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Management of Change

Dr. Ali Sajid

Change Mgmt by Dr. Ali Sajid 1


• When you betray
somebody else,
you also betray yourself.

Isaac Bashevis Singer

Change Mgmt by Dr. Ali Sajid 2


• Goodness is the only
investment that never
fails.

Henry David Thoreau

Change Mgmt by Dr. Ali Sajid 3


Management of Change
in the Context of
New Socio Economic & Geo
Political Realties
in Post WTO Scenario
FOR
MOTE,
LSPS Spring Semester 2020
Change Mgmt by Dr. Ali Sajid 4
In Uni-Polar World Dominated by
WTO Threat, winning Requires:
Faster actions,
More creative maneuvering,
More flexibility,
Closer partnerships with Global &
Regional Forces.
than was typical in traditional Developing Countries
bureaucracy.
Change Mgmt by Dr. Ali Sajid 5
Economic & Social Forces Driving Need for Major Change in Org

Technological Change International Economic Maturation of Market Fall of Communist &


 Faster and better Integration in Developed Socialist regimes
communication  Fewer & Reduced Countries  More countries
 Faster & better tarriffs( WTO )  Slower domestic linked to the
transportation  Currencies linked growth capitalist system
 More information via floating  More aggressive  More privatization
networks exchange rates exporters
connecting people  More global capital  More deregulation
globally flows

The Globalization of markets & Competition

MORE HAZARDS MORE Opportunities


• More competition • Bigger markets
• Increased speed Change Mgmt by Dr. Ali Sajid • Fewer barriers Contd
6
Economic & Social Forces Driving Need for Maj change in Org….

More large-scale change in Org


To avoid hazards and/or capitalize on opportunities,
firms must become stronger competitors. Typical
transformation methods include:
• Reengineering • Mergers & acquisitions
• Strategic Change
• Restructuring • Cultural Change
• Quality Programs

Change Mgmt by Dr. Ali Sajid 7


Change world order requires more agile mgt
that pursues opportunity without being
bogged down by
cumbersome structures or
weighty procedures
that impede action.
Leadership in LDC, must learn how to:
Face this new music
& How to Respond
Change Mgmt by Dr. Ali Sajid 8
Organization Compared
Twentieth Century Twenty-First Century
Structure

Structure
• No bureaucratic, with fewer rules &
employees
• Bureaucratic
• Limited to fewer levels
• Multi-leveled
• Organized with the expectation that
• Organized with the expectation that
mgt will lead, lower-level employees
senior management will manage
will manage.
• Characterized by policies & • Characterized by policies &
procedures that create many
procedures that produce the minimal
complicated internal
internal interdependence needed to
interdependencies
serve customers.
Systems
Systems
• Depend on few performance info • Depend on many performance info
systems.
system, providing data on customers
• Distribute performance data to especially
executives only • Distribute performance data widely
• Offer mgt training & support systems • Offer mgt training & support system
to senior people only
to many people
Culture
Culture
• Inwardly focused • Externally oriented
• Centralized • Empowering
• Slow to make decisions • Quick to make decisions
• Political • Open & candid
• Risk averse • More risk tolerant
Change Mgmt by Dr. Ali Sajid 9
Current Model Twenty-first-
century Prototype
Hierarchy Organization Network
Self-sufficiency Structure Interdependencies
Security Worker Expectations Personal growth
Homogeneous Workforce Culturally diverse
By individuals Work By teams
Domestic Markets Global
Cost Competitive Advantage Time
Profits Focus Customers
Capital Resources Information
Board of directors Governance Varied constituents
Affordability Quality No compromises
Autocratic Leadership Inspirational

Change Mgmt by Dr. Ali Sajid 10


Why Change ?
World of work- Changing as org of
work - Changing their ways.
Same time- org’s having to adapt to a
changing world of work.
Organization in pvt & public sectors face a
tougher world -judged more harshly than
before on their effectiveness & in which:
Change Mgmt by Dr. Ali Sajid 11
“Fewer protective
hedges behind
which to shelter”.

Change Mgmt by Dr. Ali Sajid 12


Change?

The most important question in performance


evaluation becomes not

How well did you perform your job


since the last time we met?”
But
“How much did you change it”
General Colin Powell

Change Mgmt by Dr. Ali Sajid 13


Concept of Organization
• Old way to view org is known as chain of
command.
• Developed in 1840s, when businesses -needed to
manage mass production, wide distribution, &
geographically dispersed orgs.
• Doesn’t describe Org as Flow of Process.
• Tends to emphasize:
• Individual accountability rather than Group
Process, or output of group & process.
• There is no reference to Products or Customers
in this view.
• Purpose of the org is accountability & control.
Change Mgmt by Dr. Ali Sajid 14
Learning Tech
Organizations
Utilizes people, values &
systems to
continuously change &
improve its performance
using
lessons of experience.

