Change Management QHPE 610 PDF

Change Management QHPE 610 Innovation in Curriculum Plan and Design Overview This section will focus on the following topics: Forces for change Resistance to change Approaches for managing organizational change Creating a culture for change 2 Learnin...

Change Management QHPE 610 Innovation in Curriculum Plan and Design Overview This section will focus on the following topics: Forces for change Resistance to change Approaches for managing organizational change Creating a culture for change 2 Learning Objectives Contrast the forces responsible for change and planned change. Describe the ways to overcome resistance to change. Compare the four main approaches to managing organizational change. Demonstrate the three ways to create a culture for change. 3 What are the Forces that Stimulate Change? Forces for change Many forces can create change in a workplace, including: Nature of the workforce Technology Economic shocks Competition Social trends World Politics 4 Some examples based on forces 5 Change is not popular If organizations do not successfully change and innovate, they die. However, change is not easy. Quote ‘The only person who likes change is a baby with a wet diaper.’ - Mark Twain 6 Reactionary vs. 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: Improve the ability of the organization to adapt to changes in its environment. Change employee behaviour. ‘Change agents’ are those responsible for managing change activities. 7 Four types of Change 8 Resistance to Change People tend to resist change, even in the face of evidence of its benefits. However, resistance to change can be positive if it leads to open discussion and debate. Remember, not all change is good. Change agents need to carefully think through the implications. 9 Sources of resistance to change There are five individual sources of resistance: Habit Security Economic factors Fear of the unknown Selective information processing 10 Sources of resistance to change (Cont.) There are also five major sources of organizational resistance: Structural inertia Limited focus on change Group inertia Threat to expertise Threat to established power relationships and resource allocations 11 Overcoming resistance to change Eight tactics can help change agents deal with resistance to change: Communication Participation Building support and commitment Developing positive relationships Implementing changes fairly Manipulation and co-optation Selecting people who accept change Coercion 12 Techniques for resistance to change 13 The Politics of change Change threatens the status quo, making it an inherently political activity. Politics suggest the impetus for change is more likely to come from: External change agents Employees new to the organization, who have invested less in the status quo Managers slightly removed from the main power structure 14 Approaches to Manage Organisational Change There are four main approaches to managing organizational change: Lewin’s Three-Step Model of Change Kotter’s Eight-Step Model of the Change Process Action Research Organizational Development 15 Lewin’s Three-Step Model of Change Kurt Lewin argued that successful change in organisations should follow three steps: Unfreezing the status quo Movement to the desired end state Refreezing the new change to make it permanent 16 Unfreezing the Status Quo 17 Kotter’s Eight-Step Plan for Implementing Change The eight steps are: Unfreezing 1. Create urgency 2. Form coalition 3. Create a new vision 4. Communicate the vision Movement 5. Empower others 6. Reward ‘wins’ 7. Consolidate improvements Refreezing 8. Reinforce the change 18 Action Research ‘Action research’ is a change process based on the systematic collection of data and selection of a change action based on what the analysed data indicate. The process consists of five steps: Diagnosis Analysis Feedback Action Evaluation It provides at least two specific benefits: Problem-focussed Reduces resistance to change 19 Organisational Development ‘Organisational development (OD)’ is a collection of change methods that focus on people and the nature and quality of interpersonal work relationships. OD methods value human and organisational growth, collaborative and participative processes, and a spirit of enquiry. It focuses on how individuals make sense of their work environment. 20 Popular OD Techniques 21 Creating a Culture for Change Three ways of creating a culture for change: Managing a paradox Stimulating an innovative culture Creating a learning organisation 22 Managing a paradox There is a constant process of finding a balancing point, a dynamic equilibrium among shifting priorities over time. Several key paradoxes have been identified: Learning Organizing Performing Belonging Paradox theory states that the key paradox in management is that there is no final optimal status for an organisation. 23 Stimulating an innovative culture Innovation, a more specialised change, is a new idea applied to initiating or improving a product, process, or service. Innovations can range from small incremental improvements to radical breakthroughs. Sources of innovation include: Organic structure Long tenure in management Slack resources High inter-unit communication 24 Stimulating an innovative culture (Cont.1) Innovative organisations tend to have similar cultures: They encourage experimentation. They reward both successes and failures. They celebrate mistakes. Managers in innovative organisations recognise that failures are the natural by-products of venturing into the unknown. 25 Stimulating an innovative culture (Cont.2) Within the human resources category, innovative organizations: Actively promote the training and development of their members, so they stay current. Offer high job security, so employees don’t fear getting fired for making mistakes. Encourage individuals to become champions of change. 26 Stimulating an innovative culture (Cont.3) Once a new idea is developed, the idea champions actively, enthusiastically promote it, builds support, and overcome resistance, and it is ensured that the idea is implemented. Champions with ideas have common characteristics: Have high self-confidence, persistence, energy, and acceptance of risk Use inspiration and vision to gain commitment Have decision-making discretion 27 Creating a learning organisation ‘Learning organization’ is an organization that has developed the continuous capacity to adapt and change. What can managers do to make their firms learning organizations? Establish a strategy Redesign the organization’s structure Reshape the organization’s culture 28 Characteristics of a learning organisation: There exists a shared vision that everyone agrees on. People discard their old ways of thinking and the standard routines they use for solving problems or doing their jobs. Members think of all organizational processes, activities, functions, and interactions with the environment as part of a system of inter-relationships. People openly communicate with each other (across vertical and horizontal boundaries) without fear of criticism or punishment. People sublimate their personal self-interest and fragmented departmental interests to work together to achieve the organization’s shared vision. 29 Changing Culture Strategies to manage cultural change: Set the tone through management behaviour; top managers particularly need to be positive role models. Create new stories, symbols, and rituals to replace those currently in use. Select, promote, and support employees who adopt the new values. Redesign socialization processes to align with the new values. To encourage acceptance of the new values, change the reward system. Replace unwritten norms with clearly specified expectations. Shake up current subcultures through job transfers, job rotation, and terminations. Work to get consensus through employee participation and create a climate with a high level of trust. 30 References Daft, R. L. (2017). The leadership experience (7th ed.). Cengage Learning. Kendrick, M., Vershinina N., Daft, R. L., & Benson, A. (2016). Management. Cengage Learning. Robbins, S. P., Coulter, M., Martocchio, J. J., & Long, L. K. (2017). Management, global edition. Pearson Education. Robbins, S. P., De Cenzo, D. A., & Coulter, M. (2016). Fundamentals of management: Management myths debunked!, plus MyManagementLab with Pearson etext, global edition (10th ed.). Pearson Education. Robbins, S. P., & Judge, T. A. (2016). Organizational behavior, global edition (18th ed.). Pearson Education. Robbins, S. P., & Judge, T. A. (2017). Essentials of organizational behavior (14th ed.). Pearson Education. 31 Credits The following faculty is attributed with the slides and ideas of this session: Dr. Mohammed Hamza Z. E. Seed Ahmed 32