NCV 2 Management Practice Hands-On Support Slide Show - Module 6

Managements Practice 2

Module 6: Change Management

Management Practice – Level 2 2Future Managers

• After completing this Module, you will be able to:1. Explain the reasons for change in

organisational practices

2. List and identify examples of planned change and reactive change in an organisation

3. Identify reasons for resistance to change and indicate ways to overcome them

Module 6: Change Management

Management Practice – Level 2 3Future Managers

• After completing this outcome, you will be able to identify and explain:– The reasons for change in an organisation

– The internal and external reasons for change within a structured environment to include reference to organisational policies

1. Explain the reasons for change in organisational practices

Management Practice – Level 2 4Future Managers

• Can you define change management?– Change management is the process in which

management take on new ideas, processes and methods to become different

– Change occurs because new realities replace old ones

– For change to be successful, it is necessary to unfreeze the status quo, a move to a new state, and refreeze the change to make it permanent

1.1 Managing change

Management Practice – Level 2 5Future Managers

• Divide into groups and make a list of all the recent changes that you are aware off. These changes can also refer to international changes

Activity 6.1

Management Practice – Level 2 6Future Managers

• Stay in your groups and make a list of at least five possible reasons for change

Activity 6.2

Management Practice – Level 2 7Future Managers

a. Training and development of staff b. Empowerment of staff about change,c. Customer focused d. Competition e. Technology f. Political reasons g. Social structures and reasonsh. Economical reasonsi. International influences

1.2 Reasons for change in an organisation

Management Practice – Level 2 8Future Managers

• Write down any two examples or reasons for organisations to change internally

Activity 6.3

Management Practice – Level 2 9Future Managers

a. Internal change– the knowledge explosion

– rapid product obsolescence

– the changing nature of the workforce

– increased individual responsibility

1.3 Difference between internal and external reasons for change

Management Practice – Level 2 10Future Managers

• Name a very active and important external factor that in your opinion causes change in the organisation?

• Name examples of this particular external factor that has brought change and indicate how we benefit from it

Activity 6.4

Management Practice – Level 2 11Future Managers

b. Can you name some external changes?– Changing technology

– Environmental influences

– Political changes

– Natural changes

– International changes

1.3 Difference between internal and external reasons for change

Management Practice – Level 2 12Future Managers

• Since 1994, South Africa has experienced many changes. Some of these changes were inevitable and unavoidable. Therefore, management has decided to make changes1. With 1994 as a background, what was the most

important change in the history of South Africa that has taken place?

2. Make a list, with examples, of the changes that have taken place (after 1994). Who were the beneficiaries of these changes?

Activity 6.5

Management Practice – Level 2 13Future Managers

• After completing this outcome, you will be able to:1. Explain the difference between planned

change and reactive change

2. List the factors to be considered when planning change

2. List and identify examples of planned change and reactive change

in an organisation

Management Practice – Level 2 14Future Managers

• What is planned change? – Examples of planned change include:

• Organisations that plan employment equity programs to address past imbalances in the workplace

• Organisations decide to put a new product on the market for which they need specific skills so that they can either recruit the required skills or train their where they are, they cannot start on the staff to better perform the task

2.1 Types of change in an organisation

Management Practice – Level 2 15Future Managers

• What is reactive change? –Technical change– Process change

– Administration change

2.1 Types of change in an organisation

Management Practice – Level 2 16Future Managers

The change process

Management Practice – Level 2 17Future Managers

Ask “Where are we now?” Assess from various viewpoints

Ask: “Where do we want to be?”Develop a corporate vision

Map out key changes needed to close the gap, working back from the ideal

Measure the gap between the present and the ideal state. Quantify it tangibly

State these changes in words and figures as a focus for planning change

• Make a list of factors to be considered when change is planned

Activity 6.6

Management Practice – Level 2 18Future Managers

• Make sure that there is a need for change

• The proposed change must be realistic

• Plan towards a result because of change and keep all involved persons informed

• Ensure that the proposed change will benefit the individual as well as the organisation

• All the people involved in the change should know how to achieve the change

2.2 Factors to be considered when planning change

Management Practice – Level 2 19Future Managers

• Make sure that the proposed change will not influence the security of those involved

• Proposed change must be seen as reducing rather than increasing recent problems

• Ensure that the changes are not working against the organisation’s norms and values

• Top management must support the changes• The change process must be evaluated

regularly• Assigning responsibility for change to a change

agent

2.2 Factors to be considered when planning change

Management Practice – Level 2 20Future Managers

• After completing this outcome, you will be able to:1. Explain the reasons for resistance to change in

an organisation

2. Explain the ways in which resistance to change can be overcome

3. Identify reasons for resistance to change and indicate ways to

overcome them

Management Practice – Level 2 21Future Managers

• In your groups, brainstorm possible reasons why individuals or employees resist proposed changes in the organisation

Activity 6.7

Management Practice – Level 2 22Future Managers

• selective perception• habit• inconvenience or loss of freedom• economic factors• security in the past• fear of the unknown• peer pressure• set perception• low tolerance for change• different assessment• general factors

3.1.1 Individual resistance

Management Practice – Level 2 23Future Managers

• In your groups, consider why organisations or enterprises will resist against change especially with the possibility of how they can benefit from the proposed change

Activity 6.8

Management Practice – Level 2 24Future Managers

• maintaining stability

• investment in resources

• threats to established power relationships

• threats to established resources allocations.

3.1.2 Reasons for enterprises resisting change

Management Practice – Level 2 25Future Managers

• In your groups again, list the processes to be followed in order to overcome resistance to change.

Activity 6.9

Management Practice – Level 2 26Future Managers

• education and communication

• participation and involvement

• facilitation and support

• negotiation and rewards

• manipulation and co-optation

• coercion

3.2. Overcoming resistance to change

Management Practice – Level 2 27Future Managers

• Points to remember:– To be successful, plan, implement, revise,

update and build on change– Make sure that every change programme

continues to increase profitability– Make the most of people who have played a key

role in the success of change programmes– Never assume that you know what people think

– always ask them– Persuade people that change will always mean

opportunity

3.2. Overcoming resistance to change

Management Practice – Level 2 28Future Managers

Management Practice – Level 2 29Future Managers

Implement change

programme

Measure results and

obtain feedback

If successful, continue

programme

If necessary, revise

programme

• Can you explain the reasons for change in organisational practices – The reasons for change in an

organisation?

– The internal and external reasons for change within a structured environment to include reference to organisational policies?

Recap

Management Practice – Level 2 30Future Managers

• Can you explain the reasons for change in organisational practices?– Explain the difference between planned

change and reactive change?

– List the factors to be considered when planning change?

Recap

Management Practice – Level 2 31Future Managers

• Can you locate and provide records to users on request?– List the possible locations of records within a

business environment?

– Name the users of records in a business environment?

Recap

Management Practice – Level 2 32Future Managers

• Can you identify reasons for resistance to change and indicate ways to overcome them?– Explain the reasons for resistance to change in

an organisation?– Explain the ways in which resistance to

change can be overcome?

• If you can, congratulations, you are finished the course. (Now all you have to do is write the exam)

Recap

Management Practice – Level 2 33Future Managers