Change management

CHANGE MANAGEMENT

CHANGE MANAGEMENT

Change & Change Management.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

Forces ForChange

Shifting Demographics

Technology

EconomicShocks

Competition

Globalization

WorldPolitics

TechnologyTechnology

• 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

CompetitionCompetition

• Global economy• Mergers and consolidations• Growth of e-commerce

Social TrendsSocial Trends

• Popularity of internet• Increase in no. of women in workforce• Consumer preferences changing• Brand awareness has increased• Rise in discounts

Nature of workforceNature of workforce

• More cultural diversity• Educational level• New entrants with knowledge and skills

TYPES OF CHANGES

OrganizationalChange

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

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

Accidental Changes• Changing employee

demographics• Performance gaps• Governmental regulations• Economic competition in the

global arena

Types of Changes:1) Planned2) Accidental

Types of Changes:1) Planned2) Accidental

Planned changeChange activities that are intentional and

goal oriented

• First order changeLinear and continuous, no major shifts

(small QIPs)• Second order change

Multidimensional, multilevel, discontinuous and radical (e.g., drastic cutting down of cost/ inventory level)

Planned change can also be classified as:

Operational Changebased on efforts to improve basic work and organizational processes

Transformational Changeinvolves redesign and renewal of the total organization

Continuous ChangeContinuous Change

• Minor changes made in strategies, structures, people and processes

• Include refining policies, procedures; improving selection, training and appraisal procedures, introducing new machinery

• Discontinuous changes occur due to critical environmental changes:

e.g.,

- Product life cycle shifts

- Internal company dynamics

Discontinuous changes Discontinuous changes

CHANGE IMPLEMENTATION APPROACHES

CHANGE IMPLEMENTATION APPROACHES

• PARTICIPATIVE APPROACH

• DIRECTIVE APPROACH

PARTICIPATIVE APPROACHPARTICIPATIVE APPROACH

Rationale-• Information, better ideas

• Reduces resistance to change

• Involvement increases stake and hence reduces opposition

DIRECTIVE APPROACHDIRECTIVE APPROACH

Rationale-• Discontinuous change needs to be

implemented swiftly; participation consumes time , may lead to consolidation of resistance

• E.g., downsizing, delayering, re-structuring

• 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

• 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

Lewin’s Three-Step Process

Resistance to ChangeResistance to Change

Resistance may be-• Overt• Implicit• Immediate• Deferred

• Resistance may be at Individual level or/and organisational level

Individual resistanceIndividual resistance

• Habit• Security• Economic factors• Fear of the unknown• Selective information processing

Organisational resistanceOrganisational resistance

• Structural Inertia• Limited focus of change• Group inertia• Threat to expertise• Threat to established power relationships• Threat to established resource allocations

Overcoming Resistance to Change

Overcoming Resistance to Change

Tactics for Overcoming Resistance to Change

Tactics for Overcoming Resistance to Change

• Education and Communication• Participation• Facilitation and Support• Negotiation• Manipulation and Cooptation• Coercion

EducationEducation

• 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.

CoachingCoaching

• 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.

FacilitationFacilitation• 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.

InvolvementInvolvement

• 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.