CHANGE MANAGEMENT
UNIT 1
WHAT IS CHANGE MANAGEMENT?
It is a systematic approach to managing an
organization's transition or transformation
of its goals, processes, and technologies. It
involves implementing strategies to effect
and control change, and to help people
adapt to it
PRINCIPLES OF CHANGE MANAGEMENT
INCLUDE: planning and preparation,
communication, stakeholder engagement,
training and development, and monitoring
and evaluation.
Change management is the process of
guiding organizational change from start
to finish, including planning,
implementing, and solidifying changes in
an organization. It refers to how
companies handle modifications, such as
the implementation of new technology,
adjustments to existing processes, and
shifting organizational hierarchy. This
process can look different based on the
type of change you are conducting.
WHY IS CHANGE MANAGEMENT
IMPORTANT?
It helps organizations make smoother
transitions during times of change. It gives
you more control over the entire process
supporting a costly implementation plan
and investment.
strategies for effective change
management include:
 Establishing a clear vision
 Using a change management timeline
 Supporting employees
 Focusing on skill development
 Involving stakeholders to inform strategy
 Using metrics to define success
ORGANISATIONAL CHANGE- It is an
essential process that drives meaningful
transformations within a company or
institution. It involves making significant
modifications to various aspects of the
organisation, including its structure,
culture, processes, systems, strategies,
and personnel.
NATURE OF ORGANISATIONAL CHANGE
1. Continuous: Organisational change is
an ongoing process rather than a one-
time event. It recognises that
organisations must continually adapt,
evolve, and improve to remain
relevant and competitive in a rapidly
changing business environment.
2. Complex: Organisational change is
complex due to the various factors,
such as organisational structure,
culture, processes, technology, and
human dynamics. It involves multiple
stakeholders, intricate relationships,
and interconnected elements that
require careful consideration and
management.
3. Multidimensional: Organisational
change affects various dimensions of
an organisation simultaneously. It can
impact the organisational structure ,
culture, strategy, processes, systems,
technology, and even individual roles
and responsibilities.
4. Disruptive: Change challenges
existing routines, practices, and
mindsets. It can create uncertainty,
resistance, and discomfort among
employees, requiring effective change
management strategies to minimise
negative impacts and facilitate a
smooth transition.
5. Contextual: The nature of
organisational change is shaped by
the unique context of each
 organisation. Factors such as industry
dynamics, market conditions,
regulatory requirements, and internal
capabilities influence the nature and
scope of change initiatives. What
works for one organisation may not
necessarily work for another.
6. Strategic: Organisational change is
often driven by strategic
considerations. It aligns with the
organisation’s vision, goals, and long-
term objectives. Change initiatives
are typically designed to improve
performance, enhance
competitiveness, foster innovation,
capitalise on opportunities, or
address challenges that impact the
organisation’s strategic position.
Causes
1. External influences: Changes in the
external environment, such as market
dynamics, technological
advancements, industry regulations,
or shifts in customer preferences, can
prompt organisations to adapt and
change in order to stay competitive.
2. Competitive pressures: Intense
competition within the industry or
the emergence of new market players
can drive organisations to implement
changes in their strategies, processes,
or products to gain a competitive
advantage.
3. Organisational growth or
decline: Significant growth or decline
within an organisation can
necessitate changes to accommodate
the increased scale or to restructure
and optimise operations during
periods of decline.
4. Technological advancements: Rapid
advancements in technology can
trigger organisational change as
organisations adopt new
technologies, upgrade systems, or
automate processes to improve
efficiency, productivity, and
competitiveness.
5. Mergers and acquisitions: When
organisations
undergo mergers, acquisitions,
or partnerships, changes are often
required to integrate operations,
align cultures, streamline processes,
and realise synergies.
6. Internal inefficiencies or
performance gaps: Identifying
internal inefficiencies, performance
gaps, or areas for improvement can
drive organisations to implement
changes in processes, systems, or
structures to enhance performance,
productivity, and operational
effectiveness.
7. Leadership and strategic
shifts: Changes in leadership, new
strategic directions, or shifts in
organisational priorities can lead to
changes as organisations align with
the new vision, goals, or strategic
objectives.
TYPES OF CHANGE IN ORGANIZATIONS
1. Strategic Change Management
Sometimes, a company’s strategy needs
to be revamped to achieve certain goals.
