Unit IV:

Perspective of Managing Change

Maevelee C. Canogoran

1
2
 an approach to transitioning individuals, teams, and
organizations to a desired future state
 In a project management context, change management
may refer to the change control process wherein changes
to the scope of the project are formally introduced and
approved

3
 Change Model

Before change
Struggling stage – productivity, morale, quality

During stage
Comfort/Status Qou – Natural Cocoon phase, comfort zone, adjustment period

After Change
Outcomes/ Effects of change – Positive Outcomes, Negative Outcomes, Realization

4
To effectively manage change:

 Assess employees’ fears – change readiness assessment,

design and support
 Effectively communicate with employees –
communications planning and execution
 Increase system usage – Training needs analysis and
strategy development
 Maximize your ROI – Post implementation audit to track
and report progress against the business case

5
6
Planned change

 Planned change occurs when leaders in the organization

recognize the need for a major change and proactively
organize a plan to accomplish the change.

 Planned change occurs with successful implementation of

a Strategic Plan, plan for reorganization, or other
implementation of a change of this magnitude.

7
 1.
Need for 2.
9. change
Follow-up and Development
evaluation of goals of
change

3.
8. Selection of
Implementation Change
Stages of Planned Change Agent

7.
4.
Planning for
Diagnosis
implementation

5.
6.
Selection of
Development
Intervention
of a Plan
Method

1.Recognize the need for change. Recognition of the need for change may occur at
the top management level or in peripheral parts of the organization. The change
may be due to either internal or external forces.

2. Develop the goals of the change. Remember that before any action is taken, it is
necessary to determine why the change is necessary. Both problems and
opportunities must be evaluated. Then it is important to define the needed changes
in terms of products, technology, structure, and culture.

3. Select a change agent. The change agent is the person who takes leadership
responsibility to implement planned change. The change agent must be alert to
things that need revamping, open to good ideas, and supportive of the
implementation of those ideas into actual practice.

4. Diagnose the current climate. In this step, the change agent sets about gathering
data about the climate of the organization in order to help employees prepare for
change. Preparing people for change requires direct and forceful feedback about
the negatives of the present situation, as compared to the desired future state, and
sensitizing people to the forces of change that exist in their environment.

5. Select an implementation method. This step requires a decision on the best way

8
to bring about the change. Managers can make themselves more sensitive to
pressures for change by using networks of people and organizations with different
perspectives and views, visiting other organizations exposed to new ideas, and using
external standards of performance.

6. Develop a plan. This step involves actually putting together the plan, or the
“what” information. This phase also determines the when, where, and how of the
plan. The plan is like a road map. It notes specific events and activities that must be
timed and integrated to produce the change. It also delegates responsibility for each
of the goals and objectives.

7. Planning for implementation. After all the questions have been answered, the
plan is put into operation. Once a change has begun, initial excitement can dissipate
in the face of everyday problems. Managers can maintain the momentum for change
by providing resources, developing new competencies and skills, reinforcing new
behaviors, and building a support system for those initiating the change.

8. Follow the plan and evaluate it. During this step, managers must compare the
actual results to the goals established in Step 4. It is important to determine whether
the goals were met; a complete follow‐up and evaluation of the results aids this
determination. Change should produce positive results and not be undertaken for its
own sake.

Keep in mind that a comprehensive model of planned change includes a set of

activities that managers must engage in to manage the change process effectively.
They must recognize the need for change, motivate change, create a vision, develop
political support, manage the transition, and sustain momentum during the change.

8
 Unplanned change

 Unplanned change usually occurs because of a major,

sudden surprise to the organization, which causes its
members to respond in a highly reactive and disorganized
fashion.

 Unforeseen occurrences

(Unplanned change might occur when the Chief Executive Officer suddenly leaves the
organization, significant public relations problems occur, poor product performance quickly
results in loss of customers, or other disruptive situations arise.)

9
10
Factors that drive the need for change

11
 Internal forces of change – An internal force of change
occurs from internal sources, such as employees or
company performance.These types include:

• Poor financial performance

• Internal crisis
• Change in employee expectations
• Organizational culture
• Style of leadership

12
 External forces of change – An external force occurs
from an outside influence in the organization. There are
four main external forces of change:

• Globalization
• Workforce diversity
• Ethnical behaviour
• Technology
• Political and social conditions

13
Three special features of change

 Transactional Change

 Transitional Change

 Transformational Change

14
 Transactional Change

 Simple and predictable outcomes need

transactional change

 little to no modification is needed to the

organizational structure

To lead this kind of change, the level of investment needed by the leadership and
organizations involved is fairly low. Typically, little to no modification is needed to
the organizational structure, the existing system of policies and procedures, and the
individual skills and abilities needed to implement the change. Much as in a
monetary transaction, a transactional change does not alter the fundamental form,
fit or function of the components.

15
 Transitional Change

 Simple yet unpredictable, or complex yet

predictable outcomes need transitional change

 Some modifications are needed to the

organizational structure, the existing systems
of policies and procedures, and the individual
skills and abilities needed to implement the
change

To lead this kind of change, the level of leadership and organizational investment
needed is higher than that for transactional change. For the change to be
successful, some modifications are needed to the organizational structure, the
existing systems of policies and procedures, and the individual skills and abilities
needed to implement the change. Furthermore, this type of change touches upon
and raises an examination and refinement of mission, strategy, and organizational
culture.

