Different between change path & change tool

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Managing Change
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CHAPTER 3
CHANGE PATH
VERSUS CHANGE
TOOLS

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Managing Change
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At the end of the chapter, student
should be able to:
• Explain why do change path differ?
• Define change tools
• Explain Lewin’s Three Stage Model
• Explain Beckhard and Harris
• Discuss about Business Process Re-engineering
• Discuss Best Practices
• Explain the Learning Organization

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Definition of Change Path and
Change Tools
• Change Paths are formed from a unique blend of
personal, organisational and environmental experience
in managing change. These factors make each
organisation’s that encounter with change, relatively
different to each other in terms of change experience
and how they handle change in their organization.
• Change Tools also known as Change Models are
generic or standardised tools designed to bring about
change in many organisations. Change tools often
referred as ‘one size fits all’ techniques. However, it is
only broad principles for planning change in which the
application demands customization to fit with
organization requirement.

4. Why Do Change Path Differ?
• There are two theories that explain why change path
differ:
• a)Structural Contingency Theory
– This contingency theory was introduced by Dexter
Dunphy and Doug Stace in 1990. This theory
proposes ‘managers must identify organizational
environment (external fit) in order to decide
organizational structure’. Contingency theories
emphasise on managerial choices to resolve five (5)
dilemmas of change which require a choice from the
following options which is adaptive strategy or rational
strategy, cultural or structural change, continuous or
radical transformation, empowerment or command
and economic or social objectives.
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5. Why Do Change Path Differ?
• Contingency theory argues that change strategies vary to
reflect different organizational environments and
characteristics therefore organization need to adapt change
plans to environmental conditions.
• b) System Theory
• Systems theory was introduced by Andrew Pettigrew and
Richard Whipp (1993) often conflict with a Contingency
theory. System theory focuses on the need for integration of
different elements in organization towards an organizational
change strategy. Systems theories emphasise on the
existence of several inter-related elements in a change plan
to facilitate change which are environmental assessment,
change leadership, linking strategic and operational
change, coherence and leveraging human resources.
•
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6. Differences between Change Path
and Change Tools
Contingency Approach
(if-then approach)
System Approach
(one best way approach)
Focus on the importance of external fit.
Organization need to “read the firm’s
environment “to decide the
organizational structure.
Focus on the importance of internal fit.
Organization needs to integrate the
change strategy with inter-related
elements of an organizational change
program).
Criticize ‘one best way method’ as rigid.
Belief that organization must fit its
external environment due to turbulent
realities of change.
Belief that indiscipline will be the fatal of
change. The success of change relies
upon synergies between inter-related
elements of the change plan.
Belief that change will force organization
away from its planned change, therefore
dropping some change formula and
rearranging back those formulas.
Belief that any weak link in the chain of
elements will cause the change strategy
fails.
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7. Change Tools
• a)Lewin’s Three Stage Model
• The study of change tools usually starts with Kurt Lewin
that pioneering work on organisational change in the
1940s. He focused on planned organizational change
that provides a model of change from one stable state to
the next state. His study of socio-spatial relations’
between individuals and groups led to the idea that there
are ‘field forces’ which create group stability.
• According to Lewin organizations’ are constantly
exposed to two (2) sets of field forces which are those
that maintain stability and those that break it down.
Planned change requires that ‘field forces’ be freed up
and then restored after planned change is complete.
Planned change occurs in three (3) steps
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8. Change Tools- Lewin’s Three Stage
Model
i) Unfreezing (breaking field forces for stability)
• This may involve breaking psychological attachment to
the past by using information that able to demonstrate
the existence of problems. It is an early action or effort in
order to break the resistance. For example, management
may prove that reliance on old skills and technology will
cause sales to fall and the business to fail.
ii)Moving (introducing new norms of behaviour)
• It also involves the acceptance of new norms and values
by organizational members. For example, new
technology and new skills may be introduced requiring
new social relations between staff.
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9. Change Tools- Lewin’s Three Stage
Model
iii)Refreezing (restoring field forces for stability)
• Reinforcement is necessary to stabilise the system or to
restore equilibrium where after we have forced change to
happen, we need to put everything back in normal
situation after the change is successfully done. For
example, new norms or values will support the fresh
skills, technology and social relations. However, the
notion of refreezing is thought to be of declining
relevance in the present age when organisations are
expected to thrive on constant change or chaos
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10. Change Tools- Lewin’s Three Stage
Model
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11. Change Tools-Beckhard and Harris Model
• Traditionally, "change programs" have often been driven
by technology implementations or upgrades, with
business processes and working practices being
changed to fit in with the new system. However, any
change will encounter with the resistance and
comments. How will you get everyone to agree with the
changes?
• This is where Beckhard and Harris's Model can help.
This model also known as Beckhard and Harris's
Change Equation Model, in which this model explaining
on how to overcome the resistance of change. Richard
Beckhard and Rubin Harris first published their change
equation in 1977 in "Organizational Transitions:
Managing Complex Change", and it's still useful today.
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12. Change Tools-Beckhard and
Harris Model
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• The change model formula (change
equation) developed by them are:-
• Beckhard and Hariss Model
D x V x F > R
Dissatisfaction x Vision x First Step > Resistance to change

13. Change Tools-Beckhard and
Harris Model
• According to them , for change to happen
successfully, the following statement must
be true as shown below:
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Dissatisfaction x Desirability x Practicality > Resistance to change

