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Change

Management:
Concepts and
Processes

7
Change Management
in Power Distribution 5.1 INTRODUCTION

It is a common saying that change is the only constant in life. Reflect on your
own experiences. How have things changed around you − both in your social
life and your workplace? You will realise that the pace of changes has
increased manifold in the past few decades.

We are experiencing rapid changes in practically all spheres of our lives –


food, drinks, clothing, relationships, ambitions, living standard, work, tools,
techniques, etc. In this unit, we focus on change at the workplace. Your own
workplace may have undergone many changes, particularly in the wake of
power distribution reforms. Our aim is to sensitise you to the ways of
managing change in your workplace.

Therefore, we begin this unit by explaining what change is, what factors drive
change and the different types of changes taking place in businesses. We also
describe some relevant models of change. Finally, we discuss various
strategies for bringing about change in a planned manner.

In the next unit, we explain how to manage the people’s responses to change
in an organisation, in particular, their resistance to change.

5.2 UNDERSTANDING CHANGE


The dictionary meaning of change as a noun is making or becoming different,
difference from previous state, substitution of one for another variation, etc.
Change as a verb means to undergo change, to make or become different.
Change essentially implies dissatisfaction with the old and urge for the new. It
may be perceived in two ways:

• Change as continuous and intrinsic to an organisation: There are


changes in an organisation that are minute in nature but take place
continuously. An organisation may be perceived as being in a state of flux
(like the universe) and the elements of its systems and sub-systems
always undergo subtle changes (incremental changes).

• Change as extrinsic and discontinuous: Organisations are perceived


as normally stable and change is perceived as disruptive, forcing
organisations to modify, restructure or reconfigure. Certain changes
occurring inside the organisation are very minute and their impact is hardly
felt. But a few changes are cataclysmic in nature, giving the organisation
barely any time to cope with them. These are almost like natural
calamities such as earthquake, cyclone, etc. in their impact. Some
organisations may handle changes in a creative manner or make drastic
changes in their strategy and direction to emerge out of this turbulence
whereas others may get lost in it.

8 We have tried to summarise the understanding of change in Box 5.1.


Box 5.1: What is Change? Change
Management:
Concepts and
• Change underlies a qualitatively different way of perceiving, thinking and Processes
behaving to improve over the past and existing practices.
• Change can be seen as continuous and intrinsic to an organisation or as
extrinsic and discontinuous.

• Change can be patterned and predictable or complex and unpredictable.


• Change is dual or bipolar. Continuity without change leads to stagnation,
frustration and boredom in individuals and ambiguity, conflict and
degenerative pathology in individuals and organisations.
• Many a times, the rate of change is faster than our ability to comprehend and
cope with it.

We are familiar with changes brought about by the twin phenomena of


liberalisation and globalisation in all walks of life. The banking sector has
adapted to the emerging scenario very fast. And the power sector is now
beginning to respond to these trends (Box 5.2).

Box 5.2: Turnaround of a State Electricity Board

GUJARAT ELECTRICITY BOARD MAKES A TURNAROUND WIPING OUT


RS. 2,542-CRORE LOSS (the Board announces a net profit of Rs. 200 crore
for 2005-2006).

The state government split the Gujarat Electricity Board into four regional power
generation companies, four regional power distribution companies, one
transmission company and a parent company. GEB restructured loans worth
Rs. 4,130 crore and brought down the interest rates from 9.51% to 8.6%. It
liquidated accumulated losses of Rs. 2,542 crore and announced a net profit of
Rs. 200 crore for 2005-2006 by managing to increase its revenues through strict
supervision of power distribution.

5.2.1 Some Key Change Themes


The winds of change today bring with them the inklings of happenings
tomorrow, though many-a-times it is difficult to tell whether there are storms in
the offing or pleasant breezes to soothe our lives. Predicting future is indeed a
tricky business. However, we need to have a futuristic perspective to be able
to introduce constructive change in our businesses. We should also have
some broad understanding of what factors bring about change in a society.
Needless to say, in the present times, one such important factor is the
availability of high quality services/products at affordable costs any
place, any time. In fact, early providers are invariably the leaders and reap
benefits if they maintain customer satisfaction on these counts.
9
Change Management Changes in businesses are being brought about by the following key concerns
in Power Distribution (Fig. 5.1):

• Customers’ demand to provide them with products and services as per


their requirements, in the shortest possible time and at their
convenience, i.e., at any time and at any place. There are many
examples of this kind of change, ranging from pocket calculators, mobile
phones to computers. Whereas in the 1960s, computers occupied big
buildings, the same capabilities are now available in laptop and palmtop
computers and indeed on some models of mobile telephones.

• Growing customer awareness and their desire for associated intangible


benefits, e.g., peace of mind, a life free of hassles and tensions stemming
from the purchase of products and services. For example, a company
which provides prompt complaint grievance redress also provides the
customer some peace of mind, which is valued equally by him/her. (You
may like to recall Unit 3 of this course.) People don’t really buy goods and
services. They buy a value – something they value.

• The enterprise providing the value is able to share economics with the
customer by using as little matter as possible in the preparation of the
goods or services. Today, the use of automation and materials technology
has reduced the amount of processing and actual material required for
providing goods and services. These are being produced more quickly
and cheaply, and with less final bulk and weight. All this competitive
advantage is encapsulated in the phrase ‘no matter’.

‘No matter’ as a concept also includes the role of the disposable, though
we have to watch its impact on the environment. There are throwaway
razors, diapers, cameras, pens, etc. The idea of no matter also covers the
idea of the invisible purpose behind a sale. Perceiving it opens up
opportunities of lateral thinking and further beneficial change. It is all a
question of tangible products fulfilling intangible needs. Such ideas can
transform a business as these emphasise on the effectiveness of
outcomes in addition to the efficiency of inputs.