Change Mgmt by Dr. Ali Sajid 15


Learning Org & Organizational Structure

Effectiveness of any “Leadership System”


depends in part on its orgl structure–
a. Clarification of authority
b. Responsibility
c. Reporting lines
d. Performance standards to develop
structures that help them to maintain
stability.

Change Mgmt by Dr. Ali Sajid 16


CHANGE
• An Essential part of Creativity & Inov.

• In mgt change is expected to be a Part of Everyday life.

• As it is said that
“Nothing is certain but death &
taxes”
But
A third certainty could be added
i.e." CHANGE”

Change Mgmt by Dr. Ali Sajid 17


A Model for an Organization’s
Environment

Macro or Far Environment

Near or Operating
Economic
Technological Environment
Factors
Factors Partners
Customers

Clients ORGANIZATION

Suppliers
Political
Social Competitors Factors
Factors

Change Mgmt by Dr. Ali Sajid 18


• Select one word that symbolizes the world
we live in – CHANGE
• Change was always there but it used to be
incremental
• Today we are faced with change that is
exponential – change heaped upon
change
• Change flows and endures

Change Mgmt by Dr. Ali Sajid 19


Change Management

• A systematic approach to dealing with


change, both from the perspective of an
“organization and of individual level”.

• Change management at least three


different aspects, including:
– adapting to change
– controlling change
– effecting change

Change Mgmt by Dr. Ali Sajid 20


• A proactive approach to dealing with
change is at the core of all three aspects.

• For an org, Change Management means

“Defining & implementing


procedures and/or technologies to
deal with changes in the business
environment & to profit from
changing opportunities”.

Change Mgmt by Dr. Ali Sajid 21


Brain Teasers

“Don’t change with the times


– change before the times”

Darwin

Change Mgmt by Dr. Ali Sajid 22


It is not the strongest of the
species that survives, nor the
most intelligent, but rather the
one most responsive to
change”

Charles Darwin

Change Mgmt by Dr. Ali Sajid 23


Key Questions while Assessing Type & Amount of Change for
Quality.

1. How extensive should the change be? If extensive,


transformation may be required.
2. Is change really needed? Is the organization simply choosing
the easiest thing to change? This entails an accurate
diagnosis of organizational problems & a sound change plan.
3. kinds of results desired, lT ST? ST- Transitional; LT require
transformation.
4. kind of change - org able to make? Some - more difficult to
change .
5. kind of implementation plans currently in place? evaluated to
ensure -fit with new plans & programs.
6. Consequences of not changing at all? Massive org change
can be very traumatic for firms;
sometimes costs of the change may be too high.

Change Mgmt by Dr. Ali Sajid 24


Understanding the Model for Change:
Source of Dissatisfaction with Status Quo

For Change dissatisfaction


originate from many sources.
Customers demanding hi
standards;
Want no defects,-
want on time delivery at
reasonable prices.
Change Mgmt by Dr. Ali Sajid 25
Understanding Change Model: Implementation

Implementation plans (P) need to establish momentum


to accomplish desired change.
Sequences of events, programs, meeting, & activities designed
to help employees learn new perspectives, skills, attitudes, &
behaviors.

Strategic initiatives -executed which specify assignments,


objectives, & outcomes for particular programs.

Change programs, different elements of org design, tasks,


people, structures in place,to be altered to accomplish strategic
objectives.
Change Mgmt by Dr. Ali Sajid 26
Understanding Change Model:

Cost of Change

When change occurs, crucial


organizational dynamics usually shift at
same time.
Power can change from one group to
another.

Finance group went from being critical


action group to playing support roles,
during transformation process at Ford
Change Mgmt by Dr. Ali Sajid 27
Understanding the Change Model:
Cost of Change

Definitions of competence shift.

Relationships b/w org members change;


Teams become cross functional & fluid,
established networks of support (and resistance) become
obsolete.

Rewards & identities change as well;

Change seen as a demotion or as punishment.


Successful change leaders should do their utmost to guard
against that phenomenon.

Change Mgmt by Dr. Ali Sajid 28


Understanding Change Model:

Cost of Change
Once change - made & org fully adapted to
new vision
while remaining open to further change as
needed,
reinforcement & consolidation of change must
occur so that Sustained achievement of
intended results & continual actions in
accordance with new vision & values
routine.

Change Mgmt by Dr. Ali Sajid 29


Understanding the Change Model:
Cost of the Change

Systems, performance appraisal, MIS that


support goal need to be finalized.

Understanding & interpreting reasons for


success & problems, & continual use of
themes and symbols, are critical so that
org can look at the problems &
possibilities for next round of change.

Change Mgmt by Dr. Ali Sajid 30


Forms Of Orgl Innovation
Process Innovation-
Results in better
Ways of doing things

Product Innovation-results in
creation of new & improved
goods & services.

