Change management
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Transcript of 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.