• Mass customization implies providing the customer with precisely what


s/he requires – something that is non-standard, yet can be produced on
the standard line (which produces goods of standard size, weight or other
requirement). Technology now permits this – it requires just a change in
computerised instructions.

• Improvement in quality and reduction in cost are important drivers of


change. For an organisation, productivity has meaning if people value its
products. And people support the product if they get value for their money.

• Our concern for the environment has also driven change in the way we
Fig. 5.1: Key Change
conduct our business. In this context, power produced by renewable
Themes sources is certainly better than that produced by fossil or nuclear fuels.
However, switching over completely to these resources may not be
10
possible in the near future. But the governments and power utilities the Change
world over are aware of these concerns and trying to switch over to Management:
Concepts and
cleaner technologies.
Processes
• Invention and use of newer technologies has the biggest impact on
business, industry and society in determining the pace and nature of
change. We have mentioned here some factors and the changes likely to
take place in future.

We would also like to provide you a glimpse of the changes expected in future
in the world of work.

5.2.2 A Glimpse into the Future


The world of work is being affected by the way in which technology and socio-
economic changes act together to create an information society: Here
information not only keeps us informed to an unparalleled degree, but also
actually tells inanimate things what to do! This drastically reduces the need for
human beings to mind machines and perform basic processes.

We are into the age of what is called the ‘shamrock organisation’. Such
organisations are employing three categories of workers:

• core employees who constitute permanent staff, performing the central


activity;

• contractors either as individuals or as companies who perform specialist


functions; and

• casual or part-time workers, who carry out seasonal or variable tasks.

At different times of their lives, people may find that different work styles suit
them better and switch over from one category to another. People may
actually have a portfolio of approaches to work from which they may invoke
the element which suits a particular part of their life cycle (Fig. 5.2). The
portfolio may include wage work, field work, home work, (domestic, do-it-
yourself, etc.), gift work (for charity or the community) and study work (self-
education). Thus, as the pattern of work changes, lifetime work for one
employer will become increasingly rare, and wider opportunities will emerge.

Fig. 5.2: Changes at the Work-place 11


Change Management The implications of all this are vast both for the business and the individual. If
in Power Distribution society can get it right, it may mean more leisure and freedom. It will also have
a bearing on the concept of career for life, which is also creating problems for
many companies where the career ladder has fewer rungs to climb.

In addition, the requirements for various kinds of work skills and capabilities
are undergoing a radical change. Now-a-days, the services sector has
become as important as the manufacturing sector. It requires more mental and
interpersonal than manual skills. Most of these brain workers will require
higher education, which enough of them are certainly not getting in most
countries.

As managers, you should be aware of the factors that are bringing about
change in your own business and should be able to cope with them. You will
also need to educate your workforce to appreciate the nature of these
changes for creating a better world of work and life. A proper understanding of
the changes in working methods and their impact on careers and employment
patterns can help people to be less anxious about the apparent insecurity
caused by changing technology, methods and external market forces.

If all employees could understand these trends and regard them as a


bandwagon to be jumped on rather than as a threat to be resisted, and if you
can help trade unions to see them as opportunities, the resistance to
beneficial change would be diminished to the advantage of all. Understanding
and anticipating changes in the offing will make it possible to introduce change
incrementally on a ‘win-win’ basis instead of by the process of conflict.

In the world of work, the need for a change mindset (which does not assume
the permanence of the status quo), and of a future mindset (which projects
itself into the future and sees new possibilities) is going to be vital. There are
revolutionary trends at work. It will not be wise to ignore them.

SAQ 1: The nature of change

Reflect upon the changes that have occurred in the past few years in your
organisation. Enlist the continuous and intrinsic changes amongst those.

……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….

The recent literature on change management reveals that organisations are


undergoing continuous and increasingly rapid and dramatic changes. We
need to understand the need to change in the wake of changes in external
environment like globalisation, and advancements in information technology
as well as inherent challenges in managing these changes. In this context, you
12 need to learn about the forces of change.
5.2.3 Forces of Change Change
Management:
Any factor in the environment (both internal and external) that interferes with Concepts and
the organisation’s ability to attract human, financial and material resources it Processes
needs, or to produce and market its services/products becomes a force of
change. There are numerous visible and invisible forces, which are constantly
affecting changes in organisations. Some of the important ones are described
in Table 5.1.

Table 5.1: Important Forces of Change

Force of Change Description

Technology Tools, techniques, instruments, methods, procedures

Workforce Knowledge, skills, ambitions, expectations, needs

Economy Liberalisation, globalisation, privatisation, breaking


the barriers, resource imbalance

Competition Mergers, acquisitions, entry of new organisations,


new products, lowering prices, better services

Social Trends Nuclear families, working couples, late marriages, one


child norm

Political Factors Warring ideologies, new equations, transitory


relationships, coalition Governments, single
superpower, etc.

5.2.4 Types of Change

All changes are not similar in nature. Some changes keep on happening on
their own and some are planned. Three types of change (Fig. 5.3) may be
identified:

• Evolution
• Revolution
• Planned change

These may briefly be described as follows:

• Evolution is the kind of change that comes as a natural process, in small


adjustments or shifts in response to emerging problems.

• Revolution is the kind of change brought about by applying force on


others to comply through coercion or suppression to resolve conflicts.
Fig. 5.3: Types of
• Planned change takes place when efforts are made to make others feel Change
the need for change, determine the ideal or desired situation and strive to
achieve the ideal or desired state through planned actions.
13
Change Management Social and behavioural scientists have advocated diverse approaches to
in Power Distribution understand the change process and described the following four kinds of
change:

A. Exceptional Change: A particular change is accepted as an exception if


there is otherwise no change in the ongoing aspects. The existing beliefs
are not changed but specific change is introduced separately, as an
exception. For example, introduction of flexi-time in one division of an
organisation could be termed as an exception if all other divisions continue
with the existing system.

