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Hey All please find attached hard copy of Change Management for your understanding.
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Contents Page No.
Change .................................................................2 Levels of Change................................................................2 Cycles of Change ...............................................................3 Three Dimensions of Change...............................................4 A Model Of Adaptive Orientation ........................................6 Strategies For Dealing With Change ...................................7 Resistance to Change.........................................................9 Tactics for Overcoming Resistance to Change....................11 Forces of Change.............................................................12 Role of A Change Agent ...................................................14 Techniques for initiating Change.......................................17 Implementing Change.......................................................18 Change and Organisational Growth...................................19
“To improve is to change. To be perfect is to change often”.
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Change
Change is the name of the game in management today. Market, product and competitive conditions are rapidly changing. Change is an alteration in the existing field of forces (external & internal) that tends to affect the equilibrium of an organisation. In an era of accelerating change, organization’s degree to excellence is judged by its ability to cope with these changes. Organizations either become more adaptive, flexible and anticipative or they become rigid, stagnant and react to change after the fact, often when it is too late. Therefore, Managers must do more than just react; they must be able to anticipate the changing patterns of people, markets, products, services and technology.
Levels of Change
1. 2. 3. Knowledge Changes Attitudinal Changes Individual Behaviour Changes Group or Organizational Performance Changes
4.
Changes in knowledge tend to be the easiest to make; they can occur as a result of reading a book or an article or hearing something new from a respected person. Attitude structures differ from knowledge structures in that they are emotionally charged in a positive or a negative way. Changes in individual behaviour seem to be significantly more difficult and time consuming. While individual behaviour is difficult enough to change, it becomes even more complicated when you try to implement change within groups or organisations. Types Of Changes in Organizations Macro level • Change in Structure: e. g., amendments to the Constitution; nationalisation of banks. • Change in Methodology: e.g., Automation in industry : irrigation, chemical fertilizers and crop rotation in agriculture. • Change in Behaviour: e.g., family planning program; patriotism and social discipline in time of war or emergencies. • Change in Assumptions and Values: e. g., desire for socialistic pattern of society; liberation movements. Micro level In internal environment by: • method of performing a certain job. • rules and procedures. • change. Changing Change the in
Technological Alterations in
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Organization Structure.
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In external environment by: • method of working due to stiff competition. • government rules and regulations. • changes. • fluctuations etc. Change in
Modification in Political Economic
Cycles of Change
The levels of change become very significant when you examine two different change cycles Participative Change Cycle Directive Change Cycle Participative Change
made available to the individual or group. It is hoped that the group will accept the data and will develop a positive attitude and commitment in the direction of the desired change. The next step will be to attempt to translate this commitment into actual behaviour. This step is significantly more difficult to achieve. An effective strategy may be to identify the informal and formal leaders among the work group(s) and concentrate on gaining their behavioral support for the desired change.
A participative change cycle is implemented when new knowledge is
Once this is accomplished, organisational change may be effected by getting other people to begin to pattern their behaviour. This participative change cycle is illustrated in the following figure: Group Behaviour Individual Behaviour Attitude Knowledge 1 3 2 4
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Directive Change This change cycle begins by change being imposed on the total organisation by some external force, such as higher management, the community, new laws. The new contacts and modes of behaviour create new knowledge, which tend to develop predispositions towards or against the change. The directive change cycle is illustrated in the following figure:
Group Behaviour Individual Behaviour Attitude 4 Knowledge 3 2
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Three Dimensions of Change
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Logical Dimension: Based on the technical evidence of economics and science. This evidence needs to be presented to employees so that they can understand the technical and economic reasons for change. 2. Psychological Dimension: Based on the fact that change is logical on terms of the human values and feelings in the situation. 3. Sociological Dimension: Based on change logical from the point of view of social values. Is the change consistent with norms of the group? Does it maintain group teamwork? These questions need to be resolved keeping in mind society norms.
Change Process
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Managing change means managing the conversation between the people leading the change effort and those who are expected to implement the new strategies. The critical factors of a change process are : • Skill to identify and analyze the objectives of change (knowledge of understanding what the problem is & finding solutions to it.) • Skill to devise successful methods to accomplish the objectives and solve the problems. • Skill to enlist the support of people involved and affected by change. Basically, the change has to be felt by the individuals within the organisation. The prime question an organisation change agent can raise are : • What are the advantages of change over the existing state? • Is it congruent with individual expectations, norms & values of the organisational culture • Is it simple or complex to comprehend & implement. • Can it be tried in a limited way to have a first hand experience of its utility. • To what extent the outcomes or benefits of the change is observable to others. Any management strategy for change must take into account all the above aspects . The forces for change may come from the environment external to the firm, from within the organization, or from the individuals themselves. Changes that affect the manager and organization development Several trends, some of them already occurring, will have implications for developing human resources. Here are some illustrations: 1. The increasing use of computers, especially microcomputers, requires that all employees become computer-literate. 2. The proportion of knowledge workers will increase and the need for skill so workers will decrease, which may require more training in knowledge, conceptual and design skills. 3. The shift from manufacturing to service industries requires retraining in preparation for new positions. 4. The choice of educational opportunities will increase. For example, many companies already are conducting their own training programs. 5. There may be greater cooperation and interdependence between the private and the public sectors. 6. Internationalization will continue, and managers in different countries must learn to communicate and to adapt to each other. Companies need to train with a global perspective.
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There are various ways to respond to these forces. One approach is simply to react to a crisis. Unfortunately, this is usually not the most effective response. Another approach is to deliberately plan the change. This may require new objectives or policies, organizational rearrangements, or a change in leadership style and organizational culture. Why is change so difficult ? Possibly because the culture of the organisation becomes a part of the people who perform the work. In changing these old patterns, people must alter not only their behaviour but also their values and views of themselves. The organisation structure, procedures, and relationships continue to resist the new ones. As a result, organisation change sometimes results in upheaval and dissatisfaction.
A Model Of Adaptive Orientation
Low Anticipative Management Environmental Stability Satisficing Management High High Adaptive Orientation Low Conservative Management Reactive Management
Every organisation must have enough stability to continue to function satisfactorily and still prevent itself from becoming too static or stagnant to adapt to changing conditions. Both stability and adaptation are essential to continued survival and growth. Adaptive orientation towards change depends upon the type of environment in which an organisation is functioning. A stable environment is characterized by unchanging basic products and services, a static level of competition, a low level of technological innovation, a formalized centralized structure and a steady, slow rate of growth. Such environment remains relatively stable over long periods. A dynamic environment, on the other hand, is characterized by rapidly changing product lines, an increasing and changing set of competitors, continual technological innovation and rapid market growth.
Conservative Management: (Low adaptive orientation-High environmental stability) refers to a style of management based on low risk, with formalized procedures and high degree of structure and control. Typically, these organisations have stable goals and a highly centralized structure. They also tend to have more managerial levels, a higher ratio of superiors to subordinates, and an emphasis upon formal control systems.
