Change management


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Change management

  1. 1. CHANGE MANAGEMENT- Framework 1. Understanding the Change Process- Toffler’s view and Naisbitt’s 2. What factors are causing these changes? 3. Why is there resistance to Change? 4. How can the resistance be minimized? 5. Planning Organizational Change 6. Change - a challenge to Organisational Leadership
  2. 2. CHANGE MANAGEMENT A. Alvin Toffler’s Analysis 1. The fact of change 2. Geometrical instead of Arithmetical change 3. Speed of travel 4. Publishing of books 5. The 1 million mile club 6. The ‘throw away’ culture 7. Mega Cities 8. Energy Consumption B. Naisbith’s Mega Trends 1. Agriculture- Industry-Tertiary 2. Villages- towns-cities- mega-cities 3. Machines-computerization 4. Nationalization-Liberalization- Privatization-Globalization 5. Tall organizations to Flat organizations 6. Elimination of manual work,clerical work and middle management work through automation, computerization 7. Managing without Management
  3. 3. Change Management Man’s existence estimated to be about 50,000 years old Can be broken up into Lifetimes of 62 years each Out of the 800 lifetimes, 650 lifetimes have been spent in caves We are in the 800th lifetime which is the most significant one and there has been a major break with the past in terms of : (a) Agriculture has ceased to be the major basis of civilization as less than 6% of people in the USA are on the land and are feeding 200m Americans and and 160m others. In other progressive countries only 15% are engaged in agriculture. (b) Mega-Cities 1850- 4 cities with a population of 1m 1900- 19 1960-141 (c ) Energy consumption- 18 centuries after Christ- one- half Q( 33m tons of coal) per century. By 1850 rose to 1Q per century and today it is 10Q per century.Means that half the energy consumed in the last 2000 years by man has been consumed in the last 100 years
  4. 4. CHANGE MANAGEMENT (d) Speed of Transportation 6000 b.c. – camel caravan- 8 m.p.h. 1600 b.c. - chariot - 20 m.p.h. 1784 a.d. - mail coach - 10 m.p.h. 1825 a.d. - steam loco - 13 m.p.h. 1880 a.d. - steam loco(a)- 100 m.p.h. 1938 a.d. - aeroplane - 400 m.p.h. 1960 a.d. - rocket plane - 4000 m.p.h. 60s - satellite - 16000 m.p.h. (e) Printing Prior to 1500 – 1000 titles per year(100 years for 100,000 titles) 1950- 120000 titles per year 1960- century’s work in seven and a half months 1965 – 1000 titles per day
  5. 5. CHANGE MANAGEMENT- Exercise Step 1 1. Write down 10 things which have changed 2. Write down 5 things which have not changed Step 2 3. Write down 10 points as to what are the factors that is causing this change Step 3 4. Write down 10 points as to why there is resistance to change? 5. Write down 10 points as to how to reduce resistance to change?
  6. 6. CHANGE MANAGEMENT Stages in the Change Process 1. Initiation 2. Motivation 3. Diagnosis 4. Information Collection 5. Deliberation 6. Action Proposal 7. Implementation 8. Stabilization Context of the CHANGE Internal Environment External Environment
  7. 7. CHANGE MANAGEMENT LEWIN’S CHANGE MODEL The process of Change involves three steps 1. UNFREEZING 2. CHANGING 3. REFREEZING Unfreezing:Managers must create a need for change (a) Establishing a good relationship with the people involved (b) Helping people realize the present behaviour is ineffective (c) Minimizing the resistance to change Changing: Managers must implement the change by (a) Identification of more effective behaviour (b) Choosing appropriate changes in tasks, culture, technology and structure (c) Taking action Refreezing: Managers must stabilize the change by (a) Creating acceptance and continuity for the new behaviour (b) Providing support (c) Using performance- contingent rewards and positive reinforcement
  8. 8. CHANGE MANAGEMENT General principles of managing CHANGE 1. An environment of trust and shared commitment 2. Full and genuine participation of all employees concerned 3. Team spirit and willingness to accept change 4. Incentive schemes to motivate or fair distribution of savings 5. A socio-technical approach in work organization to satisfy individual and organizational needs 6. Careful attention to work design,relationships,job contents and task functions. MANAGER VS TRANSFORMATIONAL LEADER 1. Establishing a sense of urgency 2. Forming a powerful guiding coalition 3. Creating a vision 4. Communicating the vision 5. Empowering others to act on the vision 6. Planning for and creating short-term wins 7. Consolidating improvements and producing still more change
  9. 9. Change Management- A Model for Organizational Change Forces Initiating Change Change Agent What is to be Changed? Structure/Technology/O.Processes Change Process Unfreeze Move Refreeze Implementation Tactics Intervention/Participation Persuasion/Edict Organizational Effectiveness Change Feedback Determinants Organizational Initiator Intervention Strategies Implementation Results
  10. 10. Survival Rates of U.S. Corporations Age in Years % Surviving to % Not Surviving this year this year 5 38 62 10 21 79 15 14 86 20 10 90 25 7 93 50 2 98 75 1 99 100 0.5 99.5 100 plus 0 100
  11. 11. EFFECTIVE CHANGE MANAGEMENT Motivating Change Creating readiness for change Overcoming resistance to change Creating a vision Mission Valued outcomes Valued conditions Midpoint goals Developing Political Support Assessing change agent power Identifying key stake holders Influencing stakeholders Managing the Transition Activity planning Commitment planning Management structures Sustaining Momentum Providing resources for change Building a support system for change agents Developing new competencies and skills Reinforcing new behaviours Effective Change Management