B. Incremental Change: A gradual change which is not even felt initially by


those who experience it is said to be incremental change.
Computerisation in offices has been introduced as an incremental change
in most of the organisations.

C. Pendulum Change: Change from one extreme point of view to the


opposite is said to be pendulum change. The shift from open tendering
process to single tender on negotiation basis in a company is an example
of pendulum change.

D. Paradigm Change: When new information about an event, object,


behaviour, and image is integrated and leads to the emergence of a new
belief, the change is called paradigm change. A paradigm in simple words
may be understood as a cognitive model of how things are or a standard
for how things should be. A familiar example is change in the power sector
in perceiving electricity as a business and the notion of ‘profit centres’.

SAQ 2: Forces of change

Identify the forces of change in your organisation. Categorise the changes


that have occurred in the recent past in your organisation into the various
categories given in Sec. 5.2.4.

……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….

Change has also been explained as a continuum between two extremes


14 (Fig. 5.4).
Change
No Desired Constant Management:
Change (Productive Change) Change Concepts and
Processes

Fig. 5.4: Approaches to Change

The No Change Position indicates the zero condition of inertia – sticking to


traditional view, valuing the past conservative thinking that new is definitely
bad. Any change or deviation from the past is perceived as a threat – a threat
to beliefs, habits, preferences, norms and prevailing order. When performance
management system is being evolved, constantly sticking to the previous
method (where boss does it alone) becomes an example of the no change
position.

The major benefits of this position are stability, less effort, comfort, less risk
but it also brings no growth, boredom, dissatisfaction, conformity and
stagnation.

Constant Change, at the other extreme, is a dynamic approach with


continuous focus on future. In this approach, new is taken as always good.
Any change is seen as positive; resistance is seen as bad and equated with
not moving with times and as an opposition to the norms, values and
progress. While implementing changes with this kind of an approach, not
much regard is given to the opinion of the affected people.

The Productive (pragmatic) Approach to Change lies between these two


extremes and focuses on the existing state (what is happening). Change is
seen as inevitable in this approach. The emphasis is on explaining the need
for change and making a conscious choice without having a fascination or
inertia for the past or a compulsion for rapid change.

5.3 DRIVERS OF CHANGE IN BUSINESS

The drivers of change in business may be classified as:

• Market changes;
• Technological changes; and
• Organisational changes.

Let us discuss each one of these, in brief.

• Market Changes

In the era of economic liberalisation, market forces are destined to dictate


the pace and nature of change. We observe competition for capturing the
markets for both goods and services in all spheres by competing industries
through joint ventures or subsidiaries. People’s expectations have
undergone radical change. The companies that satisfy customers in terms
of cost, service, and value for money forge ahead in the competition.
15
Change Management Businesses may also have to face changes due to factors such as trade
in Power Distribution barriers, raw material shortages, change in political regimes, prices
shooting up, etc.

While such changes are sure to improve quality and bring about customer
satisfaction, small businesses may be affected adversely. It seems that
even political will is succumbing to WTO led forces in developing countries
and this could be detrimental to national interests, in the long run.

• Technological Changes

Technological changes can give rise to changes in the market and


influence specific happenings in a company. Introduction of new and
innovative technology is likely to lead to price advantage, quality pre-
eminence and diversification into new products. One can also go to
hitherto unexplored areas of the globe. However, the indigenous
knowledge / industry / products may get a hit and struggle for survival.

• Organisational Changes

Organisational response to market changes can take the form of


downsizing for cutting costs through retrenchment and reduction in the
number of employees as well as in the levels of management. Technology
may also force new styles of governance which require different skills. The
number of operating sites may be reduced. People may find themselves
performing totally new functions. The only way to stay in business may be
a merger or to be the subject of takeover, friendly or hostile. With such
ownership changes, other market, technological and organisational
changes may follow.

You must be reading about such changes in national dailies; it has almost
become a rule in the technologically developed economies and is now not
an exception for developing countries. In the first quarter of the year 2007,
Indian business houses have acquired offshore companies and vice versa.
As such, this seems inevitable with little scope for escape but there is no
need to perceive it as a threat; it could also be looked upon as an
opportunity to compete and be a winner.

16 Fig. 5.5: Drivers of Change in Business


Some visible and not so visible factors may also compel a business Change
organisation to effect changes of various types. Other factors that bring Management:
Concepts and
about change are increased competition, price cuts, technology, laws,
Processes
customer/user demand, etc. (Table 5.2).

Table 5.2: Factors that Drive Change

Factors Changes

Reduced cost as a result of Cost control efforts, workforce cut,


competition contract employee, automation

High workforce cost Buying (importing) rather than


manufacturing, outsourcing, workforce
reduction

Cheaper imported products Setting up manufacturing unit in other


countries

Obsolete product due to Change products, materials, technology,


technology change equipment

Pollution Control Laws Technology import/ product substitution,


putting units in areas having lenient laws

Change in choice of Customer (market) research lined retailing


consumers (semi-cooked
food, electrical/electronic kits
in place of fuel based
equipment)

Time constraint, ease in Departmental stores in place of small


shopping scattered stores

Health awareness – Low Healthy product substitutes


cholesterol oils vs. traditional
oils

Time constraint Home delivery, internet/tele- shopping


automation

SAQ 3: Drivers of change

Outline the changes in the power distribution sector brought about by the
three categories of drivers of change described in this section.

……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….
17
Change Management
in Power Distribution 5.4 THE PROCESS OF CHANGE
You have learnt so far that change is the process of moving from the current
state to the desired state (vision) of future (Fig. 5.6). Making a change involves
moving the work force in organisations and its work culture in line with the
strategies, structure, processes and systems to achieve the desired state
(vision).

