Management of Change

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Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai Dr.Sarita

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Organizational Change
Organizational change may be defined as 'the adoption of a new idea or behaviour by an organization' (Daft). It is a way of modifying an existing organization. The purpose of undertaking such modifications is to increase organizational effectiveness, that is, the extent to which an organization achieves its objectives. Organizational change is largely structural in nature as it brings about modifications in 2/28/13 Dr.Sarita Kumari,Associate Professor,IIBM,Navi 22 organizational Dr.Sarita structure, methods and

The Dilemma of Change

1.

Stability Vs. Change:

Organizations desire change in order to remain competitive and in harmony with everchanging environment. Side by side organizations want to achieve internal
Dr.Sarita Dr.Sarita Kumari,Associate Professor,IIBM,Navi 33 stability because of the predictability 2/28/13

and

The Dilemma of Change Cont

2.What Type of Change? Changes can be seen in varieties of ways, posing another dilemma. Evolutionary Change Vs. Revolutionary Change. Planned Change Vs. Unplanned Change.
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The Dilemma of Change Cont 3. Proactive Change Vs. Reactive Change

Proactive change takes place when some forces to Change lead an organization to conclude that a particular change is desirable. Reactive change occurs when these forces to change make it necessary for a change to be 2/28/13 Dr.Sarita
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Feedback Determinants

Organizationa l initiator

Forces initiating change Change agent What is to be changed? structure?, technology? Organizational process?

Intervention strategies

Implementati on

Change process UnfreezeMove-Refreeze

Implementation tactics Intervention Participation Persuasion Edict

Change
Results Organizatio nal effectivene ss for Managing

Change 2/28/13 Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai Dr.Sarita 66

A Model

Organizational

Determinants:

It may be the identification of an opportunity upon which management wants to capitalize. However it is in anticipation reaction to a problem. of or

These opportunities may exist inside or outside the organization.

2/28/13 Dr.Sarita Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai There are numerous factors 77 capable of

Some determinants of structural change:

Change in objectives Purchase of new equipment Scarcity of labour Implementation of a sophisticated information- processing system Government regulations The economy Unionization
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Mergers or acquisitions

Who initiates structural Organizational Initiator (Change Agent)

change?

The

Change agents are those in power and those who wish either to replace or constrain those in power. They include senior executives, managers of major units, internal staff development specialists, powerful lower level employees. Also includes outside. consultants brought from
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2/28/13 Dr.Sarita Kumari,Associate Professor,IIBM,Navi Dr.Sarita

Intervention Strategies The term intervention strategies is used to describe the choice of means by which the change process takes place.
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Organizational Processes:

The final strategy considers changing organizational processes such as decision making and communicational patterns.

Implementation
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Forces of Change
Forces
Nature of the workforce

Examples
More cultural diversity Aging population Many new entrants with inadequate skills Faster, cheaper and more mobile computers

Technology Economic shocks

Rise and fall in stock prices Fluctuations in interest rate Impact of business cycle

Social trends

Internet chat room Rise in discount and big box retailers

Competition

Global competitors Mergers and consolidations Growth of e-commerce.

2/28/13 World politics

Dr.Sarita

Opening of markets in China

Approaches Process
1.

to

Managing

Change/Change

Kurt Lewins Three Step Model

Successful change in organizations should follow three steps:

a)

Unfreezing: Change efforts to overcome the pressures of both individual resistance and group conformity. Moving: A change process that transforms the organization from the status quo to 2/28/13 Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai Dr.Sarita 1313 desired end state.

b)

Unfreezing

Moving

Refreezing

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2.Force Field Analysis:

Force Field Analysis is a management technique developed by Kurt Lewin, a pioneer in the field of social sciences, for diagnosing situations. It is useful when looking at the variables involved in planning and implementing a change programme and is undoubtedly be of use in team 2/28/13 Dr.Sarita projects, when attempting to Dr.Sarita Mumbai building Kumari,Associate Professor,IIBM,Navi 1515

Driving Forces

Driving forces are those forces affecting a situation that are pushing in a particular direction; they tend to initiate a change and keep it going. In terms of improving productivity in a work group, pressure from a supervisor, incentive earnings, and competition may be examples of driving forces.

Restraining Forces

Restraining forces are forces acting to restrain or decrease the driving forces. Apathy, hostility, and poor maintenance of equipment may be examples of restraining forces against increased production.
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Dr.Sarita Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai

Burke-Litwin Model of Organizational Change:

This model shows how to create first order and second order Change (transactional change and transformational change ). First Order Change : some features of the organization change but fundamental features remain same. First Order change goes by many different labels: transactional, evolutionary,Dr.Sarita Professor,IIBM,Navi1818 adaptive, incremental or 2/28/13 Dr.Sarita Kumari,Associate Mumbai

Second Order Change: Nature of the organization is fundamentally and substantially altered-the organization is transformed. Second Order Change goes by many different labels: transformational, revolutionary, radical or discontinuous change.
2/28/13 Dr.Sarita Change Kumari,Associate Professor,IIBM,Navi in Dr.Sarita mission and

strategy, 1919

The model distinguishes between Transactional leadership and Transformational leadership styles.

Transactional leadership Style Transactional leaders guide/motivate their followers in the direction of established goals by clarifying role and task requirements.
2/28/13 Kumari,Associate Professor,IIBM,Navi Mumbai Dr.Sarita 2020 TransactionalDr.Sarita leadership is sufficient

for

Transformational Leadership Style Transformational leaders inspire followers to transcend their own self interest for the good of the organization and who are capable of having a profound and extraordinary effect on their followers. This leadership is required for causing second-order change.
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Implementation Tactics

Four Tactics i.e. change agents use are intervention, participation, persuasion, and edict. Intervention tactic is characterized by change agents selling their change rationale to those who will be affected. Participation , change agents delegate the implementation decision to those who will be affected. 2/28/13 Dr.Sarita Kumari,Associate Professor,IIBM,Navi Mumbai Dr.Sarita 2222

Results

It shows the organizational effectiveness. Whether it is positive, negative, temporary, or , permanent depends on the earlier steps. Need for change is continuous, the feedback loop. Therefore change is never at rest.
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hence

Sources of Resistance to Change

1.Individual Sources: Habit Security Economic factors Fear of the unknown. Selective information processing.
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Sources of Resistance to Change Cont 2. Organizational Sources

Structural inertia Limited focus of change Group inertia Threat to expertise Threats to established power relationships Threats to established resource allocations

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Managing Resistance
Education and commitment Participation Building support and commitment Negotiation Manipulation and cooptation Selecting people who accept change Coercion
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