Managing Change

Features: Distrupts equilibrium Effects complete orgn.; explicitly or implicitly Continuous process Proactive and reactive Domino effect-related to systems approach

What is organizational change?

Unplanned change.
Occurs spontaneously or randomly. May be disruptive or beneficial. The appropriate goal is to act quickly to

minimize any negative consequences and maximize any possible benefits.

What is organizational change?

Planned change. The result of specific efforts by a change agent. A performance gap is a direct response to a perceived performance gap.
A discrepancy between the actual and desired

state of affairs. May reflect problems or opportunities.

External Forces of Change

Marketplace
competition, buyers, supplementary goods.

Government laws and regulations

Budget & economic policies

Technology
Competitors, nature of job, mkt leaders.

Social:
wart ppl-autonomy, wkplace,

Internal Forces of Change

Corporate

strategy The workforce Technology and equipment Employee attitudes

Managing Planned Change Change

Making things different. Planned Change Activities that are intentional and goal oriented. Change Agents Persons who act as catalysts and assume the responsibility for managing change activities.
Goals of Planned Change: Improving the ability of the organization to adapt to changes in its environment. Changing the behavior of individuals and groups in the organization.

Categories of Planned Change

STRUCTURE
Authority relationships Coordinating mechanisms Job redesign Span of control Hierarchy

TASK

TECHNOLOGY
Work processes New technology Work methods Changes in DM

PEOPLE
Attitudes Expectations Perceptions Behaviour

Change in technology Job changes

Objectives of planned change:

Change takes place in two folds:
modification of orgn adaptation modification of structure

Process of planned change

Identify need to change Elements to be changed

Feedback

Planning for change

Refreezing

Assessing change factors

Changing Unfreezing

Action for change

Detail of process

Identify need to change: depends upon gap analysis Elements to be changed: structural , technological, ppl Planning for change: determine change agents and time to implement. Assessing change forces: resistance to change, cooperation of ppl, kurt lewin-field of forces.

Unfreezing the Status Quo

Lewins Three-Step Change Model

Unfreezing
Change efforts to overcome the pressures of both individual resistance and group conformity.

Refreezing
Stabilizing a change intervention by balancing driving and restraining forces.

Driving Forces
Forces that direct behavior away from the status quo.

Restraining Forces
Forces that hinder movement from the existing equilibrium.

Lewins Three-Step Change Model

Actions for change

Unfreezing:

Changing old behavior Motivating change Change of routine work

Changing/Movement:
Recognizing purpose to change Encourage learning & reinforcement. Encourage team efforts, defining new boundaries

 Refreezing:

New standards achieved. Tendency to reinforce to practice new standards

Feedback:

Establishes control & help in gap analysis

Responses to change:
Willing acceptance Resistance Forced acceptance Rejection

Resistance can be a cost or a benefit

Levels of resistance

Individual:
Economic Factors:
Skill

obsolesce Economic loss Reduced opportunity

Psychological Factors:
Based

on attitudes, emotions. Ego defensiveness Status quo Lack of trust Fear of unknown & failure

Social Factors: Feeling of outside interference

 Group

resistance:

Factors

controlling resistance Cohesiveness Attempt to alter group norms Group attractiveness Vested interests.
Orgn

resistance:

Status

quo Counting past records Resource limitations Sunk cost Inter-orgn agreement

Sources of Individual Resistance to Change

Sources of Organizational Resistance to Change

Overcoming resistance to change

Individual

level:

Involvement

Commitment
Leadership Training Counseling

Group

level:

Group

contact Participation Group training

Overcoming Resistance to Change

Tactics for dealing with resistance to change:
Education and communication Participation Facilitation and support Negotiation

Manipulation & cooptation

Coercion