Existing Change Vision Desired


Situation (Transition) Situation

Fig. 5.6: The Process of Change

The existing situation signifies the prevailing status at a point of time of what
the organisations looks like. The desired situation is the status which one
desires to prevail; it is also called the vision. The vision of an organisation
helps in clarifying

• What do we want to become?


• How much needs to change?
• What the organisation should look like when the change is completed?

The transition state may be delineated by ascertaining the activities and


processes necessary to transform the organisation from its current state to the
desired state. It is a road map for specifying the activities, crucial interventions
and events during the transition period. For making an organisation to change
from the existing state to the desired state, some ‘force’ has to be applied.

5.4.1 Successful Change – The Three Step Model


In the three-step model (Fig. 5.7), successful change in an organisation
follows three steps: Unfreezing, intervening and refreezing.

Unfreezing Intervening Refreezing


(moving)

Fig. 5.7: The Three Step Model for Successful Change

Let us discuss them, in brief.

1. Unfreezing

When a product, service or profit is in a deteriorating stage, maintaining a


‘steady state’ is not possible in the face of rapid changes. Therefore,
change has to be introduced in a planned way to improve the status quo.
This is called de-freezing or unfreezing. It aims at changing the existing
equilibrium and creating motivation to change using mechanisms like
18
Change
• lack of confirmation or disconfirmation, Management:
• sharing one’s concerns and perceptions frankly, Concepts and
Processes
• removing barriers of communications,
• induction of guilt and anxiety and creation of threats by reducing
psychological safety,
• presentation of alternative scenarios, etc.

In case of any change, the effort is likely to be met with individual/collective


resistance, which must be overcome. Status quo is maintained when the
following two types of forces are in balance in an organisation (Fig. 5.8):

• Driving forces, which prompt change and drive away from the status
quo, and
• Restraining forces, which hinder the movement.

Fig. 5.8: Driving and Restraining Forces

These competing forces should be identified for effecting change in an


organisation. While the driving forces ought to be intensified/added,
restraining forces should be removed / weakened. Moreover, both
strategies should be followed simultaneously.

This technique, called the force field analysis, is explained in Box 5.3. 19
Change Management Box 5.3: Force Field Analysis
in Power Distribution

1. Identify the problem, which you want to work on.

2. Define the problem clearly indicating the present situation.

3. Define the situation desired after the problem is solved.

4. Identify the forces working for the change, (i.e., driving forces) by way of
individual listing, brainstorming or such other means.

5. Identify and list forces likely to work against the desired change
(restraining forces). These forces can be related to human resource,
time, money, technology, customer requirements or any other internal or
external factors.

6. From the list of driving forces and restraining forces, prioritise the
forces and identify 3-4 most significant forces under both categories.

7. Make a force field diagram showing both types of forces after


prioritization. The arrows should be proportional to their
priority/strength.

8. Discuss and list possible action steps for reducing or eliminating the
effect of the restraining forces and for adding or increasing the effect of
the driving forces.

9. Determine the most effective steps under both the categories of forces
and decide on the ones to be implemented.

10. Examine the resources available for carrying out each step.

11. Develop a comprehensive action plan, sequence of activities and assign


responsibilities for implementation.

12. Implement the plan.

13. Evaluate.

2. Intervening

The steps to be taken for carrying out the desired change should be
planned considering all aspects: tasks, technology, structure and
human resources. Since any organisation is composed of these four
inter-related and interdependent components, the impact of the changes
should be anticipated and examined. New responses should be developed
by providing new information.

3. Refreezing

The change interventions start making the desired impact in due course of
time and need to be stabilised. Refreezing stabilises a change
intervention by balancing the forces which have created the desired
changes (driving forces) and those, which are inhibiting the changes
(restraining forces). For rapid and deep change, the forces applied should
20 be strong, the direction should be clear and the force should be applied in
the right direction. This stage helps in stabilising and integrating the Change
changes. This is attained by integrating the new responses into persons Management:
Concepts and
and into significant ongoing relationships through reconfirmation.
Processes

5.5 THE CHANGE MODELS

In this section, we briefly describe the current models of change.

5.5.1 C.D.S. Model


This is a very simple three stage model and the three stages are:

1. assessment of the current state;


2. developing the desired state; and
3. formulating the strategy/plan to move the organisation (or system) from
the current state to the desired state.

1. Assessment of Current State

At this stage, efforts are made to explore, analyse and identify the
problems and unused opportunities, understanding the causes and
visualising the effects. For this, a climate has to be created where people
share their opinions and experiences openly and the management is
willing to admit the gaps, slippages, wastages and other problems.

Normally, a long list is generated and it is essential to prioritise and identify


‘points of leverages’, i.e., problems, which have high priority.

2. Developing the Desired State (Preferred Scenario)

At this stage, efforts are made to determine how the organisation or


organisational unit, project or the programme would look like after making
the changes. For preparing the scenario, alternative possibilities or
preferred scenarios are developed by using techniques like brainstorming,
fantasy or a variety of structured exercises. Efforts are made to encourage
both conventional and non-conventional ideas.

A few indicators or criteria are also developed to indicate the achievement


of the desired state. These criteria would help in future to determine to
what extent the desired scenario has been arrived at. The steps to be
followed are listed below:

• Evaluate each of the scenario by using different methods and select


the preferred scenario.

• Anticipate the difficulties likely to be experienced while deciding on the


action steps to reach the desired scenario. Examine if appropriate
steps can be taken and resources will be adequately available.

21
Change Management Otherwise, examine the feasibility of implementation of the next
in Power Distribution preference.

• Re-work on the selected preferred scenario to make it more explicit


and inspiring.

• Ensure the commitment for the change initiatives and resources, and
the commitment of the key persons in the organisation and outside.

