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Organizational Change – Concept & Need, Change Process, Reasons for Resistance to Change, Measures to Overcome Resistance to Change

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Organizational Change – Concept & Need, Change Process, Reasons for Resistance to Change, Measures to Overcome Resistance to Change

  1. 1. Organisational Change Unit III •Concept •Importance •Change Process •Resistance to change •Managing resistance to change
  2. 2. Lecture - 1 Points to Cover: 1. What is Change 2. Concept 3. Definition 4. Importance of change
  3. 3. What is Change?
  4. 4. Change… Adaptation of a new idea or a behavior by an organization.
  5. 5. Concept of Change  Organisation change may be defined as the adoption of a new idea or a behavior.  It is the process of altering the existing with new for the betterment.  Change is generally refer to the innovation. So all innovation involve change but all change do not involve innovation
  6. 6. What is Organizational Change?  An alteration of an organization’s environment, structure, culture, technology, or people – A constant force – An organizational reality – An opportunity or a threat  Change agent – A person who initiates and assumes the responsibility for managing a change in an organization
  7. 7. Forces for Change External Forces Internal Forces Competition Laws and regulations Strategy modifications New technologies New equipment Labor market shifts New processes Business cycles Workforce composition Social change Job restructuring Compensation and benefits Labor surpluses and shortages Employee attitude
  8. 8. Three Categories of Change Organizational Culture
  9. 9. Types Of Change  Strategic Change  Single mission may have to be change to the multiple  Structural Change  Structural change shift the authority & responsibility to general lower level .  Process – oriented Change  Change in process  People –oriented Change
  10. 10. Ghoshal & Bartlett view: Old values: compliance, control, contract and constraint New values: discipline, support, trust and stretch Change Process
  11. 11. Ghoshal & Bartlett  Successful change involves simplification, integration, and regeneration  Phased approach essential, along with focus on people’s attitudes, assumptions and behaviors  Brings both organizational design and human resources lessons to bear
  12. 12. Reaction to change  Anger  Denial  Acceptance
  13. 13. Principles Of Change  Understanding the things before try.  You cannot change any one element.  People resist any thing they feel is punishment.  Change always generate stress  Behavioral changes comes in small steps.
  14. 14. Difficulty with organization:  Major challenge for the organization is to manage change.  If fail to change, cost of failure is high.  It is important to understand & reflect the nature of change, which is sweeping & sustain themselves.  Strategies should be build to handle change.
  15. 15. Thanks
  16. 16. Lecture - 2  Nature of Change  Change Models
  17. 17. Nature of Change – Vital if a company were to avoid stagnation; – A process and not an event; – Normal and constant; – Fast and is likely to increase further in the present competitive business; – ‘Directive’, that is, implemented by ‘top down’ management or ‘participative’, that is, involving those parties impacted by change;
  18. 18. Nature of Change – Is ‘natural’, that is, evolutionary or ‘adaptive’, that is, a reaction to external circumstances and pressures; – Is ‘incremental’, that is continuous small changes or ‘step’, that is, radical shift from current to new processes; and – Is interdependent on organizational environment or culture.
  19. 19. Components of Change – Through TQM Components of Re- engineering Examples of Change:
  20. 20. Kurt Lewin’s Change Management Model Kurt Lewin proposed a three stage theory of change commonly referred to as-  Unfreeze,  Change, and  Freeze (or Refreeze).
  21. 21. Stage 1: Unfreezing  This stage is about getting ready to change. It involves getting to a point of understanding that change is necessary, and getting ready to move away from our current comfort zone.  This first stage is about preparing ourselves, or others, before the change (and ideally creating a situation in which we want the change).  The more we feel that change is necessary, the more urgent it is, the more motivated we are to make the change when the deadline comes or some sort of reward or punishment linked to the job. If there's no deadline, then the urge to change is lower than the need to change.
  22. 22.  Unfreezing and getting motivated for the change is all about weighing up the 'pro's' and 'con's' and deciding if the 'pro's' outnumber the 'con's' before you take any action. This is the basis of what Kurt Lewin called the Force Field Analysis.  Force Field Analysis is a fancy way of saying that there are lots of different factors (forces) for and against making change that we need to be aware of (analysis). If the factors for change outweigh the factors against change we'll make the change. If not, then there's low motivation to change.  This first 'Unfreezing' stage involves moving ourselves, or a department, or an entire business towards motivation for change.
