TERM PAPER ON

CHANGE
MANAGEMENT

SUBMITTED TO: SUBMITTED

BY:
Ms. Malika Rani Rajwinder Kaur
Reg no. 11002347
Roll no. B39

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 ACKNOWLEDGEMENT

I am thankful to Ms. Malika Rani who provided me with the opportunity and guided
me in successful completion of my term paper. Under her valuable guidance, constant
interest and encouragement, who have devoted their ever-precious time from their
busy schedule and helped me in completing the term paper.
Special, continual assistance while completing the term paper was provided by the
friends. I wish to acknowledge my special thanks to them for their help and
cooperation in order to complete this project.
I am also thankful to those who have helped me intellectually in preparation of this
term paper directly or indirectly. I am deeply indebted to the various sources of
information from relevant sites from internet and books.

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 TABLE OF CONTENTS

SR. NO. PARTICULARS PAGE NO.

1. Introduction 4
2. Review of literature 5-11
3. Objectives 11
4. Change management defined 12
5. Types of change 13
6. Dealing with resistance of change 14
7. “ADKAR” model of change management 15-16
8. Benefits and significance of change management 17
9. Role of change management in an organization 18-19
10. Practical implication of change management 20-21
11. Abstraction of study 22
12. Conclusion 23
13. References 24-25

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 INTRODUCTION
Change management can be viewed from two perspectives – from those
implementing the change and from the recipients of change. Your view of change
management varies dramatically if you are the executive demanding the change
versus the front line employee who may be unsure why a change is even needed.

In many cases at the onset of a new change, neither the executive nor the front-line
employee is knowledgeable about managing change.

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 REVIEW OF
LITERATURE
According to F. John Reh (2009), “Managing change means managing
people's fear. Change is natural and good, but people's reaction to change is
unpredictable and irrational. It can be managed if done right” (Management
About.com Guide, para. 1). However, change is possible and the need for change is
increasing. Gruman (2008) states, “The only constant in today’s corporate world is
change” (p. 11). Therefore, change capability is necessary for the organizations that
will succeed in the future.
In the hospitality and tourism industry, change is essential and has overtaken
the entire industry. D’Orleans (2008) writes, “In hotel business, almost every
property, brand or segment is undergoing change, such as green hotels, gen X/Y
hotels, bedding, condo-hotels, timeshares and technology” (p. 26). In order to cope
with the undergoing change in customers’ demands or needs, many hotels even
adopted new names and brands. According to Chiang (2007), “The re-branding and
repositioning trends highlighted the importance of change management process in the
hospitality industry” (p. 19).
Constant change is also happening in the food and beverage industry. Van der
Does and Caldeira (2005) states, “Our organizations in food service business are
challenged by rapidly changing customer preferences, increasingly competitive
landscapes, technology shifts and supply market fluctuations” (p. 18). Change is also
an inevitable reality in the gaming and wagering industry, Doocey (2008) specifies
one of the many examples of change in the international gaming industry, ”Table
game management systems, once an esoteric technology for most casinos, are slowly

