Understanding Change Management

• The unit provides knowledge on the definition of Change Management.
• Knowledge regarding the impact of change on Business and the Human Resource Management Function is also provided.
• This unit provides insight on challenges in Change Management.
• Knowledge on aligning Human Resource Management initiatives is provided.
• This is to facilitate achieving success in the wake of change and strategic alignment.

Learning Outcomes

• Understand the meaning of Change Management.
• Understand change as a constant intervention in the affairs of people, business, and the world.
• Understand the constant cycle of change
• Understand the challenges of Change Management
• Understand the new Human Resource Management initiatives to strategically align with global change.

Assessment Modes

• Written closed examination
• Project Report

Guided Learning Hours

• The guided learning hours for this unit are 06, with an additional 40 hours of self-managed learning.

Definition of Change Management

• Change is often referred to as the only unchanging thing in an organization.
• "Change" refers to the idea of constant differences in and around an organization.
• Constant differences arise for various reasons, including internal changes such as employee perceptions.
• Requirements for change in the production process can also cause change.
• External factors, like customer preferences or new technology, also matter.
• Change Management is the process of managing these situations.
• Change Management is "the process of achieving the smooth implementation of change by planning and introducing it systematically, taking into account the likelihood of it being resisted."

Importance of Managing Change

• Changes in internal and external environments happen continuously.
• Organizations should be responsive to changes in the environment by changing themselves.
• People in the value chain of organizations often resist these changes.
• Organizations must handle change systematically through a robust system.

Types of Changes

• Strategic Change: Moving from the current state to a desired future state to gain a competitive advantage.
• Strategic Change involves aligning organizational strategy with structure and human resources.
• Implements new and substantive changes beyond operational matters.
• Operational Change: Changes pertaining to the routine operation of the organization.
• Examples of operational change include implementing new systems, changes to policies, and processes.
• Transformational Change: More fundamental and comprehensive in nature, often resulting in a different way the organization functions.
• This can also be recognized as a shift in organizational culture.

Process of Change

• The change process starts with the indication of a need for a change.
• An origination can analyze such indications and the factors influencing the indications.
• Design the high-level direction of the change, then move from the current state to a desired state.
• Managing change can assist an organization to overcome change-related problems.
• Examples of change-related programs are resistance, conflict and stability.

Kotter's Model

• John P. Kotter explained his own model of change Management with a structured 8 steps.
• Step 1: Establishing a sense of urgency, including examining the market and competitive realities.
• Step 2: Creating the guiding coalition, putting together a group with enough power to lead the change and to work together like a team.
• Step 3: Developing a vision and strategy, creating a vision to help direct the change effort.
• Also developing strategies for achieving that vision.
• Step 4: Communicating the change vision by using every vehicle possible to keep communicating the new vision and strategies.
• The guiding coalition role models the behavior expected of employees.
• Step 5: Empowering broad-based action by getting rid of obstacles.
• Changing systems or structures that undermine the change vision and encouraging risk taking and non-traditional ideas, activities, and actions.
• Step 6: Generating short-term wins, planning for visible improvements in performance, or “wins”.
• Creating those wins and visibly recognizing and rewarding people who made the wins possible.
• Step 7: Consolidating gains and producing more change, using increased creditability to change systems, structures, and policies that don't fit with the transformation vision.
• Hiring, promoting, and developing people who can implement the change vision.
• Step 8: Anchoring new approach in the culture, by creating better performance through customer and product-oriented behavior, more and better leadership, and more effective management.

Lewin Model

• Kurt Lewin introduced a model that has three main elements
• The three stages are:
• Unfreezing.
• Passaging.
• Refreezing.
• In the unfreezing stage, an organization will prepare for the change impending.
• This is done by understanding the criticality of the change.
• Once unfrozen the organization can move ahead with the intended change to the desired state.
• Once the change is done, an organization has to be stabilized in such a way that personalities will have redefined responses to the effects of change.
• The process is called re-freezing.

Other Change Management Models

• Michael Beer Model - 1990
• The Beckhard--Harris change mode -1977
• Keith Thurley Model – 1979

Approaches to Manage Change

• Managing Change through Power refers to the ability that change managers have to persuade or restrain an unwilling person by force.
• Managing Change through Reason uses information to enable all stakeholders to make informed and rationale choices
• Managing Change through Re-education depends on re-education to improve the functioning of the organization

Impact of Change on People, Business and the World

• Changes result in positive outcomes in the people, organizations and ultimately the world.
• Provide opportunity to be current and up to date:
• Intended change is to be on par with the competition or help a business stay current with industry trends.
• Enable the organization to be more attractive to potential customers.
• Assists in retaining existing customers who are contemplating a shift.
• Create opportunities of growth
• The capacity to accept change will benefit employees in a business with providing them with new opportunities.
• Encouraging innovation within the business An atmosphere that promotes creativity can be fostered.
• This can allow companies to be experienced in managing, or even welcoming change.
• Increased efficiency in the business processes I.e The pace at which a client receives goods can be improved by new distribution process.
• Improved motivation attitudes and morale A change of culture or staff in a company can have a positive impact on the attitudes and morale of employees.

Challenges in Change Management

• People resisting change is often a problem in change, and is considered as inadvisable.

Four types of resistance to change

• Parochial Self-Interest: Fear of loss, such as loss of power, freedom to make decisions, prestige, etc.
• Misunderstanding and Lack of Trust: Not understanding the reasons or the method of change can be a sure cause of resistance in a change situation.
• Different Assessments: Affected employees will have a different assessment of the need of changes and its consequences.
• Low Tolerance for Change: Employees may believe they will not be suitable to the changes and believe they will fail to perform.

Reducing Resistance

• Understanding and envisaging the type of resistance is important at the beginning of Change programs.
• Initialing a robust communication plan to educate the people involved in the change.
• Involve people who resist change in the change program planning.
• Provide ample support with the change.
• Bring in people who support the change to persuade the people in resistant people.

Strategic HR Alignment with Change Management

• HR is responsible for many aspects of the organizational change management process.
• Should support the organizational change, manage the change effort, and help other departments/employees.

Organisational HRM Challenges in Managing Change

• Recognizing the correct role of HR in Change management is important.
• The organization should have the correct resources to run the Change Programme.
• Plan to face dissatisfaction, closed-mindedness, and denial.
• The change management project team is to be well trained and prepared.
• Recognize the successful change and reward the people.
• HR teams can be change agents to lead the change.

HR as Change Agents: Defined Four Dimensions

• Transformational change: A major change that has a dramatic effect on HR policy and practice across the whole organization.
• Incremental change: Gradual adjustments to HR policy and practices that affect single activities or multiple functions.
• HR vision: A set of values and beliefs that affirm the legitimacy of the HR function as a strategic business partner.
• HR expertise: Knowledge and skills that define the unique contribution the HR professional can make to effective people management.

Delivering Positive Results Amidst Constant Change

• Prioritize change activities that are the primary concern.
• Understand and communicate how a transition is both a beginning and something previously accepted.
• Teach employees how to handle tension, develop resilience, and use coping skills.
• Concentrate on a high psychological safety culture where individuals express their realities.