Overview of change and its management

1. CHAPTER THREE
OVERVIEW OF CHANGE
MANAGEMENT
By: Semu B. (PhD)
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2. 3.1. MEANING AND IMPLICATION
Change means making things different.
 Organizational change - is the movement of an
organization away from its present state and
toward some desired future state to increase its
efficiency and effectiveness.
 It is the alteration of an organization’s
structure, culture, technology, or people.
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3. 3.2. Forces for organizational change
In general there are three main forces drive
organizations toward change: internal forces,
external forces and domino effect.
3.2.1. External Forces for Organizational Change
A. Customer demand: Needs and expectations….
B. Intense Competition: quality, cost & market….
C. Technology: Computer based Manufacturing…
D. Reduction of Government Regulations: trade
barriers, privatization…..
E. Social Change: cultural changes, education
level..
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4. 3.2.2. Internal Forces
a) Changes in the managerial personnel:
b) Certain deficiencies in the existing system:
Unmanageable span of control, Lack of coordination
between the departments…
c) Certain other forces: like changes in machinery,
equipment…
3.2.3. The Domino Effect
Another main source of changes is the change itself.
 Change has become pervasive and persistent.
3.3. Process of Organizational Change
1st Assessing the Need for Change
 Recognize that there are problems that require change.
The real problem/s, not the symptom.
 Identify the sources of the problem/s.
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5. 2nd Decide On the Change to Make
 Decide what the organization’s ideal future would be.
 Plan how to attain organization’s ideal future state.
 Identifying sources of resistance for change and how
to overcome them.
3rd Implementing the Change: introduce and manage
the change.
 Top down change: The top manager will identify
the need for change, decide what to do, and then
move quickly to implement the changes throughout
the organization. Used for restructuring and
downsizing the organization.
 Bottom up change: it is more gradual and
evolutionary. Top managers consult with middle
and first-line managers about the need for change.
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6. 4th Evaluating the Change: Evaluate how successful the
change effort has been in improving organizational
performance.
3.4. Resistance To Change
Resistance to change in organizations means employee
behavior that block the change process.
Forms of Resistance to Change
I. Overt and immediate: Voicing complaints, engaging in
work slowdown
II. Implicit and deferred: Loss of employee loyalty and
motivation, increased errors or mistakes, increased
absenteeism
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7. • Sources of Individual Resistance to Change
.
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8. Sources of Organizational Resistance to Change
.
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9.  Resistance to change involves the variables of intensity,
source, and focus.
A. Intensity: Resistance intensity can be varying from strong
to week or somewhere in between, overt, implicit,
immediate, or deferred.
B. Sources: there are three major sources of resistance: facts,
beliefs, and values.
i. Facts: the facts (statements that identify reality) of change
are often circulated through the grapevine inaccurately.
ii. Beliefs: facts can be proved; beliefs cannot. They are
subjective.
iii. Values: values are what people believe are worth pursuing
or doing.
C. Focus: there are three major focuses of resistance: self,
others, and the work environment.
i. Self: it is natural for people to want to know, “what’s in it for
me? What will I gain or loss?”….
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10. ii. Other: people tend to consider how the change
will affect their friends, peers (peer pressure), and
colleagues.
iii. Work environment: includes the job itself and
the physical setting and the climate.
Generally people resist change for a variety of
reasons, some of which include:
Maintain the status quo:
Uncertainty:
 Learning anxiety:
 Fear:
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12. Reasons for Adverse Reactions to Change
• Loss of job
• Reduction of career prospects
• Down grading of work
• Effects in pay
• Loss of status - “empires”
• Reduction in responsibility or job interest
• Need to learn new skills
• New and unknown bosses
• New and known (!) bosses
• Break up of established work groups
• Transfer to new, unknown (known!) locations or
departments
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13. 3.5. Managing Resistance To Change
Education/Communication: e.g. 7Cs
 Develop a positive climate for change:
 Encourage interest in improvement:
 Give facts:
 Involve employees:
 Provide support:
 Avoid direct confrontation:
 Negotiation and agreement:
 Use power:
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14. 3.6. Planned Organizational Change
 Is the intentional attempt by an organization to alter its status
quo (present position) and move to the desired one.
 Is essential element to growth; one can control the direction of
change and learning. Learning can be controlled.
 Unplanned Change: refers to impact of turbulent and unstable
environment which creates disequilibrium and high uncertainty
for organizations’ strategy and structure.
3.6.1. Approaches to Manage Planned Organizational
Change
There are five leading approaches to organizational
change:
i. Lewin’s three step models
ii. Lessiers change model
iii. Action research
iv. Appreciate inquiry, &
v. Parallel learning structures,
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15. A) Lewin’s Three Step Change Model
In the early 1950s, Kurt Lewin developed technique, still used
today, for changing people’s behavior, skilled and attitudes.
Argued that successful change in an organization
should follow three steps:
– Unfreezing: The phase in which a situation is prepared for
change and felt needs for change are developed. Change
agent produces disequilibrium between the driving and
restraining forces.
– Changing: The phase in which something new takes place
in the system, and change is actually implemented. A phase
where new learning occurs (desirable behavior, values, and
attitudes).
– Refreezing: The phase of stabilizing the change and
creating the conditions for its long-term continuity. It
enables to remain in the desirable state or performance.
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17. B. Action Research Approach
Refers to a change process based on systematic collection of data and
then selection of a change action based on what the analyzed data
indicates.
 View that meaningful change is a combination of action oriented
(changing attitude and behavior) and research oriented (testing
theory).
Diagnose
need for
change
Gather data,
analyze data,
and decide
intervention
objectives
Introduce
intervention
Implement
desired
incremental
and quantum
change
Evaluate
and
establish
change
Determine
effectiveness
of change and
refreeze new
conditions
Establish
consulta
nt and
client
relations
hip
Disengage
consultant
’s service
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18. C. Lessier’s Change Model
This model consists of five steps:
Step1: Define Change: clearly state what the change is.
Step 2: Identify Possible Resistance to the Change: determine
the intensity, source, and focus of possible resistance to the
change.
Step 3: Plan The Change: plan the change implementation. Use
the appropriate supervisory style for the situation.
Step 4: Implement Change: This step has three parts:
i. Give facts: give the facts about the change and explain why
it is necessary
ii. Involve employees: use as much employee involvement as
you can.
iii. Provide support: allow employees to express their thoughts
and feelings in a positive way.
Step 5: Control The Change: follow up to ensure that the
change is implemented, reinforced, and maintained.
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19. D. Appreciate Inquiry Approach
 It is an organizational change process that directs
attention away from the group’s own problem and focuses
participants on the group’s potential and positive
elements.
 Appreciate inquiry process involves the following steps:
Discovery
Identifying
the best of
“what is”
Dreaming
Envisioning
“what might
be”
Designing
Engaging in
dialogue
about “what
should be”
Delivering
Developing
objectives
about “what
will be”
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20. E. Parallel learning Structure Approach
Are highly participative arrangements, composed
of people from most levels of the organization
who follow the action research model to produce
meaningful organizational change.
 They are social structures developed alongside the
formal hierarchy with the purpose of increasing
the organization’s learning.
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21. 3.7. Strategies for Planned Organizational Change
1. Create a favorable environment: trustful and shared
commitment
2. Define a set of goals:
3. Establish what cannot be changed (bedrocks or fundamental
principles)
4. Create a change plan
5. Move decisively and with speed strategy: make you decide
quickly with confidence.
6. Communicate with employees
7. Motivate your employees
8. Create favorable organization and methods
End of Chapter 3
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