Unit 6 Change Management

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anizational Behaviour

Introduction
• Change is inevitable
• Organization as a system, depend on many interdependent factors
which influence it’s day to day functioning, strategic decisions and
future action plans for facing the competitive challenges
successfully.
• In the era of globalization, indigenous industries strategies
effectively to counteract multinationals.
• So, we focus on understanding what constitutes organizational
change.

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anizational Behaviour

Environmental Analysis

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anizational Behaviour

Change Management
– Change management involves the process that ensures a business responds to
the environment in which it operates
– The adoption of a new idea or a behavior by an organization (Daft, 1995)
– It is the way of altering existing organization to increase organizational
effectiveness.
Changes can be classified in different ways. The most often classification
First order and Second order change
First order change – it is incremental & continuous. Involves adjustments
systems, processes, structure but do not affect strategy or core values
Second order change – it is radical & discontinuous. Involves substantial
transformation of organization nature and style.

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anizational Behaviour

Lewin’s Change Model


A leader in change management, Kurt
Lewin was a German-American social
psychologist in the early 20th century.
Among the first to research group
dynamics and organizational
development, Lewin developed the 3
Stage Model of Change in order to
evaluate two areas:
• The change process in organizational
environments
• How the status-quo could be
challenged to realize effective
changes

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anizational Behaviour

Individual Resistance

Habit

Economic Factors

Job Security Individual


Resistance

Fear of the
Unknown

Selective
Information
Processing
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anizational Behaviour

Organizational Resistance

Threat to Established Power


Relationship

Threat to Established
Resource Allocations

Structural Inertia Organizational


Resistance

Limited Focus of Change

Group Inertia

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anizational Behaviour

Four Phases of Transition

Denial Commitment

Past Future

Resistance Exploration
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anizational Behaviour

Some of the Signs in Each Phase

Denial Resistance

• “How good things were in the past” • Anger


• “It can’t happen here” • Loss and hurt
• Numbness • Stubbornness
• Everything-as-usual attitude • Blaming others
• Refusing to hear new information • Complaining
• Getting sick
• Doubting your ability

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anizational Behaviour

Some of the Signs in Each Phase

Exploration Commitment
• “What’s going to happen to • “Where I am headed”
me?” • Focus
• Seeing possibilities • Teamwork
• Chaos • Vision
• Indecisiveness • Cooperation
• Unfocused work • Balance

• Energy
• Clarifying goals
• Seeing resources
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nizational Behaviour

Overcoming Resistance to Change

Education and Negotiation


Communication

Overcoming
Participation and Manipulation and
Involvement Cooptation
Resistance to
Change

Facilitation and Coercion


Support

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nizational Behaviour

Critical Skills of Change Agents

Understands Appreciates Anticipates and


change dynamics diversity manages
resistance

Has high Understands Manages


credibility power and multiple tasks
influence

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