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Managing Change

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Managing Change

  1. 1. Welcome
  2. 2. Contents Unit 1 – The Changing Environment Unit 2 – Organisational Structure and Culture Unit 3 – Forces and Perspectives Unit 4 – Responses to Change Unit 5 – Resistance and Conflict Unit 6 – Planning Change Unit 7 – Leading Change Unit 8 – Evaluating Change
  3. 3. <ul><li>Managing Change – An Introduction </li></ul><ul><ul><li>An Inescapable Part of Social and Business Life </li></ul></ul><ul><ul><li>Change in Organisations Does Not Happen in a Vacuum </li></ul></ul><ul><ul><li>Change Is Constant and Permanent </li></ul></ul><ul><ul><li>Change Is Increasing in Pace </li></ul></ul>
  4. 4. <ul><li>Module I – The Changing Environment </li></ul><ul><li>Objectives </li></ul><ul><ul><li>To Describe Internal and External Pressures for Change on Your Organisation </li></ul></ul><ul><ul><li>Analyse the PEST Forces for Change on Your Organisation </li></ul></ul><ul><ul><li>Identify Future Change Processes Which Need to Take Place in Your Organisation. </li></ul></ul>
  5. 5. <ul><li>Managing Change – An Introduction </li></ul><ul><ul><li>An Inescapable Part of Social and Business Life </li></ul></ul><ul><ul><li>Change in Organisations Does Not Happen in a Vacuum </li></ul></ul><ul><ul><li>Change Is Constant and Permanent </li></ul></ul><ul><ul><li>Change Is Increasing in Pace </li></ul></ul>
  6. 6. <ul><li>The Increasing Pace of Change </li></ul><ul><li>External Forces </li></ul><ul><li>Outside an Organisations Operation and Influence </li></ul><ul><ul><li>P olitical </li></ul></ul><ul><ul><li>E conomic </li></ul></ul><ul><ul><li>S ocial/cultural </li></ul></ul><ul><ul><li>T echnological & </li></ul></ul><ul><ul><li>Co mpetition </li></ul></ul>
  7. 7. <ul><li>Internal Forces for Change </li></ul><ul><li>Within the Organisation or Its Immediate Area of Operation </li></ul><ul><ul><li>Senior Management </li></ul></ul><ul><ul><li>Staff </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Clients and Customers </li></ul></ul><ul><ul><li>Competitors </li></ul></ul>
  8. 8. <ul><li>Internal Changes – Senior Management </li></ul><ul><ul><li>Top Down </li></ul></ul><ul><ul><li>Strong Pressure Accompanied by Power and Resources </li></ul></ul><ul><ul><li>Common Approach to Change </li></ul></ul><ul><ul><li>Resentment at Lack of Consultation </li></ul></ul><ul><ul><li>Surprise at Why Change Is Being Implemented </li></ul></ul><ul><ul><li>Fear of and Resistance to Change </li></ul></ul>
  9. 9. <ul><li>Internal Changes – Pressures From Staff </li></ul><ul><ul><li>Bottom up </li></ul></ul><ul><ul><li>Trades Unions </li></ul></ul><ul><ul><li>Working Conditions Eg Holidays, Canteen, </li></ul></ul><ul><ul><li>Internal Communication </li></ul></ul><ul><ul><li>Management Attitudes to Consultation,control Delegation </li></ul></ul>
  10. 10. <ul><li>Pressures From Suppliers </li></ul><ul><ul><li>Forces of Change Working on Internal/External Suppliers </li></ul></ul><ul><ul><li>They in Turn Might Put Pressure on You for Change </li></ul></ul>
  11. 11. <ul><li>Internal Pressure to Change – Pressure From Client and Customers </li></ul><ul><ul><li>Pressure From Client/Customer/Market Is Major Trigger of Change </li></ul></ul><ul><ul><li>Diversification of Products to Meet Customer Expectations </li></ul></ul><ul><ul><li>Customer Expectations of Quality, Speed and Efficiency Trigger Change </li></ul></ul><ul><ul><li>Companies Reducing Response Times </li></ul></ul><ul><ul><li>Introduction of Flatter Organisations </li></ul></ul><ul><ul><li>Leadership and Teambuilding </li></ul></ul><ul><ul><li>Move Responsibility and Authority Down the Hierarchy </li></ul></ul><ul><ul><li>Get Rid of the Hierarchy!! </li></ul></ul>
