CHAPTER FOUR

TYPES OF CHANGE MANAGEMENT

4. Introduction
The business landscape of the 21st century is characterized by rapid change brought about due to
technological, economic, political and social changes. It is no longer the case that the managers
and employees of firms in this decade can look forward to more of the same every year. In fact,
the pace of change is so rapid and the degree of obsolescence if organizations resist change is so
brutal that the only way out for many firms is to change or perish. In this context, it becomes
critical that organizations develop the capabilities to adapt and steer change in their advantage.

The role of senior managers becomes crucial in driving through change and ensuring that firms
are well placed with respect to their competitors. However, it is the case that in many
organizations, senior managers actively resist change and in fact thwart change initiatives due to
a variety of reasons which would be explored in subsequent sections. This essay examines the
barriers to change by senior managers and discusses approaches to mitigate such resistance. The
essay begins with a discussion n the role of senior managers as barriers to change and then
outlines some approaches on how to get the senior managers on board for change.

It goes without saying that “he who rejects change is the architect of decay and the only
human institution that rejects progress is the cemetery.” With this axiom in mind, it is critical
to understand that unless change is actively embraced, organizations in the 21st century risk
obsolescence.

To resist change is as basic as human nature and hence the change managers must adopt an
inclusive approach that considers the personality clashes and the ego tussles. It is often the case
that in large organizations, there tend to be power centres and hence the issue of organizational
change must address the group dynamics as well as the individual behavioural characteristics.

Only by an understanding of the means by which managers can be brought on board can there be
a foundation for suitable approaches. The approaches include a combination of pressure tactics
and coordination instead of competition and cooption as well as cooperation.

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Change agents must realize that wherever possible, they must deal with consensual decision
making and if that is not possible, they must walk the talk and be firm in their approach.
Managers at all levels have a tendency to resist change and in the high stakes game of change
management, it is the ones that can articulate and communicate the change in a clear and
coherent manner who succeed.

In conclusion, change is the only constant in business and the landscape of the 21st century is
littered with companies that have not adapted to the changing times. Hence, organizations must
and should embrace change and the approaches discussed in this chapter are part of the solution.

4.1 Approaches in Change Management

4.1.1 Top-Down versus Bottom-Up Change
It is often the case that companies are faced with a dilemma about whether the change initiatives
must be driven from the top or they should be organic from the bottom up. This is especially the
case with organizations that are growing in size where the increase employee base or the
skyrocketing sales and revenues mean that the top management‟s scope of control is more and
hence driving change from the top alone might not just work. And for those organizations that
initiate change from the top, they might find themselves in a situation where the middle and
bottom layers of the organizational hierarchy may not be responsive or energized in the way the
top managements wants them to be. So, the existential questions as to whether there ought to a
spontaneous involvement from all the levels, or whether the top management must induce the
change, are very real and need to be answered for change initiatives to succeed.

The answer as to which option is preferable depends on a number of factors. First, any change
initiative would succeed only if it is communicated appropriately and to all levels. Honest,
transparency and feedback loops must be the elements of the change initiative. Next, the
employees ought to have a voice in the way the change initiative is managed.

For a change initiative to be successful the top management has to communicate and the
employees have to respond. A mix of having the top management initiate the change and letting
the employees take over from them works best for larger organizations where micro management
by the top management might not work.

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Change can be driven solely from the top. However, for continued success, change has to come
from within each employee and this can only happen in organizations that have an organizational
culture that encourages each employee to contribute to the initiatives.

