leadership and change management

1. Chapter three
Overview of change management

2. Meaning of change & change management
 Change is the coping process of moving from
the present state to a desired state that
individuals, groups and organizations
undertake in response to dynamic internal and
external factors that alter current realities.
 Such desired state can include a new strategy,
new technology, or changes in the
organization’s culture.

3. Cont...d
• Change refers to any alteration which occurs
in overall work environment of an
organization.
• It may relate to change in technology,
organizational structure, working processes,
work environment, organizational policy and
even the roles people play.

4. Change management
• Change management has typically been defined as a process involving
unfreezing, moving, and refreezing values, practices, and procedures
within organizations.
• Unfreezing refers to the creation of a perceived discrepancy between
the existing and ideal state of an organization that generates a desire
for change and lowers people’s resistance to change.
• Moving refers to the various processes such as training, education,
and restructuring that lead to the development of new behaviors,
attitudes, and beliefs.
• Refreezing refers to reestablishing a new state of equilibrium within
the organization by stabilizing the new patterns through a variety of
support mechanisms.

5. Cont...d
• Change management is the discipline, which guides
how to prepare, equip, and support individuals and
organizations to successfully adopt change in order
to drive organizational success and outcomes.

6. Categories of change
• Technological changes –It consists of revising
work processes, revamping work methods, and
acquiring new equipment.
• Structural change –It consists of altering
relationships, redesigning jobs, coordinating
mechanisms, and modifying spans of control.
• People change – modifying certain aspects of
organization members like expectations,
attitudes, perceptions, and behavior.

7. Significance of change management
1. Understanding environment (society, government,
customers).
2. Objectives, strategy formulation & implementation
(to develop competitive advantage).
3. To develop trained Employees, high performing
work practices, reliable organization.
4. Technology Issues
5. Globalization

8. Forces for Organizational Change
• An organization is an open system which has to
interact with environment and is solely dependent on
it.
• Any change in environment makes it necessary for the
organization to incorporate change in the internal
systems, sub-systems and processes.
• This change has a chain reaction on the other internal
elements of organization.
• As a result forces for organizational change can be
internal and external forces.

9. External forces for change
• External environment is task related and general in
nature.
• Task related environment has a direct influence on
the wellbeing of the organization.
• It consists of customers, competitions, suppliers,
labor and stakeholders.
• General environment consists of political, legal,
economic, socio-cultural and technological forces.

10. 10
Task environment
• Supplier
• Customer
• Competitors
Technology
Economic
Conditions
Government
Programs
External Forces of Change

11. Internal forces for change
• Internal forces originate from the operations of
the organization or from the impact of external
changes:
• such as management redefining its strategies,
new equipment entering the workplace, and
demographic changes in the organization’s
workforce.
• These forces lead to changes in the policies and
practices of management.

12. Cont.…d
• Once the organizations adapt to the external change,
the mangers have to take appropriate steps as far as
internal systems are concerned.
• Change of process, modification to human behavior,
training and development of work force based on new
technology and adopting new polices, which are beneficial
to the organization.
• Changes in internal environment may be brought about by
customers, shareholders, board of directors and
employees. It have to be in line with the external factors.

13. Internal
Forces of
Change Impact of
External
Events
Internal
Operations

14. Cont.…d
• Internal forces for change
• High dissatisfaction
• Felt stress
• Loss of control of processes
• Dysfunctional high conflict
• Slow decision making
• High turnover and absenteeism
• Communication dysfunctions

15. Resistance to change
Present state of
the organization
Desired state of
the organization
A A’
Time
Forces for
change
Forces against
change

16. Resistance to change
• When presented with significant change, most people think of the
reasons why this new idea won’t work.
• It’s pretty natural to want to stay in and defend the status quo, even
when the current way of doing things isn’t working very well.
• As change agents, leaders need to understand and deal early with
resistance, be it direct or indirect. It doesn’t go away until them deal
with it honestly.
• Resistance is a predictable, natural, emotional reaction against the
process of change.

17. Cont...d
Resistance can often be positive, in the sense that:
 You know your request has been heard and
people are perhaps striving to understand how
to make it work without upsetting their
environment too much; or
 It may represent a legitimate commitment to
another alternative or to a different way of
thinking.

18. Direct resistance
 People tell you their real concerns, and how they feel,
openly and honestly.
 They maintain eye contact and use “I” statements.
 Bluntness may feel hurtful at the time, but is actually
the more honest and easier form of resistance to deal
with.
 You know exactly where you stand; the issue is clear.
 Leads to honest negotiation or conflict resolution.
 the manager can put your energy into the real issue.

19. indirect resistance
• People ask for more and more detail, endlessly
questioning.
• They are not able to find a good time to implement, or
continually assert a rigid timetable.
• They intellectualize, debate definitions and concepts, or
talk in apparently rational terms, but not about the real
concerns.

20. Cont.…d
• They decide “The problem has gone away,” or
press for solutions too soon.
• They say someone else is the problem, using third
party language: they statements.
• Leads to misdirected energy and frustration.
• the manager led to put energy into side issues.

21. Why individuals resist change?
 Selective Perception-
when changes are initiated, individuals tends to focus on
how they will be personally affected than the big picture
for the entire organization.
 Lack of information-
People will resist change if they lack knowledge as to
what is expected or why the change is important.
If people don’t have enough information about how to
change, they may fear making mistakes, so they will not
try.

