GSGM7223 Managing Organisation

Managing Change and Strategic Planning

Link (to Course

TOPIC 7 SUB-TOPIC(s)
Learning Outcome)
Managing Change 7.1 Fundamental Changes and the Main Factors Behind Them CLO1 - Articulate
and Strategic 7.2 Two Types of Change and Organisation Outside and Inside Forces for the essential
Planning Change principles of
7.3 Reasons for Resisting Change by Employees and Change Model by management in an
Lewin organisational
7.4 Organisation Development and Managing Change setting.
7.5 Planning in Uncertainty and Three Types of Planning for Three
Different Managerial Levels CLO4 - Evaluate
appropriate
change
management
approaches to
face challenges
within a dynamic
environment while
upholding values
and ethics.

7.1 Fundamental Changes and the Main Factors Behind Them

In today’s world change is inevitable and these changes happen to be fundamental changes. So, the question is how to
deal with It and how companies can endure these rapid changes. The following are some of the main factors behind these
fundamental changes which are happening to the world of business:

1. The market is turning out to be more segmented and it is shifting in the direction of more niche goods and services.
2. There are more rivals presenting targeted goods and services which is requiring quicker pace of launching new and
improved products which are enhanced to capture more market share in that particular segment.
3. Certain old fashioned and traditional businesses might not endure and survive this profoundly innovative change.
4. India, China, & other offshore contractors and vendors are transforming the manner we work.
5. Knowledge, not information, is developing into the new competitive advantage and ultimately strategic
competitiveness.

Watch the following video for the Factors Behind Change in Marketplace:

Title:” Change in the Marketplace?”

https://www.youtube.com/watch?v=qKPO2AaFdNQ

7.2 Two Types of Change and Organisation Outside and Inside Forces for Change

In general, there are two types of change including Reactive Change and Proactive Change.

Reactive Change is making changes in reaction to challenges, troubles, or possibilities as they occur.
Proactive Change entails creating meticulously well-planned changes in expectation of potential or anticipated challenges,
troubles, or possibilities. It is also known as “planned change”.

There are several forces outside and inside the organisation that drive change. The forces for change which are outside the
organisation are as follows:

1. Demographic attributes
2. Marketplace changes
3. High-tech innovation and advancement
4. Stockholder and consumer demands
5. Vendor practices

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 GSGM7223 Managing Organisation
Managing Change and Strategic Planning

6. Societal & political forces

The forces which are originating inside the organisation that drive change are as follows:

1. Worker and employee challenges

2. Managers’ conduct and behavior

Watch the following videos for another view towards Types of Change as well as Organisation Outside and Inside Forces for
Change:

Title: “Types of Change”

https://www.youtube.com/watch?v=9fGsd2-8S9I

Title: “Lesson 1 How Internal and External Factors Drive Organizational Change”

https://www.youtube.com/watch?v=ADm3Hdhh34I

7.3 Reasons for Resisting Change by Employees and Change Model by Lewin

The following are the most common reasons behind employees resisting change in the organisations. These common reasons
are listed as follows:

• Person's inclination to change

• Revelation and anxiety of the unknown
• Atmosphere of distrust and scepticism
• Fear and concern for failure
• Losing of prestige or employment security
• Peer force and pressure
• Interruption of cultural rituals or team relations
• Personality and character conflicts
• Lack of skill or bad timing
• Non-reinforcing incentive structure

The most famous theory about the change is the Lewin’s Change Model which includes three major steps of Unfreezing,
Changing, and Refreezing.

Unfreezing is defined as generating the motivation and enthusiasm toward change.

Changing is described as learning different and new methods of performing things.
Refreezing is explained as getting the new ways normalized and instituted.

Watch the following videos for Reasons for Resisting Change by Employees and Change Model by Lewin:

Title: “Ten reasons why people resist CHANGE in the workplace?”

https://www.youtube.com/watch?v=8JHafy_Cj7I

Title: “Lewin's Unfreeze, Change and Refreeze Model - Simplest explanation ever”

https://www.youtube.com/watch?v=B2J-Y1ThvU8

Title: “Lewin's Change Management Model”

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 GSGM7223 Managing Organisation
Managing Change and Strategic Planning

https://www.youtube.com/watch?v=uhrbO7lrHro

7.4 Organisation Development and Managing Change

Organization Development (OD) is a collection of methods for executing planned change to get people and organisations
more effective.

Change Agent is a specialist with a background knowledge in behavioral and social disciplines and sciences who know how
to be a facilitator and catalyst in assisting companies handle and cope with old problems in innovative and new techniques.

The organisational development (OD) can be used for firstly, controlling and managing the conflict in working place and
secondly, rejuvenating and revitalizing the organisations and at the end, adjusting and adapting to new strategic alliances
like merger and joint ventures.

Organisation development works in the way that at the beginning, there should be a diagnosis of what the problem is and
then it is intervention stage in which we should decide what can be done to rectify and solve the identified and diagnosed
problem. After that it is about the evaluation to see how the intervention stage has worked.

The effectiveness of organisation development is determined by multiple and several interventions of that, support of top
management, both long- term and short-term goals and objective in organisations and at the end, culture as one of the most
important determinants.

Watch the following videos to understand Organisation Development (OD) further:

Title: “What is Organizational Development (OD)”

https://www.youtube.com/watch?v=gN0Ok9erBHQ

Title: “Organizational Development and Change”

https://www.youtube.com/watch?v=C2KKIMjKMlI

Title: “HR Basics: Organizational Development”

https://www.youtube.com/watch?v=VDduIzjAjWE

7.5 Planning in Uncertainty and Three Types of Planning for Three Different Managerial Levels

Uncertainty is when numerous forthcoming developments and changes are likely but then it cannot be said with definite
assurance how the future will change. Ambiguities and uncertainties in business planning is when there are variations in the
demand structure and volume for instance because of alternative product being offered in the market by a competitor. So,
the market price will be fluctuated. Planning by itself can be defined as managing and coping with uncertainty by preparing
for future courses of action to accomplish specific outcomes and this means establishing goals and determining how to attain
them. Three Types of Planning for Three Levels of Management are as follows:

Strategic Planning determines what the company's long-term goals would be for the following 1-5 years with the resources
they believe to have available. The strategic goals are decided by and for top management and concentrate on objectives
for the organisation as a whole.

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 GSGM7223 Managing Organisation
Managing Change and Strategic Planning

Tactical Planning determines what contributions each department or similar work units can do through the next 6-24 months.
The tactical goals are set by and for middle managers and concentrate on the actions necessary to accomplish strategic
goals.
Operational Planning determines how to achieve specific tasks with available resources in the next 1-52 weeks. They are
decided by and for first-line managers and are related to short-term matters linked to fulfilling tactical goals.

Watch the following videos to understand the Planning in Uncertainty and Three Types of Planning for Three different
Managerial Levels:

Title: “Planning with Uncertainty”

https://www.youtube.com/watch?v=8n9MzqQcIVs

Title: “Types of Planning Strategic, Tactical, Operational & Contingency Planning Video & Lesson”

https://www.youtube.com/watch?v=mzqqyrQjq5Y

Title: “Planning Levels - A-Z of business terminology”

https://www.youtube.com/watch?v=vG8ZQKWr47Y

Additional Reading Materials

Article Titled: “Organisational Change”

https://eprints.whiterose.ac.uk/88807/1/Davis%20%26%20Coan%20-%20Organizational%20Change%20-
%20Green%20Organizations.pdf

Article Titled: “Planning for Uncertainty”

https://www.manpowergroup.co.uk/wp-content/uploads/2017/03/planning-for-uncertainty_whitepaper.pdf

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