Change Management

OVERVIEW
• Organizations need to be able to adapt to
different market conditions and customer needs
—and it seems as though those kinds of
changes are happening every day.
• Organizations don’t have to change—people
have to change. And that’s what change
management is all about.
• Managers at an organization need to recognize
problems as they occur and adjust their
processes accordingly to solve for them.
 What Is Change?
• Organizational Change
 Any alterations in the people, structure, or technology of
an organization
 Any event or program the enterprise undertakes that
causes major disruption to daily operations
• Characteristics of Change
 Is constant yet varies in degree and direction
 Produces uncertainty yet is not completely unpredictable
 Creates both threats and opportunities
• Managing change is an integral part
of every manager’s job.
The art of progress is to preserve order amid
change and to preserve change amid order.

—Alfred North Whitehead

Exhibit 13–2 Three Categories of Change
Contrast Planned and Unplanned Change

• Planned Change
 Change involves making something different.
 When change is an intentional, goal-oriented activity
it is planned change.

 There are two goals of planned change:

 Improvethe ability of the organization to adapt to
changes in its environment.
 Change employee behavior.
 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
 Nonmanagers: change specialists
 Outside consultants: change implementation experts
Forces for Change
• External Forces • Internal Forces
 Marketplace  Changes in
 Governmental laws organizational
and regulations strategy

 Technology  Workforce changes

 Employee attitudes
 Labor market
 Economic changes
 Approaches to Managing
Organizational Change
• Approaches to managing change:
1. Lewin’s Three-Step Model (Exhibit 18-3)
2. Action Research
3. Organizational Development
Lewin’s Three-Step Change Model

Unfreezing
Change efforts to overcome
the pressures of both
individual resistance and
group conformity.
Refreezing
Stabilizing a change
intervention by balancing
driving and restraining forces.

Driving Forces Restraining Forces

Forces that direct behavior Forces that hinder movement
away from the status quo. from the existing equilibrium.
 Change Process Viewpoints

• The Calm Waters Metaphor

Lewin’s description of the change process as
a break in the organization’s equilibrium state
Unfreezing the status quo
Changing to a new state
Refreezing to make the change permanent
Exhibit 13–1 The Change Process
Cont’d..
Action Research

Action Research
A change process based on systematic collection of
data and then selection of a change action based on
what the analyzed data indicate.

Process
ProcessSteps:
Steps: Action
Actionresearch
researchbenefits:
benefits:
1.1. Diagnosis Problem-focused
Diagnosis Problem-focusedrather
rather
2.2. Analysis than
Analysis thansolution-centered.
solution-centered.
3.3. Feedback
Feedback Heavy
Heavyemployee
employee
4.4. Action involvement
Action involvementreduces
reduces
5.5. Evaluation resistance
Evaluation resistancetotochange.
change.
Organizational Development

Organizational Development (OD)

A collection of planned interventions, built on
humanistic-democratic values, that seeks to improve
organizational effectiveness and employee well-being.

OD
ODValues:
Values:
1.1. Respect
Respectfor
forpeople
people
2.2. Trust
Trustand
andsupport
support
3.3. Power
Powerequalization
equalization
4.4. Confrontation
Confrontation
5.5. Participation
Participation
Managing Resistance to Change
• Why People Resist Change?
 The ambiguity and uncertainty that change introduces
 The comfort of old habits
 A concern over personal loss of status, money,
authority, friendships, and personal convenience
 The perception that change is incompatible with the
goals and interest of the organization
Sources of Individual Resistance to
Change
Sources of Organizational Resistance
to Change
Overcoming Resistance to Change

Tactics
Tacticsfor
fordealing
dealingwith
withresistance
resistanceto
to
change:
change:
•• Education
Educationand
andcommunication
communication
•• Participation
Participation
•• Facilitation
Facilitationand
andsupport
support
•• Negotiation
Negotiation
•• Manipulation
Manipulationand
andcooptation
cooptation
•• Coercion
Coercion
Issues in Managing Change (cont’d)
• Changing Organizational Cultures
 Cultures are naturally resistant to change.
 Conditions that facilitate cultural change:
 The occurrence of a dramatic crisis
 Leadership changing hands
 A young, flexible, and small organization
 A weak organizational culture
Issues in Managing Change (cont’d)
• Handling Employee Stress
 Stress
 The adverse reaction people have to excessive pressure
placed on them from extraordinary demands, constraints, or
opportunities.
 Functional Stress
– Stress that has a positive effect on performance.
 How Potential Stress Becomes Actual Stress
 When there is uncertainty over the outcome.
 When the outcome is important.
Issues in Managing Change (cont’d)
• Making Change Happen Successfully
 Embrace change—become a change-capable
organization.
 Create a simple, compelling message explaining why
change is necessary.
 Communicate constantly and honestly.
 Foster as much employee participation as possible—
get all employees committed.
 Encourage employees to be flexible.
 Remove those who resist and cannot be changed.
https://www.youtube.com/watch?v=k69i_yAhE
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