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Change Management

Change is …..
 To alter, modify, revolutionize, transform….
 Survival and success --- go out of existence

For an individual, change may mean a new behavior.

Similarly from the point of view of a businessman, it
may mean a new business process or new
technology. From the social view, it can be a new
act or policy.
Types of change
 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)

 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.
Change Management
Change Management means “to make changes in a
planned and systematic way by introducing new
methods in an ongoing organization”.

Change Management is concerned with two sets of

people i.e., one those who want to effect change
and second is those on whom change is to be
effected. Change management is the effective
process of a business change such that executive
leaders, managers and front line employees work in
consonance to successfully implement the
technology or organizational changes.
Organizational Change

 Planned alteration in existing organizational system

 To achieve something desirable in the best possible

Reasons for Change
Factors may lead to a necessity for change
 To improve performance

 To reduce waste and inefficiency

 To improve management control and satisfaction of

the employees
 To improve the quality and productivity of an

 To compete in the changing market environment

 To achieve the desired business results as early as

Making Change Happen

Two Approaches to Organizational Change

 Organization Development (OD)

 Formal top-down approach

 Grassroots Change
 An unofficial and informal bottom-up approach. Change
that is spontaneous, informal, experimental, and driven
from within.
Organization development
 Planned change programs intended to help
people and organizations function more
 Applying behavioral science principles, methods, and
theories to create and cope with change.
 OD creates fundamental change in the organization, as
opposed to fixing a problem or improving a procedure.
 OD programs generally are facilitated by hired
Objectives of OD
 Deepen the sense of organizational purpose.
 Strengthen interpersonal trust.
 Encourage problem solving rather than
 Develop a satisfying work experience.
 Supplement formal authority with knowledge and
skill-based authority.
 Increase personal responsibility for planning and
 Encourage willingness to change.
OD Change Process….Kurt

Changing or Moving

 Breaking down existing ways of doing things
 Discarding conventional methods & behavioral
 Introduce new methods & behavior
 Education,
 Communication,
 Participation in decision-making, etc.
Changing or Moving
 Move towards proposed change
 New learning
 It is a time of trial & error
 Careful guidance – problems arise – tackled

 New beliefs, attitudes gained, behavior learnt

are implemented
 Manager – Change agent’s role
 Reinforcement
Why Do Employees Resist
 Unannounced significant changes threaten employees’
sense of balance in the workplace.
 Misunderstanding and lack of skills
 Without introductory or remedial training, change may be
perceived negatively.
 Emotional Side Effects
 Forced acceptance of change can create a sense of
powerlessness, anger, and passive resistance to change.
 Lack of Trust
 Promises of improvement mean nothing if employees do
not trust management.
Why Do Employees Resist
 Fear of Failure
 Employees are intimidated by change and doubt
their abilities to meet new challenges.
 Threat to Job Status/Security
 Employees worry that any change may threaten
their job or security.
 Fear of increased responsibility
 Some staff may question whether they will have more
responsibilities and/or accountabilities as a result of a
Overcoming Resistance to
Education and communication
 Participation and involvement
 Facilitation and support
 Negotiation and agreement
 Leadership
Change Agents
 Change Agents
 Persons who act as catalysts and assume the
responsibility for managing the change process.
 Types of Change Agents
 Managers: internal entrepreneurs
 Non-managers: change specialists
 Outside consultants: change implementation
What Can a Manager Do?
 Do not ignore the people side of “change
 The practice of Change Management is a combination of
the methods used by people (usually management teams)
within organizations to ensure organizational transition is
completed efficiently and effectively. It is extremely
important that management teams consider the “people
side” of any organizational change. Too often, managers
look at change management as a technical process, rather
than a human one. This makes sense, since the field of
Change Management is described as the study of
“approaches” or “processes” an organization follows when
moving from its current state to a desired state.
What Can a Manager Do?
 Interpersonal and communication skills
 their interpersonal and communication skills so that they
could help their staff overcome the pains associated with
 Stop thinking of change management as a stand-
alone initiative and start accepting it as an everyday
 Anticipate what and where the resistance will be and
plan for it accordingly.
 All managers need to realize that resistance to change is
normal. Given that change is an ever-present reality in
today’s work place, it is safe to say that resistant behavior
is inevitable in most organizations. Managers need to
identify this behavior and help staff manage it by utilizing
the proper interpersonal and communications skills.
Benefits and significance
 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) The

employees are the recipient of change plan. One such perpetual concern of
senior managers is to make organization highly reliable; therefore employees
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.
Stress and Stress
A dynamic condition in which an individual is
confronted with an opportunity, constraint, or
demand related to what he or she desires and for
which the outcome is perceived to be both
uncertain and important.
Potential Sources of
Environmental Factors
 Economic uncertainties of the business cycle
 Political uncertainties of political systems
 Technological uncertainties of technical innovations
 Terrorism in threats to physical safety and security
 Organizational Factors
 Task demands related to the job
 Role demands of functioning in an organization
 Interpersonal demands created by other employees
 Organizational structure (rules and regulations)
 Organizational leadership (managerial style)
 Organization’s life stage (growth, stability, or decline)
Potential Sources of
 Individual Factors
 Family and personal relationships
 Economic problems from exceeding earning
 Personality problems arising for basic disposition
Managing Stress
 Individual Approaches
 Implementing time management

 Increasing physical exercise

 Relaxation training

 Expanding social support network

 Organizational Approaches
 Improved personnel selection and job placement

 Training

 Use of realistic goal setting

 Redesigning of jobs

 Increased employee involvement

 Improved organizational communication

 Offering employee sabbaticals

 Establishment of corporate wellness programs