Change Mgmt by Dr. Ali Sajid 31


Process Of
Innovation

Change Mgmt by Dr. Ali Sajid 32


Promotes
&
actively
Manager as
supports
Trustee
Entrepreneurial
Manager Threatened by
changes.
Confident of ability.
Bothered by
Willing to take risks. uncertainty.
Seizes opportunity. Creativity
Prefers predictability.
Expects surprise. Supports the status
Makes things happen. quo.
Waits for things to
happen.

Avoids &
even
discourages
Change Mgmt by Dr. Ali Sajid 33
Steps in Product Innovation
1. Idea Creation- New knowledge forms
around basic discoveries, extensions of
existing understandings or spontaneous
creativity made possible by individual
ingenuity & communication with others.
2. Initial Experimentation- ideas - initially
tested in concept by discussions with
others referrals to customers, clients or
Technical experts, & or in forms of
prototypes or samples.

Change Mgmt by Dr. Ali Sajid 34


Steps in Product Innovation ..Contd
3. Feasibility Determination- Practically &
financial values-examined in formal feasibility
studies, also Identify potential costs &
benefits & Potential Markets or applications.

4. Final Application- new product finally


commercialized or Put on sale in open market,
or new process is implemented as part of
normal operating routines.

Change Mgmt by Dr. Ali Sajid 35


Characteristics Of Innovative Orgs
• In highly innovative-orgs Supports Staff inov as well.

• Critical Inov Roles to be filed by talented workers


include:
– Idea Generators- create new insight from “Internal Discovery”
or “External Awareness” or both.
– Info Gatekeepers- Link b/w people & groups within org & with
external sources.
– Product Champions- “Advocate push for change & inov” in
general & adoption of specific product or process in particular.
– Project Managers- “Perform Technical Functions Needed” to
keep innovative project on track with all needed resources
support.
– Inov Leaders- “Encourage, Sponsor, & Coach others to keep
Inov values & Goals in Place” & “Channel Energies in right
direction”.
Change Mgmt by Dr. Ali Sajid 36
Barriers To Inov!
• Top Mgt Isolation- Fosters misunderstandings & contributes to a risk-
averse climate.

• Intolerance to Differences- Denies uniqueness, creates homogeneity,&


brands as troublemakers those who question status quo.
• Vested Interests- focus on part rather than whole & emphasizes defense of
one's turf against encroachment of outsider.
• Short Time Horizons- Emphasizes Short Term Goals rather than potential
for “New ideas to generate LT gains”.
• Overly Rationale Thinking- Tries to make creativity a systematic process &
“emphasizes schedules over results”.

• Inappropriate Incentives - Uses Rewards & Control to Reinforce Routines,


Discourages Surprises & Differences Linked to Inov.

• Excessive Bureaucracy- Gives Preference to Rules, Procedures &


Efficiency that frustrate creativity & inov.

Change Mgmt by Dr. Ali Sajid 37


Change Mgmt by Dr. Ali Sajid 38
Types Of Orgl Change
1. Anticipatory Change- Planned changes
based on expected situations.
2. Reactive- Changes made in response to
unexpected situations.
3. Incremental-subsystems adjustments
required to keep org on course.
4. Strategic- altering overall shape or
direction of org.

Change Mgmt by Dr. Ali Sajid 39


Forces Causing Change

Change Mgmt by Dr. Ali Sajid 40


External Change Forces
• Have greater impact on orgl change
• Ranges from technological discoveries
to changing lifestyles
• Pressures org to change its “goals,
structure & methods of operation”.

Change Mgmt by Dr. Ali Sajid 41


Internal Change
• Within orgs
• As a result of new orgl objectives & cultures
• Both types are interrelated.
• Linkage frequently results from changes in
values & attitudes that affect people in system.

Change Mgmt by Dr. Ali Sajid 42


Planned Vs Unplanned Change
Unplanned Occurs
spontaneously & without
change agents direction.

Planned occurs as a “Result of


Specific Efforts” in its behalf
By Change Agent.

Change Mgmt by Dr. Ali Sajid 43


Forces & Targets For Change
• Tasks- Nature of work as represented by orgl
mission, objectives, strategy & job designs for
individual & groups.

• People- Attitudes & competencies of employees,


& HR systems that supports them.

• Culture- Value system for orgs as a whole &


norms guiding individual & group behavior.

Change Mgmt by Dr. Ali Sajid 44


Forces & Targets For Change.. Cont!!
• Technology- Operations tech used to support
job designs, arrange work flows & integrate
people & machines in systems.

• Structure- Configuration of org as a Complex


system, including its bureaucratic features &
lines of authority & communication.

Change Mgmt by Dr. Ali Sajid 45


Individual Reaction To Change

Change Mgmt by Dr. Ali Sajid 46


How People Respond To chg They Fear & Dislike

Change Mgmt by Dr. Ali Sajid 47


Why People Resist To Change?

