and duties performed by staff, or restructuring a department or entire organization, which necessitates relocating staff to different sites within the organization.Refreezing: The final step in the change process involves stabilizing the change at a new quasi-stationary equilibrium, which is called refreezing. Changes in organizational culture, changes in staff norms, changes in organization policy, or modifications in organizational structure often accomplish this. A.K 11
  12. 12. Kotter’s Eight-Step Plan1. Establish a sense of urgency : Unfreeze the organization by creating acompelling reason forwhy change is needed.2. Create the guiding coalition: Create a cross-functional, cross-level group ofpeople with enough power to lead the change.3. Develop a vision and strategy: Create a vision and strategic plan to guide thechange process.4. Communicate the change vision: Create and implement a communicationstrategy that consistently communicates the new vision and strategic plan.5. Empower broad-based action: Eliminate barriers to change, and use targetelements of change to transform the organization. Encourage risk taking and creativeproblem solving. A.K 12
  13. 13. Cont…6. Generate short-term wins: Plan for and create short-term “wins” orimprovements. Recognize and reward people who contribute to the wins.7. Consolidate gains and produce more change: The guiding coalition uses credibilityfrom short-term wins to create more change. Additional people are brought into thechange process as change cascades throughout theorganization. Attempts are made to reinvigorate the change process.8. Anchor new approaches in the culture: Reinforce the changes by highlightingconnections between new behaviors and processes and organizational success.Develop methods to ensure leadership development and succession. A.K 13
  14. 14. Thank you“Change is the only constant in life!” A.K 14

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