Chapter 6 Management Of Change PDF

CHAPTER 6-Managing Organization Change and Planning change Management is not about preserving the status quo, but about creating the highest rate of change which the organization and its people can sustain change is defined as "the process of alteration or transformation of individua...

CHAPTER 6-Managing Organization Change and Planning change Management is not about preserving the status quo, but about creating the highest rate of change which the organization and its people can sustain change is defined as "the process of alteration or transformation of individuals, groups, and organization undergo in response to internal and external factors." 3/9/2024 1  Types Change 1. Change by Exception. Change by exception is usually handled by setting up a project to manage its implementation.  It has a distinct beginning and end where success can be relatively measured  It will often have little impact on the way the remainder of the organization works. 3/9/2024 2  Types of Change Cont’d--- 2. Incremental Change. By far the most usual type of change is that occurs in an evolutionary way, often without the participants realizing that it has happened.  In the picture, for example, people only occasionally notice that the trees have grown. 3/9/2024 3  Types of change cont’d--- 3. Pendulum Change, Pendulum change is often associated with fashion.  In other words, the change swings from side to side of a spectrum as moods change.  An obvious example is the fashion for centralization or decentralization. 3/9/2024 4 Purpose of change In general change is needed for the following purposes:  To meet changing customer needs  To meet changing market conditions  To respond to internal pressures  To take advantage of new opportunities  To respond to competitive pressure  To respond to government policy shift 3/9/2024 5 Factors that cause change Changes in organization are stimulated by:. Internal forces. External forces 3/9/2024 6  Factors that cause change cont’--- A. Internal forces Pressures for change may arise from a number of sources within the organization, particularly from :  New strategies – Top management decisions  Change in internal technologies Introduction of automated equipment to perform tasks that previously required human labor. 3/9/2024 7  Internal factors….  Innovative suggestions coming from employees  Change in social mix – The entrance of more women and minorities into the work force  Work dissatisfaction as manifested in high turnover rates or strikes, may lead to changes in management policies and practices. 3/9/2024 8  Factors that cause change cont’d--- B. External Forces- the influences of the external environment, such as;  Technological Environment – advances in information and technologies are transforming the modern organization.  Many major technologies such as computers, robotics, etc..  Competitive actions, can pressure organizations to modify their structure, goals, and methods of operation. 3/9/2024 9  External Force cont’d  Economic Environment –such as inflation or deflation, growth or recession, and full employment or unemployment  Political and legal Environment –Some of the political and legal conditions that can affect the proper functioning of business and public sector organizations include: ◦ Diplomatic problems with foreign governments ◦ Change in civil services ◦ Other changes in federal and state laws ◦ Pressure from civic societies 3/9/2024 10 Key factors in management of change- An effective management of change involves the following key factors A. Change agents B. Performance gaps C. Levels and targets of change D. Systems approach 3/9/2024 11  A. Change Agent  Catalyst for change, some person or group must be designated as the catalyst for change.  The change agent is the individual who is responsible for taking a leadership role in managing the process of change.  Managers or staff at various levels in organizations can serve as change agents. 3/9/2024 12  B. Performance gaps  Performance gaps is the difference between the status quo and the desired new standard of performance or desired organizational state.  The change agents think in terms of performance gaps. 3/9/2024 13 C. Targets of change Target Example Individual Change knowledge, skill, attitude, or behavior Fire a person and replace him or her with some one new Technology Replace existing technology with a more modern machine or way of doing work. Structure Change from a functional structure to a product division structure Add a new department or division, or consolidate the existing ones. Processes Change the pay system from hourly wages to salaries. Culture Implement a program to encourage valuing quality and service. Management Encourage participation in the diagnosis and solution of problems by people at lower levels to replace a top down approach. 3/9/2024 14  D. Systems Approach A change in any single target often leads to changes in the systems. Example of system approach  People had to learn new skills because of the new technology.  New data processing department has to be introduced into the structure. 3/9/2024 15  Programming Change The realization of organizational change requires effective planning or programming. A change program should incorporate the following processes 1. Recognizing the need for change. The need for change is sometimes obvious, as when results are not in line with expectations things clearly are not working well, or dissatisfaction is apparent.. 2. Setting goals. Defining the future state or organizational conditions desired after change. 3/9/2024 16  Programming Change Cont’d--- 3. Diagnosing the present conditions in relation to these goals. 4.Defining the transition stage activities and commitments required meeting the future state 5. Developing strategies and action plan for managing this transition in light of the analysis of the factors that are likely to affect the introduction of change bearers. 3/9/2024 17 Lewin's 3-step Model of the Change Management.  