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Reactive Management: (Low adaptive orientation-Low environmental stability) refers to style of reacting to a stimulus after conditions in the environment have changed. Organisations having such a management style, tend to deal with problems on a short-run, crisis basis. Thus, it is a short-term, crisis type of adaptation, often involving replacement of key people, hasty reorganisation, and drastic cutting off of people and product lines. Satisficing Management: (High adaptive orientation- High environmental stability) refers to a style of managing that emphasizes a more centralized decision-making structure with problems being referred to the top. Because of the stable environment, there tend to be more levels of management, with coordination done by formal committees. Planning and decision making are usually concentrated at the top, with high clarity of procedures and roles. Change is accomplished at a rate that is “good enough” to keep up with the industry, but certainly well behind the state of the art. Anticipative Management: (High adaptive orientation-Low environmental stability) refers to introducing change to deal with future conditions before they actually come about. This approach operates on a crisis basis, waiting for a problem to reach a critical stage before making internal realignments. The anticipative approach is to recognize that changes in technology, organisations, and people will be required within a decade and initiate planned change now to deal with predicted future conditions. The crux of the four basic orientations is : A conservative management orientation has little ability to adapt to changes but there is also little pressure to change because of the stable environment. A reactive management orientation has the need to respond to a rapidly changing environment but does not have the flexibility to adapt. A satisficing management orientation has the ability to respond to changing situations but finds itself in a relatively slow changing environment. An anticipative management orientation has both the ability and need to respond to a dynamic environment.
Strategies For Dealing With Change
In some cases where change is forced the new behaviour engaged in creates the kind of knowledge that develops commitment to the change and therefore, begins to approximate a participative change as it reinforces the individual and group behaviour. The hope is that “if people will only have a chance to see how the new system works they will support it.” Planned change according to Benne and Chin, can be divided into three basic types of strategies. Empirical – Rational Strategies : The fundamental assumption underlying empirical-rational strategies is that human beings are rational and will follow their self-interest once this is revealed to them. This strategy is basically straightforward and uncomplicated. Since the
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person is rational and motivated by his self-interest, he will obviously adopt the proposed change if the logic can be effectively communicated. Normative Re-educative Strategies : The normative re-educative strategies believe that human beings are guided in their actions by sociocultural norms and their commitment to these norms. Consequently, change is not exclusively at the cognitive or intellectual level but is often at a more personal level : habits, attitudes, and values. Power-Coercive Strategies : Power-coercive strategies are based on the assumption of compliance of those with less power to the will of those with more power. Bringing about Change at the Organisational Level There are four major ways of bringing about changed situations at the organisation level. These are:I. Realigning executives II. Structural changes III. Changing technology IV. Organisational development Usually a combination of these four is necessary for bringing about the change that finally gives the desired result. I) Realigning Executives : This essentially involves transferring of executives from one position to another i.e. job rotation. An example would be the replacement of the head of a dept. In most organisations, this will bring about many changes in the operations of the unit. Subordinates must now rebuild their relationship they had established with their former superior. Informal work patterns that might have developed may no longer be valid.
II) Structure Changes : Changing the structure is another way of effecting change.
As the organization’s environment changes, reorganisation is necessary to respond effectively to the new climate. The forces behind these re-organisations are : • The pressures of competition on margins profits. • Internationalization of business • Mergers and acquisitions • New developments in technology • Rapid growth of companies
III) Changes in Technology : Technological changes have to be made at right
points in time if an organisation wants to survive in the modern environment, where technology is changing rapidly. Technological innovation is the lifeblood of the firm. It helps the firm to cope up effectively with technological advancements and remain competitive in the market.
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IV) Organisational Development (OD) : This is a powerful method by which
beliefs, attitudes, values and structures of organisations can be changed. There are many techniques of OD. Two widely practiced approaches are : (1) Sensitivity Training : This is a kind of laboratory work shop training and involves essentially informal meetings of executives and men at various levels in the organisation. These meetings may last even over several days. These men interact and share their personal feelings and reactions with each other. By this process they become aware of and sensitive to the emotions and feelings of others. This may help in changing their attitude & overcoming their resistance to change. (2) Managerial Grid: This is also a kind of meeting and involves a seminar, where problems related to tasks, accomplishment, and leadership styles etc. are discussed. This helps in providing an insight into how inter-personal relationships affect task accomplishments and results, and accordingly managers can change their styles of managing & leading. External or internal forces translate into a perceived need for change within the organization. Managers sense a need for change when there is a performance gap – a disparity between existing and desired performance levels. The performance gap may occur because current procedures are not up to standard or because a new idea or technology could improve current performance. Managers try to establish a sense of urgency so that others will understand the need for change. Sometimes a crisis, such as the one described in the opening example of Midwest, provides an undoubted sense of urgency. In many cases, however, there is no obvious crisis and managers have to recognize and then make others aware of the need for change.
Resistance to Change
Managers in every company must be alert to problems and opportunities, because the perceived need for change is what sets the stage for subsequent actions that create a new product or technology. Big problems are easy to spot. Sensitive monitoring systems are needed to detect gradual changes that can fool managers into thinking their company is doing fine. An organization may be in greater danger when the environment changes slowly, because managers may fail to trigger an organizational response. Failing to use planned change to meet small needs can place the organization in hot water, as illustrated in the following passage : When frogs are placed in a boiling pail of water, they jump out – they don’t want to boil to death. However, when frogs are placed in a cold pail of water, and the pail is placed on a stove with the heat turned very low, over time the frogs will boil to death. Psychologists have studied the phenomenon of resistance to change during the past few decades. Several explanations have been given for resistance to change. Some of these are as follows: 1. The change itself produces disequilibrium 2. There exists a deep seated human characteristic to go against change 3. The basic anxieties aroused by the working conditions
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Resistance has a protective function for the individual. All behaviour which opposes change is not necessarily resistance. Some opposition to change may be perfectly logical. The Life Cycle of Resistance to Change Organization development action programs involve innovation and change, which will probably encounter some degree of resistance. This resistance will be evident in individuals and groups in such forms as controversy, hostility, and conflict, either overtly or covertly. The change itself tends to move through a life cycle. Phase 1: In this phase there are only a few people who see the need for change and take the reform seriously. They present a fringe element of the organisation and may be openly criticized, ridiculed, and persecuted by whatever methods the organisation has at its disposal and what it thinks is appropriate to handle the dissidents and force them to confirm to established organisation norms. Resistance appears massive. At this point the change program may die or it may continue to grow. Phase 2: As the movement for change has begun to grow, the forces for change and against change become identifiable. The change is discussed and it is more thoroughly understood by more of the organization’s members. The threat associated with the change can be lessened because of increased understanding. “When a new idea is first introduced to us, we begin to consider it from many different viewpoints. In time, its novelty and strangeness disappear. Eventually it becomes familiar. When sufficient time is not allowed for such adjustment, those involved in a change could become bewildered and apprehensive and develop feelings of opposition.” Phase 3: In this phase there is a direct conflict and a showdown between the forces pro and con. This phase will probably mean life or death to the change effort, as those enthusiastic about the change frequently underestimate the strength of those resistant to the change. Those in an organisation who see a change as good or as needed find it difficult to believe the extent to which the opposition will go to put a stop to the change. Phase 4: If, after the decisive battles, the supporters of the changes are in power, the remaining resistance is seen as stubborn and a nuisance. There is still a possibility that the resisters to the change will mobilize enough support to shift the balance of power. Wisdom is necessary in dealing with the overt opposition and that element which is not openly opposed, yet is not thoroughly convinced about the benefit of the change.