  23. 23. Stage 2: Change - or Transition  According to Kurt Lewin, change is not an event, but rather a process. He called that process a transition. Transition is the inner movement or journey we make in reaction to a change. This second stage occurs as we make the changes that are needed.  People are 'unfrozen' and moving towards a new way of being.  This stage is often the hardest as people are unsure or even fearful. Ex.: Imagine a jumping from a very high placs or parachuting.
  24. 24.  This is not an easy time as people are learning about the changes and need to be given time to understand and work with them. Support is really important here and can be in the form of training, coaching, and expecting mistakes as part of the process.  Using role models and allowing people to develop their own solutions also help to make the changes. It's also really useful to keep communicating a clear picture of the desired change and the benefits to people so they don't lose sight of where they are heading.
  25. 25. Stage 3: Freezing (or Refreezing)  Kurt Lewin refers to this stage as freezing although a lot of people refer to it as 'refreezing'. As the name suggests this stage is about establishing stability once the changes have been made. The changes are accepted and become the new norm. People form new relationships and become comfortable with their routines. This can take time.  In todays world of change the next new change could happen in weeks or less.
  26. 26. Thanks
  27. 27. Lecture – 3 System Model of Change
  28. 28.  The systems approach to organizational change makes it possible to describe change based on all characteristics of change; after all the change system presents all those attributes dynamically and at the same time. Fluctuations in one or more attributes are possible at any time during the course of the change process.
  29. 29.  The input for the system model of change can be one or more elements from the organizational context (strategy, structure, people, culture). This element experiences a change through the influence of the change attributes of the change system. The change attributes may vary depending on the input in the system. Thus in case of a strategic change other change attributes than with a cultural change are involved. Moreover the change attributes will get another interpretation when they are being looked upon from other paradigms.
  30. 30.  Apart from the intentional changes that occur unplanned changes take place continuously. The system model of change generates specific individual or group effects, organizational effects and social effects. The organizational and socio-economic context affects the system which for its part affects its environment. The system gets a number of attributes by means of its action.
  31. 31. A System Model of Change
  32. 32. Kotter's 8-Step Change Model
  33. 33. Implementing change powerfully and successfully Learn how to implement change successfully. Change is the only constant. – Heraclitus, Greek philosopher  What was true more than two thousand years ago is just as true today. We live in a world where "business as usual" IS change. New initiatives, project-based working, technology improvements, staying ahead of the competition – these things come together to drive ongoing changes to the way we work.  Whether you're considering a small change to one or two processes, or a system wide change to an organization, it's common to feel uneasy and intimidated by the scale of the challenge.  You know that the change needs to happen, but you don't really know how to go about doing delivering it. Where do you start? Whom do you involve? How do you see it through to the end? Kotter's 8-Step Change Model
  34. 34.  There are many theories about how to "do" change. Many originate with leadership and change management guru, John Kotter. A professor at Harvard Business School and world-renowned change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading Change." We look at his eight steps for leading change below.
  35. 35. Step One: Create Urgency  For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving.  This isn't simply a matter of showing people poor sales statistics or talking about increased competition. Open an honest and convincing dialogue about what's happening in the marketplace and with your competition. If many people start talking about the change you propose, the urgency can build and feed on itself.  What you can do:  Identify potential threats, and develop scenarios showing what could happen in the future.
  36. 36.  Examine opportunities that should be, or could be, exploited.  Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking.  Request support from customers, outside stakeholders and industry people to strengthen your argument.  Kotter suggests that for change to be successful, 75% of a company's management needs to "buy into" the change. In other words, you have to really work hard on Step One, and spend significant time and energy building urgency, before moving onto the next steps. Don't panic and jump in too fast because you don't want to risk further short-term losses – if you act without proper preparation, you could be in for a very bumpy ride.
  37. 37. Step Two: Form a Powerful Coalition  Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough – you have to lead it.   You can find effective change leaders throughout your organization – they don't necessarily follow the traditional company hierarchy. To lead change, you need to bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance. 
  38. 38.  Once formed, your "change coalition" needs to work as a team, continuing to build urgency and momentum around the need for change.   What you can do:  Identify the true leaders in your organization.  Ask for an emotional commitment from these key people.  Work on team building within your change coalition.  Check your team for weak areas, and ensure that you have a good mix of people from different departments and different levels within your company.
