1.
Change management
timssubscription@gmail.com, 2015-02-05

2.
How does an organisation know
when it is time to change?
At one level, there are some fairly clear
signals which indicate that change is
necessary
Signals for Change
• Market performance
• Changing Env. Circumstances
• Organizational Performance
Understanding Strategic Change

3.
Theories
According to Beer and Nohria (2000), there are 2 models;
Theory O
 Reflects the cultural approach and the need to develop a political 'mini-constitutional'
form of ordering in the organisation
 Based on the idea that 'organisations are nonlinear dynamic systems in which there
are many unintended consequences when direct linear action is taken.
Theory E
 Reflects the machine and engineering approaches, with a view that power rather
than authority may need to be exercised
 Focuses on economic value and top-down and programmatically driven change in
order to achieve this.

4.
Theories
Comparison of
Theories
Images of
managing change
• Director image : This perspective is generally very
little interested in how employees in the
organisation see the problem. Behaviour is the main
focus rather than the beliefs or understandings of
the individuals in the organisation.
• Navigator image : the navigator image focuses on
the need for continual readjustments of the course
and destination in a change process.
• Caretaker image : the caretaker image is used to
describe change contexts where management
activity is limited.

5.
What is to Change ( Design Tests )
The four 'fit' tests offer initial screen;
•Market advantage test: Is change likely to
lead to market advantage?
•Parenting advantage test: Does change help
the corporate parent add value to the
organisation?
•People test: Does the change reflect the
strengths, weaknesses and motivations of key
people in the organisation?
•Feasibility test: Does the change take into
account constraints in implementation?
And the five 'good design' tests refines its
prospective design:
•The specialist cultures test: Does the change
protect units that need distinct cultures?
•The difficult-links test: Does the change help
bridge otherwise difficult unit-to-unit links?
•The redundant hierarchy test: Does the
change leave too many levels and units?
•The accountability test: Does the change
support effective controls?
•The flexibility test: Does the change facilitate
new strategies and future change?
Four 'fit' tests offer an initial screen, five 'good design' tests can help a company refine its
prospective design.

6.
What and How
What of Change
Fine Tuning
 Change pressure is weak, mainly surfaces
in minor mismatches between policy and
practice
Incremental
 Change pressure is weak, is incremental,
built on the existing dominant model
Modular Transformation
 process of more radical change which is
limited in its effects to a particular part of
the organisation
Corporate Transformation
 most dramatic form of change where the
whole organisation is subjected to a
thorough critique and restructuring
How Of Change
Collaborative change
Dependence on the knowledge and skills of people
closest to the problem. Collaboration is also likely to
be time intensive
Consultative change
Suggests an initial closing down of options by senior
managers to a limited number.
Directive change
Change management is basically driven by top
managers. Main emphasis for employees will be on
communication, explaining why the change is
necessary, what it will be and what impacts on work,
employment and the organisation more generally can
be expected
Coercive change
No choice given to inside the organisation and
expected to conform to new directives

7.
Kotter’s 8 Step Model
Kotter observed 8 key errors;
1.not establishing a great enough sense of
urgency
2.not creating a powerful enough guiding
coalition
3.lacking a vision
4.undercommunicating the vision by a factor
of ten
5.not removing obstacles to the new vision
6.not systematically planning for, and
creating, short-term wins
7.declaring victory too soon
8.not anchoring changes in the corporation's
culture

8.
Kotter’s 8 Step Model
• examining market and
competitive realities
• identifying and discussing crises,
potential crises, or major
opportunities.
• assembling a group with enough
power to lead the change effort
• encouraging the group to work
together as a team
• creating a vision to help direct
the change effort
• developing strategies for
achieving that vision.
• using every vehicle possible to
communicate the new vision and
strategies
• teaching new behaviors by the
example of the guiding coalition. • getting rid of obstacles to change.
• changing systems or structures
that seriously undermine the
vision
• encouraging risk taking and
nontraditional ideas, activities,
and actions.
• planning for visible
performance improvements
• creating those improvements
• recognising and rewarding
employees involved in the
improvements
• using increased credibility to change
systems, structures, and policies that
don't fit the vision
• hiring, promoting, and developing
employees who can implement the
vision
• reinvigorating the process with new
projects, themes, and change agents
• articulating the connections
between the new behaviours
and corporate success
• developing the means to
ensure leadership development
and succession

9.
Kübler Ross Grief Cycle – 5 Stages
1. Denial – This isn’t happening to me
2. Anger – Who’s to blame for this? Why me?
3. Bargaining – If I can live till my daughter’s
wedding…
4. Depression – I am too sad to do anything
5. Acceptance – I’m at peace with what is
coming

10.
5 Stages
• https://www.youtube.com/watch?v=fBm7pzErEWM

11.
Resist to change
Why people might resist change
dislike of change
discomfort with uncertainty
perceived negative effects on interests
attachments to established culture/way of doing
things
perceived breach of psychological contract
lack of conviction that change is needed
lack of clarity as to what is expected
belief that the specific change being proposed is
inappropriate
belief that the timing is wrong
'excessive change'
cumulative effect of other changes in one's life
perceived clash with ethics
reaction to the experience of previous changes
disagreement with the way the change is being
managed
The psychological contract
•We expect;
 be loyal
 keep trade secrets
 work hard and do their best for the
organisation
•Employees expect;
 receive an equitable level of remuneration
 be treated fairly and with dignity
 have some level of security of employment
 have some level of autonomy
 have an opportunity to learn and develop

12.
Kubler Ross’ Change Curve (adapted)
Source : http://leanchange.org/2014/02/navigating-organizational-change/

13.
Dealing with resistance to change
Force field analysis
Kotter and Schlesinger’s Model
This involves listing and assessing the forces
for change (or in favour of a decision)
and against change (or against a decision).

14.
• https://www.youtube.com/watch?v=__IlYNMdV9E
Summary of Change Management

15.
Who will deal with this?
THE Mıddle managERs
Change is important and difficult leadership responsibility.
Role of the middle manager is becoming more important. Balogun (2003) suggests 4 key
roles for middle managers to adopt organisational change;
 implementing changes needed
 keeping the business going
 undertaking personal change
 helping others through the change.

16.
Role of Middle Manager
• https://www.youtube.com/watch?v=MXRCP8cXrW0

17.
Managing Yourself and
Your Working Relationships
• The most important question in change is: What does it mean for me? When I am
satisfied with the answer to this question, then I am able to think about what it
means for others and for the organisation.
• Treat people as adults. If my job is going to disappear, I want to know as early as
possible so that I can take action to secure my future, pay my mortgage and look after
my family.
• Communicate, communicate, communicate. And if you literally have nothing new to
tell people communicate this too.
• Act speedily

18.
Communicate,Communicate, communicate,communicate, communicatecommunicate
And if you literally have nothingAnd if you literally have nothing new tonew to
tell peopletell people,, communicate this too.communicate this too.