5
but surely becoming an indispensable service for the increasingly wired gaming floor”
(p. 34).
In tourism, change constantly challenges public sector planners and policy
makers, but also provides opportunities for the development and expansion of
operators' businesses. Laws, Faulkner and Moscardo (1998) report that growth in
international tourism in the second half of century is a reflection of a range of changes
taking place in the global economy, social and political environments. They further
write, “Foremost among these changes is the widespread and rapid economic growth
that has made travel more feasible for an increasing number of the world’s population
and the improvements in transport and communication technology which have made
high-volume leisure or business travel possible to distant destinations”. (Laws,
Faulkner & Moscardo, 1998, p.2). In conclusion, “Without change there would be few
opportunities for the creativeness of successful entrepreneurs, while for tourists, the
opportunity to enjoy and experience a temporary change of place, culture or the pace
of daily life is a prime motive for travel” (Laws, Faulkner & Moscardo, 1998, p.1).
Heathfield (2009) then explains, “Change is not going away, however change
is manageable and organizations can do change well” (Management About.com
Guide, para 2). “Great leaders understand how to leverage the power of positive
change to keep their companies current, vibrant and relevant. Conversely, change-
resistant organizations often stagnate, failing to adapt their concepts or offerings until
it is far too late” (Van der Does & Caldeira, 2005, p.18). However, Langer (1998)
acknowledges that, “Change can also be stressful and difficult to deal with, although
it is clear from research in psychology that the more people avoid change the less they
are able to cope with it (as cited in Van der Does & Caldeira, p. 18).
In order to achieve successful change, Heathfield (2009) further
concludes ,”Successful change management requires effective communication, full
and active executive support, employee involvement, organizational planning and
analysis, and widespread perceived need for the change” (para 3). Five successful
change management by Heathfield seems to solve the problem incurred by change in
an organizations or companies, however many questions still remained unanswered,
such as how do you know that your organization or company needs to change, then
what needs to be change, how do you generate effective communication in a
organization, how do you gain full and active executive support and employee
involvement, what are the strategies in organizational planning and development in
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order to achieve the positive outcomes. In order to address these questions and
understand further, many researchers have studied cases of change management
successes and failures.
Based on his research, Gruman (2008) states, “You can manage change using
two general strategies — planned and emergent — and each is appropriate under
certain circumstances” (p. 11). He further explains, Leaders, however, tend to focus
on the planned approach to change, which is exemplified by the work of John Kotter.
Famous for his eight-step methodology, Kotter presents leaders with a blueprint for
executing changes. Among his recommendations are: establish a sense of urgency,
form a powerful coalition and create short-term wins. The leader’s role in the planned
approach is to design, control and monitor the changes to ensure successful execution.
Kotter’s methodology is valuable. It provides intelligent advice for leaders who, for
example, must implement clear directives given by senior leaders quickly and
faithfully. Under different conditions though, another approach to managing change
might be more appropriate”. The emergent approach is the conceptual cousin of
Henry Mintzberg’s seminal work on emergent processes in strategy development.
Essentially, Mintzberg’s theory is that leaders are forced to adapt the business
strategies they developed in corporate boardrooms to the ever-changing realities of
the marketplace. The emergent approach to change therefore suggests that although
you can plan certain elements of man- aging change, other aspects, including many of
the initially planned portions, must evolve. Drawing on the science of complexity,
managing change via the emergent approach is suited to specific conditions. For
example, it works when smaller changes that support experimentation prove valuable;
when opportunity exploitation is more urgent than threat reduction; and when the
prospective changes require a high level of acceptance from those who are
implementing them. The leader’s role in this approach is less about controlling change
from above than it is about enabling change to rise up from below. (p.11)

The conclusions of Gruman emphasizes how important the leader’s role in the
success of change management. Research conducted by the Elliot Leadership Institute
agrees by stating, “The ability to manage change, to be a change agent, is one of the
10 dimensions of executive leadership identified as most critical to success in
hospitality industry” (as Van der Does & Caldeira, 2005, p. 18).

7
 D’Orleans (2008) claims that managing and creating is a skill. “The real
challenge is not just to come up with a brilliant idea—it's to implement it”
(D’Orleans, 2008, para 2). Heathfield (2009) supports this statement and further
explains, Implementing change in an organizational environment that is already
employee-oriented, with a high level of trust, is a huge plus. Understanding and
responding to the range of human emotions during times of intense change, is also
cited as critical. All of this may sound straightforward, but individual, such as leader
or manager suggestions about how to do each of these successfully are priceless. (para
4)

