This document provides an introduction to change management. It defines organizational change as the adoption of new ideas or behaviors by an organization. Successful change must make organizations responsive to developments like changing customer preferences and technology. There are internal and external forces for change, and individuals and organizations may resist change due to factors like fear of the unknown or threats to power structures. Several models of planned organizational change are described, including Lewin's three-step model of unfreezing, moving, and refreezing. Effective change management requires understanding employee reactions, managing resistance through communication and participation, and selecting strategies based on the nature and magnitude of the change.

1. BY:
MUHAMMAD RIZWAN QAMAR
Introduction to
Change Management

2. Introduction
2
We live in a boundary-less environment.
Nations compete
 Cultures merge
 Environmental forces act
Creating the necessity for change in:

Socio-culture and Political Environment
 The spheres of Economics and Business Activities.
Indigenous industries must strategize effectively to

counter the onslaught of bigger or more powerful
multinational corporations.

3. How to counter MNC Threat
3
It has become necessary to reflect on the change in
nature, type and extent of change sweeping
organizations, big and small around the world in
their bid to survive and sustain themselves in ever
changing and uncertain business environment and
thus align indigenous business accordingly.

4. Defining Organizational Change
4
Organizational change may be defined as:
The adoption of a new idea or a behavior by an
organization.
 It is a way of altering an existing organization to increase
organizational effectiveness for achieving its objectives.
 Organizational change is primarily structural in character
and it is designed to bring about alterations in
organizations:



Structure
Methods
Processes.

5. Organizational Survival
5
Successful organizational changes must
continually focus on making organizations
responsive to major developments like:
Changing customer preferences
 Regulatory norms
 Economics shock
 Technological innovations.
Only those organizations that are able to undertake

suitable change program, can sustain and survive
in a changing and demanding economic order in
their bid to remain ahead of others in the race.

6. Forces of Change
6
• There are two type of forces:
– Internal forces
•
•
•
•
–
Change in size of the organization
Performance gap (target and actual result)
Employ needs and values
Change in the top management
External forces
•
•
•
Technology
Business scenario (changing needs and demands of customer,
supplies and other stakeholders)
Environmental factors (economic, political, demographic)

7. Resistance to Change
7
• There are two types of resistance:
– Individual resistance to change
•
•
•
•
•
•
•
–
Change lead to insecurity due uncertainty
Fear that it may not bring better prospects
Threatened by technology
Obsolescence of skills
Less wages
Loosing jobs
Working with different people
Organizational resistance to change
•
•
•
Threat to some top guys
Structural inertia of bureaucracy
Resource constraints.

8. Response to Change
8
Depends on the employee’s perception of change.
Therefore one important task of management of an
organization is to understand and create a positive
attitude among employees regarding change.
Figure 1.1 on next slide shows various responses to
change.

9. Figure 1.1 Reponses to change
9
Introducing change
Resistance to change
Factors (psychological, social,
Personally, demographic)
Modifications and alterations
Gradual acceptance to change
Acceptance to change

10. Reactions to change
10
 When the change is announced, usually the first reaction
people have is to meet the change with a sense of shock.
 Three major reactions may be:



Anger (people affected negatively blame person of change, may try to
sabotage the change)
Denial (People do not want to be accounted for the things going
wrong)
Acceptance (Once the anger is over, change is accepted.
 It is extremely important for us to understand that people
may go through each of these phases in varying degree, as
they make transition from the old way of doing business to
the new.
 How one manages this transition period in crucial.

11. Overcoming Resistance to Change
11
Some approaches are:
Education and Communication
 Employee Participation and involvement in the change
process
 Facilitation and support (Emphatic and considerate
listening can reduce fear and anxiety)
 Negotiation and Agreement (Involve union in the
process. Brief them about need and value of change. This
causes problem when there are more then one unions. All
fight for power and recognition)


12. Theories of Organizational Changes
12
Reflecting to the nature of change process, most
change theories could be grouped in the following
four categories:

Evolutionary change:


Continuous cycle of variation, retention and selection among
several units regardless of the rate of change
Naturally the outcome can be radical or gradual depending on the
timely distribution of the variation, retention and selection of
events through out the organization.

13. Theories of Organizational Changes
13

The dialectic theory:



Talks about the organizational existence in pluralistic world of
ambiguous and contradictory forces and values that compete with
one another to get control over the others.
When status quo is confronted by the opposing forces (with
sufficient power), change occurs.
Life cycle theory:

It proposes change process as a linear irreversible sequence of
prescribed stages which facilitates organization to move from the
point of departure towards an end which is prefigured in the
present state.

14. Theories of Organizational Changes
14

The teleological Theory:


It talks about the organization’s interaction with the external and
internal construct and its efforts to reach to the defined goals.
This is deliberate process of reaching to the predetermined goal as
the ultimate objective.

15. Five Key Phases
15
Effective management of the people dimension of
change requires managing the following five
phases:
Being aware of the requirements of change.
 Generating willingness for participation and supporting
the change initiatives.
 Gathering information and knowledge about the method
and process of change,
 Ability to implement the change on regular basis.
 Reinforcement to keep the cahnge process going.


16. Organizational Change
16
 As organizations are operating in a volatile environment,
they may not always be able to direct changes in a planed
fashion.



