Change management

CHANGE MANAGEMENT

K.SASHI KUMAR B.Sc,M.B.A

Sree Vidyanikethan institute of management,tirupati,

Andhra Pradesh.

What is change?

Change is making things different. It is an alternation in the existing field of forces which tends to affect equilibrium.

Change is one reality with individuals, groups organizations must constantly cope up in order to SURVIVE.

Change is the most critical aspect of an effective management.

If an organization fail to change – the cost of failure may be very high.

If organization fail to bring timely change – survival is ruled out.

Change accelerates

• Knowledge creative thoughts• Technology competition with SCA• Innovation new products and services• Commitment• Trust • Usage of internet

Force of change

• Nature of work place (multicultural environment caused by demographic changes, immigration and outsourcing)

• Technology (To cope with new opportunities for organization)

• Economic shocks (economic bubbles burst)• Competition (merges, acquisitions, take over's)• Social trends (internet chat rooms, more female

workers, consumer forums, on-line shopping)• World politics (political instability – terrorism etc..,)

Micro Factors causing Organizational Change

1. Rapid growth or even decline of business2. Induction of new people3. Decaying of effectiveness of organization4. Change in the corporate strategy5. Any major crisis in the organization6. Personal goals of new leader or change of

management style7. The Dominico effect i.e. one change touching off a

sequence of related changes

Types of changes

• Change is to move from present to the future, from known state to relatively unknown state.

1. Happened change:

Change is rather unpredictable and takes place naturally due to external factors.

Ex: currency devaluation

2. Reactive change:

• Changes that are clearly in response to an event or series sub events are termed as reactive change. ex: technological changes i.e. forced to invest in modern technologies.

3. Anticipatory change:

Change carried out in expectation of an event or series of events is called anticipatory change.

4. Planned change:

Planned change or developmental change is undertaken to improve upon the current ways of operating. It is calculated change .

Ex: T&D, Building Teams

5.Incremental Change: Change directed at micro level and focused on

units, sub-units and components with in the organization are termed as incremental changes.

• Changes are bought in gradually and are usually adaptive in nature.

• Slowly / step by step change leads to healthier direction

6. Operational change: This is necessitated when an organization

needs to improve the quality of its products or services due to external competition.

• Operational change include bringing new technology, TQM

7.Strategic Change: Change that addressed to the organization as a

whole or to the most of the organization components including strategy.

Ex: Toyota…. Less hierarchical…leaner, flexible decentralised. Infosys ….. No boss

8.Directional change: A change in direction may become imperative

for an organization due to a)Severe competitionb)Regulatory shifts in Government policies ex: pricing , import and export, R& D activities

9. Fundamental Change: This entails a redefinition of the current purpose

or mission of the organization.Ex: If drastic changes in business environment If failure of corporate leadership If problem with employee morale Sharp fall in turnover

10.Total Change: For total change , the organization is

constrained to develop a new vision and a strong link between its strategy, employees and business performance.

…… due to long term failure of business……. Concentration of powers in one hand

where using for personal interest at company cost.

11. Transformational Change: where entire or greater part of the change

involves in the organization. It could be change in shape ( size, Complexity) Structure ( system , ownership) Nature ( assumption, culture and technology)

12. Revolutionary change:Abrupt change in organizational strategy and

design represent revolutionary change. … such change comprises of 3 E’s1.Envisioning: which is to articulate a clear and

visible vision2.Energizing: Which is mobilizing of employees

individually and collectively and uncalculating the excitement of change.

3.Enabling: Which is to provide necessary resources support structures and process.

Sources of resistance to change• Resistance to change at two levels1.At individual level 2. organizational levelIndividual level1.Habit ( habits die hard)2.Security ( change may cause to lose job)3.Economic factors ( may result low earnings)4.Fear of unknown ( people in unknown

environment)

5. Selective information processing ( people purposely try to avoid more information)

6. Saving face( ( some executives are adamant… to avoid such people and save their face)

Organizational level:1.Structural inertia ( established system is seay

than new one)2.Limited focus of change ( ( organization with a

number of interdependent subsystems, one can not be cahnged)

3. Group Inertia: Even if individuals are willing to change, group norms prevent them acting independently.

4. Threat to Expertise: Specialized groups may feel that their expertise may become irrelevant in the changed environment.

5. Loss of power or authority: Top officials may fear of their power gets eroded when changes are made in the new organization.

6. Reduction in resource allocations: Groups may feel fear of resources in case of change

Managing resistance to change

1. Education and communication2. Participation3. Stress management4. Negotiation5. Support and commitment6. Equity in implementing changes7. Avoid twisting and distorting facts8. Co-optation ( key roles to resistors)9. Selection of Amenable people.

THANK YOU