MGMT 4010 Leadership and Change Management CLO1 Introduction to Change Mgmt PDF

MGMT 4010 Leadership and Change Management CLO 1 Introduction to Change Management 2 Learning Objectives Describe the general characteristics of organizations Identify types of change Analyze resistance to change Analyze how change happens Identify impact of change on organization and employees Iden...

MGMT 4010 Leadership and Change Management CLO 1 Introduction to Change Management 2 Learning Objectives Describe the general characteristics of organizations Identify types of change Analyze resistance to change Analyze how change happens Identify impact of change on organization and employees Identify why organizational change fails. 3 4 What is an organization? A group of people who work together in an organized way for a shared purpose Cambridge Dictionary An organization is a group of two or more individuals and the coordinated allocation of resources around a common goal or objective. The Business Professor 5 Characteristics of an Organization People Purpose Structure 6 Let’s watch the video https://www.youtube.com/watch?v=__IlYNMdV9E 7 What is Change Management? Change management is an enabling framework for managing the people side of change. For changes to be successful, management must prepare, equip and support individuals moving through changes so that they successfully adopt the changes. Without adoption, changes will not be successful and the organization will not deliver the desired outcomes. 8 Common types of change 9 10 MGMT4010 - CLO1 (MD, Fall 2022) 11 Strategic Change Definition: Strategic change involves modifying the overall goals, operations, products, or services of an organization to meet new challenges or opportunities. It is often driven by external factors like market trends or internal decisions for long-term growth. 12 Strategic Change Leadership Implications: Visionary leadership is crucial to articulate the new direction. Leaders must engage in strategic thinking and planning. Effective communication to align the organization with the new strategy. 13 Strategic change Change alters the overall shape or direction of the organization. They results from senior management. Examples: Goal to become more employee-centered, so introduce training on new policies and performance review techniques to ensure a more consistent management styles across the company. Change from petrol-run cars to electric car production. 14 Strategic Transformational Change Big changes which transform organizations Updating mission, vision, or values Introducing new technology Employee training & development for new skills 15 People-Centric Change Definition: People-centric change focuses on altering the attitudes, skills, behaviors, and culture within the organization. It aims to improve employee engagement, satisfaction, and performance. 16 People-Centric Change Leadership Implications: Leaders must be empathetic and understand employee perspectives. Strong interpersonal skills are needed to manage resistance and foster acceptance. Continuous communication and involvement are key to successful implementation. 17 People-centric Organizational Change Examples: 1. New Hires 2. Changes to roles & responsibilities 3. Employee T&D for new skills 18 Structural Change Definition: Structural change involves modifying the organizational hierarchy, roles, responsibilities, and processes to improve efficiency and adaptability. It can include reorganization, mergers, or acquisitions. 19 Structural Change Leadership Implications: Leaders must carefully plan and communicate the reasons and benefits of the change. They need to manage the uncertainty and anxiety that often accompany structural adjustments. Strong leadership is required to realign the workforce and maintain productivity. 20 Structural Change Changes to Organizational Chart Mergers & Acquisitions Creation of New Teams or Departments 21 Technological Change Definition: Technological change is the adoption of new technologies to improve processes, products, or services. It is often driven by the need to increase efficiency, competitiveness, or innovation. 22 Technological Change Leadership Implications: Leaders must be open to innovation and understand technological trends. They need to invest in training and support for employees. Effective change management strategies are essential to integrate technology smoothly. 23 Unplanned Change Definition: Unplanned change occurs unexpectedly, often due to external crises or sudden market shifts. It is often a response to unexpected events or crises, such as economic downturns, natural disasters, or sudden market shifts. These changes are reactive and require quick adaptation, often without the luxury of thorough planning. 24 Unplanned Change Leadership Implications: Leaders must be agile and resilient to navigate through uncertainty. Strong crisis management skills are essential. Clear communication and decisive action are crucial to stabilize the organization. Planned Change Planned change refers to intentional, premeditated changes made by an organization. These changes are often strategic, aimed at achieving specific goals. They are typically well-structured, with clear objectives, timelines, and resources allocated. Examples include implementing new technology, restructuring, or introducing new policies. Comparing Planned and Unplanned Changes Initiation: Planned changes are proactive; unplanned changes are reactive. Control: Planned changes are controlled and structured; unplanned changes are often chaotic. Timeframe: Planned changes have a set timeline; unplanned changes occur spontaneously. Circumstances for Each Type of Change Planned Change: Occurs in stable environments, during strategic planning, or when pursuing long-term goals. Unplanned Change: Triggered by external factors like market disruptions, emergencies, or sudden shifts in consumer behavior. Challenges of Each Type of Change Planned Change: Resistance to change, resource allocation, maintaining momentum. Unplanned Change: Limited preparation time, higher stress levels, potential for hasty decision-making. Implications for Leadership Planned Change Leadership: Requires vision, strategic planning, and effective communication. Unplanned Change Leadership: Demands agility, crisis management skills, and the ability to make quick, informed decisions. 