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Unit 6 Change Management
Unit 6 Change Management
Unit 6 Change Management
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.
Environmental Analysis
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.
Individual Resistance
Habit
Economic Factors
Fear of the
Unknown
Selective
Information
Processing
6 Centre for Distance and Online Education
anizational Behaviour
Organizational Resistance
Threat to Established
Resource Allocations
Group Inertia
Denial Commitment
Past Future
Resistance Exploration
6 Centre for Distance and Online Education
anizational Behaviour
Denial Resistance
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
6 • Exploring alternatives Centre for Distance and Online Education
nizational Behaviour
Overcoming
Participation and Manipulation and
Involvement Cooptation
Resistance to
Change