• Fear of unknown-Not understanding what is happening


& why?
• Disrupted habits- Feeling upset when old ways of doing
things cant be followed.
• Loss of confidence- Feeling incapable of performing well
under new ways of doing things.
• Loss of control-Feeling things are being done to you
rather than by or with you.
• Poor timing- Feeling overwhelmed or that things are
moving too fast.
• Work overload- Not having physical or psychic energy to
commit to change.
• Loss of face- feeling inadequate or humiliated because
old ways weren't good ways.

Change Mgmt by Dr. Ali Sajid 48


Why People Resist To Change?
• Lack of Purpose- Not seeing a reason for change or not
understanding its benefits.
• Surprise- Schedule changes in measurable, comfortable
stages. Too much, too soon can be counterproductive.
• Inertia-many members of typical org desired to maintain
safe, secure & predictable status quo. Technological
inertia also is common problem.
• Misunderstanding/ignorance/lack of Skill-
• W/O adequate introductory or remedial training
otherwise positive change may be perceived in negative
light.
• Emotional side effects- Those forced to accept on job
changes -experience sense of loss over past ways of
doing things.

Change Mgmt by Dr. Ali Sajid 49


Why People Resist To Change in tech org?
• Lack of Trust- Promises of improvement likely to fall
on deaf ears, if employees do not trust mgt.
• Mgr- unlikely to permit necessary participation if they
don’t trust their people.
• Fear of Failure- just as student doubts their chances
of ever graduation, challenges presented by significant
on job changes can also be intimidating.
• Personality Conflicts- mgr - disliked by their people
-poor conduits of change.
• Lack of Tact- “Not necessarily, what is said that
shapes our attitude toward people & events.”
• “How it is said is often more important.
• Tactful & sensitive handling of changes is essential.

Change Mgmt by Dr. Ali Sajid 50


Why People Resist To Change?
• Threat of job status/ security-
• AS employment fulfills basic needs employees can be
expected to resist changes with real or imaginary job
status or job security.

• Breakup of Work Groups- Significant changes can


tear fabric of on job social relationships.
• So, members of cohesive work groups exert peer
pressure to resist changes-threaten to breakup group.

Change Mgmt by Dr. Ali Sajid 51


Ways Of Dealing With Change

1. Reactive Process- Mgt tries to keep org on


a steady course by solving problems as they
come up.

2. Proactive Process- mangt tries to change


things by setting a new course
rather than by
correcting current one.

Change Mgmt by Dr. Ali Sajid 52


Dealing With Resistance To Change
• Resistance - Feedback - Informed change agent can use
constructively to modify planned change.
• Means that something can be done to achieve better fit
b/w planned change, situation & people involved.
• Alternatives to Manage Resistance are,
– Education & Communication
– Participation + Involvement
– Facilitation + Support
– Negotiation + Agreement
– Manipulation + Co-operation
– Explicit + Implicit coercion

Change Mgmt by Dr. Ali Sajid 53


Magrs must stimulate & Lead change in order to
create learning orgs-
with core ingredients:

– Mental Models- everyone sets aside old ways of


thinking.
– Personal Mastery- everyone becomes self aware &
open to others.
– System Thinking- everyone knows how whole org
works.
– Shared Vision- everyone understands & agrees to
plan of action.
– Team Learning- everyone works together to
accomplish plan.

Change Mgmt by Dr. Ali Sajid 54


Strategies To
Overcome Resistance
To Change

Change Mgmt by Dr. Ali Sajid 55


Change Mgmt by Dr. Ali Sajid 56
Orgl Effectiveness

Result of activities that improve


Orgs Structure, Technology &
People.

Change Mgmt by Dr. Ali Sajid 57


Change Mgmt by Dr. Ali Sajid 58
Building & Sustaining Total Quality
Organizations

Change Mgmt by Dr. Ali Sajid 59


TEN
Commandments
for Change
Change Mgmt by Dr. Ali Sajid 60
1. ANALYZE ORG & NEED FOR
CHANGE
Analysis, should cover:

“org history, its operations, functioning,


strengths, weaknesses.

Who will support the change? Who will resist it?

particular levers of action change -that


implementers should take to initiate process.
Org with employee participation in decision making
to continue that tradition when implementing
change.

Change Mgmt by Dr. Ali Sajid 61


1. ANALYZE ORG & NEED FOR QUALITY

G.E-transformational change 1988 - WORKOUT program.


to org act with Speed, Simplicity, & Self-Confidence,

town meetings within business units to hear strategy of


business unit presented by sr mgt, to diagnose
problems might present, & to develop team & cross
functional solutions to problems.