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Phase 5: In the last phase the resisters of the change are as few and as alienated as were the advocates in the first phase. Although this phase may give the impression that a battle is being waged between those trying to bring about change and those resisting the change (and sometimes this is the situation), the actual conflict is usually more subtle and may only surface is small verbal disagreements, questions, reluctance, and so forth. But regardless of the degree of resistance, the organisation change program, if it does not die in the process, will to some extent evolve through the five phases described above, although in some change programs, some of the phases may be brief or even omitted.
Organizations less oriented to ‘change’ seem to characterized by: • A simpler technology. • Internal environment characterized by status quo. Personal relationships among members are generally highly valued as ends in themselves. • A closed system with a minimum of interaction or liaison with outside organizations or people. • Stereotyped roles with more or less rigid patterns of inter and intra-role behavior. Hence individual members lack ability to empathize or see themselves in other roles. • A stable environment or have a greater control over their external environment. • Greater degree of horizontal and/or vertical specialization of jobs and formalization. Lack of favourable orientation to change.
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On the other hand, organizations prone for change are characterized by: • Technology that is complex and likely to change or improve from time to time. • Rather unstable or relatively less stable external and internal environment. • An open system with a greater degree of interaction with external organizations, people or customers. • Social relationships among individuals being more business like or purpose-oriented rather than emotional and affective. • Less of formalization and horizontal and vertical job specialization. • Individual members high on empathy and can see themselves from the roles of others. • Basically proactive with a positive orientation towards change.
Tactics for Overcoming Resistance to Change
Change Management Approach Communication, education When to Use • Change is technical. • Users need accurate information and analysis to understand change. Participation • Users need to feel involved. • Design requires information from others. • Users have power to resist. Negotiation • Group has power over implementation. • Group will lose out in the change. Coercion • A crisis exists. • Initiators clearly have power. • Other implementation techniques have failed. Top management • Change involves multiple departments or support reallocation of resources. • Users doubt legitimacy of change.
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Participation: Participation involves users and potential resisters in designing the change. This approach is time-consuming, but it pays off because users understand and become committed to the change. Participation also helps managers determine potential problems and understand the differences in perceptions of change among employees. Negotiation: Negotiation is a more formal means of achieving cooperation. Negotiation uses formal bargaining to win acceptance and approval of a desired change. Coercion: Coercion means that managers use formal power to force employees to change. However, coercion may be necessary in crisis situations when a rapid response is urgent. Top Management Support: The visibility of top management also helps overcome resistance to change. Top management support symbolizes to all employees that the change is important for the organization. Top management support is especially important when a change involves multiple departments or when resources are being reallocated among departments. Without top management support, these changes can get bogged down in squabbling among departments. Moreover, when top managers fail to support a project, they can inadvertently undercut it by issuing contradictory orders.
Forces of Change
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By observing external trends, patterns, and needs, managers use planned change to help the organization adapt to external problems and opportunities. An overall model for planned change is presented in the following figure. Four events make up the change sequence : 1. Internal and external forces for change exist 2. Organisation managers monitor these forces and become aware of a need for change 3. The perceived need triggers the initiation of change, which 4. Is then implemented.
Model of Change Sequence of Events
Environmental Monitor global competition, customers, competitors, and other factors. Internal Forces Consider plans, goals, company problems and needs. Need for Evaluate problems and opportunities, define needed changes in technology, products, structure and culture. Initiate Change Facilitate search, creativity, idea champions and venture teams. Implement Use force field analysis, tactics for overcoming resistance.
Environmental Forces: External forces originate in all environmental sectors, including customers, competitors, technology, economic forces, and the international arena. For example, many North American companies have been blindsided by global competition. Consider General Electric, which build a new factory to produce microwave ovens. As GE’s plans were being made, Yun Soo Chu was working 80 hours per week for Samsung in Korea to perfect a microwave oven. About the time the GE plant came on stream, Samsung started exporting thousands of microwaves to the United States at one-third the cost of GE microwaves. Today, Samsung has 25 percent of the U.S. market, and GE is one of its best customers. GE closed its microwave plant, preferring to buy the cheaper Samsung ovens to see under the GE label. Internal Forces: Internal forces for change arise from internal activities and decisions. If top managers select a goal of rapid company growth, internal actions will have to be changes to meet that growth. New ‘departments or technologies will Inventor Sponsor Critic be created. General Championsenior management, frustrated by poor internal Motors’ Develops and Believes in idea High-level to solve this internal need. Provides reality efficiency, designed the Saturn manufacturing plant understands manager inefficienciestest can generate Demands by employees, labour unions, and productionwho all Visualizes technical aspectsmanagement must respond with change. removes a force to which benefits Looks for
of idea. Confronts Does not know Four Roles in Organisational Change organizational how to win realities of cost, support for the benefits idea or make a business of it. Obtains financial and political support. Overcomes organisational barriers Approves and protects idea within organization shortcomings Defines hardnosed criteria that idea must pass.
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Role of A Change Agent
The Change Agent To help organisation adjust to variations in its external or internal environment, change may be brought about by a Consultant outside organisation or by Managers within. The change agent, may be defined as “a professional person who influences innovation – decision in a direction deemed desirable by a change agency”. Selecting an internal or external change agent is a matter of choice. The internal change agent possesses intimate knowledge of the organisation. He might be accepted to a great degree and have credibility due to his organisational status. However, being an insider he might be biased in his outlook and may not perceive problems in an objective way. The external change agents bring with them more of professionalism. They derive power from their expertise. Less of polarization is likely to arise among executives to their ideas. However, the external agents may not have a comprehensive understanding of the organisation, its people and culture. Moreover, it is possible that sometimes they may be viewed with suspicion and they may find it difficult to gain acceptance. The change agent, as a communicator is concerned with the spread of change information and the ultimate adoption of the change by the ‘client’s system. He should have the necessary persuasive skills to enable the client system realize the need for change and the importance of the change to organisational effectiveness. Since spreading change information is in terms of a multi-step information flow, the consultant should be able to positively influence the opinion leaders at different organisational levels. His ability to communicate effectively can be gauged in terms of the extent to which he is able to enlist the ‘client’s’ support for the intended change and create in them the responsibility to participate and implement the change effort. To be a successful Communicator the change agent should : • Be clear as to what are the goals and objectives of each of his communication attempts.
Change Management • Develop his communication plan so that it is consonant with the clients needs, attitudes and belief system. • Be persuasive to minimize rejection without giving the feeling of forcing or driving one’s ideas on the clients. • Obtain feedback to determine the effectiveness of communication from time to time. • Make strategic use of informal communication networks so that the formal change efforts are supported and not resisted. To be successful the change agent should be able to: • Have confidence in the intervention process. • Trust his own skills and experience of reality. • Deal with ambiguity and situations of conflict in a proactive manner. • Tackle any resultant stress appropriately. • Reduce discrepancy between his ideals and actual behaviour. • Decrease his need for, and dependence on formal power. • Cognizant of his impact on the client system. • Generate trust in the client system.