In turn, it may use strategic change
management to switch up its:
 Policies
 Processes
 Mission
 Vision
These strategic changes can help
companies hone their competitive edge,
take advantage of new opportunities, and
prepare for upcoming threats.
2. Structural Change Management
Structural changes optimize how an
organization runs internally. Some
examples include fine-tuning the
management hierarchy, redefining certain
job descriptions, revamping key
administrative procedures, or right-sizing
staff.
Structural changes are often spurred by
the following types of circumstances:
 Mergers and acquisitions
 Market changes
 Opportunities for expansion
 Regulatory updates
3. Cultural Change Management
Culture can influence a company's long-
term success considerably. Companies
with strong company cultures boast up to
72% higher employee
engagement.Additionally, highly engaged
employees are more productive and less
likely to leave their jobs for other
employment opportunities.
Businesses can enact cultural change
management to foster a stronger culture.
During this process, leaders may
encourage their employees to embrace
new mindsets and behaviors. For
example, a company may host diversity,
equity, and inclusion (DEI) workshops to
cultivate a more inclusive culture.
managing change should be done slowly
and gradually with continuous
reinforcement.
4. Technological Change Management
Technology continues to develop at a
rapid pace. Companies that fail to keep up
with key innovations may end up falling
behind.
Employees can be reluctant to embrace
new technologies—they may not want to
go through the hassle of overcoming the
learning curve involved. For this reason,
an effective technological change must
start by explaining why the new
technology is beneficial for both the
company and the employees who will be
using it.
Leadership should also provide adequate
training and support during the transition
and showcase empathy and patience
throughout the process.
INTERNAL AND EXTERNAL FACTORS
Organizational change is influenced by
both internal and external factors.
Internal factors-. Internal factors are
events, people, systems, conditions, and
structures that are generally under the
control of the company
Leadership, Corporate culture, Mission
statement, Organizational structure,
Management style, Human resources,
Labor unions, Physical and technological
resources, Values, and Objectives.
External factors- those that occur outside
of the company and are beyond the
company's control.
Customers, Competition, Economy,
Technology, Political and social conditions,
and Resources.
Internal organizational change-It can be
structural, strategic, people-focused, or
process-based. It can help improve an
organization's efficiency, effectiveness,
and adaptability.
Internal factors include the organization's
internal environment, such as leadership,
demands of students, competitive
pressures, government regulations,
changing knowledge, technological
changes, standardized schools, and
demands of parents.
What is planned change and emergent
change?
To provide perspective, change often is
deliberate, a product of conscious
reasoning and actions which is commonly
referred to as planned change.
Planned change-It is the process of
preparing an entire organization, or a
significant part of it, to achieve new goals
or move in a new direction. This direction
can refer to a company's culture, internal
structure, processes, metrics and rewards,
or any other aspect related to the
business.
EMERGENT CHANGE
change sometimes unfolds in an
apparently spontaneous and unplanned
way.
emergent approach
Emergent change management offers an
alternative approach that embraces
uncertainty and complexity. emergent
change management focuses on
continuous experimentation and learning.
It recognizes that change is not a linear
process, but a dynamic and unpredictable
one.
Proactive change management involves
planning and preparing for change in
advance, while reactive change
management involves responding to
changes that have already
happened. Both strategies are important
for organizations to remain flexible and
adaptable
It is also called "planned change" or
"intentional change", involves making
changes to workplace practices or the
workplace itself in anticipation of a new
future state.
It help organizations foresee and
overcome potential challenges, and can
aim for less disruption and lower
resistance. For example, a company might
invest in marketing and promotion to gain
market share
Reactive change management involves
responding to immediate issues or crises
that have already arisen. This can include
swiftly reacting to changes and
improvising solutions to mitigate adverse
impacts. Reactive changes can be made in
a positive and structured way if an
organization has a contingency plan or
workflow in place. For example, a
company might invest in newer or more
efficient equipment in response to
technological advances and increased
competition. However, reactive change
management can often result in hasty,
disruptive adjustments and a higher risk of
employee resistance
Proactive change is change that is
initiated by an organisation because it is
desirable to do so.
Reactive change is change initiated in an
organisation because it is made necessary
by outside forces.