Data about org processes, measurements, & procedures


discussed with assessments of political processes
-drive behavior one way or another.
Change Mgmt by Dr. Ali Sajid 62
1. ANALYZE ORG & NEED FOR CHANGE

Diagnosis -use of data to identify gaps between what currently


exists & what should be.
Diagnosis is conclusion about what data mean.
When a gap b/w what is & what should be is determined, a
diagnosis is made.
A critical step in determining what meaning, priority, &
relationship are to the facts.
Action, - planning & implementation of steps -can be taken to
improve the situation.
“Problem Analysis” is not a clean, well defined process. -often
an iterative, incomplete, messy, ambiguous set of activities,
examining formal & informal process that occur within org.

Change Mgmt by Dr. Ali Sajid 63


2. Create a Shared Vision &
Common Direction

New model of Managing (M) is strategic &


org vision, image of future operations of
the org .

Change Mgmt by Dr. Ali Sajid 64


Basic questions can help determine the desirability
of a vision for change
1. who are satisfied today,will this keep them satisfied?
2.If the vision is made real,how it affect customers?
3.For those who are not entirely happy today, will this
make them happier” for people who don’t buy from us
now, will this attract them?
4.In a few years, will we be doing a better job than the
competition of offering increasingly superior products &
services that serve real customer needs?

Change Mgmt by Dr. Ali Sajid 65


Basic questions can help determine the
desirability of a vision for change

1.How will this vision affect stockholders?


Will it keep them satisfied?
2. If not entirely happy today, will this
improve matters?
3.If we are successful in implementing this
change, are we likely to provide better
financial returns than if we do otherwise?
Change Mgmt by Dr. Ali Sajid 66
Basic questions can help determine the desirability of a
vision for change

1. How will this vision affect employee?


2. If they are satisfied today, will this keep them
happy?
3. If they are disgruntled, will this help capture their
hearts & minds?
4. If we are successful, will we be able to offer
better employment opportunities than those
firms with whom we compete in labor markets?

Change Mgmt by Dr. Ali Sajid 67


In blunt terms
Orgs that fail to
change are sure
to fail
Change Mgmt by Dr. Ali Sajid 68
3. Separate From the Past
Critical to hang on to some elements of org life that
provide continuity, such as location, some legends,
or heritage.
Yet take a hard look at what routines & structures
no longer work & seek to move beyond them.
In changing org to develop products quicker,
Change leaders kept legends of product
development successes,
modified structures & routines that no longer
worked.

Change Mgmt by Dr. Ali Sajid 69


4. Create a Sense Of Urgency
Coupled with dissatisfaction with status quo.
Persuading an org to change when things seem to be
going well is difficult.
Change leaders need to generate a sense of
urgency by carefully outlining situation at
hand & constantly communicating to org itself.
Data about customer satisfaction, competitive forces, &
“need for change as a state of mind” can be provided
to org members -so that they see need to implement
QM programs.

Change Mgmt by Dr. Ali Sajid 70


STRONG LEADER ROLE -

Executive action speak louder than words.


No major drive for change, w /o support of leaders
who can serve as strategists for change.
Top mgt is responsible for initiating supporting
vision for changed culture
Aligning employees around a vision, & leadership
in change process can come from a variety of
sources.

Change Mgmt by Dr. Ali Sajid 71


5. SUPPORT A STRONG LEADER ROLE - I

“Employee Involvement” strategies implicit in


change process enable leaders to emerge
from a variety of positions in org.
Leaders get lost in shuffle & feel
“Powerless as a result”.
Their traditional role as authoritarian changed,
feel disenfranchised

Change Mgmt by Dr. Ali Sajid 72


5. SUPPORT A STRONG LEADER ROLE - II
To implement Change, programs recognize changing
role of leader,
Either give them new skills in coaching & developing of
work teams, or abandon their role entirely

HR & Quality Mgrs to select, train, & development, etc


- to facilitate moves toward QM.
H R mgrs assist in design & delivery of QM programs
-can work strategically with CEO office & committee to
ensure satisfactory program design, delivery, &
assessment.

Change Mgmt by Dr. Ali Sajid 73


6. LINE UP PLITICAL SPONSORSHIP - I
To determine, support for change is “Force Field Analysis”
Forces -drive & restrain change lead to assessment of key owners of
process.
“Stakeholder Analysis”. To Determine key supporters
Commitment charts -enable change initiator to understand
“Dynamics necessary to achieve requisite commitment”.
People -in midst of a change can withhold support for a variety of
reasons.
Resistance often appears irritating to people, initiating change,
but sources behind resistance be understood.

When change leader understands sources of resistance of key


stakeholders, plans can be develop to attain commitment & reduce
causes of resistance.
Then Change can be achieved with minimal cost.