  12. 12. <ul><li>Internal Pressures for Change – Pressures From Competitors </li></ul><ul><ul><li>Inefficiency Leads to Opportunities for Competitors </li></ul></ul><ul><ul><li>Complacency Is the Enemy of Success </li></ul></ul><ul><ul><li>Enterprise Culture Means Smaller Companies Challenging Larger </li></ul></ul><ul><ul><li>Political Change Has Liberalised Monoplies </li></ul></ul><ul><ul><li>Challenge of Keeping Existing Customers and Generating New Business. </li></ul></ul>
  13. 13. <ul><li>Module 2 – Organisational Structure and Culture </li></ul><ul><li>Objectives </li></ul><ul><ul><li>Explain the Relationship Between Organisational Structure and Change </li></ul></ul><ul><ul><li>Understand Some Different Organisational Structures </li></ul></ul><ul><ul><li>Understand the Different Elements of Organisational Culture </li></ul></ul>
  14. 14. <ul><li>Company Culture = Organisational Behaviour </li></ul><ul><li>There Are Six Expressions of Company Culture </li></ul><ul><ul><li>Regular Ways of Doing Things </li></ul></ul><ul><ul><li>Work Group Standards </li></ul></ul><ul><ul><li>Main Company Values </li></ul></ul><ul><ul><li>Philosophy </li></ul></ul><ul><ul><li>Rules of the Game </li></ul></ul><ul><ul><li>Feeling or Atmosphere </li></ul></ul>
  15. 15. <ul><li>Organisational Culture </li></ul><ul><li>“ The Way We Do Things Round Here…” </li></ul><ul><li>Can be determined by examining the following </li></ul><ul><ul><li>Routines – Routine Everyday Behaviours </li></ul></ul><ul><ul><li>Rituals – Special Events Important to the Company </li></ul></ul><ul><ul><li>Stories – Successes, Failures, Heroes, Villains.. </li></ul></ul><ul><ul><li>Power Structures – Where Does Power Lie? </li></ul></ul><ul><ul><li>Control Structures – Measurement and Reward Systems emphasising Company Focus of Activities. </li></ul></ul>
  16. 16. The Support / Challenge Matrix Inertia/Apathy – Nothing Changes , Status Quo Remains Stress – Short Term Achievements by Using Pressure Cosy Club – Pats on the Back but Avoidance of Real Issues High Performance – People Challenged to Stretch. Provides Opportunity for Real Growth. Where Does Your Company Fit on This Matrix???
  17. 17. <ul><li>The Dimensions of Culture </li></ul><ul><li>Handy developed a model recognising 4 cultural types </li></ul><ul><ul><li>The Power Culture – Dominant personality at centre eg Bill Gates/Richard Branson..Quick response to change but unstable in long term </li></ul></ul><ul><ul><li>The Role Culture – Rule bound with set rules and procedures usually large organisations..Stability and preserving the status quo..resistant to change </li></ul></ul><ul><ul><li>The Task Culture ..Focus on teamwork..Project Management flourishes..Response to Change rapid and well accepted </li></ul></ul><ul><ul><li>The Person Culture ..exists to serve and further the interests of people who work with it…Co-operative ventures and voluntary orgns..Managemment by committee averse to risk and slow to act… </li></ul></ul>
  18. 18. <ul><li>Module 3 –Forces and Perspectives on Change </li></ul><ul><li>Objectives </li></ul><ul><ul><li>Undertake a Force Field Analysis to Assess Forces for and Against a Proposed Change. </li></ul></ul><ul><ul><li>Consider Possible Responses to a Proposed Change </li></ul></ul><ul><ul><li>Consider Possible Advantages and Disadvantages of a Proposed Change. </li></ul></ul>
  19. 19. <ul><li>Force Field Analysis (Kurt Lewin ) </li></ul><ul><ul><li>A Way of Looking at Pressure to Change </li></ul></ul><ul><ul><li>Driving Forces Versus Restraining Forces </li></ul></ul><ul><ul><li>Equilibrium </li></ul></ul>
  20. 20. <ul><li>The Effects of Change </li></ul><ul><li>Benefits and Drawbacks </li></ul><ul><li>Positive Effects </li></ul><ul><ul><li>Speed up Decision Making </li></ul></ul><ul><ul><li>Shortening Production Processes </li></ul></ul><ul><ul><li>Increasing Communication </li></ul></ul><ul><ul><li>Speed up of Feedback From Customers and Clients </li></ul></ul>
