2. CHANGE MANAGEMENT
We focus on the executive’s organizational ability
which is concerned with changes, when change
needs to occur and review strategies for
managing the change process.
THE FRAME WORK FOR CHANGE
The effective management of change involves
three steps:
a) Understanding the current state of the
organization.
b) Establishing the state in which the
organization wants to be in the future.
c) Moving the organization through a
transition towards the foreseen state.
3. WHY IS CHANGE NECESSARY?
Identifying the present
condition and problem(s).
Determining whether there is a
need for change.
Establishing change goals and
the new state or condition after
the change.
4. WHAT NEEDS TO BE CHANGED ?
Examining the various elements of
an organization and short-listing
those which need to be changed
in order to achieve the new state.
Identifying the hurdles or
impediments to change.
5. HOW SHOULD CHANGE OCCUR?
Selecting a change strategy.
Implementing the change strategy.
Establishing systems and processes to
maintain the new situation.
Evaluating the change effort.
6. IDENTIFYING PROBLEMS AND
DETERMINING THE NEED FOR CHANGE
The level and the need for change is determined by the
extent of mismatch of internal competencies with that of
external demands.
Another reason for change could also be the estimated
mismatch between internal and external factors in the
future.
Several pointers which help indicate a potential mismatch.
A decline in financial indicators of effectiveness.
A change in other indicators such as market share.
Increased turnover of key personnel.
Lowering of results on quality indices.
Increased clients complaints.
Increasing stress among employees.
Decreasing morale among employees.
7. ESATABLISHING CHANGE GOALS
AND THE NEW END STATE
Defining explicitly what the organization
should look like will serve as a descriptive
guide for determining the change strategy to
be adopted.
Executives need to clearly identify the kind of
organization they are trying to create, in as
much detail as possible.
Executives should specify the expected
organizational structure, reward system,
personnel policies, authority and task
responsibility distributions, managerial styles
and roles, performance review systems and
performance outcomes.
8. WHAT NEEDS TO CHANGE?
Identify points from where change can be initiated:
The key components of the organization may be
used as a starting point.
These are six critical areas viz., key tasks and
work process, individual competencies,
technology, organizational structures, systems
and culture. These points help to identify where
to initiate change and highlight where change
may evolve from internally.
Change in one area will probably result in
compensatory or retaliatory changes in another,
as these components are interdependent.
9. TECHNICAL V. PEOPLE FACTORS:
This aspect is important, it is often unclear
whether changes in the way organizations
work can be achieved by first changing the
people or the technical factors.
Most change programmes focus on
changing individual attitudes, though at
times the most effective way to change
behaviour is to put people into a new
organizational context, which imposes new
rules, responsibilities and relationships.
10. DEPTH OF CHANGE REQUIRED
Minor changes take place on a continuous basis in any
organization.
Organizations evolve as a result of relatively long periods of
continuous and incremental change.
This is known as ‘first order’ change. This level of change may
have an impact on systems, structures or people to improve the
effectiveness of the organization, but, at this depth, the change
process, largely, leaves the underlying infrastructure and core
patterns of behaviour and thinking intact. This change can be
easily reversed.
Due to major mismatches between internal capabilities and
external factors, at times major fundamental reorganizations
must occur which disturb the organizational equilibrium. Here,
mere first-order changes are inappropriate: the need is to
transform.
Transformational change, or ‘second order' change involves
alteration of the system’s basic governing rules and is a multi-
dimensional, multi-component and multi-level alteration that
shifts the systems irreversibly to a new and revolutionary state.
11. LEVEL OF MANAGEMENT INVOLVED
Change is often aimed at the lower or
middle levels of the organization.
Organization frequently get into trouble
because the senior staff do not support
the change strategy.
The senior executives either need to be
won over or worked around and this
requires considerable skill on the part of
the executive initiating change.
12. IMPEDIMENTS TO CHANGE
Some of the impediments to change are:
Major problems that had not been foreseen.
Co-ordination of activities (for example, by task
force, committees, supervisors) not effective enough.
Competing activities distracted attention from the
change effort.
Insufficient skills / abilities of employees involved
with the change.
Inadequate training of and instruction to lower level
employees.
Uncontrollable factors in the external environment
(e.g., competitive, economic, governmental control,
laws) having an adverse affect.
14. APPROACH… COMMONLY USED ADVANTAGES DRAWBACKS
Education & Where there is a lack of Once persuaded, people will Can be very time
Communication information or inaccurate often help with the consuming if many people
information and analysis implementation of the change are involved
Participation & Where the initiators do not have People who participate will be Can be very time
Involvement all the information they need to committed and any relevant consuming if the
design the change and where information they have will be participators design an
others have considerable power integrated into the change inappropriate change and
to resist plan may defeat the purpose of
the whole process
Facilitation & Where people are resisting This approach works best with Can be time – consuming,
Support change because of adjustment adjustment problems expensive and still not be
problems successful
Negotiation & Where someone or some group Sometimes it is a relatively Can be very expensive in
Agreement will clearly lose out in a change, easy way to avoid major may cases if it alerts others
and where that group has resistance to also negotiate for
considerable power to resist compliance
Manipulation & Where other tactics will not It can be a relatively quick and Can lead to future
Co-opting work or are too expensive inexpensive solution problems if people feel
manipulated
Explicit & Implicit Where speed is essential, and It is fast and can overcome Can be risky if it leaves
Coercion the change initiators possess any kind of resistance people angry at the
considerable power initiators
15. MINDSET- ‘UNFREEZING,
CHANGING AND REFREEZING’:
The ‘unfreezing’ process involves the individuals
unlocking their current mental approach towards
doing things. They need to be prepared to accept
new ideas and behaviour, which is helped by
adopting a more flexible mindset.
