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6
CHAPTER OUTLINE
Summary
Exercises Question Bank
need to
Change is inevitable and it affects all types of organisation. Therefore, managers
skilled in ways to respond to change to ensure the survIval and success of their organisatio-
Organisations which fail to respond appropriately to environmental changes go out of existenc-
gradually or slowly. They are not visible and face no resistance. Revolutionary changes a
sudden and may be violent. Therefore, such changes are often resisted. Planned change impl-
deliberate alteration in the existing organisational system to achieve some desired results, e5
etec. I
profitability, employee satisfaction, improvement in the image of the organisation,
change may involve alteration in the structural relationships and in the role of people 1n
organisation. In other words, planned be both structural and behavioural. Planm-
change can
change may be defined as a conscious and concerted attempt of management of an organisau-
to monitor the environment, to assess their impact on the organisation and to evolve apPpropi
alternatives so as to utilise the environmental forces to the advantage of the organisation. Flau
Im=
change is thus the intentional attempt by an organisation to influence the status quo.
planned change organisations try to grow.
Effective managers do not wait for future. They make the future by introducing and maiee
change. An organisation is an open system as it is in continuous interaction with its enviro
anisai
Any change in its environment requires change in its internal system. Morcover, an
1s Composed of many subsystems which interact with each other. Any change in one suoy
may create need for changes in other subsystems.
The foregoing description reveals the following characteristics of planned changc
1satoe
i) Planned change is a conscious and deliberate attempt to modify the existing ouga
system.
hange results from stimuli from both
inside and outside the
) Planned
organisation.
Change
fakes
takes place
place in all organisations but at
varying speeds
and degrees of significance.
(it) takes place
takes place in all parts of an organisation though the magnitude and nature of
Change
(iv) be different,
may
change
nisation can be changed
several ways. Its
in
technology, its structure, its peopie
() s other elements may be changed.
(vi)
aed change disturbs the existing equilibrium between an organisation and its
P l a n n e d
environment.
It leads to a new
equilibrium.
) aned chan
Planned change can be of two types. A change initiated by the organisation is called
p0active
hange. Om the other hand, a change implemented by an organisation due to
ssure by exterr ernal forces is known
as reactive
change. For example, when management
1ces aa
introducess new labour welfare scheme in order to improve employee motivation, it is
nge. If such a scheme is introduced due to pressure from he trade union,
proactive chang
reactive change.
it is a
Planned change has certain objectives, e.g., to increase profitability, to meet competition,
to improve employee satisfaction, to expand and diversify operations, etc.
People may respond to planned change in various ways depending on how they perceive
(ix) And interpret the change. If people perceive the change is desirable and in their interest
they are likely to accept and adopt the change. They may even anticipate change and
nlan for it. People tend to be indifferent to change when they feel that it has nothing 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 eliminate the change.
Thus, human response
to change may be acceptance, indifference and resistance.
requires change agents, i.e., the persons who will initiate and
sustain
(r Planned change
change in the organisation. Change agent can be both internal and external. Chief
executive and other top executives can serve as internal change agents. External change
agents refer to consultant or expert appointed to serve as an advisor in the change process.
85
a response to extreme or unexpected market changes. This kind of changes hro.
when businesses pursue entirely different products or markets, experience radicat brought
in technology, or new leadership ushers in overhauls to the structure and comna
Transformational change can produce fear, doubt and insecurity in staff, and ne
eeds t
very well managed.
Lewin's theory of change used blocks of ice as a metaphor. He used the analogy of
ice block changes its shape to transform into a cone of ice through the process of
hou
unfreez
Let's say you have cube' of ice but
you must:
you'd like a 'cone' of ice. To transform the cube shs
1. "unfreeze" or melt the ice
2. "change" the mould to shape and
a cone
appropriate
realise that the present
to the current
situation. Members of the Dcmade
beliefs, processes and behaviour are organisation aar fort
changing demands of the present situation. Unfreezing
no longer
appropria
and intellectual forces. It requires loosening the e
motionw
involves the
(a) Recognising
following steps.
the Driving Forces : The first step chang
involves reorganising major changes in the towards organisationa.
organisation. In order to recognise the environment and problem within
a keen sensitivity pressures to change, managers neeuI to tevel
towards the external and
1. Kurt Lewin, "Frontiers in
internal environment.
