Change Management

1. Change Management • Change is the constant thing in this world and it also true for the organization also. • Change management involves two major dimensions, first identify what change are required and implement the changing process, and second deals with resistance to change in organization.

2. Types of Changes Organizations consist following three types of changes- • Structural changes • Technologic changes • People changes

3. Types…. Structural Changes- Organization structure can be defined in so many ways such as departmentalization, chain of the command, centralization, decentralization, span of control, formalization. For instance, development of less bureaucratic organization structure involves wide span of control, combined responsibilities, and few levels.

4. Technological Changes- Technology is used to convert input into out put. Management give emphasis to adopt better and current technology with the aim to reduce the cost of production and also getting competitive advantage in an industry. Examples- Automation, Robotics, MIS used Internet, Intranet, CAD manufacturing

5. People Changes • People changes involve the changing in the attitude, behavior, perception, with the aim for job satisfaction, job involvement and to develop the feeling of organizational commitment from employees towards the organization.

6. Strategies for change in people- • Team Building • Inter group Development • Proper Training • Feed Back

7. Changes In Organization

8. Forces of the Change- • External Forces- • Market place • Technology • Economic Changes • Government Rules and Regulations

9. Internal Factors • Improved Technology • Work Force • Attitude of the work force

10. Process of the Change According to the Kurt Lewin, organizational change consisting three distinct steps, these are as follows- • Unfreezing • Changing • Refreezing

11. 1. Unfreezing • Motivation towards the change • Individual discard the old technology, ideas, patterns, and behavior and search the newly improved ones. Edgar H. Schein, unfreezing process contains following symptoms- • Initiation of physical removal individual from his routine tasks. Patterns, behaviors • Destruction of all the social supports • Possibility of reward for inculcating the change and punishment for unwilling to change

12. 2. Changing • Metamorphosis • Identification- Identification occurs when an individual learns new pattern of behavior by seeing the environment and trying to become like these changes. • Internalization- Internalization occurs when the new environment or situations demand the change in the individual with the aim to operate successfully in that situation.

13. Refreezing • Refreezing is characterized by the permanent rooting of the new behavior in an individual’s personality with the aim to embrace the change positively and develops accordingly

14. Reasons for the Resistance of the Change • Preconceived idea about the change • Imposition of changes • Involvement of the top management- • Involvement of the top management- • Human Skills- • Resistance due to overload

15. Techniques for Reducing Resistance- • Proper communication and Education • Increase Participation • Support for the employees • Identification of People • Positive Reinforcement

16. Implementation of Change in Organization • Identify the need for the change • Apply change on the elements • Plan for the change • Increase participation • Commencement of activities • Evaluation & Feedback

17. Direction Setting Skills • Identification of the goals and objectives of an organization, either short term or long term • Identification the goals of each unit and also envisages the time limit to achieve these goals • Identify these goals on annual basis, then break down these goals into monthly, or even weekly basis • Track records should be maintain to judge the performance of the work of each unit, corrective measures should be taken if necessary in order to achieve these goals • There should be rules and procedure for every task, which is being executed in each and every unit, this should also be communicated to employees

18. Skills to communicate the change Communicate the Advantages of change

19. Leader as a Change Agent • In order to introduce the new technology, machinery to enhance the production • In order to enhance the employees efficiency and economies of scale • In order to improve the technical and conceptual skills of the man power • In order to change the attitude of the personal • In order to change the rules and regulations for enhance job involvement

20. Kotter’s Eight-Step Plan for Implementing Change • Establish a sense of urgency by creating a compelling reason for why change is needed. • Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving. • Form a coalition with enough power to lead the change. • Create a new vision to direct the change and strategies for achieving the vision. • Communicate the vision throughout the organization. • Plan for, create, and reward short-term “wins” that move the organization toward the new vision. • Consolidate improvements, reassess changes, and make necessary adjustments in the new programs. • Reinforce the changes by demonstrating the relationship between new behaviors and organizational success. E X H I B I T 18–5 Source: Based on J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996).

21. Contemporary Change Issues For Today’s Managers • How are changes in technology affecting the work lives of employees? • What can managers do to help their organizations become more innovative? • How do managers create organizations that continually learn and adapt? • Is managing change culture-bound?

22. Technology in the Workplace • Continuous Improvement Processes • Good isn’t good enough. • Focus is on constantly reducing the variability in the organizational processes to produce more uniform products and services. • Lowers costs and raises quality. • Increases customer satisfaction. • Organizational impact • Additional stress on employees to constantly excel. • Requires constant change in organization.

23. Contemporary Change Issues for Today’s Managers: Stimulating Innovation Innovation A new idea applied to initiating or improving a product, process, or service. • Sources of Innovation: • Structural variables • Organic structures • Long-tenured management • Slack resources • Interunit communication • Organization’s culture • Human resources

24. Creating a Learning Organization Learning Organization An organization that has developed the continuous capacity to adapt and change. • Characteristics: • Holds a shared vision • Discards old ways of thinking. • Views organization as system of relationships. • Communicates openly. • Works together to achieve shared vision. E X H I B I T 18–6 Source: Based on P. M. Senge, The Fifth Discipline (New York: Doubleday, 1990).