  21. 21. <ul><li>Negative Effects of Change </li></ul><ul><ul><li>Too Much Pressure </li></ul></ul><ul><ul><li>Hasty Decisions </li></ul></ul><ul><ul><li>More Errors </li></ul></ul><ul><ul><li>Misunderstanding by Less Face to Face Contact </li></ul></ul><ul><li>Change Can Offer Enormous Opportunities for Growth and Development If Organisations and Individuals Can Seize Them </li></ul><ul><li>Some Changes Which Were Thought Beneficial Can Also Have Negative Effects on the Organisation. </li></ul>
  22. 22. <ul><li>Module 4 – Responses to Change </li></ul><ul><li>Objectives </li></ul><ul><ul><li>To Examine Organisational Responses to Change </li></ul></ul><ul><ul><li>To Analyse Individual Responses to Change </li></ul></ul><ul><ul><li>Undertake a SWOT Analysis. </li></ul></ul>
  23. 23. <ul><li>Responses to Change </li></ul><ul><li>Responses to Change Can Vary From Positive to Negative . In This Module Responses Will Be Categorised According to the Following Levels </li></ul><ul><ul><li>Organisational </li></ul></ul><ul><ul><li>Individual </li></ul></ul>
  24. 24. <ul><li>Organisational Response to Change </li></ul><ul><li>Every Organisation Has an Underlying Culture…This Is Reflected in Structures, Methods of Internal Communication , Objectives and Values…the Culture of an Orgn Will Determine How It Responds to Change..The Following Factors Will Determine How Readily , Effectively and Efficiently an Organisation Will Implement Change. </li></ul><ul><ul><li>Performance </li></ul></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><li>Awareness of Environment </li></ul></ul><ul><ul><li>Monitoring </li></ul></ul><ul><ul><li>Planning </li></ul></ul><ul><ul><li>Consultation </li></ul></ul>
  25. 25. <ul><ul><li>Dynamism </li></ul></ul><ul><ul><li>Communication </li></ul></ul><ul><ul><li>Procedures </li></ul></ul><ul><ul><li>Decision Making </li></ul></ul><ul><ul><li>Task Teams </li></ul></ul><ul><ul><li>Participation </li></ul></ul><ul><ul><li>Loyalty Expectations </li></ul></ul><ul><ul><li>Risk Taking </li></ul></ul><ul><ul><li>Activity 11 </li></ul></ul>
  26. 26. <ul><li>Organisational Response to Change </li></ul><ul><ul><li>Making Too Little Change </li></ul></ul><ul><ul><li>A Company May Realise That There Is a Need for Change , but It May Act Too Slowly and Carefully to Put Any Changes Into Practice. </li></ul></ul><ul><ul><li>The Result a Half Measure Which Is Ineffective. </li></ul></ul>
  27. 27. <ul><li>Making Unnecessary or “Fashionable” Changes </li></ul><ul><ul><li>Although Managers Should Be Alert to the Need for Change , They Must Also Be Aware of Making Change for Changes Sake. </li></ul></ul><ul><ul><li>This Can Take the Form of Making More Changes Than Is Necessary , and Continuing to Make Changes After the Initial Need Has Been Satisfied. </li></ul></ul><ul><ul><li>Some Mangers Make the Mistake of Following the Fashionable Management Solution of the Moment , Regardless of the Suitability to Their Organisation. </li></ul></ul>
  28. 28. <ul><ul><li>Rules for Managing Change </li></ul></ul><ul><ul><li>Recognise When Change Is Necessary or Inevitable </li></ul></ul><ul><ul><li>Respond Appropriately to the Need for Change </li></ul></ul><ul><ul><li>Involve Other People in the Process of Making and Managing Change. </li></ul></ul>
  29. 29. Failure to Respond to the Need for Change Failure to Respond to the Need for Change Can Have Serious Results…Even If They Take a Long Time to Become Apparent…Some Managers and Organisations Feel That Change Can Be Bypassed or Ignored… All Reliable Evidence Suggests That it Cannot…the Consequences of This Attitude Can Only Lead to Failure.
