Managing Change

CHANGE
Alternation which occurs in the overall work environment
of an organization
The whole organisation tends to be affected by the change
in any part of it
An enterprise can be changed in several ways. Its
technology can be changed, its structure, its people and
other elements can be changed.
Change can be classified into three :-
 INDIVIDUAL LEVEL CHANGES
 GROUP LEVEL CHANGES
 ORGANISATIONAL LEVEL CHANGES
2
NATURE OF CHANGE

Planned and unplanned are the two types of

changes that can occur with an organization.
Planned change occurs when deliberate
decisions are made in an organization, while
unplanned change is a result of unforeseen
occurrences.

3
1. Planned Change: It is a strategic move by the
organization implemented with the objective of
changing the nature of the business itself or the way in
which an organization is doing its business.
2. Unplanned Change: It is imposed on the
organization and is often unforeseen. It can be
regarded as a change which takes place within an
organization not in a planned manner

10/1/2019 4
• Organizational change is defined as change that
has an impact on the way work is performed
and has significant effects on staff.

• Organizational change is the process by which

organization move from their present state to
some desired future state to increase
effectiveness.
• Change happens for the pressure of both internal
and external forces in the organization.
• Change in any part of the organization affects
the whole organization.
• Change may affect people, structure, technology,
and other element of the organization.
• Change also affects the rate of speed and
degree of significance of the organization.
• Change may be reactive or proactive.
Models of Planned Change
•Lewin’s Change Model
•A Systems Model of Change
•Kotter’s Eight Steps for Leading Organizational
Change
•Organizational Development
•Understanding and Managing Resistance to
Change
•Why People Resist Change in the Workplace
•Alternative Strategies for Overcoming Resistance to
Change
 Forces of Change
External Forces:
Forces originate outside the
organization.
•Demographic Characteristics
- the workforce is more diverse
- there is a business imperative to effectively manage diversity
•Technological Advancements
- organizations are increasingly using technology as a means to
improve productivity and market competitiveness
•Market Changes
- the emergence of a global economy is forcing companies to be
more competitive and to do business differently
- organizations are forging new partnerships and alliances aimed
at creating new products and services
•Social and Political Pressures
- society and its legislative bodies can put pressure on
organizations to change the way they do business – the
tobacco industry is a good example
 Forces of Change (continued)

Internal Forces:
Forces originate inside the organization.

•Human Resource Problems/Prospects

- employees’ needs, job satisfaction, organizational
commitment, behavior, and performance are forces of
change
- dissatisfied employees and high levels of absenteeism and
turnover are signs that change is needed
•Managerial Behavior/Decisions
- the level of conflict between managers and their direct
reports is a force for change
- inappropriate leader behavior may result in employee
problems requiring change
- inequitable reward systems are an additional force for
change
 Forces of Change
(exercise)

What are the key reasons for pursuing change?

What changes are being pursued?
Sources of resistance?
 Forces of Change
(continued)
Internal Forces:
Forces originate inside the organization.

Organizational objectives not being met is a reason for

change –
question of timing
degree of change necessary
 Lewin’s Change Model
•Unfreezing
- Creates the motivation to change
- Encourages the replacement of old behaviors and attitudes with
those desired by management
- Entails devising ways to reduce barriers to change
- Creates psychological safety
Changing
Provides new information, new behavioral models, or new ways of
looking at things
Helps employees learn new concepts or points of view
Role models, mentors, experts, benchmarking results, and
training are useful mechanisms to facilitate change
•Refreezing
- Helps employees integrate the changed behavior or
attitude into their normal way of doing things
- Positive reinforcement is used to reinforce the desired
change
- Coaching and modeling help reinforce the stability of
change
 Kotter’s Steps for Leading
Organizational Change
Step Description
Establish a sense Unfreeze the organization by creating a
of urgency compelling reason for why change is needed.
Create the guiding Create a cross-functional, cross-level group of
coalition people with enough power to lead the change.
Develop a vision Create a vision and strategic plan to guide the
and strategy change process.
Communicate the Create and implement a communication strategy
change vision that consistently communicates the new vision
and strategic plan.
Empower broad- Eliminate barriers to change, and use target
based action elements of change to transform the
organization. Encourage risk taking and
creative problem-solving.
 Kotter’s Steps for Leading
Organizational Change (continued)
Step Description
Generate short- Plan for and create short-term “wins” or
term wins improvements. Recognize and reward people
who contribute to the wins.
Consolidate gains The guiding coalition uses credibility from
and produce more short-term wins to create more change.
change Additional people are brought into the change
process as change cascades throughout the
organization. Attempts are made to
reinvigorate the change process.
Anchor new Reinforce the changes by highlighting
approaches in the connections between new behaviors and
culture processes and organizational success. Develop
methods to ensure leadership development and
successes.
 Resistance To Change

Resistance to Change: an emotional/behavioral

response to real or imagined work change.

The leading reasons why people resist change are:

•An individual’s predisposition toward change
•Surprise and fear of the unknown
•Climate of mistrust
•Fear of failure
•Loss of status and/or job security
 Resistance to Change (cont)

Leading Reasons Why People Resist Change

(cont):
•Peer pressure
•Disruption of cultural traditions and/or group
relationships
•Personality conflicts
•Lack of tact and/or poor timing
•Nonreinforcing reward systems

For Class Discussion: What do you

think are the top three reasons people resist
change?
2. ORGANISATIONAL RESISTANCE TO
CHANGE

• Organizational resistance means the change

is resisted at the level of the organization
itself
• Some organization are so designed that they
resist new ideas, this is specifically true in
case of organization which are conservative
in nature
• Majority of the business firm are also
resistance to changes.
The major reason for organizational resistance
are:-
•Threat to power and influence
•Group inertia
•Organizational structure
OVERCOMING RESISTANCE TO
CHANGE
 Assessing an Organization’s
Readiness for Change

• Why is readiness for change an important

consideration?
•What can managers do to prepare an organization
for change?