  39. 39. Step Three: Create a Vision for Change  When you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember.   A clear vision can help everyone understand why you're asking them to do something. When people see for themselves what you're trying to achieve, then the directives they're given tend to make more sense.
  40. 40.  What you can do:  Determine the values that are central to the change.  Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization.  Create a strategy to execute that vision.  Ensure that your change coalition can describe the vision in five minutes or less.  Practice your "vision speech" often.    For more on creating visions, see our Mind Tools article on Mission Statements and Vision Statements.
  41. 41. Step Four: Communicate the Vision   What you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do.  Don't just call special meetings to communicate your vision. Instead, talk about it every chance you get. Use the vision daily to make decisions and solve problems. When you keep it fresh on everyone's minds, they'll remember it and respond to it. 
  42. 42.  It's also important to "walk the talk." What you do is far more important – and believable – than what you say. Demonstrate the kind of behavior that you want from others.   What you can do:  Talk often about your change vision.  Openly and honestly address peoples' concerns and anxieties.  Apply your vision to all aspects of operations – from training to performance reviews. Tie everything back to the vision.  Lead by example.
  43. 43. Step Five: Remove Obstacles  If you follow these steps and reach this point in the change process, you've been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you've been promoting.  But is anyone resisting the change? And are there processes or structures that are getting in its way?  Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward. 
  44. 44.  What you can do:  Identify, or hire, change leaders whose main roles are to deliver the change.  Look at your organizational structure, job descriptions, and performance and compensation systems to ensure they're in line with your vision.  Recognize and reward people for making change happen.  Identify people who are resisting the change, and help them see what's needed.  Take action to quickly remove barriers (human or otherwise).
  45. 45. Step Six: Create Short-term Wins  Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress.  Create short-term targets – not just one long-term goal. You want each smaller target to be achievable, with little room for failure. Your change team may have to work very hard to come up with these targets, but each "win" that you produce can further motivate the entire staff. 
  46. 46.  What you can do:  Look for sure-fire projects that you can implement without help from any strong critics of the change.  Don't choose early targets that are expensive. You want to be able to justify the investment in each project.  Thoroughly analyze the potential pros and cons of your targets. If you don't succeed with an early goal, it can hurt your entire change initiative.  Reward the people who help you meet the targets.
  47. 47. Step Seven: Build on the Change  Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change.   Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements.   Each success provides an opportunity to build on what went right and identify what you can improve. 
  48. 48.  What you can do:  After every win, analyze what went right and what needs improving.  Set goals to continue building on the momentum you've achieved.  Learn about kaizen, the idea of continuous improvement.  Keep ideas fresh by bringing in new change agents and leaders for your change coalition.
  49. 49. Step Eight: Anchor the Changes in Corporate Culture  Finally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work.  Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture.  It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started. 
  50. 50.  What you can do:  Talk about progress every chance you get. Tell success stories about the change process, and repeat other stories that you hear.  Include the change ideals and values when hiring and training new staff.  Publicly recognize key members of your original change coalition, and make sure the rest of the staff – new and old – remembers their contributions.  Create plans to replace key leaders of change as they move on. This will help ensure that their legacy is not lost or forgotten.
  51. 51. Thanks
  52. 52. Lecture 4 Forces for Change
  53. 53. FORCES FOR CHANGE  Organizations encounter many different forces for change. These forces come from external sources outside the organization and from internal sources.  Awareness of these forces can help managers determine when they should consider implementing an organizational change. The external and internal forces for change are as follows:
  54. 54. (a) External Forces  External forces for change originate outside the organization. Because these forces have global effects, they may cause an organization to question the essence of what business it is in and the process by which products and services are produced. There are four key external forces for change:  Demographic characteristics,  Technological advances,  Market changes, and  Social and political pressures.
  55. 55. (i) Demographic Characteristics (1) The workforce is more diverse and (2) There is a business imperative to effectively manage diversity.  Organizations need to effectively manage diversity if they are to receive maximum contribution and commitment from employees.  Ex. Net generation culture
  56. 56. (ii) Technological Advancements: Both manufacturing and service organizations are increasingly using technology as a means to improve productivity and market competitiveness.  Manufacturing companies, for instance, have automated their operations with robotics, Computerized Numerical control (CNC) which is used for metal cutting operations, and computer-aided design (CAD). Companies have just begun to work on computer-integrated manufacturing (CIM). This highly technical process attempts to integrate product design with product planning, control, and operations.  Office automation consists of a host of computerized technologies that are used to obtain, store, analyse, retrieve, and communicate information.