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The change agent is generally said to fill seven roles in the change process: 1. 2. 3. He develops a need for change on the part of his clients. The client system is made to realize the importance and benefits of the intended change. He establishes a change relationship with them. The clients feel that the change can be effectively brought about with the help and support of the change agent. The change agent is able to identify the problem faced by the client after he diagnoses their problems. He may list them down. Also he is able to anticipate problems likely to be faced by the client during and after the change process and think of ways and means of minimizing and remedying them. The client is made to feel the need for change. The change is not thrust on him. The client understands the relevance and necessity of change and is willing and supportive of the change. A blue print of action for implementing the change is prepared. The support of the client system is enlisted in translating the planned change into action process. Thereby resistance to change effort is minimized. Stabilizes change and prevents discontinuance. Any change is moving the organization towards a newer equilibrium from the earlier one. If the new equilibrium is not maintained, the organization is likely to revert to the earlier equilibrium and the change effort will be a failure, however well planned and executed the change effort is. The client system should be made to realize the importance of this and the new patterns of behavior have to be stabilized. Achieves a terminal relationship with his clients. No change agent can continue to be associated with a change effort too long. At some time, during the change process, the client should feel confident to take over and maintain the change effort. That would be opportune time for the change agent to
4. 5. 6.
7.
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terminate relations with the client system. There is no undue dependence on the change agent and the client system will carry on the on going activity with confidence.
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Techniques for initiating Change
Strategies for overcoming resistance to change typically involve two approaches: the analysis of resistance through the force field technique and the use of selective implementation tactics to overcome resistance.
Organisations may be in a state of equilibrium, with forces pushing for change on one hand and forces resisting change by attempting to maintain the status quo on the other. Kurt Lewin expressed this phenomenon in his field force theory, which suggests that an equilibrium is maintained by driving forces and restraining forces. When a change is introduced, some forces drive it and other forces resist it. To implement a change, management should analyze the change forces. By selectively removing forces that restrain change, the driving forces will be strong enough to enable implementation. Another approach, and one that is usually more effective, is to reduce or eliminate the restraining forces and then move to a new level of equilibrium. In organizations, therefore, a change in policy is less resisted when those affected by it participate in the change. The change process involves three steps: 1. unfreezing 2. moving or changing 3. refreezing The first stage, unfreezing, creates motivation for change. If people feel uncomfortable with the present situation, they may see the need for change. However, in some cases an ethical question may arise regarding the legitimacy of deliberately creating discomfort that may initiate change. The second stage is the change itself. This change may occur through assimilation of new information exposure to new concepts, or development of a different perspective. The third stage, refreezing, stabilizes the change. Change, to be effective, has to be congruent with a person’s self-concept and values. If the change is incongruent with the attitudes and behaviors of others in the organization, chances are that the person will revert back to the old behaviour. Thus, reinforcement of the new behaviour is essential. Using Force Field Analysis to Change From Traditional to Just-In-Time Restraining Driving Reduced Restraining Inventory System
Driving Forces Inventory savings cost Forces Forces Forces Freight system Forces Facilities layout system Forces Worker Skills Union resistance to Job loss Inventory cost savings Use of trucks Forces Addition of docks Fewer workers layout system Training program More competitive Market response Reassignment
Fewer workers layout system More competitive Market response
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A. Traditional Inventory
Desired Movement
B. Just-in-Time Inventory
Implementing Change
The most important step to be managed in the change process is implementation: Resistance to Change: Idea champions often discover that other employees are unenthusiastic about their new ideas. Members of a new-venture group may be surprised when managers in the regular organization do not support or approve their innovations. Managers and employees not involved in an innovation often seem to prefer the status quo. Employees appear to resist change for several reasons, and understanding them helps managers implement change more effectively. Self-Interest: Employees typically resist a change they believe will take away something of value. A proposed change in job design, structure, or technology may lead to a perceived loss of power, prestige, pay or company benefits. The fear of personal loss is perhaps the biggest obstacle to organizational change. Lack of Understanding and Trust: Employees often do not understand the intended purpose of change or distrust the intentions behind it. It previous working relationships with an ideas champion have been negative, resistance may occur. One manager had a habit of initiating a change in the financial reporting system about every 12 months and then losing interest and not following through. After the third time, employees no longer went along with the change because they did not trust the manager’s intention to follow through to their benefit. Uncertainty: Uncertainty is the lack of information about future events. It represents a fear of the unknown. Uncertainty is especially threatening for employees who have a low tolerance for change and fear and novel and unusual. They do not know how a change will affect them and worry about whether they will be able to meet the demands of a new procedure or technology. Different Assessments and Goals: Another reason for resistance to change is that people who will be affected by innovation may assess the situation differently from an idea champion or new-venture group. Often critics voice legitimate disagreements over the proposed benefits of a change. Managers in each department pursue different goals, and an innovation may detract from performance and goal achievement for some departments.
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Change and Organisational Growth
A developmental theory developed by Larry E. Greiner is helpful in examining growing organisations and the changes that it goes through. Greiner argues that growing organisations move through five relatively calm periods of evolution, each of which ends with a period of crisis and revolution. According to Greiner, each evolutionary period is characterized by the dominant management style used to achieve growth, while each revolutionary period is characterized by the dominant management problem that must be solved before growth will continue. The first stage of organisational growth is called creativity. This stage is dominated by the founders of the organisation, and the emphasis is on creating both a product and a market. These founders are usually technically or entrepreneurially oriented, and they disdain management activities; their physical and mental energies are absorbed entirely in making and selling a new product. But as the organization grows, management problems occur that cannot be handled through informal communication and dedication. Thus the founders find themselves burdened with unwanted management responsibilities and conflicts between the harried leaders grow more intense. It is at this point that the crisis of leadership occurs and the first revolutionary period begins. Who is going to lead the organisation out of confusion and solve the management problems confronting the organisation? The solution is to locate and install a strong manager who is acceptable to the founders and who can pull the organisation together. This leads to the next evolutionary period – growth through direction. During this phase the new manager and key staff take most of the responsibility for instituting direction, while lower level supervisors are treated more as functional specialists than autonomous decision making managers. As lower level managers demand more autonomy, this eventually leads to the next revolutionary period – the crisis of autonomy. The solution to this crisis is usually greater delegation. When an organisation gets to the growth stage of delegation, it usually begins to develop a decentralized organisation structure, which begins to evolve as the top managers “sense that they are losing control over a highly diversified field operation, freedom breeds a parochial attitude. The crisis of control often results in a return to centralization, which is now inappropriate and creates resentment and hostility among those who had been given freedom. A more effective solution tends to initiate the next evolutionary system – the coordination stage. This period is characterized by the use of formal systems for achieving greater coordination with top management as the “watch-dog.” Yet most coordination systems eventually get carried away and result in the next revolutionary period – the crisis of red tape. This crisis most often occurs when the organisation has become too large and complex to be managed through formal programs and rigid systems.
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If the crisis of red tape is to be overcome, the organisation must move to the next evolutionary period – the phase of collaboration. While the coordination phase was managed through formal systems and procedures, the collaboration phase emphasizes greater spontaneity in management action through teams and the skillful confrontation of interpersonal differences. Social control and self-discipline take over from formal control.
Greiner is not certain what the next revolution will be, but he anticipates that it will center around the ‘psychological saturation’ of employees who grow emotionally and physically exhausted by the intensity of teamwork and the heavy pressure for innovative solutions.
