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Change And The Management of Change. Change is the continuous adoption of business strategies and structures in response to internal pressures or external forces. Change happens whether we encourage and welcome it or not.
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Change is the continuous adoption of business strategies and structures in response to internal pressures or external forces. Change happens whether we encourage and welcome it or not. • Change management : planning, implementing, controlling and reviewing the movement of an organisation from its current state to a new one. What is Change
External Causes – these factors cannot be controlled by the business • Incremental or Evolutionary change:This occurs slowly over time. • Dramatic or Revolutionary change: This occurs in short amount of time. (In extreme cases, it leads to business process re-engineering) • Business process re0engineering : fundamentally rethinking and redesigning the processes of a business to achieve a dramatic improvement in performance • Internal Causes – these factors can be controlled by the business What causes the Change?
Globalisation • Technological advances • Macro-economic changes • Organisational changes • Relocation • Legal changes • Competitors’ actions • Environmental factors • Cost cutting to improve competitiveness Factros of changedefine if it’s External or Internal with the person next to you
Globalisation • Technological advances • Macro-economic changes • Legal changes • Competitors’ actions • Environmental factors • Organisational changes • Relocation • Cost cutting to improve competitiveness Major external Causes of change Major Internal Causes of change
Fear of unknown: Changing means uncertainty, not knowing what may happen to your business increases anxiety and worries people. • Fear of failure: Sometimes change requires new skills and abilities that might be beyond the workers’ capabilities. • Losing something of Value: workers could lose income, status or job security due to the change. What factors causes resistance to change?
False beliefs about the need for change: some people fool themselves into believing that they don’t need change with the current system to soothe their fears and the risks of change. • Lack of trust: perhaps because of their past bad experiences, there may be a lack of trust between workers and managers who introduces the change. Workers might not believe the reasons and feel unstable to change. • Inertia: As change often requires considerable effort, the fear of having to work harder may cause resistance. What factors causes resistance to change?
Strategies to reduce impact of, and resistance to, change • Is the change planned or unexpected? • Is the change likely to have a dramatic or less significant impact on the business? • Have managers planned for change? • To what extent can management control the change process? Managers need to ask 4 questions Before setting the change process in motion
Strategies to reduce impact of, and resistance to, change Benefit of using Lewin’s model • It helps managers weigh up the importance of two forces. • It helps to identify the people most likely to be affected by the change. • It allows to see how to strengthen the forces supporting the decision and reduce the forces opposed to it. Lewin’s force-field analysis
Strategies to reduce impact of, and resistance to, change • Project champions : a person assigned to support and drive a project forward. Their role is to explain the benefits of change and assist and support the team putting change into practice. • Project Groups: created by an organisation to address a problem that requires input from different specialists • Promoticng change; management should help workforce and stakeholders to accept the change
With the person or people next to you, make Lewin’s force-field analysis about Regent’s school changing the location of the school And assign an estimated score for each force’s impact, with 1 being weak and 5 being strong. Lewin’s Force-field AnalysisActivity