3. Formulating the strategy/action plan to move the organisation from the


current state to the desired state.

These strategies/action plans deal with how the movement from the
existing to the desired state would be accomplished. Thus this stage would
indicate how the results would be accomplished. For this, a wide range of
alternative strategies to reach the new stage or preferred scenario would
be identified. Each of the alternative strategies would be evaluated and the
appropriate strategy would be selected which would help in achieving the
desired outcome. These strategies would next be translated in the form of
workable plans.

5.5.2 ADPI Model


This model consists of four stages (Fig. 5.9).

22 Fig. 5.9: ADPI Model


1. Organisational Analysis Change
Management:
Concepts and
This phase aims at developing an understanding about the organisation,
Processes
its culture and readiness for change. Efforts are made to understand the
tasks, structure, strategies, systems, procedures and management
practices, morale, motivation and internal and external environment.
Different research techniques, interviews, brainstorming and workshops
are used.

2. Designing Change Intervention

At this stage, the vision or the desired state of the organisation is


prepared. Active involvement of top management and wide agreement on
the interventions are essential.

The key resource persons and other team members are identified and
team building initiatives taken to ensure shared vision and commitment to
change. The role of each member is clarified. A number of workshops,
training sessions, meetings and presentations are usually held at this
stage.

3. Planning for the Change

The objective of this stage is to plan for effecting the desired changes for
achieving the vision. An action plan is prepared indicating the activities,
responsibilities, time frame, counting huge measures and required
resources.

4. Implementation

This is the most crucial stage. The action plan has to be implemented and
the persons involved have to be educated and convinced about the gains.
Extensive communication is required and high orders of leadership skills
especially persuading skills are required. A number of presentations,
meetings, workshops need to be held.

The success depends on the internal resource persons or facilitators who


would work in tandem with the change agent/consultant. It is difficult to get
successful implementation without Project Management skills.

5.5.3 Action Research

A change process based on systematic collection and analysis of data is


called action research. In this approach, data is collected to diagnose the
problem and action steps are identified on the basis of the analysis of the
data. It is a five step process (Table 5.3).

23
Change Management Table 5.3: Steps in Action Research
in Power Distribution
Step Description

Diagnosis Data collection about the problems, perceptions,


concerns and the expected changes from the
employees of the organisation. Questions,
interviews, secondary records and a variety of
techniques are used.

Analysis Data analysis to identify the problems, patterns


of behaviours, etc. Inferences are drawn and the
primary concerns, problem areas and
expectations identified.

Feedback The highlights of the analysis in terms of


concerns and problem areas are shared with the
employees, especially those from whom data
has been collected. With the help of
representatives of employees, the action plan for
bringing about needed change in specific areas
is decided upon.

Action The action plan is set in motion.

Evaluation An evaluation is carried out at the planned


intervals to know the extent to which
implementation has taken place and desired
changes have been arrived at. Necessary steps
may be taken for collection, modification or
further work.

5.6 PHASES OF PLANNED CHANGE

For attaining enduring results, change cannot be left to chance; rather planned
efforts have to be made. On the basis of various change models (Sec. 5.5),
we can formulate a general approach for carrying out planned change. It
consists of the following steps:

1. creating and communicating awareness;


2. feeling the need;
3. exploring the readiness;
4. intervening – managing the transition; and
5. evaluation and follow-up.

We now briefly describe these steps.


24
1. Creating and Communicating Awareness Change
Management:
Creating ‘awareness’ about change is the first stage. In an organisation, Concepts and
Processes
awareness can be enhanced by reconsidering the goals, reformulating
vision and mission statements, assessing the achievement. Consideration
of future environmental scenarios, extrapolations and forecast is useful for
enhancing awareness. Benchmarking and competitor intelligence are two
other triggers for enhancing awareness.

Awareness tends more often than not to create an imbalance and disturb
the status quo. People respond in different ways to the situation.
Awareness may lead to anxiety about creating future scenarios (e.g., likely
gains and problems to be faced) and therefore generates energy in those
who become aware.

One such example is given in Box 5.4.

Box 5.4: An Example of Creating and Communicating Awareness

In BHEL, in 1983, an HR manager was trying to project the role of


personnel functions in achieving the corporate objectives in the next
five years year from 1985 to 1990. He realised that if the workforce
strength and turnover/sales kept on increasing at the existing rate, then
in 1990, the company would be in red only because of workforce
strength. He got alarmed and made a series of presentations in different
fora. After initial reaction, the top management also became aware and
alarmed of the impending situation. This created planned efforts of
workforce planning under the leadership of the HR Manager. The result
was that with the workforce of 1983-84 (numbering 78,000), the turnover
increased from Rs. 800 crores to 8000 crores in the period 1985-1990.

A variety of strategies, such as publications in newsletters, workshops,


quiz, sessions and presentations in management programmes may be
used for enhancing awareness.

2. Feeling the Need

Once the awareness spreads, the involved people start feeling the need
for change in the organisation, particularly the need for elimination of
unhealthy situations. They start thinking about ways and means to avoid
such situations and about the consequences if no change is made. The
feeling is intensified when the actual/projected results are not in line with
expectations.

3. Exploring the Readiness

In spite of the felt-need, it is essential to explore the readiness of the


organisation to change. A process facilitator may call a meeting/workshop

25
Change Management of senior people and on the basis of observations or the interaction; s/he
in Power Distribution can get an idea of the readiness to change.

Resistance to change is likely to be high when

− too much fascination for the status quo is displayed,


− fear and apprehensions are strongly expressed,
− cases of failure are cited more than success stories, and
− resource scarcity is repeatedly presented.
An alternative approach to assess readiness is through workshops. This
approach is based on 15 indicators, which have been listed in Box 5.5 as a
checklist under three broad classes.