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Contents Page No.
Change .................................................................2 Levels of Change................................................................2 Cycles of Change ...............................................................3 Three Dimensions of Change...............................................4 A Model Of Adaptive Orientation ........................................6 Strategies For Dealing With Change ...................................7 Resistance to Change.........................................................9 Tactics for Overcoming Resistance to Change....................11 Forces of Change.............................................................12 Role of A Change Agent ...................................................14 Techniques for initiating Change.......................................17 Implementing Change.......................................................18 Change and Organisational Growth...................................19
“To improve is to change. To be perfect is to change often”.
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Change
Change is the name of the game in management today. Market, product and competitive conditions are rapidly changing. Change is an alteration in the existing field of forces (external & internal) that tends to affect the equilibrium of an organisation. In an era of accelerating change, organization’s degree to excellence is judged by its ability to cope with these changes. Organizations either become more adaptive, flexible and anticipative or they become rigid, stagnant and react to change after the fact, often when it is too late. Therefore, Managers must do more than just react; they must be able to anticipate the changing patterns of people, markets, products, services and technology.
Levels of Change
1. 2. 3. Knowledge Changes Attitudinal Changes Individual Behaviour Changes Group or Organizational Performance Changes
4.
Changes in knowledge tend to be the easiest to make; they can occur as a result of reading a book or an article or hearing something new from a respected person. Attitude structures differ from knowledge structures in that they are emotionally charged in a positive or a negative way. Changes in individual behaviour seem to be significantly more difficult and time consuming. While individual behaviour is difficult enough to change, it becomes even more complicated when you try to implement change within groups or organisations. Types Of Changes in Organizations Macro level • Change in Structure: e. g., amendments to the Constitution; nationalisation of banks. • Change in Methodology: e.g., Automation in industry : irrigation, chemical fertilizers and crop rotation in agriculture. • Change in Behaviour: e.g., family planning program; patriotism and social discipline in time of war or emergencies. • Change in Assumptions and Values: e. g., desire for socialistic pattern of society; liberation movements. Micro level In internal environment by: • method of performing a certain job. • rules and procedures. • change. Changing Change the in
Technological Alterations in
•
Organization Structure.
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3 in
In external environment by: • method of working due to stiff competition. • government rules and regulations. • changes. • fluctuations etc. Change in
Modification in Political Economic
Cycles of Change
The levels of change become very significant when you examine two different change cycles Participative Change Cycle Directive Change Cycle Participative Change
made available to the individual or group. It is hoped that the group will accept the data and will develop a positive attitude and commitment in the direction of the desired change. The next step will be to attempt to translate this commitment into actual behaviour. This step is significantly more difficult to achieve. An effective strategy may be to identify the informal and formal leaders among the work group(s) and concentrate on gaining their behavioral support for the desired change.
A participative change cycle is implemented when new knowledge is
Once this is accomplished, organisational change may be effected by getting other people to begin to pattern their behaviour. This participative change cycle is illustrated in the following figure: Group Behaviour Individual Behaviour Attitude Knowledge 1 3 2 4
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Directive Change This change cycle begins by change being imposed on the total organisation by some external force, such as higher management, the community, new laws. The new contacts and modes of behaviour create new knowledge, which tend to develop predispositions towards or against the change. The directive change cycle is illustrated in the following figure:
Group Behaviour Individual Behaviour Attitude 4 Knowledge 3 2
1
Three Dimensions of Change
1.
Logical Dimension: Based on the technical evidence of economics and science. This evidence needs to be presented to employees so that they can understand the technical and economic reasons for change. 2. Psychological Dimension: Based on the fact that change is logical on terms of the human values and feelings in the situation. 3. Sociological Dimension: Based on change logical from the point of view of social values. Is the change consistent with norms of the group? Does it maintain group teamwork? These questions need to be resolved keeping in mind society norms.
Change Process
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Managing change means managing the conversation between the people leading the change effort and those who are expected to implement the new strategies. The critical factors of a change process are : • Skill to identify and analyze the objectives of change (knowledge of understanding what the problem is & finding solutions to it.) • Skill to devise successful methods to accomplish the objectives and solve the problems. • Skill to enlist the support of people involved and affected by change. Basically, the change has to be felt by the individuals within the organisation. The prime question an organisation change agent can raise are : • What are the advantages of change over the existing state? • Is it congruent with individual expectations, norms & values of the organisational culture • Is it simple or complex to comprehend & implement. • Can it be tried in a limited way to have a first hand experience of its utility. • To what extent the outcomes or benefits of the change is observable to others. Any management strategy for change must take into account all the above aspects . The forces for change may come from the environment external to the firm, from within the organization, or from the individuals themselves. Changes that affect the manager and organization development Several trends, some of them already occurring, will have implications for developing human resources. Here are some illustrations: 1. The increasing use of computers, especially microcomputers, requires that all employees become computer-literate. 2. The proportion of knowledge workers will increase and the need for skill so workers will decrease, which may require more training in knowledge, conceptual and design skills. 3. The shift from manufacturing to service industries requires retraining in preparation for new positions. 4. The choice of educational opportunities will increase. For example, many companies already are conducting their own training programs. 5. There may be greater cooperation and interdependence between the private and the public sectors. 6. Internationalization will continue, and managers in different countries must learn to communicate and to adapt to each other. Companies need to train with a global perspective.
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There are various ways to respond to these forces. One approach is simply to react to a crisis. Unfortunately, this is usually not the most effective response. Another approach is to deliberately plan the change. This may require new objectives or policies, organizational rearrangements, or a change in leadership style and organizational culture. Why is change so difficult ? Possibly because the culture of the organisation becomes a part of the people who perform the work. In changing these old patterns, people must alter not only their behaviour but also their values and views of themselves. The organisation structure, procedures, and relationships continue to resist the new ones. As a result, organisation change sometimes results in upheaval and dissatisfaction.
A Model Of Adaptive Orientation
Low Anticipative Management Environmental Stability Satisficing Management High High Adaptive Orientation Low Conservative Management Reactive Management
Every organisation must have enough stability to continue to function satisfactorily and still prevent itself from becoming too static or stagnant to adapt to changing conditions. Both stability and adaptation are essential to continued survival and growth. Adaptive orientation towards change depends upon the type of environment in which an organisation is functioning. A stable environment is characterized by unchanging basic products and services, a static level of competition, a low level of technological innovation, a formalized centralized structure and a steady, slow rate of growth. Such environment remains relatively stable over long periods. A dynamic environment, on the other hand, is characterized by rapidly changing product lines, an increasing and changing set of competitors, continual technological innovation and rapid market growth.
Conservative Management: (Low adaptive orientation-High environmental stability) refers to a style of management based on low risk, with formalized procedures and high degree of structure and control. Typically, these organisations have stable goals and a highly centralized structure. They also tend to have more managerial levels, a higher ratio of superiors to subordinates, and an emphasis upon formal control systems.