A mindset, which is ‘unfrozen’, offers the
possibility for new learning to take place.
Finally, there is a process of ‘refreezing’ or
consolidation. In other words, new patterns of
behaviour and thinking must be supported by
social cues and a reward systems both formal
and informal, so they become more natural
processes.
16. HOW SHOULD CHANGE OCCUR?
SELECTING A CHANGE STRATEGY:
Three areas in particular, need to be reviewed-
the style, depth and method of change.
STYLE:
Different styles may need to be adopted for
implementing different change strategies.
Collaborative approaches and participative leadership
are more effective styles.
One of the major reasons why change interventions
falter is because of a lack of two-way communication
and a lack of participation and involvement.
17. DEPTH:
It is necessary to establish if the change will be
incremental or more transformational in nature.
First-order change may be large and significant, that
usually occurs within the existing framework of the
organization and may leave the basic support systems
and ways of thinking within the organization untouched.
Transformational change fundamentally redefines what
the organization is, or changes its basic framework.
Implementing transformational change requires more
skill, determination and effort than incremental change.
18. METHODS :
Organizational Development to initiate incremental
change :
Diagnostic activities: Fact-finding activities designed to
ascertain problems. Traditional data-collection methods
-including interviews and questionnaires are commonly used.
Team-building activities : Activities designed to enhance
the effective operation of system teams.
Intergroup activities: Activities designed to improve
effectiveness of interdependent groups. The focus is on joint
activities.
Survey feedback activities: Analysing data produced by a
survey and designing action-plans based on these data.
Education and training activities: A wide range of possible
activities designed to improve skill, abilities, and knowledge of
individuals.
19. Structural activities: Activities designed to improve the
effectiveness of the technical or structural aspects
affecting individuals or groups. Examples include job
enrichment, cooperation and conflict.
• Process consultation activities: Activities on the part
of the consultant that help manager understand and act
on human processes in organizations, such as
leadership, cooperation and conflict.
• Grid organization development activities: Activities
developed by Blake and Mouton, constituting a six-
phase change model involving the entire organization.
• Third-party peacemaking activities: Activities
designed to manage conflict between two parties, and
conducted by third party, usually a skilled consultant.
• Coaching and Counseling activities: Activities that
entail working with individuals to better enable them to
define learning goals, learn how other see their
behaviour, explore alternative bahaviours and learn new
behaviours.
20. • Life and career planning activities: Activities that
help individuals identify life and career objectives,
capabilities, areas of strength and deficiency and
strategies for achieving objectives
• Planning and goal setting activities: Activities that
include theory and experience in planning and goal
setting. They may be conducted at the level of the
individual group and organization.
• Strategic management activities : Activities that
help key policymakers identify their organization's
basic missions and goals; ascertain environmental
demands, threats and opportunities; and engage in
long range action planning.
21. DEPTH OF CHANGE :
COMBINING INCREMENTAL &
TRANSFORMATIONAL CHANGE
Incremental Transformational
Change Change
Type 1 Type 2
Collaborative Participative Charismatic
Styles Evolution Transformation
Type 3 Type 4
Coercive Forced Dictatorial
Styles Evolution Transformation
STYLES OF CHANGE MANAGEMENT
22. PARTICIPATION EVOLUTION :
Emphasizes incremental changes achieved by collaborative methods.
It is most appropriate where only minor adjustments are needed i.e.
first order change or where there is disparity between performance
and demand (out of sync), but time is available to change and key
interest groups are in favour of this.
CHARISMATIC TRANSFORMATION:
Also emphasizes collaborative approaches but under different
circumstances compared to participation evolution scenario. Here,
time is not on the executive’s side and radical, or second-order
change is needed because the organization is “not in sync” with the
environment. Participation is possible because key employee’s
support the need for radical change. This approach, however, also
requires inspirational leadership at the top.
23. FORCED EVOLUTION:
The methods needed to implement change in these circumstances are
more autocratic, top down, and in some cases, coercive. This
approach is necessary where change needs to occur, time is less
pressing, but key employee’s are opposed to change. This approach
is appropriate in situations where the organization is characterized by,
for instance, entrenched middle management or union groups who
have rejected participation and may have resorted to unresponsive or
even spoiling tactics.
DIRECTORIAL TRANSFORMATION:
Is necessary when the organization is “out of sync” there is no time
for extensive participation and no support within the organization for
radical change, but such change is vital to organization survival and
fulfillment of its basic mission. In this case, the methods to be used
have to be radical in order to achieve the revitalization of the
organization.
24. IMPLEMENTING CHANGE
Has two important sequences:
• First Stage : RECOGNITION
Stimulus: Initially there will be some kind of
stimulus, such as a downturn in profits or the
loss of key personnel, which will caus ethe
executive to consider whether change is
necessary.
Reaction: A stimulus will usually give rise to
some kind of reaction, however, it is unlikely
that one’s initial response will give rise to
anything deeper than first order change.
Response: The four responses which are
related to mindsets are Despair, Denial,
Resistance or Consideration
25. • Second Stage : DEVELOPMENT & ACTION
Development: To progress, people not only
have to be prepared to consider new ways of
operating, they must also discard old patterns of
thinking and behaving before they genuinely try
to adopt different approaches
Full Transition: As the organization or
individual begins to master most aspects of the
situation they experience feelings of rising
certainty and capability
26. Establishing maintenance systems
and evaluating the change effort
Having gone through a period of change, and in
some cases quite traumatic change, it is but natural
to feel exhausted or easy to become complacent.
There is a real danger that having achieved a major
organizational transformation, capability then gives
way to complacency; exhilaration to fatigue;
strategizing to habituation.
This must be avoided and steps should be taken to
evaluate the change effort and also to strengthen the
employees so that complacency does not set in at
any time.