Change Mgmt by Dr. Ali Sajid 74


6. LINE UP PLITICAL SPONSORSHIP - II
Reasons people resist changes:
a. A desire not to lose something of value
b. A misunderstanding of change & its implications
c. A belief - change does not make sense for org.
d. A low tolerance for change itself.
Understanding reasons enables CL to develop
implementation plans - might minimize resistance.
If resistance to implementing M o C program comes
from a lack of understanding of change d process then
educate

Change Mgmt by Dr. Ali Sajid 75


7. CRAFT AN IMPLEMENTATION PLAN

Plan should enable org to bridge gap between


what is and what should be.
While plan itself can be relatively simple,
essential elements must include
a) specification of clear roles
b) responsibilities for all parties to change.

Change Mgmt by Dr. Ali Sajid 76


7. CRAFT AN IMPLEMENTATION PLAN

Analysis of key stakeholders & resisters so that plans


deal with “sources of resistance”.
Coaching & training is an effective approach to reducing
resistance. Negotiations (& reexamination of union
contracts) reduces resistance.
Political power, cooperation, influence, coercion can be
utilized.

Change Mgmt by Dr. Ali Sajid 77


Three-Step Model for Change for M o C

Successful M o C plan involve


three steps
1. Unfreezing the present level.
2. Moving to the new level.
3. Refreezing the new level.
Change Mgmt by Dr. Ali Sajid 78
7. CRAFT AN IMPLEMENTATION PLAN -II

Which Plan?????

Planned
Or
Emergent
Change Mgmt by Dr. Ali Sajid 79
ENVIRONMENT

Stable Turbulent

Emergent
Planned

Approaches to Change
Change Mgmt by Dr. Ali Sajid 80
Conditions for planned &
emergent approaches to
change
Emergent
Planned
Change
Change

• Stable Environment
• Turbulent environment
• Small Scale
• Localized Change • Organization Wide change
• Technical or structural • Behavior/attitude
• Focus

Change Mgmt by Dr. Ali Sajid 81


The Change Process-III
Planning the Change

Process comprises six interrelated activities;


1. Establishing a change mgt team.
2. Mgt structures.
3. Activity Planning
4. Commitment Planning
5. Audit & post audits.
6. Training
Change Mgmt by Dr. Ali Sajid 82
7. CRAFT AN IMPLEMENTATION PLAN - IV
An essential part of any M o C
Program is training.
Org need make tremendous investments in training so that
employees understand what is expected of them & why.
It is critical that training.
•Be delivered on job, with real-world relevance & application time.
•Be delivered as needed, coordinated with needs of employees.
•Be conducted by line people, team members, leaders,
supervisors, or managers.
•Be provide to employees at all levels simultaneously so that clear
messages are reinforced all at once.
•Be skills based, measurable, & with attainable outcomes.
•Be designed by HR Dept in concert with mgmt.
•Play an active role in need diagnosis, developing,& delivering
Change Mgmt by Dr. Ali Sajid 83
training.
7. CRAFT AN IMPLEMENTATION PLAN - IV
Training should teach people some qualitative skills, such as
how to Work & Communicate in groups.
In M o C programs, Org dependent on teamwork.
Employees need to learn how to handle team dynamics meetings
can be effective, to increase involvement, & to aid individual
employee efforts in problem analysis & diagnosis. M o C is often
based on employee actions;
Training in effective facilitation & support is critical.

Change Mgmt by Dr. Ali Sajid 84


8. DEVELOP ENABLING STRUCTURES - I
Altering Status Quo & developing new ways to org,
measure, & assess progress -critical for any org change.
Enabling structures are - pilot tests, workshops, or training,
or more symbolic structures such as banners, meetings,
or moving around office space at the request of a
team.
Systems & structures must be in place to absorb
changes.
Consistency be maintained between “goals &
performance targets” critical requisite for success.

Change Mgmt by Dr. Ali Sajid 85


8. DEVELOP ENABLING STRUCTURES - I
Specific performance targets – overcome
implementation problems.
Appropriate org structures be in place for managing
new initiatives.
Parallel learning structures (task forces, teams, etc.)
can effective, may also presents a broad admn
burden.

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8. DEVELOP ENABLING STRUCTURES - II
Job Designs -reflect each employees discretionary decision making
ability & teamwork.

Compensation systems –to reflect team related contributions & skill


mastery, systems for generating employee ideas & suggestions must
be in place.

Selection, Recruitment, & Development Systems to reflect


realities of changed mgt & screen out -not appropriate.
Informal structures (ceremonies, gatherings, recognition) to reinforce
small & large gains.

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Corporate Culture & Org Change
• A Corporate culture is a company’s value system & its
collection of guiding principles.
• Barriers to change :
a. Employee resistance
b. “Dysfunctional Corporate Culture” one whose shared
values & behavior are at odds with its LT term health.

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Corporate Culture & Org Change

• An example of a dysfunctional culture is


a high-tech company that stresses
individual rewards while innovation
depends on teamwork.
• To change mgt practices, org must first
address their fundamental values.

