Change Management

Change Management

Change is ….. 

To alter, modify, revolutionize, transform….

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Survival and success --- go out of existence

For an individual, change may mean a new behavior. Similarly from the point of view of a businessman, it may mean a new business process or new technology. From the social view, it can be a new act or policy.

Types of change 

Operational changes affect the way the ongoing operations of the business are conducted, such as the automation of a particular area.

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Strategic changes occur in the strategic business direction, e.g., moving from an inpatient to an outpatient focus.

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Cultural changes affect the basic organizational philosophies by which the business is conducted, e.g., implementing a continuous quality improvement (CQI) system.

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Political changes in staffing occur primarily for political reasons of various types, such as those that occur at top patronage job levels in government agencies.

Change Management Change Management means “to make changes in a planned and systematic way by introducing new methods in an ongoing organization”. Change Management is concerned with two sets of people i.e., one those who want to effect change and second is those on whom change is to be effected. Change management is the effective process of a business change such that executive leaders, managers and front line employees work in consonance to successfully implement the technology or organizational changes.

Organizational Change 

Planned alteration in existing organizational system

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To achieve something desirable in the best possible manner

Reasons for Change Factors may lead to a necessity for change  To improve performance  To reduce waste and inefficiency  To improve management control and satisfaction of the employees  To improve the quality and productivity of an organisation  To compete in the changing market environment  To achieve the desired business results as early as possible

Making Change Happen Two Approaches to Organizational Change 

Organization Development (OD) 

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Formal top-down approach

Grassroots Change 

An unofficial and informal bottom-up approach. Change that is spontaneous, informal, experimental, and driven from within.

Organization development (OD) 

Planned change programs intended to help people and organizations function more effectively. 

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Applying behavioral science principles, methods, and theories to create and cope with change. OD creates fundamental change in the organization, as opposed to fixing a problem or improving a procedure.

OD programs generally are facilitated by hired consultants,

Objectives of OD   

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Deepen the sense of organizational purpose. Strengthen interpersonal trust. Encourage problem solving rather than avoidance. Develop a satisfying work experience. Supplement formal authority with knowledge and skill-based authority. Increase personal responsibility for planning and implementing. Encourage willingness to change.

OD Change Process….Kurt Lewin Unfreezing

Changing or Moving Refreezing

Unfreezing 

Breaking down existing ways of doing things

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Discarding conventional methods & behavioral patterns

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Introduce new methods & behavior

Techniques: 

Education,

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Communication,

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Participation in decision-making, etc.

Changing or Moving    

Move towards proposed change New learning It is a time of trial & error Careful guidance – problems arise – tackled efficiently

Refreezing

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New beliefs, attitudes gained, behavior learnt are implemented Manager – Change agent’s role

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Reinforcement

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Why Do Employees Resist Change Surprise 

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Misunderstanding and lack of skills 

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Without introductory or remedial training, change may be perceived negatively.

Emotional Side Effects 

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Unannounced significant changes threaten employees’ sense of balance in the workplace.

Forced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change.

Lack of Trust 

Promises of improvement mean nothing if employees do not trust management.

Why Do Employees Resist Change 

Fear of Failure 

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Threat to Job Status/Security 

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Employees are intimidated by change and doubt their abilities to meet new challenges. Employees worry that any change may threaten their job or security.

Fear of increased responsibility 

Some staff may question whether they will have more responsibilities and/or accountabilities as a result of a change.

Overcoming Resistance to Change Education and communication     

Participation and involvement Facilitation and support Negotiation and agreement Leadership

Change Agents 

Change Agents 

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Persons who act as catalysts and assume the responsibility for managing the change process.

Types of Change Agents   

Managers: internal entrepreneurs Non-managers: change specialists Outside consultants: change implementation experts

What Can a Manager Do? Do not ignore the people side of “change Management”

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The practice of Change Management is a combination of the methods used by people (usually management teams) within organizations to ensure organizational transition is completed efficiently and effectively. It is extremely important that management teams consider the “people side” of any organizational change. Too often, managers look at change management as a technical process, rather than a human one. This makes sense, since the field of Change Management is described as the study of “approaches” or “processes” an organization follows when moving from its current state to a desired state.

What Can a Manager Do? 

Interpersonal and communication skills 

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their interpersonal and communication skills so that they could help their staff overcome the pains associated with change.

Stop thinking of change management as a standalone initiative and start accepting it as an everyday reality Anticipate what and where the resistance will be and plan for it accordingly. 

All managers need to realize that resistance to change is normal. Given that change is an ever-present reality in today’s work place, it is safe to say that resistant behavior is inevitable in most organizations. Managers need to identify this behavior and help staff manage it by utilizing the proper interpersonal and communications skills.

Benefits and significance 

Understanding environment (society, government, customers) It is important for organization to understand, assess and gauge the dynamics in its external environment in order to envisage and establish an appropriate relationship with various actors like government, customers and society. Therefore managers by knowing the subject of change management can better be prepared to understand whatever is going on in the environment.

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Objectives, strategy formulation & implementation (to develop competitive advantage) Second is consequent upon knowing the impact of change at extraneous level on its own internal dynamics, and the foremost is objective setting and seeking competitive advantage.

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Employees (trained, high performing work practices, reliable organization) The employees are the recipient of change plan. One such perpetual concern of senior managers is to make organization highly reliable; therefore employees ought to be trained and high performing one in today’s hyper competitive world

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Technology Issues Technology is considered the engine of growth in today’s world. Perhaps the greatest challenge for contemporary organizations is the acquisition and integration of technology in its strategy, structure and process.

Stress and Stress Management Stress

A dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important.

Potential Sources of Stress Environmental Factors 

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Economic uncertainties of the business cycle

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Political uncertainties of political systems

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Technological uncertainties of technical innovations

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Terrorism in threats to physical safety and security

Organizational Factors 

Task demands related to the job

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Role demands of functioning in an organization

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Interpersonal demands created by other employees

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Organizational structure (rules and regulations)

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Organizational leadership (managerial style)

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Organization’s life stage (growth, stability, or decline)

Potential Sources of Stress 

Individual Factors 

Family and personal relationships

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Economic problems from exceeding earning capacity

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Personality problems arising for basic disposition

Managing Stress 

Individual Approaches  Implementing time management  Increasing physical exercise  Relaxation training  Expanding social support network

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Organizational Approaches  Improved personnel selection and job placement  Training  Use of realistic goal setting  Redesigning of jobs  Increased employee involvement  Improved organizational communication  Offering employee sabbaticals  Establishment of corporate wellness programs