16
 Transformational Change

 Complex and unpredictable outcomes need

transformational change.

 Potentially sweeping and radical modifications

are needed to the organizational structure and
the existing systems of policies and procedures

To lead this kind of change, the level of leadership and organizational investment
needed is the highest of all types considered so far. For this change to be
successful, potentially sweeping and radical modifications are needed to the
organizational structure and the existing systems of policies and procedures. New
skill, abilities, and ways of thinking are required to implement the change.
Furthermore, this type of change requires a fundamental revision of one or more of
mission, strategy, and organizational culture.

17
 Change Impacting the
Organization/Agencies

 Change Impact to Individual/People

 Change Impact to the Organization

 Change impact to Systems

18
 Change Impact to Individual/People
Negative Impact of Organizational Change on Employees

 Whatever the reason, change is almost always difficult for

employees and it can wreak havoc with your bottom line.
Before announcing changes to your employees, put
yourself in their shoes to help
you to understand how they
might react so that you can
mitigate risks to your
company and unnecessary
stress on them.

Organizational change can happen for several reasons, including financial concerns,
a merger or acquisition, expanding markets, accommodating growth or a simple
shift in business model.

Mental Stress, Loss of Loyalty, Life Changes

19
 Positive Impact of Organizational Change on Employees
 Workers may be hesitant to leave the familiarity of their
comfort zone or fear that they won't be able to adapt to
the change. While the short-term effects of change can
sometimes be painful, it can have a positive impact on a
business' success in the long run.

Staying New Encouraging

Current Opportunities Innovation

Increased Improved
Efficiency Attitudes

Staying Current
Change can help a business stay current with industry trends, which can make it
more attractive to potential customers as well as help maintain current customers.
For example, if a competitor develops and markets a successful new product, a
business can ensure that it doesn't fall behind by developing and marketing a
similar product of its own.
New Opportunities
The ability to embrace change can help employees in a business by creating new
opportunities. A worker who enthusiastically applies herself to learning the new
office computer system can also train others who are more hesitant. By assuming
this leadership role, the employee may position herself as someone who is capable
of assuming additional responsibilities, making her a possible candidate for future
promotion.
Encouraging Innovation
Businesses that are adept at handling or even embracing change can foster an
environment that encourages innovation. Employees who feel that their ideas will
be considered by a manager or business owner may be more willing to think
creatively, which can help a business grow. One good product or marketing idea can
make a big difference in the success of a small business.
Increased Efficiency
Change can increase the efficiency of work processes, which can make for more

20
satisfied customers as well as employees. A new delivery process can increase the
speed in which a customer receives merchandise. Switching to a computerized
payroll process may mean that a salesperson is paid his commissions sooner. A new
piece of machinery can aid a worker in speeding up a portion of the production
process in a factory.
Improved Attitudes
A philosophical or personnel change in an organization can have a positive effect on
employee attitudes and morale. A change in human resources philosophy that allows
for a more relaxed work environment, such as implementing a casual dress code, may
be welcomed by employees. When a close‐minded manager is replaced with one
who is open to new ideas, employees may feel that they have more input regarding
their job functions.

20
 Change Impact to the Organizations
 In today’s business climate organizational change is a
regular occurrence. While it’s true that many years ago
change happened at a snail’s pace, today it seems to be on
a daily menu. Leaders and managers clearly need to be
sensitive to the impact of change on their human capital.
But at the same time they must weigh the benefits of
what the change might do for the overall organization
against what the change might do to those affected by it.

Change related to organization:

1. Leadership change – leadership transition
2. Structural change – simple police changes, complete restructuring of management
heirarchy
3. Reengineering – making major structural change to the organization

21
 Change impact to Systems
 System change means making change that endures and
changes at the heart of the organization. Such change is
systematic, takes time, planning and patience.

Change related to Systems

• Process-oriented change
• Technological Change
• Software Development and Installation
• Continuous Improvement

22
Response to Change

Common Manifestations of Employees Anticipation of the unknown

Negative Responses Positive Responses

‘‘Not Me!’’ This is a challenge!
‘‘What will this do to my Enthusiasm
security’’ ‘‘Maybe I could adjust to this
Anger change’’
Gossip Positive vision
‘‘Who’s in charge here?’’
Panic!
‘‘I quit’’

23
 Tips to help you respond to change
 Learn patience
Generally, things do not happen overnight. In fact, it may take some
time before a desired and/or reasonable outcome is reached.
 Be persistent
Keep on chipping away at the issues; the outcome or solution you're
seeking may be just around the bend.
 Be practical
Go about your life in a way that focuses attention on maintaining
balance.
 Be positive
A sense of optimism will help equalize the hills and valleys and will
keep you focused and committed.
 Have a purpose
Have an organizing guiding principle that is vital to you and gives
meaning to your life

Learn patience ‐ Don't be impulsive or try to rush the results. Patience will help you arrive
at the best possible place you need to be.
*Be persistent ‐ It's easy to want to give up, especially when things are not going your way,
or are even looking glum.
Be practical ‐ Stay present, firmly rooted, in the here and now. In other words, create a
structure that provides stability and support while you're in the process of transitioning.
Some changes require an immediate response to remedy a situation, but in most
instances, there's simply no rush to the finish line.
*Be positive - Expect "up and down". In fact, that's more the norm while you're going
through change.
*Have a purpose - you will go through many major changes and transitions during the
course of your life

24
25