Box 5.5: Checklist for Exploring Readiness for Change

General Considerations

• Size of the organisation

• Growth rate

• Crisis (situation)

• Macro-economic

• OD history

• Culture

Resources

• Time commitment

• Money

• Access to people

• Labour contract limitations

• Structural flexibility

People Variables

• Interpersonal skills

• Management development

• Flexibility at the top

• Internal change agents

Source: J.W. Pfeifer and John E Jones, The 1978 Annual Handbook for Group Facilitators

This instrument/checklist can be served to a number of people in the


organisation, including the top management and the findings should be
26
discussed. This will give an idea about the readiness as well as the level of Change
awareness towards some of the crucial pre-requisites. A few questions may Management:
Concepts and
also be considered for examining various aspects for readiness for change
Processes
(Box 5.6).
Box 5.6: Questionnaire

• Commitment/support of the top management to desired changes.


• Sense of urgency in the top management.
• The perceived power of top management.
• Clarity of vision in top management.
• Shared vision – to what extent the vision is shared by stakeholders.
• Congruence of targeted change efforts with ongoing change efforts in
the organisation.
• Decision making style and quickness.
• Hierarchy in organisation – flat and flexible is more conducive to
change.
• Super-ordination – Willingness of Line Managers to sacrifice their
personal interest for the good of organisation.
• Customer focus of the organisation.
• Monitoring of competitors by the management.
• Risk taking – the extent to which managers/employees are rewarded for
taking risk.
• Innovativeness – the extent to which innovativeness is encouraged.
• Communication channel – both directions.
• History/experience of past change efforts.
• Trust level between employees and management.
• Availability of resource persons (change facilitators – internal/
external).
• Cooperation/collaborative attitude.

4. Intervening – Managing the Transition

This involves many steps such as the following:

• Preparing the Team: A team of internal resource persons is


constituted for carrying out the interventions. Ideally, this is a multi-
disciplinary team, which would make the interventions and help in its
successful implementation. The internal resource persons should
be skilled in Human Process facilitation and should have
undergone intensive training programmes.

• Conducting the Activities: The interventions that have been planned


need to be implemented. Employees’ resistance may need to be
27
Change Management overcome (Unit 6). If the approach appears to be inadequate or
in Power Distribution inappropriate, amendments need to be made. The experiences are to
be documented highlighting both process and content aspects.
Regular interaction with the committee/task force members and
Consultants is essential.

• Mid Course Evaluation: Periodic evaluation is required for


ascertaining whether the interventions are bringing desired results. If
the trend is positive, a follow-up is required. Otherwise, it must be
examined whether interventions have been made as per the plan. If
planned interventions are not giving the desired results, the causes
must be examined and if needed, alternative interventions should be
designed and introduced.

Before making the interventions, the management/facilitators should be


clear about:

a) What changes are to be made?


b) What are the ensuring benefits for the organisation?
c) How will change affect the individuals who experience it?
d) What supports and tools are needed to manage transition?

While making interventions the involved persons face different types of


problems (see Unit 6). The evaluation of the emerging situation, feedback
amendments and enhanced communication, helps integration of the
efforts.

5. Evaluation and Follow-up

The results of the change initiatives (the gap between the planned and
desired) should be measured periodically. For this, a befitting feedback
mechanism needs to be set up – to gather information by survey, focus
groups, interviews, etc. Usually, it has been found that even if encouraging
results are obtained in the beginning, with the passage of time, the
situation starts deteriorating. Managers can intervene by way of providing
support, appreciation and training, etc. Special meetings, celebrations,
support groups and certain types of reinforcements are needed for
sustaining and enhancing the results.

SAQ 4: Phases of planned change

Cite an organisational example (from the power sector) where massive and
successful change has occurred and discuss the phases of change in that
organisation.

……………………………………………………………………………………….

……………………………………………………………………………………….
28
Change
5.7 STRATEGIES OF CHANGE Management:
Concepts and
Processes
Change has been a matter of great interest to the Sociologists and
Behavioural Scientists. A number of theories and models have been
postulated. These have been compiled in the literature as seven pure If we have good,
strategies of change. We discuss each of these strategies, in brief. warm inter-
personal relations,
1. The Fellowship Strategy all other problems
will be minor.
The assumption underlying this strategy seems to be, “If we have good,
warm inter-personal relations, all other problems will be minor.”
Emphasis is placed on getting to know one another and on developing
friendships. Groups that use this model often sponsor discussions,
dinners, parties and other social events that bring people together.

The fellowship strategy places strong emphasis on treating everyone


Fig. 5.10: The Fellowship
equally; this is often interpreted as treating everyone in the same way. All Strategy
people must be accepted; no one is turned away. When the group is
making decisions, all members are allowed to speak, and all opinions are
If all the really
weighed equally. No fact, feeling, opinion, or theory is considered influential people
inherently superior to any other. Arguments are few, because conflict agree that
generally is suppressed and avoided. something should
be done, it will be
done.
2. The Political Strategy

Political strategists tend to believe that “if all the really influential people
agree that something should be done, it will be done”. They
emphasise a power structure that usually includes not only formally
recognised leaders but informal, unofficial leaders as well. Much of the
work done under the political strategy is the result of the leaders’ informal
relationships.

The political strategy emphasises the identification and influence of people


who seem most capable of taking and implementing decisions. It usually
Fig. 5.11: The Political
focuses on those who are respected and have the largest constituency in
Strategy
a given area. One’s level of influence is based on one’s perceived power
and ability to work with other influential people to reach goals that are
valued by one’s constituency. Money can buy
anything or
any change we
3. The Economic Strategy
want.
Economic strategists believe that “Money can buy anything or any
change we want”. They emphasise the acquisition of or at the very least,
influence over all forms of material goods, such as money, land, stocks,
bonds, and any other tradable commodity. This strategy is widely used in
the United States and the Western world and is used most often by large
corporations and by the very rich.
Fig. 5.12: The Economic
Inclusion in a group that espouses this approach usually is based on Strategy
possession or control of marketable resources. Influence within the group
29
Change Management is based on perceived wealth. Most decisions are heavily, if not
in Power Distribution completely, influenced by questions of profitability as measured by an
increase in tangible assets. This approach is highly rational, based on the
People are rational. If assumption that all people act more or less rationally from economic
one presents enough
facts to people, they motives. As a result, such groups often have high needs for control and
will change. for rationality.