  57. 57. (iii) Market Changes The emergence of a global economy is forcing Indian companies to change the way they do business. Companies are having to forge new partnerships with their suppliers in order to deliver higher quality products at lower prices.  Customers choice is changing  Customers demands are changing  Easy switching to new market  Ex: Wal-Mart, Superbazar, Flip-kart, Tradus
  58. 58. (iv) Social and Political Pressures These forces are created by social and political events. Personal values affect employees’ needs, priorities, and motivation; managers thus may need to adjust their managerial style or approach to fit changing employee values. Political events can create substantial change. For example:  Helmet was made compulsory in 2006.  Statutory Warning on Tobacco products.  Maternity leave to workers etc Although it is difficult for organizations to predict changes in political forces, many organizations hire lobbyists and consultants to help them detect and respond to social and political changes.
  59. 59. (b) Internal Forces Internal forces come from inside the organization. These forces may be subtle such as low morale, or can manifest in outward signs such as low productivity and conflict. Internal forces for change come from both human resource problems and managerial behavior/decisions.
  60. 60. (i) Human Resource Problems/Prospects  These problems stem from employee perceptions about how they are treated at work and the match between individual and organization needs and desires.  Dissatisfaction is a symptom of an underlying employee problem that should be addressed. Unusual or high levels of absenteeism and turnover also represent forces for change. Organizations might respond to these problems by using the various approaches to job design by implementing realistic job previews, by reducing employees role conflict, overload, and ambiguity, and by removing the different stresses. Prospects for positive change stem from employee participation and suggestions.
  61. 61. (ii) Managerial Behavior/Decisions  Excessive interpersonal conflict between managers and their subordinates is a sign that change is needed. Both the manager and the employee may need interpersonal skills training, or the two may simply need to be separated. For example, one of the parties might be transferred to a new department. Ex.: Inappropriate leadership behavior.
  62. 62. (c) Organization Level Changes  Change at this level involves major programmes that affect both individuals and groups. Decisions regarding these changes are generally made by senior management and are seldom implemented by only a single manager. Frequently they occur over long periods of time and require considerable planning for implementation. Example of these changes would be reorganization of the organization structure and responsibilities, revamping of employee remuneration system, or major shifts in an organization's objectives. Change at the organizational level is generally referred to as organization development.
  63. 63. Thanks
  64. 64. Lecture - 5
  65. 65. Resistance To Change
  66. 66. Why People Resist Change Prentice Hall, 2002
  67. 67. Sources of Resistance to Change • Ignorance: A failure to understand the situation or the problem • Mistrust: Motives for change are considered suspicious • Disbelief: A feeling that the way forward will not work • “Power-Cut”: A fear that sources of influence and control will be eroded.
  68. 68. • Loss: Change has unacceptable personal costs • Inadequacy: The benefits from the change are not seen as sufficient • Anxiety: Fear of being unable to cope with the new situation. • Comparison: The way forward is disliked because an alternative is preferred • Demolition: Change threatens the destruction of existing social networks.
  69. 69. Types of Resistance Functional Resistance: • Critically assessing whether change will lead to improvements • Exploring the personal consequences of change. Dysfunctional Resistance: • Avoiding dealing with urgent and pressing issues • Declining to work on what really needs to be done.
  70. 70. Types of Resistance Functional Resistance: • Feelings of regret, anxiety or fear • To a previous history of non-disclosure and poor working relations. Dysfunctional Resistance • Blaming and criticising without proposing alternatives • Sabotaging change • Non-collaboration with others.
  71. 71. Scepticism • Causes are complex • Often slow to overcome • Sceptics often dislike the “language” change is expressed in and want practical and demonstrable benefits • Not wholly negative - Can be constructive in “reality-testing” change.
  72. 72. THE CHANGE EQUATION: FACTORS NECESSARY FOR EFFECTIVE CHANGE A The individual, group or organisation level of dissatisfaction with the status quo B A clear and shared picture of a better future - how things could be C The capacity of individuals, groups and the organisation to change (orientation, competence and skill) D Acceptable and “do-able” first action steps E The cost (financial, time) of making the change to individuals, groups and the organisation.