22. Cont...d
 Fear of the unknown-
People resist change when they are uncertain outcome it
will affect their well-being. E.g Downsizing leads to lay off
 Habit-
Many people prefer familiar actions and events, even if
they are not optimal.
 Resentment toward the initiator-
If a change seems arbitrary or unreasonable, resentment
and anger often directed toward those who initiating the
change.

23. Why Organizations resist change?
• Power maintenance-
Change in decision making authority and control of
resource allocations threaten the balance of power in
organization.
Units benefiting from the change will endorse it, but those
losing the power will resist it, which can often slow or
prevent the change process.
• Structural stability-
A change may change the organization structure which
will have effects on others, which may not be acceptable.

24. Cont...d
• Organizational culture-
• Organizational members will resist changes that
force them to abandon established organizational
culture.
• Group norms-
• Any change that disrupts the group norms, tasks, or
role relationships will probably be resisted. Groups
often resist changes that do not benefit them
individually.

25. Managing/reducing Resistance to
Change
• Education and Communication:
• Communicating the logic of a change can reduce
employee resistance on two levels.
• First, it fights the effects of misinformation and
poor communication: if employees receive the full
facts and clear up misunderstandings, resistance
should subside.
• Second, communication can help “sell” the need for
change by packaging it properly.

26. Participation
• It’s difficult to resist a change decision in which
they ’ve participated.
• Assuming participants have the expertise to make a
meaningful contribution; their involvement can
reduce resistance, obtain commitment, and
increase the quality of the change decision.
• However, against these advantages are the
negatives: potential for a poor solution and great
consumption of time.

27. Building Support and Commitment
• When employees’ fear and anxiety are high, counseling and
treatment, new-skills training, or a short paid leave of absence
may facilitate adjustment.
• When managers or employees have low emotional
commitment to change, they favor the status quo and resist it.
• Employees are also more accepting of changes when they are
committed to the organization as a whole.
• So, firing up employees and emphasizing their commitment to
the organization overall can also help them emotionally
commit to the change rather than embrace the status quo.

28. Develop Positive Relationships
• People are more willing to accept changes if they
trust the managers implementing them.
• Those who had a more positive relationship with
their supervisors, and who felt that the work
environment supported development, were much
more positive about the change process.

29. Implementing Changes Fairly
• One way organizations can minimize negative
impact is to make sure change is implemented
fairly.
• Procedural fairness is especially important when
employees perceive an outcome as negative, so it’s
crucial that employees see the reason for the
change and perceive its implementation as
consistent and fair.

30. Manipulation and Cooptation
• Manipulation refers to covert influence attempts. Twisting facts
to make them more attractive, withholding information, and
creating false rumors to get employees to accept change are all
examples of manipulation .
• Cooptation, on the other hand, combines manipulation and
participation. It seeks to “buy off” the leaders of a resistance
group by giving them a key role, seeking their advice not to find a
better solution but to get their endorsement.
• Both manipulation and cooptation are relatively inexpensive
ways to gain the support of adversaries, but they can backfire if
the targets become aware they are being tricked or used. Once
that’s discovered, the change agent’s credibility may drop to zero.

31. Selecting People Who Accept
Change
• the ability to easily accept and adapt to change is related
to personality
• some people simply have more positive attitudes about
change than others.
• Such individuals are open to experience, take a positive
attitude toward change, are willing to take risks, and are
flexible in their behavior.
• Besides selecting individuals who are willing to accept
changes, it is also possible to select teams that are more
adaptable.

32. Coercion
• the application of direct threats or force on the resisters.
• If management really is determined to close a
manufacturing plant whose employees don’t acquiesce to
a pay cut, the company is using coercion.
• Other examples are threats of transfer, loss of
promotions, negative performance evaluations, and a poor
letter of recommendation.
• The advantages and drawbacks of coercion are
approximately the same as for manipulation and
cooptation.

33. Education and
Communication
Participation
Negotiation
Facilitation
and Support
Coercion
Manipulation
and Cooptation
Techniques for
Reducing Resistance

34. Steps to managing Change
• Assess the need for change:
• to recognize the organizational problems that where the
problems exist and identify the sources for problem
solving.
• Initiate change:
• in this stage it decides and aware participants that
where the ideas would develop or what will be the ideal
future state.
• It also involve search, creativity, and new venture team.

35. Implement the change:
• the third step in change process is idea implementation
because of no one can make a change when the core
idea is totally implemented in the organization,
• the manger must be aware about the resistance from
the side of employees and they must have technical
ability to manage organization in that situation,
• because change management may also create
resistance from the side of employees and these must be
solve with core attention by the manger.

36. Evaluating the change
• The last step in the change management process, after
fully implementation of the change ideas into the
organization now it is the responsibility of the managers
• to see that the organization goals are achieving or not, the
profitability, productivity and reputation of the
organization have some improvement or not,
• it must be compare with result of pre change in the
organization and with post change.
• And then corrective action or decision must be taken to
improve further situation.

37. Why do change efforts fail?
Eight Errors Common to Organizational Change Efforts
• Error #1: Allowing too much complacency
• Error #2: Failing to garner leadership support
• Error #3: Underestimating the power of vision
• Error #4: Under communicating the vision
• Error #5: Permitting obstacles to block the new vision
• Error #6 failing to create short-term wins
• Error #7: Declaring victory too soon
• Error #8: Neglecting to anchor changes firmly in the
culture