14. • How to use this model as change tools:
• Beckhard and Harris's change equation is most useful as a checklist
in the planning and communication stages of a major change. When
you are planning your change process, consider each variable to
make sure your team are feeling dissatisfied with the current
situation but they believes the future state is both desirable and
practical.
• This seems to be a simple statement, but it's surprisingly powerful
when used to structure a case for change. And because there's a
multiplicative relationship between Dissatisfaction, Desirability and
Practicality, if one element is missing, that variable will have a value
of zero – meaning that this whole side of the equation will equal
zero. Let's define each element, and look at why we need it:
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Change Tools-Beckhard and Harris
Model

15. i) Dissatisfaction
• A team has to feel dissatisfied with the current situation before a
successful change can take place. Without dissatisfaction, no one
will likely feel very motivated to change. Dissatisfaction could
include competition pressures ("We're losing market share") or
workplace pressures ("Our sales processing software is crashing at
least once a week"). Dissatisfaction can be any factor that makes
people uncomfortable with the current situation.
ii) Desirability
• The proposed solution must be attractive, and people need to
understand what it is. If your team doesn't have a clear vision of
what things will be like after the change, and why things will be
better, then they probably won't be willing to work to deliver it. The
clearer and more detailed you make this vision, the more likely it is
that your team will want to agree with the change and move forward.
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Change Tools-Beckhard and Harris
Model

16. Change Tools-Beckhard and
Harris Model iii) Practicality
• The team must be convinced that the change is
realistic and executable.
iv)Resistance to change
• Resistance to change includes people's beliefs
in the limits of the change ("A new system won't
fit with our unusual business process"),
stubbornness toward any change ("I don't want
to have to learn how to use a new system"), and
general inertia or lack of interest at the
beginning.
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17. Business Process Re-engineering
• BPR is another change tool of the 1980s publicised in
the 1993 by Hammer & Champy in their bestseller book
Re-engineering the Corporation. BPR is a fundamental
re-evaluation and redesign of a business processes,
retaining and improving only those processes that add
value to the end user.
• It involves a rejection of segmented organisational
structures built around narrow functional tasks. Instead,
business should be structured around integrated
business processes that can deliver value to the
customer.
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18. BPR
• Re-engineering as an activity requires:
i)Plotting (evaluate and identify) essential elements
in the flow of work (processes)
ii)Retaining only those steps in the process that ‘add
value’ to customer.
iii)Eliminating unnecessary steps in the process.
iv)Outsourcing necessary steps to organisations that
can perform them more efficiently.
BPR is a radical tool for renewal in which old structures or
processes are torn up and the whole production process
is redesigned. BPR fits with contemporary business
strategy which focuses on ‘core processes’. BPR is now
associated with ‘downsizing’ and ‘outsourcing’
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19. Best Practices
• This model was adapted from TQM by US businesses and researchers in
the 1980s. Models of ‘best practice’ are holistic or systemic in nature. They
comprise several essential and inter-related elements that must all support
each other if any are to work. These models are also said to be based on
observation of ‘business success stories’.
• There are six (6) essential elements of best practice as follows:
• A focus on simultaneous improvement in cost, quality and delivery.
• Closer links to customers.
• Closer relationship with suppliers.
• The effective use of technology for strategic advantage.
• Less hierarchical and less compartmentalised organisations
for greater flexibility.
• Human resource policies that promote continuous learning,
teamwork, participation and flexibility.
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20. Best Practices
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21. Learning Organization
• The ‘learning organisation’ concept was developed in the
1970s by Argyris and Schon and popularised in the ’90s
by Peter Senge (The Fifth Discipline). The learning
organization as a change tools suggest a cooperative
system of work organization in which semi-autonomous
work-teams, supported by appropriate technology and
information system engage in double loop learning. This
approach assumes that:
• Knowledge (skill) is an important resource in
organisations;
• Knowledge can be improved by understanding the
learning process; and that learning processes can
be linked to organisational goals.
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22. Learning Organization
• Learning organisation theorists distinguish three (3) approaches to learning:
i) Haphazard learning
• There is no process to reinforce learning, especially positive lessons if the objectives
of learning are unclear. What is learned may work against organisational needs.
Organization must avoid learning of knowledge or skills that brings no benefits to the
organization.
ii) Goal-based (single loop) learning
• Single loop learning includes goal setting and feedback to reinforce learning process.
Learning objectives are linked to organisational needs. Staff is given feedback
(performance appraisal) on their application of skills (performance) in relation to
organisation targets.
iii) Double-loop learning
• Organisational needs are revised to take account of input from staff (individuals and
groups). This input is based on their experience of applying their skills to the goals
previously set. Double loop learning occurs when the previous knowledge become
out of date (obsolete). Double-loop learning implies that organisations learn from their
staff (the 2nd feedback loop) as much as staffs learn from the organisation (the 1st
feedback loop).
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23. Learning Organization
• Five (5) characteristics of learning organization by
McGill, Slocum and Lei
– Flat organizational structure that emphasize on
teamwork.
– 2-way information systems based on benchmarking
and continuous improvement.
– Human resource practices that develop skills and
cooperative attitudes.
– Organizational culture that promotes innovation and
creativity.
– Democratic or counselling leadership style.
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24. Learning Organization
• Five (5) characteristics of learning organization by Peter Senge
– Personal Mastery (own self capability in multi discipline).
– Shared Vision (genuine commitment rather than compliance
among organizational members).
– Team learning (alignment and capability development among
members that produce results mutually desired).
– Mental Models (images or generalization that makes us
understand things and to take action based on it).
– System thinking (conceptual framework, body of language that
make us see things clear and useful to change people
effectively).
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