Thus changes may occur spontaneously or randomly in an
organization.
Such changes may be termed as unplanned changes.
They may be disruptive, like a sudden strike thus closure of a plant.
 In comparison, planned change is a result of specific efforts
by a change agent and more and more intentional in nature.



Planned changes are undertaken with the purpose of achieving a goal
that might not be achieved otherwise.
It is also undertaken to reach new horizons and progress rapidly
towards a given set of goals and objectives.

17. Types of Organizational Change
17
Most planned changes are directed at dealing with
performance gaps to bridge the discrepancy
between the desired and the actual state of affairs.
Some of the features of planned change are
described as under:
It is deliberate, systematic and well thought of.
 Velocity of change depends on the degree of level of
significance.
 Status quo is challenged.
 Reactions can be both positive and negative.
 Focuses on long-term changes.


18. The Process of Planned Change
18
The forces for planned changes can be found in the
following:
Organization-environment relationship (merger,
strategic alliance, etc.) where organizations attempt to
redefine their relationship with changing social and
political environment.
 Organizational life cycle (changes in culture and
structure of organization’s evolution from birth through
growth towards maturity).
 Political nature of organization (changes in internal
control structures, etc) to deal with shifting political
current.


19. Seven Objects of Change
19
Planned changes based on these forces can be
aimed at changing organizational:
purpose
 strategy
 structure
 people
 tasks
 culture
 technology


(these are highly inter-twined and affect one another).

20. To Initiate Change
20
To initiate planned changes organizations have to
undertake two processes:
Remove or lessen the restraining forces
 Move towards strengthening the driving forces that exist
within the organization.
Kurt Lewin’s model assumes two obstacles which

generally affect the change process:
Generally individuals experience obstacles to change as
they are unable to alter long established practice.
 They may try to do things differently but may have the
tendency to return to traditional ways after short time.


21. Three Step Sequential Model
21
To overcome obstacles Lewis proposed a three step
sequential model.
Unfreezing: The forces are reduced by refuting attitude
and behavior to create a perceived need for some thing
new.
 Moving / Changing: This involves a shift in behavior of
organizations by modifying system, process, technology
and people to achieve compliance, identification and
internalization.
 Refreezing: Here actions are taken to sustain the drive fro
change and to facilitate the institutionalization process of
the change in day to day routine of the organizations.


22. Lippitt’s Seven Step Model
22
In this model seven steps of change have been
discussed:







Scouting
Entry
Diagnosis
Planning
Action
Stabilization
Evolution.
Unfreezing
Moving
Freezing

23. Action Research Model
23
According to this model, planned change is a cyclical
process in which initial research about organizations
provides the data to guide the subsequent action to
bring the required changes.
It emphasizes on the significance of data collection
and the timed diagnosis prior to action planning and
implementation and careful evaluations of the
actions.

24. Eight Steps of A/R model
24
Problem identification.
Consultation with the expert.
Data gathering and preliminary diagnosis.
Feedback to key client or group.
Joint diagnosis of the problem.
Joint action planning.
Action.
Data gathering after action.

25. Dimensions of Planned Change
25
Though the models of change describe:





how to implement change
steps of planned changes maybe implemented in a variety of
ways
depending on clients needs and goals
the change agents’ skills and values
and the organizational context.

26. Two Key Dimensions of Planned Change
26
Planned change can be contrasted across
situations on two key dimensions.
Magnitude of change: Planned change can range from
incremental change to quantum change.
 In recent years organizations are moving towards
quantum change, however it may or may not be
developmental in nature. It can simply involve drastic
change in the strategic direction without developing the
problem solving capacity.
 Presently, large organizations are transforming
themselves from control-oriented bureaucracies to highinvolvement organizations capable of changing and
improving themselves continually.


27. Two Key Dimensions of Planned Change
27

Degree of Organization: Planned change can also vary
depending on the degree to which the organization or
client system is organized.

In highly mechanistic and bureaucratic (over organized) structure,
job design, leadership styles policies are too rigid and inflexible.
Communication is suppressed, conflicts are avoided and
employees are apathetic.


Here change through loosening of control on behavior is attempted.
In under-organized loose task definition, communication
fragmented, job definition are ambiguous.

Here change is aimed at increasing organization by clarifying
leadership roles, defining job responsibilities and tighter control.

28. Strategies for Change Management
28

1.
2.
3.
4.
According to Bennis, Benne and Chin, there the four
basic strategies:
Empirical / Rational: People are rational and will follow
their self-interest once change is revealed to them.
Normative / Re-educative: People are social and adhere
to culture norms and values. (Change in Norms /
Values).
Power / Coercive: People are basically compliant and will
generally do what they are told. (Change of authority and
punishment).
Environmental / Adaptive: People oppose loss and
disruption, but they adopt readily. Change on new
organization and transferring people).

29. Toolkit for Managing Change
29
According to Nicklos following set of skills are
required:





Political skills
Analytical skills
People skills
System skills
Business skills

30. Toolkit for Managing Change
30
 Generally there is no single strategy, it could be general or
grand (mixture).
 The mix of strategies serve the best.
 Some factors to select effective change management
strategy are:

Degree of resistance


Target Population
The Stakes
Time Frame

Expertise

Dependency

Strong – 3 & 4
Week – 1 & 2
Large – All four
High – All four
Short – 3
Long 1,2,4
Adequate – some mix
None – 3
Some level of negotiations

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The End