In addition, John Reh (2009) writes, “Manager’s job as a leader is to address

their resistance from both ends to help them reduce it to a minimal, manageable level”
(para 4). Leaders need to overcome the resistance by defining the change and by
getting mutual understanding. “Definition is a two-way street. In addition to defining
the problem, leaders need to get the employees to define the reasons behind their
resistance” (John Reh, 2009, para 10). “Understanding is also a two-way street.
leaders want people to understand what is changing and why. Leaders also need to
understand their reluctance” (John Reh, 2009, para 11).
“Kotter’s model stresses the importance of employees in an organization,
hence the need for management to value employees” (Chiang 2007, p.31). Therefore,
leaders need to focus on opening and maintaining clear channels of communication
with their employees so they understand what is coming and what it means to them.
They will appreciate it and will be more productive both before and after the change.
“Overall, the employees’ adaptation to the new company culture were dependent on
the preparation done by management” (Chiang, 2007, p. 31).
Furthermore, Chiang (2007) explains, “A lack of assessment of the change
process could be fatal“ (p. 31). Therefore, it is also suggested by many researchers
that organizations or companies to undertake steps to review their operations and
satisfaction level of its employees and customers regularly with regards to the change.
This is to ensure that necessary action be taken promptly.
At the end, Gruman (2008) concludes, “As with most leadership and
management challenges, rigid prescriptions for action often fail to account for
situational contingencies. Managing change is no different. Insightful leaders know
the planned approach is but one option” (p. 11).
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 By A.S. Rao manufacturing technology has undergone a metamorphism, from
Mass Production to Mass Customisation. Indian industry was late in adopting many of
these process innovations with the result very little has been contributed to the
evolution of management thought in manufacturing from Indian shores. Globalisation
is a great leveller, most of the structural weaknesses had been neutralised. Focus of
management is now reverted on changing the Mindset, an area explored by Indian
sages 2000 years back. This article looks at the work of Indian sage - Patanjali from a
shop floor perspective. The concept of Chitta is closely examined. We will notice a
convergence of current management thinking with this ancient Indian wisdom on how
perceptions colour our thoughts, leading to non-participation in the change
management programs initiated by top management.
By B. Tim Lowder(May 29, 2009) the paper evaluates change management as
an imperative for success for the individual leader and his or her organization. Change
management is first analyzed from an individual perspective and then from an
organizational perspective. An individual must thoroughly understand the various
stages involved in change management to successfully navigate dramatic change in
their lives. Likewise, at the organizational level an adaptive leader must understand
the important change management process while also being proactive in change
implementation by focusing on developing an adaptive work environment (Asoh,
2004; Locke & Tarantino, 2006; Powell, 1987; Williamson, 1991). The adaptive
leader understands that, as Heifetz and Laurie (2001) state, an adaptive leader “must
strike a delicate balance between having people feel the need to change and having
them feel overwhelmed by change, leadership is a razor’s edge” (p. 134). This paper
establishes and evaluates the key steps used by an adaptive leader during the change
management process to ensure the effective implementation of organizational change
in a manner that has a positive impact on the organization’s workforce.
Accorrding to Edem D. Uwah, Uket Ewa, Bernard Enya Edu Managing a
change process is as vital as the change itself. In recent years, management scholars
have explored the possibilities of employing the techniques of Organization
Development (OD) to effect desired organizational changes. Properly diagnosing the
change environment allows for the application of such strategic intervention
techniques as role playing, team development, survey feedback, process consultation,
among others. This paper examined these techniques in real-life settings and

9
concluded that by adopting strategic intervention methods, modern organizations can
build bridges of success and advancement within and outside their organizations.
Inger Stensaker, Ann Langley(March 2010) This paper draws on a
comparative case study of the implementation of a planned change initiative across
three different divisions of a multidivisional oil company to investigate the influences
guiding division-level change agents in their choice of a change management
approach and the impact of different approaches on change outcomes. While the
contingency perspective suggests that change management approaches should be
chosen to fit with change content and context, we found that change agents navigated
amongst three concerns: substantive concerns related to goal attainment, political
concerns related to conformity to corporate demands, and relational concerns
concerning relations with employees. We identified three different change
management trajectories across the three divisions based on alternative ways of
balancing the concerns. The data show that, regardless of the change management
approach adopted, change tends to be diluted in implementation. However, the
various trajectories have differential consequences for other important dimensions
such as corporate approval and relationships with employees.
Davide Ravasi and Majken Schultz(January 2003): In this paper, we build on
a longitudinal study of three different attempts at managing identity change within the
same organization over a period of 25 years. The purpose of the paper is to develop an
interpretative model that investigates how organizations may promote periodic
renewal and redefinition of identity claims, while preserving at the same time a sense
of continuity. We argue that continuity in organizational identity may rest on
collective practices that form the distinctive competencies of the organization, while
adaptation takes place as managers periodically select a subset of values, consistent
with external expectations and contingent strategic factors. Evidence from our study
suggests that selection does not only mirror external perceptions, but is also driven by
a reflection on the collective heritage and the distinctive practices of the organization.
The emerging framework is underpinned by the argument that the formation and
dynamics of organizational identity rest on the interplay between the domains of
social cognition and social practice. Most research on organizational identity has been
conducted in universities, hospitals or other public organizations: ours is a rare case of
research on identity change in a business firm. Potential implications of the nature of
the research setting on our results are discussed in the conclusions.
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 Darby Dickerson(January/February 2008): This article, which is part of a
series on campus risk-management and liability issues, encourages universities to
embrace a proactive culture of risk management. Crises tend to spur change. But
when change does not occur quickly enough from within, outside forces often step in
to impose change. This article discusses how campuses can be positive, proactive

