“How To Introduce & Manage Of Organization Change ”

Presented to:Miss Gul-E-Hina

Organizational change

Organizational change occurs when business strategies or major section of an organization are altered.

. It is defined as a change that has significant effects on the way work is performed in an organization.

Change Management  Change management is a structured approach to

shifting individuals, teams and organizations from a current state to a desired future state.

kotter defines change management

“ as the utilization of basic structures and tools to control any organizational change effort. ”

Goal of change management is to minimize the change impacts on workers and avoid distractions.

Change agents are responsible for managing change activities .

SOME BASIC FORMS OF CHANGE

PLANNED CHANGE

UNPLANNED CHANGE

RADICAL CHANGE

TRANSFORMATIONAL CHANGE

1. Planned change

Its a change resulting from a deliberate decision to alter the organization.

2. Unplanned change

It is imposed on the organization and is often unforeseen. Changes in government regulations and changes in the economy.

3. Radical ChangeIt is a process by which firms regain competitive advantage after it has been lost or threatened significantly.

4. Transformational change

Transformational change occurs when organizations incur drastic changes and must essentially transform themselves. 

FORCES FOR CHANGE

Most organizations prefer stability to change because the more predictable and routine activities are, the higher the level of efficiency that can be obtained.

But organizations are not static; they are continuously changing in response to a variety of forces coming from both inside and outside.

FORCES FOR

CHANGEEXTERNAL FORCES

INTERNAL FORCES

EXTERNAL FORCES

The major external forces for change are:- Nature of the workforce: Almost every organization must adjust to

a multicultural environment, demographic changes, immigration and outsourcing.

  Technology :Is continually changing jobs and organization. Ex:

faster, cheaper and more mobile computers and handheld devices.

  Economic shocks: Rise and fall of global housing market, financial

sector collapse, global recession.

  Competition: Is changing Competitors are as likely to come from

across the ocean as from across town. Ex: increased government regulation of commerce.

  Social trends: Don’t remain static Companies must continually

adjust product and marketing strategies to be sensitive to changing social trends.

INTERNAL FORCES 

Following are the internal forces. Declining effectiveness: is a pressure to change. A

company that experiences its third quarterly loss within a fiscal year is undoubtedly motivated to do something about it.

A crisis situation: also may stimulate change in an organization. Strikes or walkouts may lead management to change the wage structure.

Changes in employee expectations: also can trigger change in organizations. A company that hires a group of young newcomers may be met with a set of expectations very different from those expressed by older workers.

Changes in the work climate at an organization: can also stimulate change. A workforce that seems lethargic, unmotivated, and dissatisfied is a symptom that must be addressed.

RESISTANCE TO CHANGE

SELF INTEREST

FEAR OF THE UNKNOWN

FEAR OF LOSS FEAR OF FAILURE

POOR COMMUNICATION

DISRUPTION OF INTERPERSONAL RELATIONSHIPS

PERSONALITY CONFLICTS

INTERNAL AND EXTERNAL POLITICS

CULTURE ASSUMPTION AND VALUES

LACK OF TRUST

STRATEGIES FOR MANAGING RESISTANCE TO CHANGE EFFECTIVE COMMUNICATION

Educating employees on new work procedures is often helpful.Providing accurate and timely information about the change. Open communication in a culture of trust is a key ingredient for successful changeThe drawback of this approach is that it is expensive to implement and does not always yield the desired results.

PARTICIPATION AND INVOLVEMENT

Participation helps employees gain understanding

increase the quality of the change decisionEmployees must be engaged and involved in order for change to work

LEADERSHIP

A capable leader can reinforce a climate of psychological support for change. Greater the prestige and credibility of the person who is acting as a change agent. A strong and effective leader can exert emotional pressure on his subordinates to bring about the desired change.

FACILITATION AND SUPPORT Removing physical barriers Supportive efforts

Emotional support

NEGOTIATION AND AGREEMENT

Negotiation and Agreement technique is used when costs and benefits must be balanced for the benefit of all concerned parties. Negotiation before implementation can make the change go much more smoothly, even if at the later stages if some problems arise,

the negotiated agreement can be referred to.

MANIPULATION AND CO-OPTATION

Used in the situation, where other methods are not working or are not available. Managers can resort to manipulation of information, resources and favors to overcome resistance.

they can resort to co-optation, which means to co-opt an individual, perhaps a key person with in a group, by giving him a desirable role in designing or carrying out the change process.

This technique has some doubtful ethics and it may also back fire in some cases.

EFFORTS AT THE GROUP LEVEL

A group is a cluster of persons related in some way by common interests over a period of time.

Although change can be obtained individually; it is more meaningful if it is done through a group.

The more attractive the group is to the members, the greater is the influence of the group to accept or resist a change

APPROACHES TO MANAGING ORGANISATIONAL CHANGE:

LEWIN’S THREE STEP MODEL

CONCEPTS Driving forces Driving forces are forces that push in a direction that causes change to occur.

Driving forces facilitate change because they push the person in the desired direction.

They cause a shift in the equilibrium towards change.