Change can thrive where there is an institutional catalyst and hence the key takeaway is that
the organizational structures have to be built in such a way that no one individual can
either make or mar the chances of success.
4.1.2 Fundamental Issues with the Top Down Approach in Change Management
Several change management experts have argued that Bottom Up Strategy for Change
Management yields effective results comparatively over Top Down Strategy of Change
Management.
The Top Down approach necessarily involves an element of compulsion, and the decisions are
forced on the employees without taking any inputs from them. Top Down approach involves
forceful implementation of change and in the entire process opportunities for gathering
information regarding employee expectations, asking their feedback and suggestions are entirely
disregarded or not given any priority at all. This gives rise to employee dissatisfaction due to a
feeling of being ignored or undervalued, and equally good ideas of the employees are never
aired.
A successful change management program must involve the participation and involvement of
all the key stakeholders in the overall process, and the objectives should be made clear, the
reasons for the need for implementing a change program must be well communicated along with
its implications on the individuals, departments and also the organization as a whole. Without the
support and involvement of the stakeholders, the program may be subjected to heavy resistance
or opposition, a sharp decline in the motivation level and also the overall performance of the
employees.
Communication Issues in Top-Down Approach to Change Management: In the case of Top-
Down Approach, the business leaders are concerned about three elements only related with
communication:
 Communicating about what they want people to stop doing.
 Communicating with the people about what they want the people to start doing.
 Communicating about what they want the people to continue doing.
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In the case of top-down approach, the management is simply concerned about the above
mentioned three key elements, without addressing the issue of why or the purpose behind the
implementation of change. Explaining the purpose or the objectives to the employees is the
central requirement in any change management program for obtaining the desired support from
the employees and making the overall program a success.
However, top-down approach to change management under certain circumstances become a
necessity especially during crisis situations when the management is expected to implement
quick decisions and deliver fast results by implementing a rapid change.
In the recent years, since the businesses are undergoing rapid transformation and operating
globally, there has been a shift in managing change management assignments by focusing more
on strategic programs for propelling organizational growth and tapping new markets for
improved business opportunities. Top down approach to change management has been criticized
for being too paternalistic, and it ignores the value which an employee can add towards a change
program.
Bottom Up approach can be useful for organizations which aim for steady growth, want to be
innovative and wish to implement a program involving the support of all the key stakeholders.
Bottom-up approach will essentially enhance a sense of responsibility and accountability and
may be beneficial in terms of improving the people‟s motivation in making the change program a
success. However, Bottom-Up Strategies take a lot of time and can never happen overnight. The
process of change management requires careful planning, gathering information and feedback,
conceptualizing a program and ensuring it‟s successful implementation by receiving the desired
support from all the key stakeholder.
Hence, it can be concluded that a balance may be required while implementing a change
management program by assessing the existing organizational requirements and the objectives
which are required to be fulfilled. For implementing quicker decisions and during a crisis
situation, top-down approach may be best suitable, whereas, for the collective decision-making
process and involving all the key stakeholders in the program implementation bottom up
approach may be effective.

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4.2 Different Types of Change
Change is a universal condition of every human. Organizations experience different types of
change management – which you can view if you would like to discover what the different types
of organizational change are.
4.2.1 Happened Change
This kind of change is unpredictable in nature and is usually takes place due to the impact of the
external factors. Happened change is profound and can be traumatic as its consequences are
unknown and out of direct control. This kind of a change happens when an organization reaches
the plateau stage in its life cycle and gets victimized by the environmental pressures or demands.
For example, currency devaluation may adversely affect the business of those organizations who
have to depend upon importing of raw materials largely. In certain cases, some political, as well
as social changes are unpredictable and uncontrollable.
4.2.2 Reactive Change
Changes which take place in response to an event or a chain of various events can be termed as
Reactive Change. Most of the organizations indulge in reactive change. This kind of change
usually occurs when there is an increase or decrease in the demand for company‟s products or
services. It can also be a response to a problematic situation or a crisis which an organization
may be faced with. For example, due to the advancements in technology or growing
technological changes, an organization may be forced to invest more in technology to stay ahead
to face the stiff competition. Recreation can also be regarded as a reactive change, which
involves the entire organization and occurs during the stage when an organization is undergoing
a serious crisis.
4.2.3 Anticipatory Change
If a change is implemented with prior anticipation of the happening of an event or a chain of
events, it is called as anticipatory change. Organizations may either tune in or reorient
themselves as an anticipatory measure to face the environmental pressures. Tuning in essentially
involves implementing incremental changes which mean dealing with the subsystems
individually or just with the part of a system. Reorientation essentially involves changing the
organization from the existing state to a desired futuristic state as an anticipatory measure and
then dealing with the entire process of transition.