Sociologist Kurt Lewin (1951) envisioned that any potential change as an interplay of multiple opposing forces.  These forces are;  The driving forces  Restraining forces. 3/9/2024 18 Lewin's 3-step Model of the Change Management --- It involves; 1. Analyzing the restraining forces or driving forces, which will affect the transition to the future state. 2. Assessing which of the driving or restraining forces are critical 3. Taking steps both to increase the critical driving forces and to decrease the critical restraining forces. 3/9/2024 19  Three Step Change Process To overcome obstacles of this sort, Lewin developed a three-step sequential model of the change process. The model involves  Unfreezing:. The present behavior pattern raised state of tensions, dissatisfaction with status quo. Create climate ready for change. Breakout/separate from the past  Changing: Developing a new behavior pattern. Changes advocated and implementation begins. Changes tested/adapted for desired results . 3/9/2024 20 Three steps…..  Refreezing:  The managers task is refreezing the situation with the change in place. This is done:  Restabilizing the organizational situation  Locking the new Behavior pattern in place  Reinforcing the new behavior 3/9/2024 21 Making the Change Process Effective 1. Analyze the organization and its need for change Any change process should start with a meticulous understanding of how the organization works what are its strength and weaknesses, what are its relationships with the environment and what are its needs to change. 3/9/2024 22  Making the Change Process Effective Cont’d--- 2. Create a shared Vision and Common Direction  One of the key first steps is to unite the organization around a vision of the future. 3. Separate from the Past ◦ This is a similar idea to Lewin's (1947) unfreezing process. ◦ An absolute detachment from the past. 3/9/2024 23  Making the change Effective cont’d--- 4. Create a Sense of Urgency A sense of exigency seems to be important for the organization to unfreeze and develop support for the changes. Sense of urgency is accelerated as a result of crisis. 5. Support a Strong Leader Several studies demonstrated that a strong leader is a factor to vision creation, motivating the organization behind the vision and rewarding who strive towards its realization. 3/9/2024 24 Making the change process Effective cont’d--- 6. Line up political Support Although leadership is a very important perquisite for propelling changes it is not enough in its own. Successful change needs a broad-base support from all the stakeholders, including those who will lose, as well as those who will profit from change. 3/9/2024 25 Making the change process Effective cont’d--- 7. Craft an implementation plan The organization needs clear information about what will be done to achieve it. A road map has to be prepared, giving clear direction and a route to take. 3/9/2024 26 Making the change process Effective cont’d--- 8. Developing Enabling Structures Enabling structures are systems and structures, which support the transformation process during the transition from the old to the new state. Enabling structures may include trials, training and education programs and new reward and career systems. 3/9/2024 27 Making the change process Effective cont’d--- 9. Communicate, involve people and be honest Wherever possible there should be open communications, the involvement and trust of people in the organization. 3/9/2024 28 Making the change process Effective cont’d--- 10. Reinforce and institutionalize the change  Managers need constantly to demonstrate their commitment to the change.  They should reward the new desired behaviors and ensure they become part of normal day to day operations 3/9/2024 29  Reasons for resistance to change They stipulated four main reasons for resistance to change: 1. Parochial self: interest - Threat to core skills and competence - Threat to status - Threat to power base - Low trust of organizational climate 2. Misunderstanding and lack of trust - Lack of information - Misinformation - Historical factors (poor timing) - Low trust of organization climate - Poor relationships (quarrelsomeness). 3/9/2024 30  Reasons for resistance to change cont’d--- 3.Contradictory assessments. ◦ No perceived benefits ◦ An assessment that the proposed change is wrong/ill thought-out 4. Low tolerance of change ◦ Fear of the unknown ◦ Fear of failure ◦ Reluctance to experiment 3/9/2024 31 Techniques to overcome resistance during changes 1. Education and Communication. Management should educate employees about upcoming changes before they occur. It should communicate not only the nature of the change but its logic. 2. Participation and Involvement. If management involves those who might resist change with the design and implementation of the change, resistance may be prevented. 3/9/2024 32 Techniques to overcome resistance cont’d--- 3. Facilitation and Support. Management should make the change as easy as possible for employees and be supportive of their efforts. This could be achieved through providing training in new skills, or simply listening and providing emotional support. 3/9/2024 33 Techniques to overcome resistance cont’d--- 4. Negotiation and Agreement. When necessary, management can offer concrete incentives for cooperation with the change. Rewards such as bonuses, wages and salaries, recognition, job assignments, and perks can be examined and perhaps restructured to reinforce the direction of change 3/9/2024 34 Technique to overcome resistance change Continued--- 5. Explicit and Implicit Coercion. Some managers apply punishment to those who resist change. With this approach, managers use force to make people comply with their wishes. For instance, a boss may force employees to go along with a change by threatening them with dismissal, with being passed over for promotion, with unattractive job assignment, or through other negative suggestions. 3/9/2024 35