Restraining force Restraining forces are forces that counter driving forces. Restraining forces hinder change because they push the person in the opposition direction

Restraining forces cause a shift in the equilibrium which opposes change

Equilibrium

Equilibrium is a state of being where driving forces equal restraining forces and no change occurs Equilibrium can be raised or lowered by changes that

occur between the driving and restraining forces.

UNFREEZING Finding a method of making it possible for people to

let go

Necessary to overcome the strains

Unfreezing can be achieved by the use of these three methods.

◦ Increase the driving forces that direct behavior away from the existing situation or status quo.

◦ Decrease the restraining forces that negatively affect the movement from the existing equilibrium.

◦ Find a combination of the two methods listed above.

CHANGE

Change in thoughts, feeling & behavior.

Once team members have opened up their minds, change can start. The change process can be dynamic.

To take on new tasks and responsibilities, which entail a learning curve that will at first slow the organization down.

An investment, both in terms of time and the allocation of resources:

after the new organization and processes have been rolled out.

REFREEZING

Change will only reach its full effect if it’s made permanent.

Make sure the new organization reaches the new standard.

“Re-freezing” gives people the opportunity to thrive in the new organization and take full advantage of the change.

REFREEZINGChange will only reach its full effect if it’s made permanent. Once the organizational changes have been made and the structure has regained its effectiveness, efforts should be made to cement them and make sure the new organization reaches the standard.

“Re-freezing” gives people the opportunity to thrive in the new organization and take full advantage of the change

APPROACHES TO MANAGING ORGANISATIONAL CHANGE: KOTTER’S EIGHT STEP MODEL

APPROACHES TO MANAGING ORGANISATIONAL CHANGE:ACTION RESEARCH

Action research: is “a change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate.” These steps closely parallel the scientific method.

•Diagnosis: begins by gathering information about problems, concerns, and needed changes from members of the organization•. •Analysis:of information is synthesized into primary concerns, problem areas, and possible actions. Action research includes extensive involvement of the people who will be involved in the change program.

•Feedback: requires sharing with employees what has been found from steps one and two and the development of a plan for the change.

•Action:is the step where the change agent and employees set into motion the specific actions to correct the problems that were identified.

•Evaluation:is the final step to assess the action plan’s effectiveness. Using the initial data gathered as a benchmark, any subsequent changes can be compared and evaluated.

Specific benefits for an organization Action research provides at least two specific

benefits for an organization.

 ◦ First, it is problem-focused. The change

agent objectively looks for problems and the type of problem determines the type of change of action.

◦ Second, resistance to change is reduced. Once employees have actively participated in the feedback stage, the change process typically takes on a momentum of its own.

 

APPROACHES TO MANAGING ORGANISATIONAL CHANGE:ORGANIZATIONAL DEVELOPMENT

Organizational development (OD) is a term used to encompass a collection of planned-change interventions built on humanistic-democratic values that seek to improve organizational effectiveness and employee well-being.

The OD paradigm values human and organizational growth, collaborative and participative processes, and a spirit of inquiry.

  The underlying values in most OD efforts: 

◦ Respect for people◦ Trust and support◦ Power equalization◦ Confrontation◦ Participation

OD techniques or interventions for bringing about change:

1. Sensitivity Training: Specific results sought include increased ability to

empathize with others, improved listening skills, greater openness, increased tolerance of individual resolution skill.differences, and improved conflict

2.Survey Feedback:• group discussion in the survey feedback approach

should result in members identifying possible implications of the questionnaire’s findings.

3.Process Consultation:

The consultant works with the client in jointly diagnosing what processes need improvement

By having the client actively participate in both the diagnosis and the development of alternatives, there will be greater understanding of the process and the remedy and less resistance to the action plan chosen.

4.Team Building:Team building can also address itself to clarifying each member’s role on the team. It utilizes high-interaction group activities to increase trust and openness among team members.

5.Intergroup Development:It seeks to change the attitudes, stereotypes, and perceptions that groups have of each other

Once the causes of the difficulty have been identified, the groups can move to the integration phase—working to develop solutions that will improve relations between the groups.

6.Appreciative Inquiry.They identify a problem or set of problems, then look for a solution. Appreciative inquiry seeks to identify the unique qualities and special strengths of an organization.

Discovery. • The idea is to

find out what people think are the strengths of the organization.

Dreaming • The information

from the discovery phase

is used to speculate on

possible futures for the

organization.

Design• Based on the

dream articulation, participants

focus on finding a common

vision of how the organization

will look and agree on its

unique qualities.

Destiny• In this final step,

participants discuss how the organization is

going to fulfill its dream.

CREATING A CULTURE FOR CHANGE

Change: refers to making things different. Innovation is a more specialized kind of change.

There is no guaranteed formula with which an organization can become innovative; certain characteristics surface again and again. They are grouped into structural, cultural, and human resource categories.

 Innovation is a new idea applied to initiating or improving a product, process, or service.

 All innovations involve change, but not all changes necessarily involve new ideas or lead to significant improvements.

 Innovations in organizations can range from small incremental improvements to significant change efforts.