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Reactive Management: (Low adaptive orientation-Low environmental stability) refers to style of reacting to a stimulus after conditions in the environment have changed. Organisations having such a management style, tend to deal with problems on a short-run, crisis basis. Thus, it is a short-term, crisis type of adaptation, often involving replacement of key people, hasty reorganisation, and drastic cutting off of people and product lines. Satisficing Management: (High adaptive orientation- High environmental stability) refers to a style of managing that emphasizes a more centralized decision-making structure with problems being referred to the top. Because of the stable environment, there tend to be more levels of management, with coordination done by formal committees. Planning and decision making are usually concentrated at the top, with high clarity of procedures and roles. Change is accomplished at a rate that is “good enough” to keep up with the industry, but certainly well behind the state of the art. Anticipative Management: (High adaptive orientation-Low environmental stability) refers to introducing change to deal with future conditions before they actually come about. This approach operates on a crisis basis, waiting for a problem to reach a critical stage before making internal realignments. The anticipative approach is to recognize that changes in technology, organisations, and people will be required within a decade and initiate planned change now to deal with predicted future conditions. The crux of the four basic orientations is : A conservative management orientation has little ability to adapt to changes but there is also little pressure to change because of the stable environment. A reactive management orientation has the need to respond to a rapidly changing environment but does not have the flexibility to adapt. A satisficing management orientation has the ability to respond to changing situations but finds itself in a relatively slow changing environment. An anticipative management orientation has both the ability and need to respond to a dynamic environment.
Strategies For Dealing With Change
In some cases where change is forced the new behaviour engaged in creates the kind of knowledge that develops commitment to the change and therefore, begins to approximate a participative change as it reinforces the individual and group behaviour. The hope is that “if people will only have a chance to see how the new system works they will support it.” Planned change according to Benne and Chin, can be divided into three basic types of strategies. Empirical – Rational Strategies : The fundamental assumption underlying empirical-rational strategies is that human beings are rational and will follow their self-interest once this is revealed to them. This strategy is basically straightforward and uncomplicated. Since the
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person is rational and motivated by his self-interest, he will obviously adopt the proposed change if the logic can be effectively communicated. Normative Re-educative Strategies : The normative re-educative strategies believe that human beings are guided in their actions by sociocultural norms and their commitment to these norms. Consequently, change is not exclusively at the cognitive or intellectual level but is often at a more personal level : habits, attitudes, and values. Power-Coercive Strategies : Power-coercive strategies are based on the assumption of compliance of those with less power to the will of those with more power. Bringing about Change at the Organisational Level There are four major ways of bringing about changed situations at the organisation level. These are:I. Realigning executives II. Structural changes III. Changing technology IV. Organisational development Usually a combination of these four is necessary for bringing about the change that finally gives the desired result. I) Realigning Executives : This essentially involves transferring of executives from one position to another i.e. job rotation. An example would be the replacement of the head of a dept. In most organisations, this will bring about many changes in the operations of the unit. Subordinates must now rebuild their relationship they had established with their former superior. Informal work patterns that might have developed may no longer be valid.
II) Structure Changes : Changing the structure is another way of effecting change.
As the organization’s environment changes, reorganisation is necessary to respond effectively to the new climate. The forces behind these re-organisations are : • The pressures of competition on margins profits. • Internationalization of business • Mergers and acquisitions • New developments in technology • Rapid growth of companies
III) Changes in Technology : Technological changes have to be made at right
points in time if an organisation wants to survive in the modern environment, where technology is changing rapidly. Technological innovation is the lifeblood of the firm. It helps the firm to cope up effectively with technological advancements and remain competitive in the market.
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IV) Organisational Development (OD) : This is a powerful method by which
beliefs, attitudes, values and structures of organisations can be changed. There are many techniques of OD. Two widely practiced approaches are : (1) Sensitivity Training : This is a kind of laboratory work shop training and involves essentially informal meetings of executives and men at various levels in the organisation. These meetings may last even over several days. These men interact and share their personal feelings and reactions with each other. By this process they become aware of and sensitive to the emotions and feelings of others. This may help in changing their attitude & overcoming their resistance to change. (2) Managerial Grid: This is also a kind of meeting and involves a seminar, where problems related to tasks, accomplishment, and leadership styles etc. are discussed. This helps in providing an insight into how inter-personal relationships affect task accomplishments and results, and accordingly managers can change their styles of managing & leading. External or internal forces translate into a perceived need for change within the organization. Managers sense a need for change when there is a performance gap – a disparity between existing and desired performance levels. The performance gap may occur because current procedures are not up to standard or because a new idea or technology could improve current performance. Managers try to establish a sense of urgency so that others will understand the need for change. Sometimes a crisis, such as the one described in the opening example of Midwest, provides an undoubted sense of urgency. In many cases, however, there is no obvious crisis and managers have to recognize and then make others aware of the need for change.
Resistance to Change
Managers in every company must be alert to problems and opportunities, because the perceived need for change is what sets the stage for subsequent actions that create a new product or technology. Big problems are easy to spot. Sensitive monitoring systems are needed to detect gradual changes that can fool managers into thinking their company is doing fine. An organization may be in greater danger when the environment changes slowly, because managers may fail to trigger an organizational response. Failing to use planned change to meet small needs can place the organization in hot water, as illustrated in the following passage : When frogs are placed in a boiling pail of water, they jump out – they don’t want to boil to death. However, when frogs are placed in a cold pail of water, and the pail is placed on a stove with the heat turned very low, over time the frogs will boil to death. Psychologists have studied the phenomenon of resistance to change during the past few decades. Several explanations have been given for resistance to change. Some of these are as follows: 1. The change itself produces disequilibrium 2. There exists a deep seated human characteristic to go against change 3. The basic anxieties aroused by the working conditions
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Resistance has a protective function for the individual. All behaviour which opposes change is not necessarily resistance. Some opposition to change may be perfectly logical. The Life Cycle of Resistance to Change Organization development action programs involve innovation and change, which will probably encounter some degree of resistance. This resistance will be evident in individuals and groups in such forms as controversy, hostility, and conflict, either overtly or covertly. The change itself tends to move through a life cycle. Phase 1: In this phase there are only a few people who see the need for change and take the reform seriously. They present a fringe element of the organisation and may be openly criticized, ridiculed, and persecuted by whatever methods the organisation has at its disposal and what it thinks is appropriate to handle the dissidents and force them to confirm to established organisation norms. Resistance appears massive. At this point the change program may die or it may continue to grow. Phase 2: As the movement for change has begun to grow, the forces for change and against change become identifiable. The change is discussed and it is more thoroughly understood by more of the organization’s members. The threat associated with the change can be lessened because of increased understanding. “When a new idea is first introduced to us, we begin to consider it from many different viewpoints. In time, its novelty and strangeness disappear. Eventually it becomes familiar. When sufficient time is not allowed for such adjustment, those involved in a change could become bewildered and apprehensive and develop feelings of opposition.” Phase 3: In this phase there is a direct conflict and a showdown between the forces pro and con. This phase will probably mean life or death to the change effort, as those enthusiastic about the change frequently underestimate the strength of those resistant to the change. Those in an organisation who see a change as good or as needed find it difficult to believe the extent to which the opposition will go to put a stop to the change. Phase 4: If, after the decisive battles, the supporters of the changes are in power, the remaining resistance is seen as stubborn and a nuisance. There is still a possibility that the resisters to the change will mobilize enough support to shift the balance of power. Wisdom is necessary in dealing with the overt opposition and that element which is not openly opposed, yet is not thoroughly convinced about the benefit of the change.
