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Management of Change-1

Management of Change-1

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Published by Deepak Ehn

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Published by: Deepak Ehn on May 28, 2011
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This Study Note includes
Study Note - 7
“Change”-The Paintbrush of Future
Concepts of Planned ChangeNature of Planned ChangeProcess of Planned ChangeNeed for Planned Change
Resistance to Change
Management of Change
Group Dynamics as a means of Overcoming Resistance to Change
Changing Environment and Challenges before Managers
Changes in EnvironmentChallenges before future Managers
Future Managerial Tasks
Skills needed by Managers in FutureQuestions for Review and Discussion
Change is inevitable and it affects all types of organisation. Therefore, managers need to. beskilled in ways to respond to change to ensure the survival and success of their organisation.Organisations which fail to respond appropriately to environmental changes go out of existence.
7.1.1 Concept Of Planned Change
Change involves alternation of the status quo or modification of the existing situation. Changecan be of three types: evolutionary, revolutionary and planned. Evolutionary changes takeplace gradually or slowly. They are not visible and face no resistance. Revolutionary changesare sudden and may be violent. Therefore, such changes are often resisted. Planned changeimplies deliberate alternation in the existing organisational system to achieve some desiredresults, e.g. profitability, employee satisfaction, improvement in the image of the organisation,etc. The change may involve alternation in the structural relationships and in the role of peoplein the organisation. In other words, planned change can be both structural and behavioural.Planned change may be defined as a conscious and concerted attempt of management of anorganisation to monitor the environment, to assess their impact on the organisation and toevolve appropriate alternatives so as to utilise the environmental forces to the advantage of 
the organisation. Planned change is thus the intentional attempt by an organisation to influ-ence the status quo. Through planned change organisations try to grow.Effective managers do not wait for future. They make the future by introducing and managingchange. An organisation is an open system as it is in continuous interaction with its environ-ment. Any change in its environment requires change in its internal system. Moreover, anorganisation is composed of many subsystems, which interact with each other, Any change inone subsystem may create need for changes in other subsystems.
7.1.2. Nature Of Planned Change
The foregoing description reveals the following characteristics of planned change;(i)Planned change is a conscious and deliberate attempt to modify the existingorganisational system.(ii) Planned change results from stimuli from both inside and outside the organisation.(iii) Change takes place in all organisations but at varying speeds and degree of signifi-cance. .(iv)Change takes place in all parts of an organisation though the magnitude and nature ochange may be different.(v)An organisation can be changed in several ways. Its technology, its structure, its peopleand its other elements may be changed.(vi)Planned change disturbs the existing equilibrium between and organisation and itsenvironment. It leads to a new equilibrium.(vii)Planned change can be of two types. A change initiated by the organisation is calledproactive change. On the other hand, changes implemented by an organisation due topressure by external forces is known as reactive change. For example, when manage-ment introduces a new labour welfare scheme in order to improve employee motiva-tion, it is a proactive change. If such a scheme is introduced due to pressure from thetrade union, it is a reactive change.(viii)Planned change has certain objectives e.g. to increase profitability, to meet competi-tion, to improve employee satisfaction, to expand and diversify operations, etc.(ix)People may respond to planned change in various ways depending on how they per-ceive and interpret the change. If people perceive the change is desirable and in theirinterest they are likely to accept and adopt the change. They may even anticipate changeand plan for it. People tend to be indifferent to change when they feel that it hasnothing to do with them or they can do nothing against the change. Change is likely to be resisted when people feel it will affect them unfavourably and they can eliminatethe change. Thus, human response to change may be acceptance, indifference andresistance.(x)Planned change requires change agents i.e. the persons who will initiate and sustainchange in the organisation. Change agent can be both interna! and external. Chief 
336executive and other top executives can serve as internal change agents. External changeagents refer to consultant or expert appointed to serve as an advisor in the changeprocess.
According to Kurt Lewin the process of planned change consist of the following stages.
1. Unfreezing.
It implies breaking down the existing ways of doing things so that the people are readyto accept new alternatives. It involves discarding the conventional methods and ortho-dox behaviour patterns and introducing new methods and behaviour that is most ap-propriate to the current situation. Members of the organisation are made to realize thatthe present beliefs, processes and behaviour are no longer appropriate for the changingdemands of the present situation. Unfreezing requires loosening the emotional and in-tellectual forces. It involves the following steps:
(a) Recognising the driving forces.
The first step towards organisational change involvesrecognising major changes in the environment and problem within the organisation. Inorder to recognise the pressures to change managers need to develop a keen sensitivitytowards the external and internal environment.During this phase, change is made a permanent part of organisation’s life. Members of the organisation internalise the new beliefs, attitudes and behaviour learn during thechanging phase. The manager as the change agent has to see that the new behaviour iseffectively blended with the other behaviour patterns. Without internalization, individualmay revert back to the old system after some time. In order to continuously reinforce theacquired behaviour, the organisations as to maintain a fit (dynamic equilibrium) amongvarious components that are supportive of such behaviour. New practices are acceptedand change is stablised only when enough reinforcement are provided through positiveresults.Lewis’s model provides a useful framework for understanding the change process inorganisations,
7.1.4. Need for Planned Change
Pressures for change arise from both within and outside the organisation.
1.External Forces.
Every organisation exists and operates in an environment. Changes occur frequentlyin the environment, e.g., economic, social, political changes. An organisation mustchange in order to adapt itself to the new environment. Some of the. external pres-sures are given here.
(a)Market situation.
Modern business enterprises operate in a highly competi-tive market place. Competitors introduce new products, better services, im-

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