DIFFERENCE BETWEEN REACTIVE AND
PROACTIVE change management is the
timing of the change process. Reactive
change management is used in response
to an unplanned event or problem, while
proactive change management involves
anticipating and planning for potential
changes of the future in advance.
example of reactive and proactive?
PROACTIVE VS REACTIVE THINKING
A proactive person will be in more control
of their lives because they do things in
advance to influence a situation. For
example, proactive police will try to
prevent crimes before they happen
whereas reactive police will only respond
to crimes once they have been
committed.
PROACTIVE RESPONSE VS REACTIVE
RESPONSE
Reactive management is all about reacting
to problems as they arise. Proactive
management, on the other hand, is about
anticipating problems and taking steps to
prevent them from happening in the first
place.
Reactive incident response consists of
responding to cyber security incidents as
they occur. Proactive incident response
consists of pre-emptively identifying
security weaknesses and adding process
to identify threats before the occur.
INCREMENTAL CHANGE - refers to the
way in which an organization makes
changes with a series of small steps. This
may also be referred to as a first-order
change. Incremental change is different
from radical change as it is completed at a
slower pace.
key benefits of incremental change
Encouraging a culture of continuous
improvement: Incremental changes can
help foster a culture of continuous
improvement within an organization,
where employees are encouraged to
constantly look for ways to make small
but meaningful improvements to their
work processes.
Reducing risk and uncertainty: By making
small changes over time, organizations
can mitigate the risk of implementing
large-scale changes that may not yield the
desired results. This approach also helps
reduce uncertainty by allowing
organizations to test and refine their
approaches before making significant
investments.
Enhancing organizational agility:
Incremental change can help
organizations become more agile and
adaptable, enabling them to respond
quickly to changing market conditions and
customer needs.
Facilitating employee engagement and
buy-in: By involving employees in the
change process and seeking their input
and feedback, organizations can increase
employee engagement and buy-in, which
can help drive the success of the change
initiative.
Overall, incremental change is a valuable
tool for driving business innovation and
achieving long-term success. By adopting
this approach, organizations can
experiment with new ideas and
technologies while maintaining a stable
and controlled environment, reducing risk
and uncertainty, enhancing organizational
agility, and fostering a culture of
continuous improvement.
INCREMENTAL CHANGE VS RADICAL
CHANGE
When it comes to driving business
innovation, both incremental and radical
change can play a role, but they differ
significantly in their approach and
outcomes. Here are some key differences
to consider:
Approach: Radical change involves
significant and abrupt changes that can be
disruptive to an organization. This
approach typically requires a large
investment of resources and often
involves a complete overhaul of existing
systems and processes. On the other
hand, incremental change involves making
small improvements over time, allowing
organizations to test and refine their
approaches and build momentum
gradually.
Outcomes: Radical change can be
effective in times of crisis or when a major
disruption requires a quick response. It
can also be an effective way to break
through entrenched organizational culture
or address deep-seated problems.
 However, it can also be risky, as it involves
a lot of uncertainty and can be disruptive
to employees and stakeholders.
Incremental change, on the other hand, is
a more sustainable and practical approach
to achieving long-term success. By making
small improvements over time,
organizations can build momentum,
reduce risk, and achieve lasting change.
Timing: The decision to pursue radical or
incremental change often depends on the
timing of the change initiative. If a major
disruption or crisis occurs, radical change
may be necessary to address the problem
quickly. However, if an organization is
seeking to drive long-term innovation,
incremental change is typically the more
effective approach.
RELATIONSHIP BETWEEN LEADERSHIP
AND CHANGE
Leadership plays a pivotal role in change
management. Leaders are not just
responsible for setting the direction and
vision for the organization; they are also
responsible for guiding their teams
through the turbulent waters of change.
Effective leadership sets the direction and
guides the organization, while change
management provides the framework for
implementing and sustaining change.
Change management is an iterative
process. Leaders should continuously
monitor progress and be willing to adapt
their approach based on feedback and
results.
 Leadership's role
Leaders can motivate employees, create
a vision for change, communicate
change, and lead by example. They play a
fundamental role in change
management, affecting the readiness,
willingness, and ability of stakeholders to
adopt and sustain the change. Without
effective leadership, change initiatives
may face resistance, confusion, or
apathy.
Change management's role
Change management provides the
framework for implementing and
sustaining change. It's a systematic
approach to dealing with the transition or
transformation of an organization's goals,
processes, and technologies.
changing nature of leadership
 Leaders need to be flexible and adaptive
to remain effective in the ever-changing
environment of today.
