concept of change, nature of organisational change, factors responsible for organisational change, causes for resistance to change, management of change, process of planned change, guiding principles of change

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Management of
Change
Asst. Prof. Parasmani Jangid
SDJ International College

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Concept
 Change is inevitable in the world.
 Business environment is inseparable part of this changing world
environment.
 Management Change or Planned Organizational Change means
deliberate and systematic attempt to introduce changes in the
organizational design, strategy, policies, internal environment,
management philosophy and style in such a way that it helps the
organization to achieve its objectives more effectively by
adapting to changes in the external environment.

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Definition
 According to Stoner, “Plan to change in the deliberate design
and implementation of a structural innovation, a new policy or
goal or a change in operating philosophy, climate or style”.

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Characteristics of organizational change
 Change is a natural worldwide phenomenon
 Disturbance in equilibrium gives birth to change
 Change is caused by independent or joint pressure of internal
external forces
 The concept of changes comprehensive
 The impact of change may be limited to a particular department
or maybe on the entire organization

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The factors responsible for
organizational change
 Internal factors
 External factors

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Internal Factors
1. Expansion
2. Increase in the size of the division
3. Changes in personnel
4. Appointment of a new officer
5. Technology
6. Change in product, service and methods
7. Selfish ends
8. To solve the problems of inefficient manager
9. Need for improvement

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External Factors
1. Competitors’ activities
2. Government policy
3. Social and cultural factors
4. Population growth
5. Technology
6. International economic situation

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Resistance to change
 Change is inevitable
 Same applicable to organization, change is must for all the
business environment. But generally employees do not like to
change the process.
 This resistance leads to reduction in production, increase in
absenteeism, strike, go slow tactics, etc.

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Causes of resistance to change
 Causes of Individual/Group Resistance
 Economic Factors
 Psychological Factors
 Social Factors
 Causes of Organizational Resistance
 Threat to power
 Organization structure
 Resource constraints
 Sunk cost
 Dynamic conservatism
 Lack of experience

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Causes of Individual/Group Resistance
 Economic Factors- People resist change if they feel that it is
likely to affect them unfavorably so far as their economic needs
are concerned. The greater the amount of loss perceived,
greater is the degree of resistance.
Causes of Individual or
Group Resistance

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 Psychological Factors- the concept of resistance to
change refers to people experiencing
an emotional anxiety caused by the prospect of a transformation
or change that is taking place. During the early years
of psychology, resistance to individual change was simply
analyzed as a motivational problem.

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 Social Factors- Introduction of change often results in social displacement
of people like breaking of informal groups and relationships. When the
friendship with fellow-members is interrupted, there is a possibility for the
employees to experience psychological let down. Therefore, they dislike
new adjustment, breaking up of present social relationships, reduced social
satisfaction, and feeling of outside interference in the form of change.
 Many emotional problems relating to change are difficult to overcome
because these are based on non-logical considerations rather than the
rational considerations. People’s perception of the likely impact of change is
affected considerably by their personal factors and group factors to which
they belong rather than technical aspect of change. Thus, the degree of
resistance to change will be determined by the effect of change on people’s
need satisfaction and the way the change agent brings the change.

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 1. Threat to Power and Influence
 A change is likely to be incorporated successfully if it has the blessing and support of top management. When people,
at the top level, consider change as a potential threat to their position and influence, they resist it.
 A change is likely to produce a new power equilibrium with more emphasis on knowledge and new skills. This new
equilibrium may reduce the amount of power and influence of people at the top which may not be liked by them.
Therefore, they may resist any such change.
 2. Organization Structure
 Some forms of organization structure are more resistant to change, for example, bureaucratic structure. A
bureaucratic structure where lines of communication are clearly spelled out, jobs are precisely defined, works against
change. Since all these are prescribed rigidly, there is very little scope of making changes. Moreover, the flow of
information from top to bottom level is stressed.
 Therefore, there is every possibility that an information initiating or necessitating change may be screened out at the
higher level itself because change does not suit the present organization structure. Unless the person at the top is
highly dynamic, change will always be resisted.
Causes of Organizational
Resistance

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 3. Resource Constraints
 Many organizations resist change because of resource constraints. It is to be noted that all
organizations have limited resources because resources are limited by their basic nature.
 However, some organizations may feel resource constraints more than others. In such a
case, the organizations may not like to incorporate change because it involves some
additional cost at least in the beginning.
 4. Sunk Costs
 Organizations may also resist change because they have invested in fixed assets and other
resources. These costs cannot be recovered unless the assets and resources are put to
productive use. When change is incorporated, many of these resources become useless.
This may be true for assets as well as for persons also. For example, earlier it has been
seen that change may result in obsolescence of skills.
 However, an organization will have to bear the cost because it cannot dispense with these
people. Similarly, assets cannot be replaced because of change in technology. Naturally, the
organization will like to continue with the old system.

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 Dynamic conservatism
 According to executive, Centralisation leads to easy achievement of
goal. With changing circumstances, Decentralised system get
enforced and at he same time effects of external factors results into
failure in achieving objectives. This leads to a U-turn to centralised
system and such dynamic conservatism leads to resistance to
organisational change.
 Lack of experience
 No experience with changing circumstances leads to avoid the
change in order to escape from being getting fail.

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Overcoming the Resistance to Change
 Effective Communication
 Consultation with Trade Union Leader
 Education and Training
 Facilitation and Support

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Overcoming the Resistance to Change
 Negotiation
 Manipulation
 Coercion

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What is Management of Change?
 Management of change means planning, implementing and
appraising of the strategies or approaches for introducing
compulsory or deliberate changes successfully in the
organization.

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Objectives
 To adapt changing environment
 To achieve the goal with the change in policy, management style
& philosophy.
 To become competent enough to absorb the shocks.
 To minimize the resistance
 To get organizational development.

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Stages of change by Kurt Lewin
1. Unfreezing
2. Changing
3. Refreezing

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Process of Planned Change
1. Understanding the need for change- identify the problems, as needs depend on
organisational problems or behaviour. Identification of root cause of the
problems helps in finding its solution. Everyone in organisation should accept
the need for change. This realisation of need for change mentally prepares the
employees to forget the old and get ready to accept the new.
2. Planning of the change- the change can be in the organisational structure, can
be in the technology of organisation and change in personnel of the
organisation. After deciding the changes to be done, planning for the same
must be completed in order to achieve the goal.
3. Implementation- After planning the implementation of same is the next
question.
4. Appraisal and feedback

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Guiding Principles of Change
 Must understand the necessity of change and the risks if one not accepting the changes.
 Must adopt holistic approach and system so that easily one can identify the causes and
effects on the business.
 Long term strategy should be prepared in order to plan for change.
 Must go with concept of learning organisation.
 Provision of physical, human and financial resources must be maintained.
 Must involve the lower and middle level employees in the process of change.
 Should encourage knowledge, skills and experience of the employees.
 Employees should not have to bear the additional cost.
 Feed back and appraisal must be done properly.
 Training facility must be provided.

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Thank You