NCV 4 Management Practice Hands-On Support Slide Show - Module 5
Download as PPT, PDF0 likes891 views
This module discusses change management and the role of change agents. It explains why change management is important for organizational success, identifies risks in the change process and ways to manage them, and outlines the competencies of effective change agents. Key points include: explaining how organizations that do not change can fail while those that do can remain successful; discussing risks like resistance to change and providing examples of how organizations overcame these risks; and identifying competencies of change agents like communicating vision and being a supportive leader.
NCV 4 Management Practice Hands-On Support Slide Show - Module 5
- 2. Module 5: Change management
- 3. Module 5: Change management After completing this module, you will be able to: explain why change management is an important process for organisations to achieve trading results identify the risks inherent in any change management programme and indicate ways to manage them identify and apply the competencies of an effective change agent
- 4. 1. EXPLAIN WHY CHANGE MANAGEMENT IS AN IMPORTANT PROCESS FOR ORGANISATIONS TO ACHIEVE TRADING RESULTS After completing this outcome, you will be able to: Identify the elements of any change management process; Outline the elements of any change management process in a written report Explain the relationship between change management and sustainability Provide examples of how organisations that have not change have collapsed and how organisations that have changed have remained successful; Identify and discuss the reasons for organisations not applying change management when required; Deliver a clear presentation on how an organisation can achieve sustainable results by implementing change management
- 5. The change process The trigger for change Determine the desired outcome of change intervention Diagnose the changes Select the appropriate change technique Plan for implementation Implement Evaluate and follow up The trigger for change The trigger for change The trigger for change
- 6. Areas of organisational change Technological forces New products Computerisation of processes New and faster production Information technology Internet Economic and market forces More countries join market economy Free trade Global competition Free flow of capital Trade union activities Environmental change Faster change Increased competition Increased productivity Increased quality More threats to organisation More opportunities for organisation
- 7. Social forces Demographic trends Education Health issues Gender and race issues Changing lifestyle Political forces Failure of communism Government ideologies Legislation Human rights Equity Act Labour laws Ecological forces Increased demand and exploitation of natural resources Increase in waste production Climate changes International forces Demographic trends Education Health issues Gender and race issues Changing lifestyle Organisational change required
- 8. Four major areas of organisational change Strategy Structure Technology People Goals Bureaucracy Production technology Knowledge and skills Corporate strategies Authority Information technology Motivation Functional strategies Decision-making Operations technology Performance management Strategic redirection Organisational design Operations technology Reward allocation Control systems Behaviour Culture
- 9. The relationship between change management and sustainability Change is not a once of process and should be continuously evaluated If there is a change in strategy, the organisation should evaluate it regularly Changing the organisational structure is a direct result of a strategy change and it’s beneficial for the organisation Changes in technology means the implementation of new equipment and machinery, which means that additional training should take place to better the skills level of staff Changing people means changing their beliefs, values and attitudes – if the organisation is successful in doing so, it will bode well for the future of the organisation
- 10. Provide examples of how organisations that have not changed have collapsed South African legislation and transformation force organisations to follow the BEE-approach (Black Economic Empowerment) The majority of organisations in South Africa have made successful changes in this regard. Examples are: Iscor, SAB (South African Breweries), Pick-n-Pay, etc.
- 11. Identify and discuss the reasons for organisations not applying change management when required Organisations feeling and believing that they are not ready to make the changes Uncertain on how the changes will affect the organisation Not convinced that the organisation has knowledge and know-how to make the change Not familiar and uncertain about how the future will look like and therefore not sure about making changes Not convinced that the change process will bring the necessary results or success Feel that it will be an unnecessary, costly exercise, which the organisation cannot afford at the present moment
- 12. Deliver a clear presentation on how an organisation can achieve sustainable results by implementing change management
- 13. Activity 1 Discuss, in your groups, what McDonald’s should do to maintain and sustain success? Are there any changes that you would like to implement that will bring more success? If so, make a list of these changes.
- 14. IDENTIFY THE RISKS INHERENT IN ANY CHANGE MANAGEMENT PROGRAMME AND INDICATE WAYS TO MANAGE THEM After completing this outcome, you will be able to: Identify the various change management risks; Identify change management risks within an organisation Explain what each could mean for the process of change and the long term success of the organisation Provide examples of how these risks were overcome in an organisation
- 15. Risks to change and the resistance to proposed change Threatened self-interest Uncertainty Lack of trust Different perceptions Low tolerance for change Inertia; timing; surprise; peer pressure Reasons for resistance to change
- 16. Activity 2 You are the new owner of a McDonald's-franchise in your area. Management inform you that you’ve got a free hand (do whatever you want) to make changes to the business. In your groups, make a list of all possible changes that you will make to the McDonalds; Put yourself now in the shoes of the staff of McDonalds and indicate how you will react to each change on your list
- 17. Provide examples on how those risks were overcome in organisations Education and communication Participation and involvement Facilitation and support Negotiation and rewards Coercion
- 18. Activity 3 In your groups, decide on a practical plan of action on how you will implement changes without resistance
- 19. IDENTIFY AND APPLY THE COMPETENCIES OF AN EFFECTIVE CHANGE AGENT After completing this outcome, you will be able to: Identify the competencies and characteristics of an effective change agent Explain why each is important and how each advances the implementation of change; Apply the competencies and characteristics of an effective change agent
- 20. Identify and apply the competencies of an effective change agent The change agent should be able to visualise the change “picture” of management and how the end-result will look like He should be a fluent communicator and be able to communicate with all the role-players on their respective levels He should be the driving force behind the implementation of the change process He should be able to encourage management and employees to see the “bright side” of the change and to participate in the process The credibility of the change agent is very important – if employees feel that they cannot trust the change agent the process will surely fails The change agent should bring the necessary calmness during a very “stormy time” – emotions are high because of the uncertainties around change He should be a true “friend and supporter” of all the role-players involved in the process so that it could be completed in the shortest possible time
- 21. Activity 4 Are there any other competencies that you want to see in a change agent? If so, make a list and mention it to your group members and to the rest of the learners
- 22. The role of the personnel manager in the change process Continue to be in day-to-day contact with all top and senior personnel to report on the change process and advise revisions Continuously evaluate the critical performance areas of the change process and revise where necessary Identify and appoint groups and individuals who could be instrumental in change success to lead the change process Develop and follow a change strategy and plan; and Suggest adaptations to the structure on an ongoing basis to facilitate change
- 23. The personnel manager as a change agent The personnel manager as a change agent must move through the basic changes of change introduction. These are: Unfreezing the present status quo Moving to the new level of change Refreezing the organisation at the new level
- 24. Challenges for the future On the basis of present trends and anticipated developments in the field of personnel management, we anticipate increased attention being allocated to the following: Reducing employee alienation within organisations Increasing human and organisation creativity and productivity Expanded personnel manager roles in helping the private organisation to meet its ever increasing social responsibility Expanded personnel manager roles in designing organisations
- 25. Activity 5 Indentify any major changes that were made in your environment recently. This could include changes at college, your part-time job, at home What were these changes? Who initiated these changes? Who was the change agent?