4. The Academic Strategy

The academic strategy assumes that “People are rational. If one


presents enough facts to people, they will change.” To this end,
academic strategists undertake an unending series of studies and
produce thousands of pages of reports each year.

Inclusion in a group that plans to use the academic strategy to solve


problems or to make changes is based primarily on one’s expertise in a
given area or on one’s desire to acquire such knowledge. Leadership and
Fig. 5.13: The Academic
Strategy influence within the group generally depends on the degree to which the
person is perceived as an expert. Newcomers to the field are considered
to have little to contribute, while those with advanced degrees or many
If the environment or the
surroundings change years of specialised study receive a great deal of attention.
enough, people will be
5. The Engineering Strategy
forced to change.
Users of this strategy try to bring about behavioural change without
dealing directly with the people involved. The underlying assumption is, “If
the environment or the surroundings change enough, people will be
forced to change”.

Therefore, engineering strategists may spend a great deal of time


studying physical layouts, patterns of interaction, and role descriptions in
work place and classrooms without ever speaking to the employees or
Fig. 5.14: The Engineering
students. Groups that approach change in this way often recruit members
Strategy based on their technical skills. Group needs often are defined in terms of
technical skills, which are considered more important than interpersonal
People react to styles.
genuine threats. With
enough physical force, 6. The Military Strategy
people can be made to
do anything. The military-style approach to change is based on the use of physical
force. The name military has been given to this approach because it
conveys the appropriate connotation to most people, not because the
military is the sole user of this approach. Police departments,
revolutionary student groups, and some teachers, for example, employ the
military strategy.

The basic assumption behind this approach is, “People react to genuine
threats. With enough physical force, people can be made to do
anything.” Therefore, considerable time is spent in learning to use
Fig. 5.15: The Military weapons and to fight. Physical conditioning, strength, and agility are
Strategy valued.
30
Membership in military-strategy groups is often determined by one’s Change
physical power and by one’s willingness to submit to discipline. Both Management:
Concepts and
within the group and in its dealings with the external environment,
Processes
influence is exerted primarily through the fear of authority and through the
threat of punishment. Members of military-style groups need control,
status, and security. They often tend to view most problems and
relationships in terms of power, authority, threat and exploitation.

7. The Confrontational Strategy If one can mobilise


enough anger in enough
The confrontational approach to change is based on the assumption that people and force them to
“If one can mobilise enough anger in enough people and force them look at a problem, the
to look at a problem, the required changes will follow.” Although required changes will
follow.
conflict is stressed, this strategy emphasises non-violent conflict rather
than physical force. Membership in such a group is based on one’s ability
to deal with and to use conflict in ways that benefit the group.

We end this discussion by presenting a collection of principles/rules of change


formulated on the basis of the research and experience of social and
behavioural scientists.
Box 5.7: Some Principles of Change
Fig. 5.16: The
Confrontational
• Organisation is a system comprising many inter-related/inter-dependent Strategy
components. Change in one component affects others.

• Accepting ownership in the change process best facilitates change.

• Any change upsets the equilibrium of the organisational system – hence


it will be resisted. Change interventions should be made in a planned
way, otherwise the system would return back to its past patterns.

• People really don’t resist change; they resist the pain or threat, which
they anticipate for themselves or others out of it.

• An enlightened self-interest of stakeholders facilitates change.

• Timing of change is highly significant – time should be ripe for making


changes.

• An accurate and comprehensive design diagnosis is essential for


designing appropriate interventions.

• Change agents are required for affecting changes. They must know how
to analyse and manage the restraining and driving forces (Unit 7). High
adaptability helps change agents and change plans.

• High self-awareness is required in planning for change.

• People affected by change should actively participate in making the


change.

• The acceptance of organisational change will increase if the people


affected are invited to contribute to the change process, communicated
honestly about all facets of change, given concrete feedback about the
change and recognised appropriately for their specific contributions.
31
Change Management
in Power Distribution 5.8 COMMON INTERVENTIONS FOR MANAGING
CHANGE

It is very difficult to enumerate and explain all interventions for managing


change effectively. However, in this section, we discuss a few important
commonly used techniques and present case studies.

• Communication

Authentic and complete communication on the objectives, coverage,


timing, costs, individual and organisational implications and change
methods and the consequences of not going for change and post change
benefits is most essential for managing change.

Case Study

At the Corporate office of a large organisation, as prelude to making


change, it was diagnosed that the executives numbering 15 were not
communicating with each other. The communication climate was hostile
and the top management was perceived as autocratic. Enhancing the
communication climate emerged as one of the major concerns. As one
intervention, the executives were asked to sit together for 15 minutes in
the conference hall around the round table. Initially the executives
resented this move but gradually they started sharing some of the
operational problems they were facing and others started responding by
giving their comments and solutions. Thus they opened up and shared
their feelings, concerns, agreements and disagreements, etc. Within a few
weeks, this meeting became the most liked forum of communication.
Often they had to extend the timing. This forum became the initiating and
facilitating platform for major changes in the next few years.

There is no standard plan for communication, but pre-intervention


diagnosis should attempt to understand the communication climate, styles
and barriers. Creation of a supportive communication climate is highly
useful in making change interventions.