Group Dynamics: Concept,
pp. 5-41. Methods and Reality," Human Relalnons,
"
asing the Driving Forces: Once the need for change is identified, it needs
he
be
communicated to the people concerned. If members know why the change is
eeded,
they are more likely to adopt it.
ing the Resisting Forces People resist change because they perceive it to
mful to them. It 1s, therefore, essential that they are made aware of its benefits.
may be linked to willingness to change and resistance to change may be
punished.
be effected by encouraging the driving forces which take the behaviour away
effeècte
nay
zing
nficezng
stanus
. Alternatively steps may be taken to overcome the restraining forces whicn
q u o
tendo the safe the status quo. several techniques are available for unfreezing, e.g., education,
Lne
fom
penpetuate
ennarticipation in decision-making, negotiation through the exchange of rewards,
U n e a t i o 1 p a r t i c i p a t i o n
88
number of hierarehie
an of control, and the way in which parts are organised and related to one
span
Structure Factors
.Relation of parts
Number of levels
Degree of formalisation
Techniques
Significance
.Processes
Feedback
People Factors
Perception
Attitudes
.Values
Motivation
or
combination of these factors.
RESISTANCE TO CHANGE
6.5 CAUSES OF indifference and resistance
Individuals may respond to change in three ways, i.e., acceptance,
Resistance to change may come from
individuals
the change.
depending upon how they perceive individual and organisational reasons for resistance
as well as from the organisation. The main
given below.
to change are
(c) Fear of
demotion and consequently less
pay, and benetits,
higher job standards and reduced inca
(d) Fear of speed up through ive wag
due to the rear Or loss of job. The greater
People resist automation the expect
the greater the resistance.
5. Redundancy of Skills : Change may render the existing knowledge an
Old skills and techniques may become useless. For example, an exneri.
due to the fear that his exha nced
may resist the
introduction of a computer
useless and it might affect his pay and position
in the
organisation. This ac ounm
ence will
skills and whose becn
commonly found in people who possess
is outdated.
no real marketableski
phenomeknolnonsa
6. Ego Defensiveness : Sometimes people resist change because it hurts th
instance, an ego/defensive branch manager may resist even a good suggesti their c
salesman because the branch manager feels that his ego may be deflated i orom a
the suggestion.
7. Peer Pressure : People may resist change because the group to which
accey
opposes the change. Every group has its own norms and puts pressure on
which they b
to resist change which violates the group norms. For example, a factory
its mb
feel that the proposed change in the techniques of production is desirable BKer
resist the change because his trade union is opposed to it. But he ma
Table 6.1 Causes of Resistance to Change
Individual Resistance Organisational Resistance
Economic Reasons Organisational structure
Fear of economic loss Resource constraints
Obsolescence of skills Threat to power and influence
Personal Reasons Sunk costs
Status quo
Fear of unknown
Ego defensiveness
Social Reasons
Social displacement
Peer pressure
oppose the ch
change.
prestige of some top executives. Theretore, u
Involved:
12. CostsInvolved An
organisation may also resist
change because it has invested im
fixed
assets and human resources.