change agents; the steps include providing a reasonably safe living and learning
environment, embracing environmental management strategies, and building
coalitions with these outside forces.

OBJECTIVES
• To study why change is essential in an organization.
• To study why people resist change.
• To study how to implement change successfully.
• To study benefits of change.

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CHANGE MANAGEMENT DEFINED

The simplest definition of change management is;

“making change in a planned and managed fashion”.

Today’s proliferation of digital media is making the conscious practice of change

management more important than it was only a few years ago.

Organizational change can be defined as;

“any alteration in people, structure or technology”

Although change has always been a part of manager’s job, it has become even more
important in recent years.

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TYPES OF CHANGE

Changes in an organization can often be identified as one of four types, with the
definite possibility of overlap among them:

• Operational changes affect the way the ongoing operations of the business are
conducted, such as the automation of a particular area.
• Strategic changes occur in the strategic business direction, e.g., moving from
an inpatient to an outpatient focus.
• Cultural changes affect the basic organizational philosophies by which the
business is conducted, e.g., implementing a continuous quality improvement
(CQI) system.
• Political changes in staffing occur primarily for political reasons of various
types, such as those that occur at top patronage job levels in government
agencies.
These four different types of change typically have their greatest impacts at different
levels of the organization. For example, operational changes tend to have their
greatest impacts at the lower levels of the organization, right on the firing line. People
working at the upper levels may never notice changes that cause significant stress and
turmoil to those attempting to implement the changes. On the other hand, the impact
of political changes is typically felt most at the higher organizational levels. As the
name implies, these changes are typically made not for results-oriented reasons but
for reasons such as partisan politics or internal power struggles. When these changes
occur in a relatively bureaucratic organization, as they often do, those working at the
bottom often hardly notice the changes at the top. Patients are seen and the floors are

13
cleaned exactly as they were before. The key point is that performance was not the
basis of the change; therefore, the performers are not much affected.

DEALING WITH RESISTENCE TO CHANGE

It is easy to change the things that nobody cares about. It becomes

difficult when you start to change the things that people do care
about—or when they start to care about the things that you are
changing.— Lorenzi and Riley

Resistance to change is an ongoing problem. At both the individual and the

organizational levels, resistance to change impairs concerted efforts to improve
performance. Many corporate change efforts have been initiated at tremendous cost
only to be halted by resistance among the organization's employees. Organizations as
a whole also manifest behavior similar to that of individuals when faced with the need
to change. Change can be a threat to people in an organization. Organizations can
build up inertia that motivates people to resist changing their status quo, even though
change might be beneficial.

Why people resist change?

It’s often said that most people hate any change that doesn’t jingle in their pockets.
Their resistance to change is well documented. Why do people resist change? An
individual is likely to resist change for three reasons: uncertainty, concern over
personal loss, and the belief that the change is not in the organization’s best interest.

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Techniques for Reducing Resistance
While dealing with resistance to change, there are six actions manager can use. These
actions include education and communication, participation, facilitation and support,
negotiation, manipulation and cooptation and coercion. Depending on the type and
source of the resistance, managers might choose to use any of these actions.

"ADKAR" --- A model for change management

ADKAR is a goal-oriented change management model that allows change

management teams to focus their activities on specific business results. The model
was initially used as a tool for determining if change management activities like
communications and training were having the desired results during organizational
change. The model has its origins in aligning traditional change management
activities to a given result or goal.

