Change

*ifjorZus lalkjL;s fu;fr*

& Lord Krishna in Bhagwat Geeta

“Change or Die”

“A Change Leader Looks for Change, knows how to find the right changes and knows how to make them effective both outside the organization and inside it”.

- PETER F DRUCKER

WHY STUDY CHANGE

“Till the century social change was so slow that it would pass unnoticed in one person’s lifetime. That is no longer so. The rate of change has increased so much that our imagination can’t keep up” - C. P. Snow

Critical challenges to Leadership: -i) Introduction of change

ii) Management of Change

“Peak performers do not regard change as something to resist. They see it as a source of opportunity they can guide. The key difference is between people being change managers or change resisters”. - Garfield

FORCES FOR CHANGE (EXTERNAL)

FORCE EXAMPLESNature of the workforce

- More cultural diversity- Increase in professionals- Many new entrants with inadequate skills

Technology - Faster & cheaper computers- TQM programs- Reengineering Programs

Economic Shocks - Asian real estate collapse- Russian devaluation of the Ruble- Change in oil prices

FORCES FOR CHANGE (EXTERNAL)

FORCE EXAMPLESCompetition - Global Competitors

- Mergers & Consolidations- Growth of E-Commerce

Social Trends - Attitude towards smokers- Delayed marriages by young people- Popularity of sport-utility vehicle

World Politics - Collapse of Soviet Union- Opening of markets in China- Black rule of South Africa

INTERNAL FORCES FOR CHANGE

FORCE EXAMPLESEfficiency : Drive for minimalism in

organization – Cost reduction

Fashion : Change for the sake of change leading edge.

Control : New managers frequently make changes simply to demonstrate that the previous incumbent has gone..

Internal Pressure

: From various stake holder groups e.g. changes to the wage structure and working practices.

Stewart (1991) identifies a number of changes that influence managerial careers. They include, in addition to the points already made:

- Business Structure: -

-Frequent changes in business ownership, growth in multinational and foreign ownership, privatization of the public sector and globalization of business activity.

- Business Functioning: -

-Growth of flexibility as a means of matching resources to requirement through self-employment, contracting and the need to seek new business opportunities.

Managing Planned Change

Change:Making things different

Planned Change:Change activities that are International and goal oriented.

What are the goals of planned change? It seeks to improve the ability of the organization to

adapt to changes in its environment. It seeks to change employee behavior.

Managing Planned Change

Magnitude of Planned Change:

First-order change – is linear and continuous. It implies no fundamental shifts in the assumptions that organizational members hold about the world or how the organization can improve its

functioning.

Second-order change – is a multidimensional, multilevel, discontinuous, radical change involving reframing of assumptions about the organization and the world in which it operates.

Process for Planned Change

Lewin’s Process Model:

Old State

Unfreeze (Awareness of need for

change) status quo

Change

(Movement from old

state to new state)

Refreeze (Assurance

of permanent

change)

New State

Continuous Change Process Model

1. Forces for Change

2. Recognize and Define

Problem

3. Problem-Solving Process

4. Implement the Change

5. Measure Evaluate Control

Transition Management

Change Agent

How Change is Experienced within an Organisation

FRACT URING CRISIS STRATEGIC

ADAPTIVE SURPRISE INCREMENTAL

SCALE OFIMPACT

UNPLANNED PLANNED

DEGREE OF PLANNING

FIG. THE CHANGE MATRIX

WHAT CAN CHANGE AGENTS CHANGE

What are the change options?

Structure Technology Physical Setting People

Change Options

RESISTANCE TO CHANGE

Organizations and their members resist change.

In a sense this is positive – It provide a degree

of stability and predictability to behaviour.

SOURCES OF RESISTANCE:

Individual

Organizational

INDIVIDUAL RESISTANCE

Individual Resistance

Selective information processing

Habit

Fear of the unknown

Security

Economic factors

FIG: Sources of Individual Resistance of Change

ORGANIZATIONAL RESISTANCE

Organizational Resistance

Threat to established

resource allocations

Structural inertia

Threat to established

power relationships

Limited focus of change

Threat to Expertise

FIG: Sources of Organizational Resistance of Change

Group inertia

Effective Planning and Implementation of Change

Step 1: Select the problem where change is desired.

Step 2: Define the problem clearly. Who is involved in it? How big is the problem? What factors have some bearing on it?

Step 3: How do you want the situation to be changed? Is it quantifiable? If yea, then set a target.

Step 4: Defining the pushing forces and the restraining forces.

Step 5: Determine which forces are low, medium and higher power, both pushing and restraining.

Effective Planning and Implementation of Change

Step 6: Draw a diagram of the situation.

Step 7: Use the diagram to suggest and develop strategy for taking the desired change ahead with minimum resistance.

Step 8: Implement the change in the organization.

Step9: Evaluate the change through qualitative or quantitative measures.

Change Management : Four Basic Strategies

Strategy DescriptionRational Empirical

: People are rational and will follow their self interest once it is revealed to them. Change is based on the communication of information and offering of incentives.

Normative Re-educative

: People are social beings and will adhere to cultural norms and values. Change is based on redefining and reinterpreting existing norms & values and developing commitments to new ones.

Power Coercive

: People are basically compliant and will generally do what they are told or can be made to do. Change is based on the exercise of authority and imposition of sanctions

Change Management : Four Basic Strategies

Strategy DescriptionEnvironmental Adaptive

: People oppose loss and disruption but they adapt reality to new circumstances. Change is based on building hew organization and gradually transferring people from the old to the new one.

Reference : Bennis, Benne and Chin & Fred Nickols