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Phase 5: In the last phase the resisters of the change are as few and as alienated as were the advocates in the first phase. Although this phase may give the impression that a battle is being waged between those trying to bring about change and those resisting the change (and sometimes this is the situation), the actual conflict is usually more subtle and may only surface is small verbal disagreements, questions, reluctance, and so forth. But regardless of the degree of resistance, the organisation change program, if it does not die in the process, will to some extent evolve through the five phases described above, although in some change programs, some of the phases may be brief or even omitted.
Organizations less oriented to ‘change’ seem to characterized by: • A simpler technology. • Internal environment characterized by status quo. Personal relationships among members are generally highly valued as ends in themselves. • A closed system with a minimum of interaction or liaison with outside organizations or people. • Stereotyped roles with more or less rigid patterns of inter and intra-role behavior. Hence individual members lack ability to empathize or see themselves in other roles. • A stable environment or have a greater control over their external environment. • Greater degree of horizontal and/or vertical specialization of jobs and formalization. Lack of favourable orientation to change.
•
On the other hand, organizations prone for change are characterized by: • Technology that is complex and likely to change or improve from time to time. • Rather unstable or relatively less stable external and internal environment. • An open system with a greater degree of interaction with external organizations, people or customers. • Social relationships among individuals being more business like or purpose-oriented rather than emotional and affective. • Less of formalization and horizontal and vertical job specialization. • Individual members high on empathy and can see themselves from the roles of others. • Basically proactive with a positive orientation towards change.
Tactics for Overcoming Resistance to Change
Change Management Approach Communication, education When to Use • Change is technical. • Users need accurate information and analysis to understand change. Participation • Users need to feel involved. • Design requires information from others. • Users have power to resist. Negotiation • Group has power over implementation. • Group will lose out in the change. Coercion • A crisis exists. • Initiators clearly have power. • Other implementation techniques have failed. Top management • Change involves multiple departments or support reallocation of resources. • Users doubt legitimacy of change.
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Participation: Participation involves users and potential resisters in designing the change. This approach is time-consuming, but it pays off because users understand and become committed to the change. Participation also helps managers determine potential problems and understand the differences in perceptions of change among employees. Negotiation: Negotiation is a more formal means of achieving cooperation. Negotiation uses formal bargaining to win acceptance and approval of a desired change. Coercion: Coercion means that managers use formal power to force employees to change. However, coercion may be necessary in crisis situations when a rapid response is urgent. Top Management Support: The visibility of top management also helps overcome resistance to change. Top management support symbolizes to all employees that the change is important for the organization. Top management support is especially important when a change involves multiple departments or when resources are being reallocated among departments. Without top management support, these changes can get bogged down in squabbling among departments. Moreover, when top managers fail to support a project, they can inadvertently undercut it by issuing contradictory orders.
Forces of Change
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By observing external trends, patterns, and needs, managers use planned change to help the organization adapt to external problems and opportunities. An overall model for planned change is presented in the following figure. Four events make up the change sequence : 1. Internal and external forces for change exist 2. Organisation managers monitor these forces and become aware of a need for change 3. The perceived need triggers the initiation of change, which 4. Is then implemented.
Model of Change Sequence of Events
Environmental Monitor global competition, customers, competitors, and other factors. Internal Forces Consider plans, goals, company problems and needs. Need for Evaluate problems and opportunities, define needed changes in technology, products, structure and culture. Initiate Change Facilitate search, creativity, idea champions and venture teams. Implement Use force field analysis, tactics for overcoming resistance.
Environmental Forces: External forces originate in all environmental sectors, including customers, competitors, technology, economic forces, and the international arena. For example, many North American companies have been blindsided by global competition. Consider General Electric, which build a new factory to produce microwave ovens. As GE’s plans were being made, Yun Soo Chu was working 80 hours per week for Samsung in Korea to perfect a microwave oven. About the time the GE plant came on stream, Samsung started exporting thousands of microwaves to the United States at one-third the cost of GE microwaves. Today, Samsung has 25 percent of the U.S. market, and GE is one of its best customers. GE closed its microwave plant, preferring to buy the cheaper Samsung ovens to see under the GE label. Internal Forces: Internal forces for change arise from internal activities and decisions. If top managers select a goal of rapid company growth, internal actions will have to be changes to meet that growth. New ‘departments or technologies will Inventor Sponsor Critic be created. General Championsenior management, frustrated by poor internal Motors’ Develops and Believes in idea High-level to solve this internal need. Provides reality efficiency, designed the Saturn manufacturing plant understands manager inefficienciestest can generate Demands by employees, labour unions, and productionwho all Visualizes technical aspectsmanagement must respond with change. removes a force to which benefits Looks for
of idea. Confronts Does not know Four Roles in Organisational Change organizational how to win realities of cost, support for the benefits idea or make a business of it. Obtains financial and political support. Overcomes organisational barriers Approves and protects idea within organization shortcomings Defines hardnosed criteria that idea must pass.
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Role of A Change Agent
The Change Agent To help organisation adjust to variations in its external or internal environment, change may be brought about by a Consultant outside organisation or by Managers within. The change agent, may be defined as “a professional person who influences innovation – decision in a direction deemed desirable by a change agency”. Selecting an internal or external change agent is a matter of choice. The internal change agent possesses intimate knowledge of the organisation. He might be accepted to a great degree and have credibility due to his organisational status. However, being an insider he might be biased in his outlook and may not perceive problems in an objective way. The external change agents bring with them more of professionalism. They derive power from their expertise. Less of polarization is likely to arise among executives to their ideas. However, the external agents may not have a comprehensive understanding of the organisation, its people and culture. Moreover, it is possible that sometimes they may be viewed with suspicion and they may find it difficult to gain acceptance. The change agent, as a communicator is concerned with the spread of change information and the ultimate adoption of the change by the ‘client’s system. He should have the necessary persuasive skills to enable the client system realize the need for change and the importance of the change to organisational effectiveness. Since spreading change information is in terms of a multi-step information flow, the consultant should be able to positively influence the opinion leaders at different organisational levels. His ability to communicate effectively can be gauged in terms of the extent to which he is able to enlist the ‘client’s’ support for the intended change and create in them the responsibility to participate and implement the change effort. To be a successful Communicator the change agent should : • Be clear as to what are the goals and objectives of each of his communication attempts.
Change Management • Develop his communication plan so that it is consonant with the clients needs, attitudes and belief system. • Be persuasive to minimize rejection without giving the feeling of forcing or driving one’s ideas on the clients. • Obtain feedback to determine the effectiveness of communication from time to time. • Make strategic use of informal communication networks so that the formal change efforts are supported and not resisted. To be successful the change agent should be able to: • Have confidence in the intervention process. • Trust his own skills and experience of reality. • Deal with ambiguity and situations of conflict in a proactive manner. • Tackle any resultant stress appropriately. • Reduce discrepancy between his ideals and actual behaviour. • Decrease his need for, and dependence on formal power. • Cognizant of his impact on the client system. • Generate trust in the client system.