For example, Awareness of the business reasons for change is a goal of early
communications related to a business change. Desire to engage and participate in the
change is the goal of sponsorship and resistance management. Knowledge about how
to change is the goal of training and coaching. By identifying the required outcomes
or goals of change management, ADKAR becomes a useful framework for change
management teams in the planning and execution of their work.

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PEOPLE DIMENSION OF CHANGE

Research shows that problems with the people dimension of change are the most
commonly cited reason for project failures. In a study with 248 companies, effective
change management with employees was listed as one of the top-three overall success
factors for the project. Helping managers to be effective sponsors of change were
considered the most critical success factor overall.

Effective management of the people dimension of change requires managing five key
goals that form the basis of the ADKAR model:

• Awareness of the need to change

• Desire to participate and support the change
• Knowledge of how to change (and what the change looks like)
• Ability to implement the change on a day-to-day basis
• Reinforcement to keep the change in place

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 BENEFITS AND SIGNIFICANCE OF
CHANGE MANAGEMENT

“Change is a window through which future enters in your life”

Some of the unique benefits of change management from organizational perspective

are given below:

• Understanding environment (society, government, customers)

It is important for organization to understand, assess and gauge the dynamics
in its external environment in order to envisage and establish an appropriate
relationship with various actors like government, customers and society.
Therefore managers by knowing the subject of change management can better
be prepared to understand whatever is going on in the environment.

• Objectives, strategy formulation & implementation (to develop

competitive advantage)
Second is consequent upon knowing the impact of change at extraneous level
on its own internal dynamics, and the foremost is objective setting and seeking
competitive advantage.

• Employees (trained, high performing work practices, reliable organization)

Employees are the recipient of change plan. One such perpetual concern of
senior managers is to make organization highly reliable; therefore employees

17
 ought to be trained and high performing one in today’s hyper competitive
world

• Technology Issues
Technology is considered the engine of growth in today’s world. Perhaps the
greatest challenge for contemporary organizations is the acquisition and
integration of technology in its strategy, structure and process.
ROLE OF CHANGE MANAGEMENT IN AN ORGANIZATION

Change management plays an important role in any organization since the task of
managing change is not an easy one. When we say managing change we mean to say
that making changes in a planned and systemic fashion. With reference to the IT
projects we can say the change in the versions of a project and managing these
versions properly. Changes in the organization or a project can be initiated from
within the organization or externally.
For example a product that is popular among the customers may undergo a change in
design based on the triggering factor like a competitive product from some other
manufacturer. This is an example of external factor that triggers a change within the
organization. How the organization responds to these changes is what that is more
concerned. Managing these changes come under change management. Reactive and
proactive responses to these changes are possible from an organization.

Change management is done by many independent consultants who claim to be

experts in these areas. These consultants manage the changes for their clients. They
manage changes or help the client make the changes or take up the task to themselves
to make the changes that must be made. An area of change that needs attention is
selected and certain models, methods, techniques and tools are used for making these
changes that are necessary for the organization.

When there is a process in an organization it is not an easy task to make changes to

this process immediately. Sometimes a single organization may have varied business
entities and changes in an entity may be reflected in another entity. In such
organizations changes are not so easy. There are different types of organizations

18
which have many branches across the world with varied cultures. Implementing a
change in such organizations is a task by itself.

The change process could also be considered as a problem solving situation. The
change that is taking place could be the result of a problem that has occurred. You
should know that a problem is a situation that requires some action to be taken
positively to handle that situation. This positive action is known as problem solving.
The change process could be problem solving for a particular situation. In this process
there is a move from one state to another so that the problem gets solved. The change
process is leaving the current state and moving to the final state through some
structured organized process.

Managing the changes in an organization requires a broad set of skills like political
skills, analytical skills, people skills, system skills, and business skills. Having good
analytical skills will make you a good change agent. You should evaluate the financial
and political impacts of the changes that can take place. You should know that
following a particular process at that instant would fetch you immediate financial
effects and start that process so that the change process is noted by the management.
The workflow has to be changed in such a manner to reflect the financial changes that
are taking place. Operations and systems in the organization should be reconfigured in
such a manner that you get the desired financial impact.