  73. 73. The Change Equation A + B + C + D must be greater than E
  74. 74. The Change Equation: When Elements Are Missing B + C +D means that the urgent will drive out the important and change will go to the “bottom of the in-tray”.
  75. 75. The Change Equation: When Elements Are Missing A + B + D means that with no investment to improve change management capacity, anxiety and frustration will result.
  76. 76. The Change Equation: When Elements Are Missing A + B + C means that the change effort will be haphazard and there will be a succession of false-starts.
  77. 77. A 4-Stage Process For Dealing With Resistance • Consider Different People • Work With Values and Beliefs • Understand and Relate to Needs and Problems • Tailor Your Message to Your Audience.
  78. 78. Consider Different People • Identify the “adopters” - The staff the change will affect • Identify key professional and organisational groups • Identify crucial opinion-leaders in the organisation.
  79. 79. Work With Values and Beliefs • Assess what’s important to people with regard to the change at personal, professional and organisational levels • Understand and relate to what people consider important.
  80. 80. Understand and Relate To Needs and Problems • For all key players, assess “What’s in it for Me?” • Don’t be too precious about the detail of the approach proposed • Understand people’s problems and needs from different perspectives.
  81. 81. Tailor Your Message To Your Audience • Do “homework” - Get to know what’s important to individuals and groups • Keep the message as simple as possible • Use case studies and examples to show benefits • Highlight multiple pay-offs from change • Use both informal & formal communication.
  82. 82. Thanks
  83. 83. Managing Resistance to Change Lecture - 6
  84. 84. Why People Resist Change? – The ambiguity and uncertainty that change introduces – The comfort of old habits – A concern over personal loss of status, money, authority, friendships, and personal convenience – The perception that change is incompatible with the goals and interest of the organization
  85. 85. Managerial Actions to Reduce Resistance to Change (Managing Change) • Education and communication • Participation • Facilitation and support • Negotiation • Manipulation and co-optation • Selecting people who accept change • Coercion
  86. 86. Education and communication This strategy is designed to overcome resistance when there is misunderstanding of the changes. The communication can take a wide range of forms including small meetings, large meetings, presentations, online communications, reports, mails and much more. This strategy can work well only when there is a degree of trust that already exists. Thus there needs to be significant investment in building this trust.
  87. 87. Participation By getting more people involve in the planning stage, the more successful the change will be. As people participate they develop a sense of ownership. For example, The Avionics Group was facing decentralization problems, uncoordinated processes and few common measures. Therefore, the group feels the need to deliver its One Company vision by focusing on technology, people and processes by consulting KPMG Consulting. The firm worked with Avionics employees, with more responsibility devolving to the employees over time . They feel responsible to get the things work rather than to oppose it. Furthermore, participants may have some good idea to contribute. They may build understanding and are much more likely to truly hear important message.
  88. 88. Especially, if the leaders can get the potential resistor to help in implementing the change, they will have a sense of accomplishment from making it work. As people who participate will commit to the change and give any relevant information they know putting into the change plan. However, it can also be very time consuming if participants design an irrelevance change. And the change leaders have to figure out which information is relevant to the change.
  89. 89. Facilitation and support This strategy involves providing training in new skills as well as other forms of support. A common source of resistance to change is fear. The source of this fear is often that people feel they don’t have the skills and experience to cope with the changes planned. This is often overlooked by managers. To help reduce this resistance a well planned training and support initiative can have a significant impact on the success of the change initiative.
  90. 90. Negotiation By having discussion with the staffs, the change leaders are able to discover the potential resister. They are the person or group with considerable power to resist and win clearly spoil the whole process of change. Therefore, the change leaders should have to take initiative to negotiate with them and even soliciting written letters of understanding. Once people were convincing, the level of resistance will be reduced. This will help to smooth the process of change. However, this can be very expensive if it alerts others to negotiate for compliance.
  91. 91. Manipulation and co-optation To effectively achieve change, to assign the key persons a desirable role in designing or implementing the change process is important. As people participate, they develop a sense of ownership. If someone is imposing the change upon them, they derive a sense of messing it up. In contrast, they get a sense of accomplishment from making it work. This method is relatively quick and inexpensive solution to resist problems. However, it can lead to future problems if people feel manipulated.