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The change agent is generally said to fill seven roles in the change process: 1. 2. 3. He develops a need for change on the part of his clients. The client system is made to realize the importance and benefits of the intended change. He establishes a change relationship with them. The clients feel that the change can be effectively brought about with the help and support of the change agent. The change agent is able to identify the problem faced by the client after he diagnoses their problems. He may list them down. Also he is able to anticipate problems likely to be faced by the client during and after the change process and think of ways and means of minimizing and remedying them. The client is made to feel the need for change. The change is not thrust on him. The client understands the relevance and necessity of change and is willing and supportive of the change. A blue print of action for implementing the change is prepared. The support of the client system is enlisted in translating the planned change into action process. Thereby resistance to change effort is minimized. Stabilizes change and prevents discontinuance. Any change is moving the organization towards a newer equilibrium from the earlier one. If the new equilibrium is not maintained, the organization is likely to revert to the earlier equilibrium and the change effort will be a failure, however well planned and executed the change effort is. The client system should be made to realize the importance of this and the new patterns of behavior have to be stabilized. Achieves a terminal relationship with his clients. No change agent can continue to be associated with a change effort too long. At some time, during the change process, the client should feel confident to take over and maintain the change effort. That would be opportune time for the change agent to
4. 5. 6.
7.
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terminate relations with the client system. There is no undue dependence on the change agent and the client system will carry on the on going activity with confidence.
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Techniques for initiating Change
Strategies for overcoming resistance to change typically involve two approaches: the analysis of resistance through the force field technique and the use of selective implementation tactics to overcome resistance.
Organisations may be in a state of equilibrium, with forces pushing for change on one hand and forces resisting change by attempting to maintain the status quo on the other. Kurt Lewin expressed this phenomenon in his field force theory, which suggests that an equilibrium is maintained by driving forces and restraining forces. When a change is introduced, some forces drive it and other forces resist it. To implement a change, management should analyze the change forces. By selectively removing forces that restrain change, the driving forces will be strong enough to enable implementation. Another approach, and one that is usually more effective, is to reduce or eliminate the restraining forces and then move to a new level of equilibrium. In organizations, therefore, a change in policy is less resisted when those affected by it participate in the change. The change process involves three steps: 1. unfreezing 2. moving or changing 3. refreezing The first stage, unfreezing, creates motivation for change. If people feel uncomfortable with the present situation, they may see the need for change. However, in some cases an ethical question may arise regarding the legitimacy of deliberately creating discomfort that may initiate change. The second stage is the change itself. This change may occur through assimilation of new information exposure to new concepts, or development of a different perspective. The third stage, refreezing, stabilizes the change. Change, to be effective, has to be congruent with a person’s self-concept and values. If the change is incongruent with the attitudes and behaviors of others in the organization, chances are that the person will revert back to the old behaviour. Thus, reinforcement of the new behaviour is essential. Using Force Field Analysis to Change From Traditional to Just-In-Time Restraining Driving Reduced Restraining Inventory System
Driving Forces Inventory savings cost Forces Forces Forces Freight system Forces Facilities layout system Forces Worker Skills Union resistance to Job loss Inventory cost savings Use of trucks Forces Addition of docks Fewer workers layout system Training program More competitive Market response Reassignment
Fewer workers layout system More competitive Market response
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A. Traditional Inventory
Desired Movement
B. Just-in-Time Inventory
Implementing Change
The most important step to be managed in the change process is implementation: Resistance to Change: Idea champions often discover that other employees are unenthusiastic about their new ideas. Members of a new-venture group may be surprised when managers in the regular organization do not support or approve their innovations. Managers and employees not involved in an innovation often seem to prefer the status quo. Employees appear to resist change for several reasons, and understanding them helps managers implement change more effectively. Self-Interest: Employees typically resist a change they believe will take away something of value. A proposed change in job design, structure, or technology may lead to a perceived loss of power, prestige, pay or company benefits. The fear of personal loss is perhaps the biggest obstacle to organizational change. Lack of Understanding and Trust: Employees often do not understand the intended purpose of change or distrust the intentions behind it. It previous working relationships with an ideas champion have been negative, resistance may occur. One manager had a habit of initiating a change in the financial reporting system about every 12 months and then losing interest and not following through. After the third time, employees no longer went along with the change because they did not trust the manager’s intention to follow through to their benefit. Uncertainty: Uncertainty is the lack of information about future events. It represents a fear of the unknown. Uncertainty is especially threatening for employees who have a low tolerance for change and fear and novel and unusual. They do not know how a change will affect them and worry about whether they will be able to meet the demands of a new procedure or technology. Different Assessments and Goals: Another reason for resistance to change is that people who will be affected by innovation may assess the situation differently from an idea champion or new-venture group. Often critics voice legitimate disagreements over the proposed benefits of a change. Managers in each department pursue different goals, and an innovation may detract from performance and goal achievement for some departments.
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Change and Organisational Growth
A developmental theory developed by Larry E. Greiner is helpful in examining growing organisations and the changes that it goes through. Greiner argues that growing organisations move through five relatively calm periods of evolution, each of which ends with a period of crisis and revolution. According to Greiner, each evolutionary period is characterized by the dominant management style used to achieve growth, while each revolutionary period is characterized by the dominant management problem that must be solved before growth will continue. The first stage of organisational growth is called creativity. This stage is dominated by the founders of the organisation, and the emphasis is on creating both a product and a market. These founders are usually technically or entrepreneurially oriented, and they disdain management activities; their physical and mental energies are absorbed entirely in making and selling a new product. But as the organization grows, management problems occur that cannot be handled through informal communication and dedication. Thus the founders find themselves burdened with unwanted management responsibilities and conflicts between the harried leaders grow more intense. It is at this point that the crisis of leadership occurs and the first revolutionary period begins. Who is going to lead the organisation out of confusion and solve the management problems confronting the organisation? The solution is to locate and install a strong manager who is acceptable to the founders and who can pull the organisation together. This leads to the next evolutionary period – growth through direction. During this phase the new manager and key staff take most of the responsibility for instituting direction, while lower level supervisors are treated more as functional specialists than autonomous decision making managers. As lower level managers demand more autonomy, this eventually leads to the next revolutionary period – the crisis of autonomy. The solution to this crisis is usually greater delegation. When an organisation gets to the growth stage of delegation, it usually begins to develop a decentralized organisation structure, which begins to evolve as the top managers “sense that they are losing control over a highly diversified field operation, freedom breeds a parochial attitude. The crisis of control often results in a return to centralization, which is now inappropriate and creates resentment and hostility among those who had been given freedom. A more effective solution tends to initiate the next evolutionary system – the coordination stage. This period is characterized by the use of formal systems for achieving greater coordination with top management as the “watch-dog.” Yet most coordination systems eventually get carried away and result in the next revolutionary period – the crisis of red tape. This crisis most often occurs when the organisation has become too large and complex to be managed through formal programs and rigid systems.
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If the crisis of red tape is to be overcome, the organisation must move to the next evolutionary period – the phase of collaboration. While the coordination phase was managed through formal systems and procedures, the collaboration phase emphasizes greater spontaneity in management action through teams and the skillful confrontation of interpersonal differences. Social control and self-discipline take over from formal control.
Greiner is not certain what the next revolution will be, but he anticipates that it will center around the ‘psychological saturation’ of employees who grow emotionally and physically exhausted by the intensity of teamwork and the heavy pressure for innovative solutions.
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