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What is Change?

 There is nothing permanent.

 Coping process of moving from a
unsatisfactory present state to a desired
 Making things different.
Why is it Important to Adapt to Change?

 To survive in this competitive world,

Individuals, teams, or organizations
need to adapt change in time.
 Adaptability to change is a necessary

quality of good management.

 It is the need of the hour.
Nature of Change
The environment of every business unit is influenced by
two main factors :
Internal Factors External Factors
Managerial Changes Economic Change
Operational changes Sociological Change
Growth Changes Governmental Change
Plant & Machinery Changes Locational Change
Process & Procedure Changes Technological Change
Design Changes
Planned Change
 Organisational change must be planned well
in advance, or it may come as a quick reaction
 Organisational changes also calls for a change
in individual behaviour of the employees.
 Activities that are intentional, goal oriented
and results from deliberate attempts by
managers to improve organizational


Three Phases of
Planned Change Refreeze
 It refers to making individuals aware that the present
situation is inappropriate, irrelevant, inadequate and
hence unsuitable for the changing demands of the present
 Its actually creating a felt – need for the change.

and making people understand the importance for such a

 This action will minimize the expressed resistance to the

change process.
 During the changing phase the actual change is
 It’s a phase where new learning occurs.
 In this phase, individuals learn to behave in new
ways and start adapting the change.
 In this stage, the change is stabilized by
rewarding appropriate new behaviours.
 Individuals internalise the new belief, feelings
and behaviour learned in the Changing phase.
 It is also important that management provide the
required support for the change.
Steps in the Planned Change
Recognize the need
for change

Diagnose and
plan change

Manage the

Measure results
Maintain change
Initiating the Planned Change
 Recognize the need for change
 Diagnose and plan change
 Formulate Goals
 Determine stakeholders’ needs
 Examine driving and restraining forces
Targets for Organizational Change
 Strategy – Develop new visions, missions,
strategic plans
 Structure – Add a new department or division,
or consolidate two existing ones
 People – Replace a person or change knowledge,
skills, attitudes, or behaviors
 Technology – upgrade a data processing system
 Management –Encourage participation by those
involved in solution of problems
Reasons for Resistance to Change
 Selective Perception  Disliking for the
 Lack of Information Initiator
 Fear of the Unknown  Structural Stability
 Habit
Consequences of a Job Change

 Makes existing skills obsolete

 It threatens to displace him
 It may reduce his career growth and promotional
 It may destroy his public image
 It may increase discipline on the work place
 It may lead to higher production of goods.
Overcoming Resistance to
 Education and Communication
 Participation and Involvement
 Facilitation and Support
 Negotiation and Agreement
 Manipulation and Co-optation
 Promote Positive Attitudes Toward Change
Types of Change
 Structural – Making changes in authority, co-
ordination mechanisms, job redesign
 Cost Cutting
 Process
 Cultural
7 ( 8 ) Steps to Change
 John Kotter, a professor at Harvard Business
School and world-renowned change expert,
introduced his eight-step change process in his
1995 book, "Leading Change."
 We look at his eight steps for leading change
( 8 ) Steps to Change
1) Create Urgency
2) Form a Powerful Coalition or influential
teamwork or people who can convince.
3) Create a Vision for Change
4) Communicate the Vision
5) Remove Obstacles
6) Create Short-term Wins
7) Build on the Change – Analyse what went
right, what went wrong, how u can improve
further etc.
8) Anchor the Changes in Corporate Culture