  92. 92. Creation of a positive environment To get to a more desirable work situation, the change leaders have to know the importance of the environment. By allowing the employees having enough times to adjust to new procedures, therefore they will understand the importance of the change and how they will benefit from it, will usually be more co-operative in accepting change. The change leaders have to encourage the individuals or groups to try new ideas or be innovative. Obviously, mistakes will be made by going through new ideas, therefore the change leaders should give tolerance to the individuals or groups. Atmospheres in which employees feel safe expressing their negative emotional responses openly.
  93. 93. Coercion Having job loss threatening, transfer or lack of promotion can also help to overcome resistance to change. Especially during bad economic situation, people tend to stay on the job instead of going for a new one. Therefore, the employees will have to accept the change at low level of resistance. This is an effective method in term of speed and can almost overcome any kind of resistance. However, it can be very risky if people are angry feeling threatened with the change leaders.
  94. 94. Create dissatisfaction with the current state In order to get to a desired future state, we have to create dissatisfaction with the current state. Most people tend to assume their performance is pretty good until they are hit with comparable numbers form elsewhere. The cycle time for new product, consumer satisfaction percentage, total sales per employee, comparison with their competitors and finally realize that it is time for them to change. This will lead the people to take their initiative to implement the change. However, if the change leaders over-emphasize the disaster scenario, people can panic and may ruin the whole process.
  95. 95. Reward acceptance and be fair Robert Evans said “If you consistently deny people confirmation that their efforts are adequate, you are actually demotivate them” . So it is important to reward behavior in support of change. Because people may show resistance to change if they are not satisfied in the way they are treated. People are more likely to accept the change if they receive positive rewards in the form of pay, promotion, recognition and advancement.
  96. 96. Furthermore, it is important for the change leaders to develop a good reputation of fairness in order to gain the individuals or groups’ trust. By doing this, it will help the change leaders become effective in implementing and managing change. Normally, people feel uncertain during the periods of change because they are told to start doing their job differently, yet the reward system lags behind and sometimes, the new objectives were being under- minded by the old reward system. Therefore, the change leaders have to be fair to gain people’s confidence.
  97. 97. Timing The importance of picking the right time to engage “overcoming“ strategies as well as dealing with each person individually, and not only as part of a group. People need information most whenever they are likely to be surprised by events. Therefore, right timing is crucial as well as keeping surprise to a minimum. Due to many factors required, to ensure the organization is ready for a change, the change leaders need to be aware of the importance of considering their readiness when embarking on a change initiative.
  98. 98. The change leaders should, for instance, make the effort to change elements of the company, which are not satisfying, before they become a problem. They should also consider in what ways the organization could be modified, in order to prevent a reoccurrence of problems that have been thrown up during the change.
  99. 99. Change should not be for the sake of Change Change-not-encouraged
  100. 100. Lecture – 6 End Thanks
  101. 101. Lecture – 7 Issues in Managing Change
  102. 102. The issues in managing change are: 1. Resistance to change 2. Changing the culture 3. Organizing for change 4. Attitude for change
  103. 103. Issues in Managing Change  Changing Organizational Cultures – Cultures are naturally resistant to change. – Conditions that facilitate cultural change: » The occurrence of a dramatic crisis » Leadership changing hands » A young, flexible, and small organization » A weak organizational culture
  104. 104. Strategies for Managing Cultural Change • Set the tone through management behavior; top managers, particularly, need to be positive role models. • Create new stories, symbols, and rituals to replace those currently in use. • Select, promote, and support employees who adopt the new values. • Redesign socialization processes to align with the new values.
  105. 105. Strategies for Managing Cultural Change • To encourage acceptance of the new values, change the reward system. • Replace unwritten norms with clearly specified expectations. • Shake up current subcultures through job transfers, job rotation, and/or terminations. • Work to get consensus through employee participation and creating a climate with a high level of trust.
  106. 106. Issues in Managing Change  Handling Employee Stress – Stress » The adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. » Functional Stress  Stress that has a positive effect on performance. – How Potential Stress Becomes Actual Stress » When there is uncertainty over the outcome. » When the outcome is important.
