CHAPTER 3

OVERVIEW OF CHANGE MANAGEMENT

• Change: is the process of moving from the

present state to a desired state that individuals,
groups and organizations undertake in
response to dynamic internal and external
factors .
• Change is happening everywhere
• Change is the process by which organizations
move from their present state to some desired
future state to increase their effectiveness.
 Forces for Organizational Change
A. External Force
 Technology
 Marketing Conditions
 Social Changes
 Political Forces/New Governmental laws and
regulations
 Labor Market
 Economic change
 B. Internal Forces

1. Nature of the Work Force

The nature of work force has changed
over time. The new generations of
workers have better educational
qualifications; they place greater
emphasis on human values and
Question authority of managers.
 2. Change in size of the organization
Change in the organization’s size leads to change in the
internal structure and complexity of the operations
in the organization.
3. Performance gaps
• When there is a gap between plan and actual
results (in terms of market share, employee
productivity and profit)
 4. Employee needs and values

With changing needs and values of the employees,

organizations change their policies. For example,
attractive financial incentives, challenging assignments,
vertical growth opportunities and autonomy at work
may be provided in an organization to attract and retain
its effective employees.
5. Change in the top management
Change in the top management and consequent change
in the ideas to run the organization also leads to change
in the system, structure and processes.
 Process of organizational change

Change Process: in the organization

requires
Planning
implementing and
Monitoring
Evaluating
 Resistance to change

Resistance to change is the act of opposing or struggling with

modifications or transformations that alter the status quo.
Signs of direct resistance Of change
 People tell you their real concerns, and how they feel, openly
and honestly.
 They maintain eye contact and use “I” statements. (Pay
attention to cultural differences.)
 You know exactly where you stand; the issue is clear.
 Leads to honest negotiation or conflict resolution.
 You can put your energy into the real issue.
 Signs of indirect resistance

 People ask for more and more detail, endlessly

questioning
 They are not able to find a good time to implement,
or continually assert a rigid timetable.
 They intellectualize, debate definitions and concepts,
but not about the real concerns.
 They say someone else is the problem, using third
party language: we or they statements.
 You don’t know where they stand.
 The gossip(rumor) has increased
 Why individuals and organizations resist change?

Why employee resist changes

• Belief that the change initiative is a temporary fad
• belief that fellow employees or managers are
incompetent
• loss of authority or control
• loss of status or social standing
• lack of faith in their ability to learn new skills
• feeling of change overload (too much too soon)
• lack of trust in or dislike of managers
• loss of job security
 Why Organizations resist change?
 Power maintenance : those who going to losing the power
will resist it, which can often slow or prevent the change
process.
 Structural stability- A change may shift the organization
structure which will have effects on others, which may not be
acceptable.
 Organizational culture- Organizational members will resist
changes that force them to abandon established organizational
culture.
 Group norms- Any change that disrupts the group norms,
tasks, or role relationships will probably be resisted.
Groups often resist changes that do not benefit them individually.
 Managing Resistance to Change
Change is necessary and inevitable(an avodable).
Seven Steps to managing Change
• Step 1. Decide that change is necessary.
• Step 2. Garner executive support. it’s important to engage
employees at every level
• Step 3. Make a change management plan and create allies
• Step 4. Don’t forget about training and support
• Step 5. Communicate status throughout the change
• Step 6. Track your progress
• Step 7. Be flexible
Thank you !!!!