These costs cannot be
resources are put to
recovered unless the assets anu
productive
use. When
is introduced, change
useless. For example, many of these costs
becor
existing
machines may not be replacewith change in
nology. Similarly, some executives may be retained
techno.
negotonsiidateriya
whe
when some persons cons
easy to avoid resistance through
power to resist. It becomes relatively
However, it can be if it alerts others to negotiate for compliance.
expensive
6. Manipulation and Cooptation : Manipulation involves consCious structurino
of
and the very selective use of information. Cooptation implies givin people a desi
role in the design and implementation of change. Managers may resort to mani
when all other tactics fail to overcome resistance. It can be quick and econ anipulati
method. However, serious problems may arise if people feel they are manipulatoa onomi
ed.
g
7. Coercion: In this method, managers force people to accept change by explicit ori
implin
threats, e.g., termination, demotion, stopping pay inerements, transfers, etc. This met
is used when immediate change is requircd and the change agent possesses considerd methoy
power. The main merit of this technique is specd but it can be a very risky appro
ra
8. Group Dynamics : Forces operating within groups can be used to overcome resistn
roach
to change. A group can be effiective in changing the attitudes and behaviour of Stant
members particularly when it is attractive to the members and they have a strong sen
of belonging to the group. SCAS
to make
raining people to make them competent for the
and training new situation, time required
c e s available for change, etc. For deciding the method and procedure of change
its impact
logical sequence of steps may be created, e.g., putting change, measur the
logic
change
and correcting any aysTunctions, etc. Who will bring change means selecting
and
gutODort or resist the change. In order to implement the change successfully, managers
must ensure that the major forces resisting change accept it.
Kurt Lewin developed the concept of force field analysis which is a scientific approach
for analysing change. According to Lewin, the forces affecting change are of two types
:
Driving forces which favour change, and (2) Restraining forces which oppose change.
Change is a dynamic balance among these forces working in opposite directions. When
these forces are equal in strength, there will be no change in the status quo. In such a
situation, a quasi-static equilibrium is reached. This equilibrium may continue for some
time and when there is any change, a new equilibrium is reached. Change occurs only
when the two types of forces are not equal in strength.
The driving forces may dominate or overpower the restraining forces or vice versa.
Management may take one of the following actions in a change situation.
(a) When the driving forces far-outweigh the restraining forces, management may push
the driving forces and overpower restraining forees to implement the change.
(6) When the restraining forces dominate the driving forces, management may postpone
or abandon the change programme.
() When the driving and restraining forces are equal in strength, management may push
the driving forces and/or immobilise the restraining forces to implement the change.
Force-Field Analysis suggests that before a manager embarks on a change strategy, he
should properly identify and evaluate the foreces favouring change (driving forces) and
those opposing change (restraining forces). Such a study will help the manager to remove
the hindrances that block change. The manager can thereby avoid wasting his time and
efforts on forces over which he has no control.
R Ra R Ra
Restraining Forces Desired
Situation
D D, D DA
Fig. 6.4: Force-Field Analysis
93
invol..
implementing change,
several problems might
and undermine the
resistance to
Secondly, change may disrupt oroaniating existi
change has to be
o v e r c o m e .
the balance of power in the
might upset
control system. Thirdly, change to manage the transition and to
motivate change,
therefore, necessary to
becomes,
the political dynamism. action is necessary to ensure that oh
and Feedback: Proper follow-up is desirable to idenitie
6. Follow-up
in the right direction. Constant monitoring ty and
is progressing the initial atter
Feedback received from tempt
created by change.
tackle the problems Usually, the imna
be used to modify the subsequent change programme.
change may ensure that the cho
Management must
change is measured in terms of its objectives.
the organisation.
hange
to maximise benefits to
programme is implemented
ition, celebrations,etc.
a n d r e c o g n i t i .
Tlhe
A D K A R ge M
Change Management Model is an outcome-oriented change management method
C h a n g
a u m s
o l et o c h a n g e .
S U M M A R Y
oNE CHANGE
ES OF CHANGE Developmental, Transitional and Transformational.
P E MANAGEMENT
CHANGE MANA
ROCESS: Unfreezing, moving, refreezing.
of
External forces (market, technology, population, political and legal system)
and internal force
es
NEED FOR CHANGE
CHANGE:
(defects, others).
ot quo), Tea
TANCE T CHANGE : conventions, fear of unknown, zero tolerance, (status
Habits and
ess R E S I S T A N C E