Hence change management plays an important role in an organization. This allows the
organization to give a reactive or a proactive response to the changes that happen
internally or externally. Knowing the change management and its process would help
an organization and its processes to be stable.

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 PRACTICAL APPLICATION OF
CHANGE MANAGEMENT

There is nothing more difficult to take in hand, more perilous to

conduct, or more uncertain in its success, than to take the lead in the
introduction of a new order of things.—Niccolo Machiavelli

One of the most difficult problems organizations face is dealing with change. In
today's rapidly changing, highly competitive environment, the ability to change
rapidly, efficiently, and almost continually will distinguish the winners from the
losers.

Major organizational changes typically involve many different types and levels of
personal loss for the people in the organization. For example, change always requires
the effort to learn the new, which is a loss in terms of time and energy that could have
been used elsewhere. Although some may welcome the learning opportunity, many of
us don't want to invest that time and energy unless we are dissatisfied with the current
arrangements or see powerful advantages to the proposed change. Upgrading to new
software is a common example, in which the future benefits may not be seen as
sufficient to outweigh the short-term investment required to learn the new programs.

Second, people want to feel good about themselves. Ideally, people are able to take
pride in their work, feel responsible for a job well done, feel they are part of a high-
quality enterprise, and feel that their time has some significance. In many work

20
situations, the work itself and the organizational culture make it difficult for people to
feel good about themselves. In these poorer situations, people usually invent strategies
to help them feel better about themselves, and these strategies involve getting some
sense of control, belongingness, and significance out of their work. Sometimes this
involves opposition to management, on the assumption that management is always up
to no good. More commonly, the worker-management relationships are not
completely alienated. Still, the workers' strategies for achieving “good” feelings are
unknown to or quite misunderstood by management. Therefore, change initiatives,
unknowingly and unintentionally, threaten to cause the workers serious personal loss.
Not surprisingly, the workers resist and do all they can to sabotage such change
initiatives.
Third, change initiatives often require large losses for middle managers. Generally,
people perceive that information systems increase the ability of top executives to
know more about what is going on and to exert more direct control. This means a
serious loss of personal and organizational significance for the middle manager.
Sometimes middle managers fight this loss. Any significant organizational change
involves changing habits that is, changing the way we actually do our work. This
usually involves changes in the way we interact, both with people and our tools. New
systems require us to learn a new set of behaviors.

21
 ABSTRACTION OF STUDY

Purpose – To study why change is necessary in different organizations and in the

initial people do not accept change moreover they resist change and how we can
successfully implement change plans.

Design/methodology/approach – As it is a Secondary research, it involves the

summery, collection and synthesis of existing research where the data is collected
from various websites and previous research reports. So, secondary research saves
lots of time and money.

Findings – We find it is not an easy for managers to introduce change. They have to
face many difficulties while introducing changes because people often protest for
changes. For managers it’s become difficult to handle all this.

Limitations – This study does not include different types of changes and does not
define various methods to implement these changes.

22
 CONCLUSION

It can sometimes be hard to separate out 'the change', project management, and
change management. In practice, these three components are intertwined in order to
deliver a positive outcome to the organization. However, there is value in separating
out the components. First, thinking about the three components separately makes it
easier to define and help others understand these distinct elements. Second, separating
out these three components is a solid first step when troubleshooting on a particular
project that may not be moving ahead as expected. For instance, are our challenges
coming from issues around designing 'the change'? Are the issues related to the
technical steps, activities or resources (project management)? Or are concerns coming
from how individuals are accepting or resisting the change (change management)?
It’s a truism that change is constant, and in business continuous change and evolution
is usually necessary to be competitive. So to a certain degree, good change
management practice simply means practicing good management, and outside
assistance is often desirable when true objectivity is required.

In the final analysis, the most effective change management is all about articulating
and sharing a vision, so that the people being affected believe that adapting to change
is the right thing to do.

23
 Nothing is constant in this world,
except change!

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• http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1475538
• http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1555266
• http://papers.ssrn.com/sol3/papers.cfm?abstract_id=384382
• http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1096030

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