MANAGING CHANGE

AND COMMUNICATION(BSMH 3093)

CHAPTER 3: WHY ORGANIZATIONS

CHANGE Presented by:

Fazila Hanim 814768

Zuhriati Tahir 814792

INTRODUCTION

OBJECTIVE

Understand the pressure that causes change

Recognize different response from managers towards

external pressures

Discuss matters that initiated change within organization

Learn the relation between pressure with image of

managing change

INTRODUCTION•OUTLINE OF PRESENTATION

a. Case Study: Wolters Kluwer Shared Services Sdn. Bhd.

b. What is Change?

c. What is Change Management?

d. Why Organization Changed?a. Images of pressures for change

b. Internal Factors

c. External Factors

d. Issues related to different responses toward external pressures

e. Conclusion

f. Recommendation

STORY OF WOLTERS KLUWER

WHAT IS CHANGE?•Change is a process of transforming something that has

been instituted into something different.

•Perceived differently depending on a person or organization.

WHAT IS CHANGE MANAGEMENT?•Referring to:

Application of structured processes and set of tools to assist in executing change

Enabling the organization to achieve its desired outcome

•Impact organizational culture, business processes, physical environment, job design / responsibilities, staff skills / knowledge and policies / procedures.

WHY ORGANIZATION CHANGED?•As a response to pressures.

To adapt To stay relevantTo be more efficientTo gain profit

•Two categories:External environment factorsInternal environment (within

organization) factors

IMAGES OF PRESSURES FOR CHANGE

• Strategic pressureDirector

• Strategic pressure and necessary response to internal and external pressureNavigator

• Pressures come from inevitable outcome of changeCaretaker

• Constant pressure to maintain well-being of organizationCoach

• Internal and external pressures especially in explaining and educate others the reasoning of change Interpreter

• Variety of pressures especially from unexpected outcome of change that requires organization to adapt to the outcomeNurturer

EXTERNAL ENVIRONMENT PRESSURES

FASHION • Mimetic isomorphism - imitate the structures and practices

of other organizations

MANDATED• Coercive-isomorphism - forced to follow the steps of

other organizations

GEOPOLITICAL PRESSURES• Mergers & Acquisitions• Crisis

EXTERNAL ENVIRONMENT PRESSURES

MARKET DECLINE• Cost Cutting

HYPERCOMPETITION • Fast, more customized, flexible services

REPUTATION AND CREDIBILITY • Performance gaps

EXTERNAL ENVIRONMENT PRESSURES

E C O N O M I C A LT E C H N O L O G I C A LS O C I O - C U L T U R A LP O L I T I C A LI N T E R N A T I O N A L

ISSUES RELATED TO DIFFERENT RESPONSES TOWARD EXTERNAL PRESSURES

Organizational Learning versus Threat-Rigidity

Objective entity versus cognitive

construction

Forces for change versus Stability

Bridging versus Buffering

•Managers responded differently toward external pressures.

•Believed to be affected by how these pressures are perceived.

INTERNAL ENVIRONMENT (ORGANIZATION) PRESSURES

GROWTH• Identification of Opportunities• Employees development

INTEGRATION AND COLLABORATION

• Create economies of scale• Better coordination and

collaboration across multiple business units

IDENTITY• Establish prominent attributes• Workforce demographic – diversity • Performance gaps

NEW BROOM • New leader changing old ways of

doing things

POWER AND POLITICAL • Competition between CEOs• Alter traditional decision making

process• Internal crisis

INTERNAL ENVIRONMENT (ORGANIZATION) PRESSURES

THE MAJOR AREAS OF CHANGES IN INTERNAL ENVIRONMENT

PEOPLE

STRUCTURE

PROCESS

CONCLUSION•Organization has to determine the

ACTUAL reason of a change; where the pressure comes from what type of changes fits the situation

and suitable to be executed.

CONCLUSION•Different perception of pressure will lead

to different impact towards the organization.

•Managers perform different roles during the process of change.

RECOMMENDATION

• Acknowledged employees’ view /feedback and hire experienced consultant

•All of the actions required for an organization to understand, prepare for, implement and take full advantage of significant change.