Change management
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This document discusses change management and organizational change. It defines change and change management as the adoption of new ideas or behaviors by an organization. Forces for change include technology, competition, social trends, and the nature of the workforce. There are two types of changes - planned and accidental. Planned changes are intentional, while accidental changes result from unforeseen events. When implementing changes, organizations can use participative or directive approaches. The participative approach involves stakeholders to gather ideas and reduce resistance, while the directive approach implements swift changes. Lewin's three-step model of change involves unfreezing the current situation, implementing changes, and refreezing the new situation. Resistance to change can come from individuals or the organization and must
Change management
- 2. Change & Change Management. • Adoption of a new idea or behavior by an organization. – Organizations need to continuously adapt to new situations if they are to survive and prosper – Constant change keeps organizations agile – Indicative of “learning” organizations
- 4. Technology • Introduction of computers, cell phones are now considered as necessitiy • E.g., music industry facing the challenge of online music sharing • Deciphering of genetic code offers potential for pharmaceutical companies to produce drugs designed for specific individuals
- 5. Competition • Global economy • Mergers and consolidations • Growth of e-commerce
- 6. Social Trends • • • • • Popularity of internet Increase in no. of women in workforce Consumer preferences changing Brand awareness has increased Rise in discounts
- 7. Nature of workforce • More cultural diversity • Educational level • New entrants with knowledge and skills
- 9. Types of Changes: 1) Planned 2) Accidental Organizational Change Planned Changes • Changes in products and services • Changes in administrative systems • Changes in organizational size or structure • Introduction of new technologies • Advances in information processing and communication Accidental Changes • Changing employee demographics • Performance gaps • Governmental regulations • Economic competition in the global arena
- 10. Planned change Change activities that are intentional and goal oriented • First order change Linear and continuous, no major shifts (small QIPs) • Second order change Multidimensional, multilevel, discontinuous and radical (e.g., drastic cutting down of cost/ inventory level)
- 11. Planned change can also be classified as: Operational Change based on efforts to improve basic work and organizational processes Transformational Change involves redesign and renewal of the total organization
- 12. Continuous Change • Minor changes made in strategies, structures, people and processes • Include refining policies, procedures; improving selection, training and appraisal procedures, introducing new machinery
- 13. Discontinuous changes • Discontinuous changes occur due to critical environmental changes: e.g., - Product life cycle shifts - Internal company dynamics
- 14. CHANGE IMPLEMENTATION APPROACHES • PARTICIPATIVE APPROACH • DIRECTIVE APPROACH
- 15. PARTICIPATIVE APPROACH Rationale• Information, better ideas • Reduces resistance to change • Involvement increases stake and hence reduces opposition
- 16. DIRECTIVE APPROACH Rationale• Discontinuous change needs to be implemented swiftly; participation consumes time , may lead to consolidation of resistance • E.g., downsizing, delayering, re-structuring
- 17. • A mix of two approaches essential • Two issues central to choosing the mix: 1. need for better information and ideas 2. managing resistance to change
- 18. Lewin’s Three-Step Process • The first step, “unfreeze” involves the process of letting go of certain restricting attitudes • The second step, "change" involves alteration of self-conceptions and ways of thinking during the experience. • The third step, "refreeze" involves solidifying or crystallizing the changes into a new, permanent form for the individual
- 19. Resistance to Change Resistance may be• Overt • Implicit • Immediate • Deferred
- 20. • Resistance may be at Individual level or/and organisational level
- 21. Individual resistance • • • • • Habit Security Economic factors Fear of the unknown Selective information processing
- 22. Organisational resistance • • • • • • Structural Inertia Limited focus of change Group inertia Threat to expertise Threat to established power relationships Threat to established resource allocations
- 24. Tactics for Overcoming Resistance to Change • • • • • • Education and Communication Participation Facilitation and Support Negotiation Manipulation and Cooptation Coercion
- 25. Education • Teach people about the need for change and how embracing change is a far more effective life strategy than staying where they are or resisting. • Teach people the methods of change, about how to be logical and creative in improving processes and organizations.
- 26. Coaching • When you have individual people who are having difficulty in managing to adapt to change, be a Coach to them. • Coaching helps explore deeper motivations and beliefs about other people, and find practical ways to change these.
- 27. Facilitation • Use skilled facilitators (HR) to support change activities. • Facilitators can be used to guide various group events, from brainstorming and planning to improvement projects and change activities. • Facilitators can also act as team coaches, helping people to improve within themselves and work together in better ways.
- 28. Involvement • • • • Get them involved in the change. Invite them to participate in discussions. Give them things to do. When people are a part of something, they bond with it, making it a part of their identity.