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4.2.4 Planned Change
Planned change is also regarded as the developmental change which is implemented with the
objective of improving the present ways of operation and to achieve the pre-defined goals.
Planned change is calculated and is not threatening as in this the future state is being chosen
consciously. The introduction of employee welfare measures, changes in the incentive system,
introduction of new products and technologies, organizational restructuring, team building,
enhancing employee communication as well as technical expertise fall under the category of
Planned Change.
4.2.5 Incremental Change (Evolutionary change)
Change which is implemented at the micro level, units or subunits can be regarded as
incremental change. Incremental changes are introduced or implemented gradually and are
adaptive in nature. It is based on the assumption that these small changes will ultimately result in
a large change and establish the basis for forming a much healthier and a robust system. It even
offers an opportunity to an organization to learn from its very own experiences and create the
adaptive mechanisms for meeting the ultimate organizational vision. The extent of damage due
to a failed incremental change effort is expected to be much lesser than the change which is
implemented on a large scale or introduced universally. It is called evolutionary change,
because it arises through the process of natural selection; it is inevitable when small variations in
performance, tiny adjustments or shifts in response by people and groups occur in a changing
environment.
4.2.6 Operational Change
This kind of change becomes a requirement or the need when an organization is faced with
competitive pressures as a result of which the focus is laid more on quality improvement or
improvement in the delivery of services for an edge over the competitors. Similarly, changes in
the customer‟s buying patterns or demands or the internal dynamics of an organization equally
necessitate the implementation of operational change. Operational change as the name implies
means introducing changes in the existing operations for realizing the intended goals. This may
include bringing in changes in the current technology, improving/re-engineering the existing
work processes, improving the distribution framework or the product delivery, better quality
management and improving the coordination at an inter-departmental level.

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4.2.7 Strategic Change
Strategic Change is usually implemented at the organizational level, which may affect the
various components of an organization and also the organizational strategy. A change in the
management style in an organization could be considered as an example of strategic change. A
multinational organization like Toyota has taken a step ahead in bringing in a change in the
overall organizational philosophy for availing the advantages of being a leaner organization
structurally, flexibility, decentralized decision making and functioning of organizations and
equally allows a greater extent of freedom or autonomy in implementing proactive decisions.
This kind of change is expected to have a cascading effect on the entire organization and
accordingly would be having an influence on the overall performance.
4.2.8 Directional Change
Directional change may become a necessity due to the increasing competitive pressures or due to
rapid changes in the governmental control or policies, which may include changes in the
import/export policies, pricing structure and taxation policies, etc. Directional change can also
become imperative when an organization lacks the capability of implementing/executing the
current strategy effectively or during the circumstances when a strategic change is required. It is
called „directed‟, „planned‟, or „managed‟ change because it is designed to achieve a specific
purpose. Making this type of change happen involves moving the management and work force
and the organizational culture into alignment with the strategies, structure, processes and systems
to achieve the desired state (vision).

