WEEK 12.pptx

MEANING OF CHANGE MANAGEMENT THE CONCEPT AND IMPORTANCE OF CHANGE MANAGEMENT CONCEPT AND IMPORTANCE OF CHANGE MANAGEMENT To achieve the optimal result through change management, it is critical that members in an organisation collaborate in order to maximize their capacity. I...

MEANING OF CHANGE MANAGEMENT THE CONCEPT AND IMPORTANCE OF CHANGE MANAGEMENT CONCEPT AND IMPORTANCE OF CHANGE MANAGEMENT To achieve the optimal result through change management, it is critical that members in an organisation collaborate in order to maximize their capacity. Indeed, employees from management level to entry- level should all have one voice based on the business vision and goal. However this is always challenging because of the various types of people who work in the organisation. CONCEPT AND IMPORTANCE OF CHANGE MANAGEMENT cont’d In this way, the role of the ‘change manager’ is to control the people in the organisation. No matter how good a leader is, it is likely that change will not succeed without strong sponsorship and partnership. Change occurs through collaborative and interactive relationship between two or more. PERSPECTIVES TO CHANGE MANAGEMENT Different people have defined change in varied ways. According to Oxford English Dictionary change can be defined in many ways: make or become different, move from one to another or move from one situation or system to another. Manage, on the other hand is defined as: be in charge of, supervise/administer/regulate and succeed despite difficulties PERSPECTIVES TO CHANGE MANAGEMENT cont’d Change management is a systematic activity to prepare an organisation for and implement ongoing environmental changes in a business operation. Also change management can be said to be innovative strategies and speedy activities to deal with variable and sudden changes. The aim is to effectively implement new methods and systems in an ongoing organisation. PERSPECTIVES TO CHANGE MANAGEMENT cont’d Change management is a comprehensive, cyclic, and structured approach for transitioning individuals, groups, and organisations from a current state to a future state with intended business benefits. FEATURES OF CHANGE MANAGEMENT Comprehensive: good change management must look at the organisation's people, culture, processes, infrastructure, and technology Cyclic: managing change well often requires reviewing outcomes Structured: Transition: change does not usually happen all at once Current State: the current state is where the process begins Future State: This is where the organisation strives to be IMPORTANCE OF CHANGE MANAGEMNT Effective change management supports a smooth transition from the old to the new while maintaining morale, productivity, and even company image. Provides management and staff support for concerns regarding changes Helps to plan efficient communication strategies IMPORTANCE OF CHANGE MANAGEMNT cont’d An efficient change management process creates the correct perception of the change for staff and public Improves morale, productivity and quality Improves cooperation, collaboration and communication METHODOLOGIES OF CHANGE MANAGEMENT Executive leaders and HR professionals must be great communicators during change. They should roll out a clear, universal, consistent message to everyone in the organisation at the same time, even across multiple sites and locations. To avoid communication breakdowns, change leaders and HR professionals should be aware of five change communication methodologies. METHODOLOGIES OF CHANGE MANAGEMENT cont’d Spray and pray. Managers shower employees with information, hoping they can sort significant from insignificant. Tell and sell. Managers communicate a more limited set of messages, starting with key issues, and then sell employees on the wisdom of their approach. METHODOLOGIES OF CHANGE MANAGEMENT cont’d Underscore and explore. Managers develop a few core messages clearly linked to organisational success, and employees explore implications in a disciplined way. Identify and reply. Executives identify and reply to key employee concerns. Withhold and uphold. Executives withhold information until necessary; when confronted by rumours, they uphold the party line. PITFALLS IN CHANGE MANAGEMENT  The wrong messengers are used. Studies have found that employees tend to trust information from managers..  The change is too sudden. Leaders and managers need to prepare employees for change.  Communication is not aligned with business realities. Messages should be honest and include the reasons behind the change and the projected outcomes.  Communication is too narrow. OTHER OBSTACLES THAT MAY CAUSE BREAKDOWN OF CHANGE Insufficient time devoted to training about the change. Staff turnover during the transition. Excessive change costs. An unrealistic change implementation timeline. Insufficient employee participation in voluntary training. Software/hardware malfunctions. Downturn in the market or the economy. CATEGORIES OF CHANGE Planned Change: This represents an intentional attempt to improve the operational effectiveness of the organisation in which activities take place. This is also a change necessitated by the need to respond to new challenges or opportunities presented by the external environment of the organisation. Example, intended government legislation, a new product development by a major competitor or future technological advancement. CATEGORIES OF CHANGE cont’d Reactive Change This is a piecemeal response to events as they occur. Hence; reactive change comes about as a reaction to unexpected event. Because reactive change may be hurried, it may sometimes be ill conceived and poorly executed. REASONS FOR CHANGE MANAGEMENT External reasons Increase demand for quality and high levels of customer service and satisfaction Changing nature and composition of the workforce Uncertain economic conditions Globalisation The level of government intervention Scarcity of natural resources Rapid developments in new technology REASONS FOR CHANGE MANAGEMENT cont’d Internal reasons Much of this change is part of a natural process of aging. For example, material resources such as machinery deteriorating or lose of efficiency, wearing of buildings and equipment, human resources get older or competencies (Skills, Knowledge and Abilities) become outdated. MEANING OF ORGANIZATIONAL CHANGE The concept of organizational change typically means a change that affects the whole organization. This does not represent small changes like recruiting a new manager or modifying a program But rather a massive transformation like change in the mission statement, restructuring the operations or adding a new technology that would affect majority of the employees of the organization. MEANING OF ORGANIZATIONAL CHANGE cont’d Organisational change focuses on the way in which the organisation is structured, the behaviour of employees, or the technology that is used in getting the work done. Hence, change is an alteration of an organisation’s environment, structure, technology or people. In order words, organisational change is a substantive modification to some part