  30. 30. <ul><li>Reactions to Change </li></ul><ul><li>According to Furnham (1997) </li></ul><ul><li>The Emotions That Change Causes Results From How They Consciously or Sub-consciously Answer the Following Questions </li></ul><ul><ul><li>Will This Change Cause Me to Gain or Lose Something Valuable? </li></ul></ul><ul><ul><li>Do I Understand the Nature of This Change? </li></ul></ul><ul><ul><li>Do I Trust the Initiators of This Change? </li></ul></ul><ul><ul><li>Do I Agree in Principle With the Proposed Change? </li></ul></ul><ul><ul><li>How Do I Feel About the Change? </li></ul></ul>
  31. 31. <ul><li>How These Questions Are Answered May Lead to One of Seven Responses ( Baron & Greenberg 1992 ) </li></ul><ul><ul><li>Quitting </li></ul></ul><ul><ul><li>Active Resistance </li></ul></ul><ul><ul><li>Opposition </li></ul></ul><ul><ul><li>Acquiescence </li></ul></ul><ul><ul><li>Acceptance/modification </li></ul></ul><ul><ul><li>Acceptance </li></ul></ul><ul><ul><li>Active Support </li></ul></ul>
  32. 32. SWOT Analysis – A Tool for Identifying the Effects of Change Activity
  33. 33. <ul><li>Module 5 – Resistance and Conflict As a Response to Change </li></ul><ul><li>Objectives </li></ul><ul><ul><li>To Identify Reasons for , and Sources Of, Resistance to Change </li></ul></ul><ul><ul><li>Suggest Ways of Overcoming Resistance to Change </li></ul></ul><ul><ul><li>Identify Possible Signs , Causes and Types of Conflict , and Use Simple Techniques to Resolve Conflict. </li></ul></ul>
  34. 34. <ul><li>Resistance to Change. </li></ul><ul><ul><li>Any Change No Matter How Beneficial Will Meet Some Resistance </li></ul></ul><ul><ul><li>Failure to Anticipate Power of Resistance Is One of the Main Reasons for Failed Attempts to Make Change </li></ul></ul><ul><ul><li>Facing up to Likely Resistance Also Gives You the Best Chance of Turning Resistance Into a Driving Force. </li></ul></ul>
  35. 35. <ul><li>Symptoms of Resistance </li></ul><ul><ul><li>Strikes </li></ul></ul><ul><ul><li>Sabotage </li></ul></ul><ul><ul><li>Decrease in Motivation and Morale </li></ul></ul><ul><ul><li>Lack of Participation and Commitment to Change Initiatives </li></ul></ul>
  36. 36. Individual & Organisational Resistance to Change See Handout
  37. 37. Strategies for Overcoming Resistance to Change . Kotter & Schlesinger (1979) - See Handout . The Nature of Conflict – The Right Response Matrix.