 The modern view of leadership is different
from the traditional view, which focused
on hierarchical structures and a top-down
approach.
 Modern leaders must be mindful of the
changing landscape of the world and be
adept at digital transformation. They
should also have at least a general
understanding of artificial intelligence (AI)
and its potential, challenges, and ethical
implications
The nature of change
 Change has become a constant force, but
it has always been difficult. Human nature
strongly resists change, and the same
holds true for business.
TRANSFORMATIONAL CHANGE-It is a
type of change that occurs when an
organization makes a fundamental change
in how they operate.
 DIFFERENCE BETWEEN TRANSACTIONAL
AND TRANSFORMATIONAL CHANGE
 Transactional leadership – It is
effective in maintaining stability
and achieving short-term goals,
while transformational leadership
is instrumental in driving long-
term change and nurturing
employee growth. Successful
leaders may blend elements of
both styles depending on the
situation.
 Transactional change- largely
works within an existing set of
institutional and structural
arrangements. Transformative
changes restructure the system
itself rather than reform some
relationship within the existing
structure. To differentiate these
types of change is not to diminish
the value and urgency of either.
 More change can equate to more risks
and more potential for business
disruptions if it is not managed effectively
way of choosing between change
management and change leadership is not
a conscious decision but a natural
inclination towards leading change
through adaptation and evolution,
showcasing a model that emphasizes
flexibility, innovation, and a forward-
looking approach to transformation.
Transactional leadership -It is based
on exchanges and transactions, while
transformational leadership is focused on
inspiring and transforming followers.
Transactional leaders use rewards and
punishments, while transformational
leaders use inspiration and motivation.
Transactional leaders make sure the team
is running smoothly and producing results
today, while transformational leaders spur
innovation and look toward tomorrow.
CORPORATE VISION AND STRATEGY -play
a critical role in change management by
providing direction and motivation for the
organization. A vision statement describes
the organization's desired future state,
while a strategy outlines the steps to get
there.
 Providing direction and clarity: A clear
vision helps people understand the
direction of the change and the ultimate
goals.
 Motivating and inspiring: A compelling
vision can create excitement and
encourage people to embrace the change.
 Aligning efforts: A shared vision helps
align the efforts of individuals and teams
within the organization.
 Guiding decision making: A vision keeps
decision making in context.
 Recruitment: A vision can help attract
talent
CREATING A VISION FOR CHANGE
 A change vision is more specific than an
organization's overall vision statement.
 It provides a realistic and actionable goal
that can guide the change strategy.
 A vision should be clear, concise, and
easily understood by all stakeholders.
 It should be compelling and evoke
interest.
 It should be bold and challenge the status
quo.
Leaders' role in change management
  Leaders are responsible for defining, point in the future. Vision tells us also
communicating, and maintaining the about the future and suggests how we
vision. should change.
ROLES OF MISSION, VISION, AND VALUES
 They encourage the necessary structural
vision statement- It is a narrower, future-
changes.
oriented declaration of the organization's
 They provide resources and maintain a purpose and aspirations.
commitment to change.
The change vision and strategy give the Together, mission and vision guide
organization a picture of what the future strategy development, help communicate
looks like after the change is the organization's purpose to
implemented. It tells organizational stakeholders, and inform the goals and
stakeholders why they should let go of the objectives set to determine whether the
past, sacrifice and work hard in the strategy is on track.
present, and follow senior leadership into Developing a shared vision and mission
the future. can also help lay a strong foundation for
making strategic and tactical decisions
 Providing direction
that can help the business grow and
A vision and strategy can act as a succeed
guideline for all activities in the
organization, reflecting core values and
driving decisions.
 Motivating stakeholders
A compelling vision can inspire people to
act with passion and purpose to achieve
the desired future.
 Creating a sense of urgency
A vision can help create a sense of
urgency, encouraging people to sacrifice
and work hard in the present to follow
leadership into the future.
 Building a guiding coalition
A vision can help build a coalition of
people beyond the leadership team to
drive the change initiatives forward.
ROLE OF CORPORATE VISION AND
STRATEGY IN CHANGE MANAGEMENT
Setting up a vision of a company is
considered to be a very important step in
strategic management. It gives direction
to a company and acts as a reference