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Corporate Culture & Org Change

• Cultural values -often seen in mission &


vision statements of org
• Culture - powerful influence on behavior
because it is shared widely & operates
without being talked about,
often without being thought of.
• Culture is reflected by mgt policies &
actions that a company practices.

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Corporate Culture & Org Change
• Org that believe in principles of M O C more likely to
implement the practices successfully.
• Conversely, actions set culture in motion.

• Behavior leads people to thing in certain ways.


• TQ practices used routinely with an org, its people
learn to believe in principles, & cultural changes can
occur.

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Developing a Culture of M O C Depends on
• Top mgmt leadership
• A relentless focus on customer
• Systematic improvement of all business practices
• Decentralization of decision-making
responsibility
• Breaking down of org barriers
• Improvements that are linked to company
objectives
• Realignment of reward & measurement systems.
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Creativity & Innovation in Tech
Org
Innovation is a process of taking a
new idea & putting it into practice.
Act of converting new ideas into usable
applications.
Creativity is an application of
ingenuity & imagination that results in
a novel approach or unique solution to
a problem.

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9. COMMUNICATE,
INVOLVE PEOPLE,
Effective communication is critical from
& BE HONEST - I
beginning of a change effort. Every element of
change must be talked about, presented, &
discussed,
Managers to gauge peoples reactions &
consequences of making change.
Believable info - stimulates enthusiasm & clearly
demonstrate reward for participation, is key to
successful communication about M o C .

Companies publicize heroes, & celebrate who


Change Mgmt by Dr. Ali Sajid 94
epitomize desired behaviors, reward for
9. COMMUNICATE, INVOLVE PEOPLE, & BE HONEST
- II
Supervisors to fully understand program & be able to
communicate it as coaches to employees.
Rewards must also be publicized.
Else
Employees in one company did not believe that their
initiatives would be taken seriously.
Groups efforts if praised & made front page other
groups begin to take new initiatives seriously.

Recognition must be consistent with desired behavioral


standards & business values.

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10. REINFORCE & INSTITUTIONALIZE CHANGE
Though any org change, the org leaders must prove their
commitment to change itself.

By reinforcing new behaviors, managers emphasize


importance of transformation.
Senior mgmt commitment to programs must demonstrate
daily.
Change is an ongoing process, difficult to keep tenth
commandment.
Process of adaptation & change is the behavior that
should be reinforced& institutionalized, not change
itself.
Executives want investment in training, systems revision,
process analysis, diagnosis, surveys, & all tools has a
good payout.
Change Mgmt by Dr. Ali Sajid 96
10. REINFORCE & INSTITUTIONALIZE THE
CHANGE - II

One of problems associated with major organizational

change efforts lies in the energy & commitment of

managers who are charged with implementing the

change.

Maintaining this commitment is critical for reinforcing

& institutionalizing any change.

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10. REINFORCE & INSTITUTIONALIZE THE CHANGE - III
Anchoring Change in a Culture

 Comes last, not first: Most alterations in norms & shared


values come at the end of the transformation process.
 Depends on results: New approaches usually sink into a
culture only after its very clear that they work & are
superior to old methods.
 Requires a lot of talk: without verbal instruction & support,
people are often reluctant to admit the validity of new
practices.
 May involve turnover: Sometimes the only way to change a
culture is to change key people.
 Makes decision on succession crucial: if promotion
processes are not changed to be compatible with the new
practices,the old culture will reassert itself.

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How To Manage Planned
Change?

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Three phases of planed changes are,

1. Unfreezing- preparing a system for change.


2. Changing-making actual changes in
system.
3. Refreezing- stabilizing system after change.

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1. Unfreezing
• Stage of Preparing a situation for change
• Developing a felt need for change
• Can be assisted through environmental
pressures, declining performance, recognizing
problems or opportunities that exist
• Observing behavioral models that display
alternative approaches.
• Helps people break old habits & recognize
alternative ways of thinking about or doing
things.

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1. Unfreezing..ctd
• At this stage managers task is to,
• create a felt need for change
• Can be done by
– Establishing a good relationship with
people involved
– Helping others realizes that present
behaviors are not effective
– Minimizing expressed resistance to change

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2. Changing…
• Something New takes place in system & chg is actually
implemented.

• Mgrs initiates chgs in orgl targets of tasks


• People, culture, technology & structure.

• Done ideally in response to good “Problem


diagnosis” & a careful examination of alternatives.

• If chg implemented before felt need, -increased


likelihood of failure.