  38. 38. <ul><li>Module 6 – Planning Change </li></ul><ul><li>Objectives </li></ul><ul><ul><li>To Assess the Pro’s and Con’s of Top-down and Bottom-up Planning for Change </li></ul></ul><ul><ul><li>To Identify the Benefits of Consultation and Involvement </li></ul></ul><ul><ul><li>Plan Options and Set Objectives for Change </li></ul></ul><ul><ul><li>Identify Resources Needed to Make the Change. </li></ul></ul>
  39. 39. The Planning Model Step1 Where Are We Now? Step 2 Where do We Want to Be? Step 3 How Are We Going to Get There? See Handout
  40. 40. <ul><li>Module 7 – Leading Change </li></ul><ul><li>Objectives </li></ul><ul><ul><li>To Understand the Role of the Leader With Respect to Shared Organisational Values in the Change Process. </li></ul></ul><ul><ul><li>To Understand the Role of the Leader and Decision Making Approaches in the Change Process </li></ul></ul><ul><ul><li>To Understand the Leader As Change Champions in the Organisation. </li></ul></ul>
  41. 41. <ul><li>Leadership Styles </li></ul><ul><ul><li>Blake & Mouton. </li></ul></ul>
  42. 42. <ul><li>Problem Solving Process and Decision Making Model </li></ul><ul><ul><li>Stage 1 – Identify and Define the Problem </li></ul></ul><ul><ul><li>Stage 2 – Generating Solutions </li></ul></ul><ul><ul><li>Stage 3 – Deciding on a Solution </li></ul></ul><ul><ul><li>Stage 4 - Implementing a Solution </li></ul></ul>
  43. 43. <ul><li>Module 8 – Evaluating Change. </li></ul><ul><li>Objectives </li></ul><ul><ul><li>To Identify the Ways in Which You Can Meet the Objectives of a Change You Have Planned </li></ul></ul><ul><ul><li>Set up Mechanisms for Monitoring the Implementation of Change </li></ul></ul><ul><ul><li>To Review the Process of Implementing Change. </li></ul></ul>
  44. 44. <ul><li>Evaluating Change </li></ul><ul><li>You Need to Think of These Questions at the Planning Stage of the Change Process </li></ul><ul><ul><li>Has the Change Been Really Successful? </li></ul></ul><ul><ul><li>Have Our Objectives Been Met? </li></ul></ul><ul><ul><li>Has It Achieved What We Thought It Would Achieve? </li></ul></ul><ul><ul><li>Are There Ways We Could Improve Things in the Future? </li></ul></ul><ul><li>Measuring Performance Against Objectives Is One Way. </li></ul>
  45. 45. <ul><li>Monitoring Change </li></ul><ul><li>Once You Have Embarked on Change You Must Monitor Carefully </li></ul><ul><li>One Way Is to Align Personal Objectives of Staff Involved With Change Objectives…You May Have to Set up New Mechanisms for Monitoring and Control..The Process of Evaluation Is Continous and Ongoing </li></ul><ul><li>Continous Monitoring Involves </li></ul><ul><ul><li>Timing </li></ul></ul><ul><ul><li>Measurement – Results Against Objectives </li></ul></ul><ul><ul><li>Adjustments – Are We Allowing Enough Time for Modifications and Alterations </li></ul></ul><ul><ul><li>Communications – What or Who Have We Missed Out </li></ul></ul><ul><ul><li>Unexpected What Unanticipated Human Needs the Change Is Producing? </li></ul></ul>
  46. 46. <ul><li>Measurement </li></ul><ul><li>Quantative and Qualititative </li></ul><ul><ul><li>Sales/Profit/Turnover </li></ul></ul><ul><ul><li>Other Performance Ratios </li></ul></ul><ul><ul><li>Quality Standards Systems </li></ul></ul><ul><ul><li>Complaints Log </li></ul></ul><ul><ul><li>Individual Appraisal Interviews </li></ul></ul><ul><ul><li>Department Reviews/Meetings </li></ul></ul><ul><ul><li>Informal Observation </li></ul></ul><ul><ul><li>Customer Feedback </li></ul></ul>
  47. 47. <ul><li>Systems and Culture </li></ul><ul><li>David Burns Identified 2 Types </li></ul><ul><ul><li>Mechanistic : Management Structures Have More Procedures and Routines…Communication Is Top Down.. People Responsible for Their Area of Work but No More…. These Structures Headed by an Individual Who Has to Know Everything About the Organisation to Dovetail Everything….Difficult to Introduce and Manage Change in This Type of Organisation </li></ul></ul><ul><ul><li>Organic …Individual Tasks Not Carried Out in Isolation but Related to Each Other….Decisions Made According to Expertise Not Rank…Communication Less Formalised and Change on a Broad Front Well Accepted. </li></ul></ul>