  107. 107. Causes of Stress
  108. 108. Symptoms of Stress
  109. 109. Issues in Managing Change  Reducing Stress – Engage in proper employee selection – Match employees’ KSA’s(Key Skill Areas) to jobs’ Tasks, Duties, and Responsibilities (TDR’s) – Use realistic job interviews for reduce ambiguity – Improve organizational communications – Develop a performance planning program – Use job redesign – Provide a counseling program – Offer time planning management assistance – Sponsor wellness programs
  110. 110. Issues in Managing Change  Making Change Happen Successfully – Embrace change—become a change-capable organization. – Create a simple, compelling message explaining why change is necessary. – Communicate constantly and honestly. – Foster as much employee participation as possible—get all employees committed. – Encourage employees to be flexible. – Remove those who resist and cannot be changed.
  111. 111. Characteristics of Change-Capable Organizations • Link the present and the future. • Make learning a way of life. • Actively support and encourage day-to-day improvements and changes. • Ensure diverse teams. • Encourage maverick(unconventional). • Shelter breakthroughs • Integrate technology. • Build and deepen trust.
  112. 112. Change Model
  113. 113. A Change Model (part 2 of 5) Quadrant 1 Minor change, minor impact on culture. Resistance will be at lowest level and success will be most probable.
  114. 114. A Change Model (part 3 of 5) Quadrant 2 Minor change, major impact on culture. Some resistance can be expected.
  115. 115. A Change Model (part 4 of 5) Quadrant 3 Major change, minor impact on culture. Some resistance is likely. Good management can probably overcome it.
  116. 116. A Change Model (part 5 of 5) Quadrant 4 Major change, major impact on culture. High resistance is expected. Difficult to manage but only Good management can probably overcome it with proper planning.
  117. 117. Thanks End of Lecture - 7
  118. 118. Lecture - 8 Case Problem Sea side is forced to modernize
  119. 119. Fortune India Ltd. is a manufacturing company located in Delhi. The company was doing well from the past thirty years and the people involved in the operations were confident in their respective areas of operations as they were doing it from quite some time. There was a feeling among some of the employees that it is becoming monotonous kind of an affair although the efficiency has gone very high due to the fact that the same person is doing the job from quite some time.
  120. 120. A recent change in the policy and procedures of the company, it was made possible for the employees to engage in job rotation. Shyam is In-charge of a manufacturing operation from the past five years and he has three subordinates directly reporting to him - Vijay, Sameer, Rahul. Vijay has been working in the same job position from the past twenty years, whereas Sameer from the past five years and Rahul from the past two years in the same job position. Shyam being quite young and dynamic welcomed the change in the policy and procedures as it amounts to giving more options to the people those who are dynamic and look for more challenges.
  121. 121. Moreover it provides more holistic perspective about the organisation. Shyam perceived that it is a win/win situation for both the employees and the organisation. Shyam called a meeting to discuss the possibility of the adoption of job rotation. As the meeting progressed, Shyam became aware that out of three subordinates, two wanted to change to a job rotation schedule, whereas one is not at all interested for the same. Shyam was in a fix and adjourned the meeting. After giving a considerable thought to the problem, he was able to crystallize on four alternative approaches that may be followed to manage this conflict situation:
  122. 122. 1. Forget about Job rotation in this unit. 2. Issue the orders that job rotation is mandatory for all the three subordinates with immediate effect. 3. Respect the feelings of each one and workout an arrangement where job rotation occurs for a while, is stopped for a while, and so on, thus allowing each person to have his or her way for some time. 4. Call the meeting again and discuss the pros and cons of the proposed change and that their interpersonal relationship are very important than any job rotation. Try to develop a consensus for job rotation.
  123. 123. Questions: (a)What conflict management styles are represented by each of the four alternatives suggested above by Shyam? (b) Which of the four approaches should Shyam choose to follow in this situation? Why? Or Should an alternative approach be taken? (c) What special interpersonal skills should Shyam need to succeed in this problem situation? Defend your answer. (d) Assume that you are the CEO of the organization and you have to implement this change. Prepare a model of change which you think would avoid such conflict when this change would be implemented.
  124. 124. Questions  What are various types of Changes ? Explain.  Discuss the process of Change in organization ?  Discuss the objective & goal of organisational Change ?  How to overcome the resistance to change?  Why do people resist change & how would you introduce large change successfully in an organization ?

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