of the organisation. AREAS OF ORGANIZATIOANL CHANGE Changing structure and design Organization change usually focuses on some major aspect of the organization’s structure or on the overall design of the organization. Hence, the organisation might change the way jobs are designed, the bases of departmentalization, reporting relationships and distribution of authority. Also, the organisation may change any part of its human resource management system, such as its selection and recruitment criteria, performance appraisal methods, or reward packages AREAS OF ORGANIZATIOANL CHANGE cont’d Changing technology and operations Organisations transform input into output using the conversion process called technology. Due to the rapid rate of technology breakthrough or innovation, technological changes have become very important to many organisations. One major area of technological change is information technology AREAS OF ORGANIZATIOANL CHANGE cont’d Changing technology and operations Equipment constitutes another important area of technological change. Firms periodically need to replace existing machinery and equipment in order to cope with modern technology if they are to keep pace with the competition AREAS OF ORGANIZATIOANL CHANGE cont’d Changing people Human resource management system is the third area of organisational change. The skills level of an organisation’s workforce, for example, may necessitate change in an organisation. This may come about as a result of changes in the technology or desire to upgrade the quality of the workforce. Hence, a new recruitment and selection criteria, as well as training and development programmes might be needed. AREAS OF ORGANIZATIOANL CHANGE cont’d Another area of changing people is to focus on employees’ perceptions and expectations. Employees may believe that their compensation package is not at the level it should be. Change may also focus on employee attitude and values. In recent years organisations have adopted a more collaborative relationship in their dealings with organisational members. REASONS ORGANISATIONAL CHANGE IS PROBLEMATIC TO ACCOMPLISH Resistance to the change from employees. Poor support and alignment with middle management. Lack of change management resources and planning. Ineffective change sponsorship from senior leaders. CHANGE MANAGEMENT PROCESS/LIFE CYCLE Formulate change Define the purpose and the objective of the change. Clarify the success factors. Define the scope: Who is concerned, for how long, when? Assess readiness to change by consulting senior managers CHANGE MANAGEMENT PROCESS/LIFE CYCLE cont’d Plan the change Plan everything in detail. Work should be broken down into standard tasks. Should be done by experts or people with experience. Identify what training is necessary; who should be trained to do what. Plan communication, human resources management, and risks as it should be planned in a project or program. Ensure that communication is handled. CHANGE MANAGEMENT PROCESS/LIFE CYCLE cont’d Implement change Communicate the vision, the mission and the strategy as clearly as possible. Communicate individual plans to every stakeholder so that each of them knows what they have to do. Train: In a military structure organisation, employees should know how to do their tasks; managers should be able to explain to their team how they can improve the way they work. CHANGE MANAGEMENT PROCESS/LIFE CYCLE cont’d Manage transition Have management supporting stakeholders toward the future state. Measure adoption rate. Reinforce communication Sustain change No specific action is required except to measure benefits realised PRINCIPLES OF CHANGE MANAGEMENT Principle I: Senders and receivers Every change has two perspectives: the perspective of a sender who is providing information about the change and the perspective of a receiver who is being given information about the change. Often senders and receivers are not in the same line of communication at the onset of change. As a result confusion, resentment and resistance increase which disrupts and hurts the change process. PRINCIPLES OF CHANGE MANAGEMENT cont’d Typically immediate supervisors and company executives are likely to be the key senders in such situations; Sometimes it so happen that the employees hear the whole message but take in only part of it especially applies to their personal situation. To avoid this, managers should not only convey what they have to say but also listen to employees and understand how the communicated message has been received at the other end. PRINCIPLES OF CHANGE MANAGEMENT cont’d Principle II: Resistance and comfort Change management practitioners should always expect and be prepared for resistance. Various reasons motivate individuals to resist change their; personal history, their present living situation, fear of the future, uncertainty of success and other changes in life. Thus a good change management plan will include a program to proactively manage resistance. PRINCIPLES OF CHANGE MANAGEMENT cont’d Principle III: Authority for change As a change initiator, one should be aware of the fact that effective leadership at the right level can determine the success or failure of the change process. Employees judge the credibility of the sponsorship before they engage themselves in the change process. From the perspective of his peers, he has to invoke the desire for change and create a positive background conversation. PRINCIPLES OF CHANGE MANAGEMENT cont’d Principle IV: Value systems The values of control, consistency and predictability create an environment where change is simply a plan to implement or an adjustment to a mechanical system. In such cases decision is made at the top and the employees have to abide by it. They do not have a say in the whole process nor the required business knowledge. They also feel empowered to make decisions and are encouraged to focus on results that would benefit the business PRINCIPLES OF CHANGE MANAGEMENT cont’d Principle V: Incremental verses Radical Change Depending on the type and size of an organizational change can be broken down into two types; incremental change and radical change. In the case of incremental change, a change will take place for a long period of time. These types of change are normally not driven by financial crisis or immediate demand for improvement. Examples of these kinds of change include Six Sigma or continuous quality improvement methods like TQM. PRINCIPLES OF CHANGE MANAGEMENT cont’d Principle VI: The right answer is not enough Managers often assume that if they are able to provide the right or correct answer to a business problem, it will be sufficient to overcome employee resistance. Unfortunately, change leaders who take this approach and force their solutions onto employees increase the chances of failure of the change they desire. PRINCIPLES OF CHANGE MANAGEMENT cont’d Even the best solutions require proper change management since employees will not simply go for it because it is good. They need to be explained why it is necessary and what impact it will have on their lives. END OF LECTURE