• Education and Training

All involved persons may not have the desired environmental,


organisational, functional, technical, financial, strategic, behavioural
knowledge and skills. Education and training is very essential at all stages.

Case Study

In the pursuit of designing and commissioning a comprehensive


Performance Management system in a large PSU, almost two years were
spent in educating and training the senior management personnel and
32
users to make them understand the concept, realise the need, express Change
their satisfaction and dissatisfaction from the existing system, and define Management:
Concepts and
their expectations from the proposed system. Even the design of the
Processes
proposed system was prepared in training and development programmes
using Behavioural Science based interventions. After the programme was
approved for implementation, a series of training programmes were
conducted for the users. Background support was provided through
internet and publication of literature. Over 200 Performance Management
Systems trained separately for ensuring smooth implementation could
multiply the efforts. Even an interactive website was installed for resolving
the doubts online. All this helped in covering a large section of executives
in a short time and fear of change could almost be eliminated.

• Participation and Involvement

The persons likely to be affected need to be involved right since the initial
stage. Their active involvement in all stages of the processes will not only
provide valuable ideas at every stage but also inculcate a sense of
ownership. For example, in installing an incentive scheme in a medium
size Engineering company, the line managers and worker representatives
were involved right from the beginning, i.e., from the stage of feeling the
need, identifying the benefits and problems, collection and analysis of
data, designing and developing the system.

• Facilitation and Support

Change initiatives should be facilitated by skilled facilitators (change


agents). This helps in bringing the issues to the fore, proposal and
resolution of conflict, team building and development of a conducive
change climate.

Facilitation is a process in which a person, acceptable to all members of


the group, substantially neutral and having no decision making authority
intervenes to help a group improve the way, in which it defines and solves
problems and makes decisions in order to enhance the effectiveness of
the group. The main task of the Facilitator is to help the group increase its
effectiveness by improving its processes. A process refers to how a group
works together and includes how members talk to each other, how they
identify and solve problems, how they make decisions and how they
handle conflicts, etc.

Facilitation is of two broad types: basic facilitation and developmental


facilitation. In basic facilitation, it is expected that the Facilitator would
guide the group using the principles of effective group processes
observing both contents and processes. In developmental facilitation,
group members expect the Facilitator to monitor and guide the group’s
processes and teach them how to accomplish this goal.

33
Change Management • Negotiation
in Power Distribution
Negotiation is quite useful in dealing with resistance to change. It is also
useful when resistance comes from a powerful person. Three basic types
of negotiating styles have been described – Tough battler, the
Supportive Facilitator and Cognitive Reasoner.

A negotiator should understand these three styles and should be well


versed in using all the three styles as each style is effective in a particular
situation.

• Co-opting

Assigning a key individual member a desirable role is quite effective in


managing change. The co-opted person becomes a Key Resource Person
in charge of project and by way of his/her power base, is able to influence
others. His/her involvement and contribution helps the change process.

• Manipulation

This technique comprises covert influencing tactics which uses twisting


and distortion of facts to make them appear more attractive and potent.
This also includes hiding or withholding undesirable information and
creating rumours. Cooperation is also used sometimes as a manipulative
tactic.

• Coercion – Implicit and Explicit

This involves application of direct threats or force on those who are


resisting or are likely to resist. In some situations it may be successful, but
in most circumstances it is not effective.

We hope that this discussion on Change Management will help you


understand change in your organisation, the factors that are bringing about
this change and how you can manage it for attaining your objectives. In this
rapidly changing world change is the only constant. In this unit we have tried
to define change, understand the concept of change and types of change.
Drivers for change and alternative strategies of change have also been
discussed. Different models of change are described. On this note, we end the
unit and present its summary.

5.9 SUMMARY

• Change may be perceived in two ways: Change as continuous and


intrinsic to an organisation and change as extrinsic and
discontinuous.

• A force of change is any factor in the environment (both internal and


external) that interferes with the organisation’s ability to attract human,
financial and material resources it needs, or to produce and market its
34 services/products becomes. The drivers of change in business may be
classified as market changes, technological changes and organisational Change
changes. Management:
Concepts and
• Making a change involves moving the work force in organisations and its Processes
work culture in line with the strategies, structure, processes and systems
to achieve the desired state (vision).

• In the three-step model, successful change in an organisation follows


three steps: Unfreezing, intervening and refreezing. For attaining
enduring results, change cannot be left to chance; rather planned efforts
have to be made.

• A number of theories and models have been postulated by Sociologists


and Behavioural Scientists and have been compiled in the literature as
seven pure strategies of change: the fellowship strategy, the political
strategy, the economic strategy, the academic strategy, the engineering
strategy, the military strategy, the confrontational strategy.

• A few important commonly used techniques for bringing about change


are: communication, education and training, participation and
involvement, facilitation and support, negotiation, co-opting,
manipulation, coercion – implicit and explicit.

5.10 TERMINAL QUESTIONS

1. Consider your present job and indicate which benefits emerging out of an
effective change management are most important to you?

a) Career advancement.
b) Improved prospects.
c) Job security.
d) Increased job satisfaction.
e) Respect and recognition.

Justify your answer.

2. a) Which of the following changes have you experienced in the recent


past at your work place?

- new boss - new system/procedures


- new work group - new products/services
- new position (responsibility) - new customer
- new equipment - new location
- new supplier

b) Which change was most difficult for you?

35
Change Management c) What were your thoughts and feelings before the change? Did you
in Power Distribution have any fears? What were those?

d) How did you cope with the change?

e) What would have helped you to cope with the changes better?

3. Think of the changes that would be beneficial to your company/


organisation and respond to the following four questions:

a) What is the change you have thought of?

b) What are the reasons/benefits of the change?

c) How would the change affect the involved persons?

d) What support and tools should be provided to the involved persons for
managing the transition?

36

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