Change management

Change management Chapter 2: Instructor: Muhammad Suleman MIT , MBA (HRM) , MS (HRM)

Change • Change means to make some thing different For example: He realized that he should change his unprofessional attitude • to become altered or modified: • Colors change if they are exposed to the sun • Change means to pass gradually • Change means to pass from one phase to another • For example: Moon changes • Summer to autumn

Change means replacing of one thing for another • For example: Change of ownership

Change • Change is a type of adjustment or conversion by employees or peoples to/with a new system to develop an organization. • The employees who are working in the old traditional system are happy with the old system. • For Example: from Manual System to Computer System is a Change.

Change management • It is a process to shifting individual and organization from a current state to a desired future state. • It is a process amid at helping employee to accept and embrace change in their current environment. • Change management is approach to dealing with change, both from the perspective of an organization and on the individual level

Change management Change management is a multi-disciplinary process of: • Minimizing resistance • Maximizing collaborative efforts • Touching all aspects of the organization

The Adaptive Organization • Risk taking is rewarded • Candidness • Open to feedback • Enthusiasm • Long-term focus • Skill Development • Learning Organization • Willingness to make change • Identifies problems quickly • Internal and external looking • Implements solutions rapidly • Focus on innovation • Upward communication • Trust

Prerequisites for Change • Vision: Develop, articulate and communicate a shared vision of the desired change • Need: A compelling need has been developed and is shared • Means: The practical means to achieve vision: planned, developed and implemented • Rewards: Aligned to encourage appropriate behavior compatible with vision and change • Feedback: Given Frequently

What Effective Change Leaders Do • Embrace change when it’s needed • Develop a vision for change • Communicate effectively • Shake things up by challenging status quo and encouraging others to do the same • Stay Actively Involvedby walking the walk and being visible about it. • Direct, Review Implementation of change - continued participation - never done attitude. Be in position to notice and coach.

Part II: The Nature of Change Introduction Change in business is not new — it’s just accelerating due to… • New technology. • Global competition. • Growth & increased complexity. • The result: Change or die

Reasons for change • It includes • External forces • internal forces • External forces include PESTEL • Internal forces includes • Corporate strategy • work force • Technology • Employee attitude

Reasons for change

Reasons for change • Internal forces It includes • 1) Corporate strategy • 2) Work force • 3) Technology and equipment • 4) Employee attitude

Reasons for change • Corporate strategy • The overall scope and direction of a corporation and the way in which its various business operations • work together to achieve particular goals. • It is not unusual to change its strategy • for example ,a company decides to enter the e-commerce business

Reasons for change • Work force • The total number of workers employed by a company on a specific job, project, etc. • The composition of an organization 'work force never stays static because it changes in terms of gender, age education etc • New employees join the organization and other people leave, with these changes, managers may need to redesign work and work groups in order to insure the job requirements match the skills of the people

Reasons for change • Technology and equipment • The introduction of new equipment or new technology is another internal force for change which effects an organization • Implementation of new technology new process, through this employees will have to be trained for new work processes and new jobs

Reasons for change • Employees attitude • Employee attitudes such as the level of job satisfaction can lead to either positive or negative force for change • If employees are dissatisfied, then there can be an increased level of absenteeism which can lead to changing practices or management of staff

Effective Change Equals Shaping Behavior Altering Mind-set Harnessing Motivation Change management The Effective Management of Change Involves AnIntegrated Approach In Each Of These Three Arenas

RESISTANCE TO CHANGE Resistance to Change has been defined as: “behavior which is intended to protect an individual from the effects of real or imagined change” Alvin Sander, 1950 Efforts by employees to block the intended change is referred to as Resistance to Change

EMPLOYESS RESISTANCE TO CHANGE • Economic reasons 1)Fear of economic loss: employee often feel insecure about loss of employment and economic benefits such as • Fear of technological unemployment • Fear of reduced work hours and consequently less pay • Fear of demotion • Fear of speedup and reduced compensation

EMPLOYESS RESISTANCE TO CHANGE 2)Obsolescence of skills: • Change may render existing employee skills and knowledge obsolete • What they have been ding for ages might be under threat • If employees feel that they do not possess skills that are currently in demand, they resist change quite seriously

EMPLOYESS RESISTANCE TO CHANGE • Social reasons 1)Social displacement: change often causes social displacement of people by breaking relationships. Employees get emotionally upset when friendships breakdown. they dislike new adjustment, new grouping and new relationships brought forward by change efforts and thus they resist. 2)Peer pressure: people may resist change because of peer pressure. for example individual may like computerization, but refuse to accept for the sake of the group

Organizational issue 1)Threat to power Some people consider change as a potential threat to their position. New ideas and new use of resources can disrupt the power relationship. Especially people occupying the top place in the organization resist change at organizational level because any change might threaten their existing power

Some more about resistance • 1. The employees are happy in the old system. • 2. There is no new Learning in old system. • 3. Their is no technicality to them in the old system. • 4. Some time the employees are worried that they will be jobless or terminated. • 5. It is very tiring to learn new things.

Types of resistance 1)Passive resistance • Passive resistance occurs where people do not take specific actions. • At meetings, they will sit quietly and may appear to agree with the change. • Their main tool is to refuse to collaborate with the change. • In passive aggression, for example, they may agree and then do nothing to fulfill their commitments.

2)Active resistance • Active resistance occurs where people are taking specific and deliberate action to resist the change. • Active resistance, although potentially damaging, is at least visible • you have the option of using formal disciplinary actions (although more positive methods should normally be used first). • such as employees statements • such as mobilizing others to create an underground resistance movement

Overcoming Resistance to Change • Communication • Participation and involvement • Negotiation and agreement • Coercion

Overcoming Resistance to Change 1)Communication This tactic assumes that the source of resistance lies in misinformation or poor communication A manager should explain • What the change is about • When it is to be introduced • Basic purpose of the change • How the change is going to help them

Overcoming Resistance to Change 2)Participation and involvement • Prior to making a change, those opposed can be brought into the decision process • They get a chance to express their opinion • Get their doubts clarified • As a result uncertainty is reduced • Mangers identify potential problems

Overcoming Resistance to Change 3)Negotiation and agreement • Exchange something of value for a lessening of resistance. • It can offer reward to those who go along with the change • It can also agree to protect those who will potentially be damaged by the change • Negotiation with union leader • Negotiation is a tactic when resistance comes from a powerful source • Best used: Where one group will lose, and has considerable power to resist

Overcoming Resistance to Change 4)Coercion • The application of direct threats or force upon resisters • Use of authority to impose change • Best used: Speed is essential, and initiators have power

IMPORTANCE OF CHANGE • 1.Learning by Employees due to change. • 2.Competition by employees for Promotion due to change. • 3. The employees will try to make some thing more innovative. • 4. Emergence of new technology. • 5. New Ways of doing things. • 6. The capability of people are increased. • 7. The employees will be ready for new change in the future

Change management