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2. Changing…

• At this stage mgrs task is to implement chg,


• Can be done by:

– A) Identifying new more effective ways of


behaving
– B) Choosing appropriate chgs in:
– tasks, people, culture, technology &
structure.
– C) Taking action to put these chgs into place.
Change Mgmt by Dr. Ali Sajid 104
3. Refreezing
• 1. Mgr is concerned about stabilizing chg & creating
conditions for its LT continuity.
• 2. Accomplish by providing appropriate rewards for
(a) performance, (b) positive reinforcement, © necessary
resource support.
• 3. Evaluate results carefully, provide feedback to
people involved, make required modifications in original
ch.
• 4. If refreezing done poorly
– A) Chgs -too easily forgotten
– B) Abandoned with passage of time
• 5. If it is done well
– Chg can be more long lasting

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3. Refreezing ..ctd..
• Managers task is to stabilize chg,
• Done by:
– Creating acceptance & continuity for new
behaviors
– Providing any necessary resource support
– Using performance contingent rewards &
positive reinforcement.

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1. Force-Coercion Strategy
• Uses power bases of legitimacy, rewards &
punishments as primary inducements to change.
• Likely outcomes of force –coercion -immediate
compliance but little commitment.

• Done in more than one way


– Direct facing stra- chg agent takes direct &
unilateral action to command that chg takes place.
• Involves Exercise of formal authority or legitimate
power, offering special rewards, & or threatening
punishment.
• In Political maneuvering, chg-agent works indirectly
to gain special advantage over other persons &
thereby make them change.
• Involves bargaining, obtaining control of important
resources, granting small favors in return
• Strategy has limited results.
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2. Rationale Persuasion Strategies
• Attempts to being about chg through Special
knowledge, Empirical data, & Rationale
argument.
• Informational stragty- assumes that rationale
people can be guided by facts, reasons & self
interest in deciding whether or not to support ch.

Change Mgmt by Dr. Ali Sajid 108


3. Shared Power Strategy

• Identifies or establishes values & assumptions from


which support for a proposed ch will naturally emerge.
• Slow process is slow but high commitment.
• Also called normative-reductive st- based on
empowerment &highly participative in nature.
• Relies on involving others in examining personal
needs & values group norms, &operating goals as they
relate to issues at hand.
• Power is shared by change agent.
• Managers need reference power & skills to work
effectively
• Is time consuming but results in long lasting &
internalized ch.
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Choosing A Chg Strategy

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Process Of
Managing Change

Change Mgmt by Dr. Ali Sajid 111


Change Mgmt by Dr. Ali Sajid 112
Change Agent
• Individual either:
– Manager from within org e.g. Z .A Khan of
Engro, Sindh
– Outside consultant-takes leadership role in
initiating & introducing ch process.

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Two Basic Ideas Necessary For Orgl
Effectiveness

• Power is redistributed within orgl


structure.

• If structure is changed in addition to


power redistribution, both changes
results from planned chg process.

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Six Phases Of Chg Process

Shows stimuli on power structure & responses.


• 1. Pressure & Arousal- Top mangt feels -need or
pressure for chg or an opportunity presents itself for
improving future position of org. (PTV).
• 2. Intervention & Reorientation-
• -Chg Agent (CA) assigned task of defining problem
• -beginning process of getting org members to focus
• 3. Diagnosis & Recognition Of Problem-
• Info gathered & analyzed by CA & mgt.
• Problem areas -diagnosed
• those need - given attention.

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Six Phases Of Chg Process …
4. Intervention & Commitment To Solutions-
CA to stimulate thought & find solutions by creativity
-developing new & plausible alternatives.
-Subordinates be encouraged to participate.
5. Experimentation & Search For Results-
-Solutions developed in 4th phase - tested in small scale
pilot programs & results analyzed.
-One unit- try out idea before org-wide basis.
6. Reinforcement & Acceptance-
If course of action -tested & found desirable, should be
accepted more willingly.
-Improved performance should be source of
reinforcement -so should lead to commitment to ch.

Change Mgmt by Dr. Ali Sajid 116


Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6
Stimulus Pressure on Intervention Diagnosis Solution New solution Reinforcement
power top at top of invention experimentation from good
structure management problem results
areas

Reaction Arousal Reorientation Recognition Commitment Search New


of power to take to internal of specific to new for process
structure action problems problems action results acceptance

Change Mgmt by Dr. Ali Sajid 117


Change Agent (CA)
• Chg agent is person or group of person that
tries to ch existing behaviors of another
person or social system.
• They make things happen & part of every
managers job is to act as a ch agent in work
setting.
• Requires being alert to situations or people
needing ch
• Open to good ideas
• Able to support implementation of new ideas
in actual practice.

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Organizational Development

OD- Special &


Comprehensive
Approach To
Planned Orgl Ch!

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Organizational Development

• OD is long –range effort to improve org,s ability to


deal with its environment & solve problems.
• Help orgs cope with forces for ch in their
environments while simultaneously improving internal
problem-solving capabilities.
• Outcome goal of OD focus on task
accomplishments, & process goal of OD focus on
way people work together.
• OD tries to achieve ch in a way that leaves orgl
members more active & self reliant in maintaining
longer run orgl effectiveness.
• Committed to improve orgs through freedom of choice,
shared power & self reliance.

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