Within directed change there are three different types of change management: developmental,
transitional, and transformational. It is important to recognize this as the different kinds of
change require different strategies and plans to gain engagement, reduce resistance, and ease
acceptance.
4.2.9 Fundamental Change (Revolutionary change)
Fundamental Change essentially involves the redefinition of organizational vision/mission. This
may be required during extremely volatile circumstances like volatility in the business
environment, failure of the leadership, a decline in productivity as well as the overall turnover or
problems with the morale of the employee. This type of change is typically accompanied by
large power shifts, and on occasion the impact may be catastrophic.
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4.2.10 Total Change
A Total Change involves change in the organizational vision and striking a harmonious
alignment with the organizational strategy, employee morale and commitment as well as with the
business performance. Total Change becomes a requirement during those circumstances when an
organization is faced with many criticalities such as long-term business failure, incongruence
between the employee and organizational values, failure of leaders/management in anticipating
the realities of business environment or the growing competitive pressures and concentration of
power in the hands of few. A new organizational vision along with major strategic changes as
well as complete organizational surgery can be the only solution at this point of time.
4.3 Importance of Communication in Change Management
For implementing a change program successfully, communication is the key and one of the most
complex parameters as it involves an exchange of ideas and feelings with people in an
organization through various mediums. It is one of the toughest issues which an organization is
faced with during the entire process of implementation of change. Effective communication must
involve the following components:
 The message which is being sent by the individual must be clear and vividly presented.
The message must radiate authenticity.
 The recipient of the message must listen attentively, ask questions for clarifications and
share feedback on the interpretation of the message.
 The method of delivery of the message must be compatible with the circumstances of
both the sender of the message as well as the recipient.
 The message content must be able to connect well with the beliefs and thoughts of the
recipient for being able to be acceptable.
In any change management program, it is the people who are fundamentally being affected by
the change initiatives and it is the people who extend their cooperation and support to make the
change happen. Without the involvement and motivation of the key stakeholders, it is impossible
to expect success from any change program, as it is them whose interests are either positively or
negatively affected due to the change initiatives.
The stakeholders‟ involvement, commitment, and acceptance in the entire change process is very
important for achieving successful results from the change management program. For this, the

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stakeholders must be made well informed about the purpose or the objectives of change, and they
should be provided an opportunity to share their own ideas in the process of implementation of a
change program. Research has proven that if a change is implemented in a consultative and an
open manner it results in much effective outcomes in the overall process.
4.3.1 The Purpose of Change Communication
Research has proven that in the absence of a proper communication plan, the entire change
process may turn into a fiasco. Over communication or no communication are both undesirable
as due to this the whole effort of change can be derailed. In the absence of sufficient two-way
conversation or effective communication across all the levels, the change effort may fail to meet
its objectives. If a communication plan is designed efficiently and clearly, it helps in building
awareness and in getting the subsequent support in the entire program.

The communication continuum presented below shows how effective communication influences
the stakeholders in building commitment towards the change.

The communication plan must be an integral part of the change plan addressing the questions of
how, what, when and why of change from the people‟s perspective. Like the other documents of
planning, the communication plan should also be documented and be subjected to periodic
reviews.
4.3.2 Fundamentals involved in Change Communication
The following factors participate in communicating change approaches successfully:
Communicating the Change Vision Clearly and Doing it Early: This is the most important
stage as it involves communicating the vision of change and what the organization will achieve
at the end of the change effort. The vision should be described in simple form, must be clear and
must be able to influence people strongly in implementing decisions.
The earlier the vision for the change is communicated, the easier it will be for the people to be
able to adapt and understand the nuances of change.

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Highlighting the Benefits and the Impacts of Change: Effective communication plan during a
change process helps in controlling the inertia or fears due to a change by explaining how the
change will affect the people associated with it and why it is being implemented.
Ensuring that the Leaders of the Organization actively communicate in the entire process
of change: The leaders of the organization must convey how important the change is and must
reflect their personal and visible commitment towards the entire process of change, as this will
be sending a powerful message to the key stakeholders about how seriously an organization is
committed towards the implementation of change.
Using various channels or mediums for communicating the message of change: Care should
be taken in understanding how people learn about change from different mediums of
communication. For visual learners, documented materials may best appeal and help them in
understanding the change vision and for effective listeners, importance should be given to the
presentation style and selection of words for impressing such category of stakeholders.
Providing Opportunities for Exchange of Dialogue or Conversation: Providing opportunities
for discussion and facilitating a two-way communication with the stakeholders creates a sense of
ownership and fosters a sense of responsibility among the stakeholders.
Repeating the Messages of Change Periodically: Regular communication of the change
message facilitates a greater understanding of the objective of the change and there will be a
much greater probability that people will act in accordance with the requirements of the changing
situation and extend their cooperation accordingly.

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