CHANGE

MANAGEMENT
Change
Change && Change
Change Management.
Management.

• Adoption of a new idea or behavior by an

organization.
– Organizations need to continuously adapt to
new situations if they are to survive and
prosper
– Constant change keeps organizations agile
– Indicative of “learning” organizations
 Shifting
Demographics
World
Technology
Politics
Forces For
Change
Economic
Globalization
Shocks
Competition
 Technology
• Introduction of computers, cell phones are
now considered as necessitiy
• E.g., music industry facing the challenge
of online music sharing
• Deciphering of genetic code offers
potential for pharmaceutical companies to
produce drugs designed for specific
individuals
 Competition
Competition
• Global economy
• Mergers and consolidations
• Growth of e-commerce
 Social
Social Trends
Trends
• Popularity of internet
• Increase in no. of women in workforce
• Consumer preferences changing
• Brand awareness has increased
• Rise in discounts
 Nature of workforce
workforce
• More cultural diversity
• Educational level
• New entrants with knowledge and skills
TYPES OF CHANGES
Types
Types of
of Changes:
Changes:
1)
1) Planned
Planned
2)
2) Accidental
Accidental
Organizational
Change

Planned
PlannedChanges
Changes Accidental
AccidentalChanges
Changes
•• Changes
Changesin inproducts
productsand
and •• Changing
Changingemployee
employee
services
services demographics
demographics
•• Changes
Changesin inadministrative
administrative •• Performance
Performancegaps
gaps
systems
systems •• Governmental
Governmentalregulations
regulations
•• Changes
Changesin inorganizational
organizational •• Economic
Economiccompetition
competitionin
inthe
the
size
sizeor
orstructure
structure global
globalarena
arena
•• Introduction
Introductionofofnew
new
technologies
technologies
•• Advances
Advancesin ininformation
information
processing
processingandand
communication
communication
Planned change
Change activities that are intentional and
goal oriented

• First order change

Linear and continuous, no major shifts
(small QIPs)
• Second order change
Multidimensional, multilevel, discontinuous
and radical (e.g., drastic cutting down of
cost/ inventory level)
Planned change can also be classified as:

Operational Change
based on efforts to improve basic work and
organizational processes

Transformational Change
involves redesign and renewal of the total
organization
 Continuous Change

• Minor changes made in strategies, structures, people

and processes

• Include refining policies, procedures; improving

selection, training and appraisal procedures, introducing
new machinery
 Discontinuous changes

• Discontinuous changes occur due to critical

environmental changes:
e.g.,
- Product life cycle shifts
- Internal company dynamics
 CHANGE IMPLEMENTATION
APPROACHES

• PARTICIPATIVE APPROACH

• DIRECTIVE APPROACH
 PARTICIPATIVE APPROACH

Rationale-
• Information, better ideas

• Reduces resistance to change

• Involvement increases stake and hence

reduces opposition
 DIRECTIVE APPROACH
APPROACH

Rationale-
• Discontinuous change needs to be
implemented swiftly; participation
consumes time , may lead to consolidation
of resistance

• E.g., downsizing, delayering, re-structuring

• A mix of two approaches essential

• Two issues central to choosing the mix:

1. need for better information and ideas
2. managing resistance to change
 Lewin’s Three-Step Process
• The first step, “unfreeze” involves the
process of letting go of certain restricting
attitudes
• The second step, "change" involves
alteration of self-conceptions and ways of
thinking during the experience.
• The third step, "refreeze" involves
solidifying or crystallizing the changes into
a new, permanent form for the individual
 Resistance
Resistance to
to Change
Change
Resistance may be-
• Overt
• Implicit
• Immediate
• Deferred
• Resistance may be at Individual level
or/and organisational level
 Individual
Individual resistance
resistance
• Habit
• Security
• Economic factors
• Fear of the unknown
• Selective information processing
 Organisational resistance
• Structural Inertia
• Limited focus of change
• Group inertia
• Threat to expertise
• Threat to established power relationships
• Threat to established resource allocations
Overcoming Resistance to
Change
 Tactics
Tactics for
for Overcoming
Overcoming Resistance
Resistance to
to
Change
Change
• Education and Communication
• Participation
• Facilitation and Support
• Negotiation
• Manipulation and Cooptation
• Coercion
Education

• Teach people about the need for change

and how embracing change is a far more
effective life strategy than staying where
they are or resisting.
• Teach people the methods of change,
about how to be logical and creative in
improving processes and organizations.
Coaching
• When you have individual people who are
having difficulty in managing to adapt to
change, be a Coach to them.
• Coaching helps explore deeper
motivations and beliefs about other
people, and find practical ways to change
these.
Facilitation
• Use skilled facilitators (HR) to support
change activities.
• Facilitators can be used to guide various
group events, from brainstorming and
planning to improvement projects and
change activities.
• Facilitators can also act as team coaches,
helping people to improve within
themselves and work together in better
ways.
Involvement
• Get them involved in the change.
• Invite them to participate in discussions.
• Give them things to do.
• When people are a part of something, they
bond with it, making it a part of their
identity.