30 Remedial Change Definition: Remedial change is implemented to correct issues, problems, or failures within the organization. It's often a response to performance gaps, quality issues, or compliance matters. Leadership Implications: Leaders must be problem-solvers and decisionmakers. They need to foster a culture of accountability and continuous improvement. Transparent communication and a clear plan for correction are vital. 31 Remedial Change (Reactionary) Dealing with a loss of talent Addressing customer communication issues Providing more training for new hires 32 Incremental Change Small changes made within the internal structure and implemented to ensure organizational goals are met Goal is to make a healthier or more robust organization Ex. Employee retention issues – could increase the availability of qualified internal candidates through a job rotation initiative 33 Resistance to Change 34 Resistance to Change "The only constant is change.” Resistance to change is unwillingness to adapt to new circumstances or ways of doing things. It can happen with individuals, relationships, or within organizations. 35 Resistance to Change 36 37 38 39 40 Causes of Resistance to Change There are many reasons for resistance, but at its heart, resistance is rooted in fear of the unknown. People are biologically wired to look for patterns and predictability, and any uncertainty — even if it’s anticipated or positive — can trigger anxiety. 41 Causes of Change Resistance Lack of Trust Constant Change Poor Communication Surprises Emotional Response Fear of Failure 42 How to Minimize Resistance to Change Communicate early and often Listen to employees Educate employees about the value of the change Name emotions to allow leaders to address issues Timing is everything (methodically introduce change) Provide ongoing support 43 How does change happen? 44 The Change Curve 45 The Change Curve The Change Curve is a popular model organizations can use to understand the different stages people and the organization go through when a change occurs. It helps to explain the impact of change, both on individuals and organizations. It can help organizations to predict people's reactions to change and provide adequate and timely support to help people as they transition through a change. 46 Shock and Denial Definition: The initial stage where individuals react to the change with disbelief and a sense of shock, leading to denial. Leadership Strategies: Communicate openly and honestly about the change and its reasons. Provide clear and consistent information to reduce uncertainty. Offer support and resources to help individuals cope with the shock. 48 Anger Definition: As the reality of change sets in, individuals may experience frustration and anger, often directed at the organization or leaders. Leadership Strategies: Acknowledge and validate emotions without taking them personally. Maintain open lines of communication and listen actively. Encourage expression of feelings in a constructive manner. 49 Bargaining Definition: In this stage, individuals may try to negotiate or bargain to avoid the change or lessen its impact. Leadership Strategies: Engage in dialogue and understand the concerns and suggestions of individuals. Clarify what is and isn't negotiable about the change. Involve individuals in finding solutions and making decisions where possible. 50 Depression Definition: A low point where individuals may feel overwhelmed, helpless, or hopeless as they come to terms with the change. Leadership Strategies: Provide emotional support and empathy. Encourage self-care and offer professional support resources if needed. Foster a sense of community and collective resilience. 51 Acceptance Definition: The final stage where individuals begin to accept the reality of the change and start to look forward and adapt. Leadership Strategies: Reinforce the benefits and positive aspects of the change. Provide training and resources to help individuals adapt and thrive. Celebrate milestones and successes to build momentum and positivity. 52 The Change Curve https://www.youtube.com/watch?v=J88aaHW XeaM 53 Impact of Change on Organization & Employees 54 Impact on Organization Structural Adjustments: Changes can lead to restructuring of teams, departments, or the entire organization, affecting hierarchy and reporting relationships. Strategic Shifts: Organizational change often involves shifts in strategy, which can alter the company's direction, objectives, and operational methods. Cultural Evolution: Changes can significantly impact the organizational culture, influencing values, norms, and behaviors within the workplace. Impact of Change on Organizations Operational Efficiency: How changes can improve or disrupt workflows. Strategic Alignment: Ensuring changes align with long-term goals. Organizational Culture: The effect on workplace environment and employee morale. Market Position: Adjustments in response to market trends and competition. 56 Impact of Change on Employees Emotional Response: Employees may experience a range of emotions from fear and resistance to optimism, depending on the nature of the change and individual circumstances. Skill Requirements: Changes might require employees to acquire new skills or adapt to new technologies and processes, impacting their roles and responsibilities. Motivation and Engagement: The uncertainty and stress associated with change can affect employee motivation and engagement, influencing productivity and job satisfaction. 57 58 Why Organizational Change Fails Strategic shortcomings (poor planning) Underestimating size and scope of the change Poor communication Ignored stakeholders Lack of buy-in 59 Why Organizational Change Fails Lack of vision Active resistance Inertia (hard to get started) Lack of tooling (i.e. Technology can’t support change) Lack of endurance Impact of Change on Employees Job Security and Roles: Concerns about job stability and role changes. Skill Requirements: Need for new skills or retraining. Work Environment: Adjustments to new processes or technologies. Employee Morale and Engagement: How change affects motivation and commitment. 61 Summary Change management Types of change The change curve Resistance to change Reasons organizational change fail Impact of change on organizations and employees 62