Change Management

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MANAGEMENT OF CHANGE

Meaning
Organizational Change refers to processes of growth, transformation, decline within organization. Organizations that have learnt how to manage change effectively have succeeded

Forces for Change: Environmental Forces


Put pressure on how a firm conducts its business and its relationships with customers, suppliers, and employees. Environmental forces include:
Technology Market forces Political and regulatory forces Social trends
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Forces for Change: Internal Forces


Come from decisions made within the company. May originate with top executives and managers and travel in a top-down direction. May originate with front-line employees or labor unions and travel in a bottom-up direction.

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Types of Change
Continuous or incremental change Discontinuous or radical change Participative Change Directive Change

Process of Change
Lewins Three-Step Model of Organizational Change

Unfreezing

Change

Refreezing

7- Step Approach
1) 2) 3) 4) 5) Assemble a change management team Establish a new Direction for the organization Prepare organization for change Set-up Change teams to implement change Align structure, systems and resources to support change 6) Identify & remove roadblocks to change 7) Absorb changes into the culture of the organization.

Resistance to Change
Self Interest Traditions Lack of Trust and Understanding Uncertainty

LEVERS FOR CHANGE


1) 2) 3) 4) 5) 6) 7) 8) Leadership Marketing Technology Costs Quality Strategy Structure Managing People

Change as growth
Emphasize on how to stimulate and sustain growth. Leadership and strategy stimulate growth and people and structure sustain growth. Growth can be stimulated by Technological developments Innovation Joint ventures

Change as Transformation
It is difficult to induce change when organization is neither stagnant nor declining Leaders diffuse dissatisfaction to induce change Organizational audit of performance, policies, practices is conducted in order to find out what needs to be changed.

Change as Turnaround
Turnaround is required when there is Decrease in profit or budget Environment decline Organizational decline Steps to be taken to bring in change1) 2) 3) 4) Evaluation Emergency Action Stabilization Return to normal growth

Value based change


At the core of change process lies Leadership . Leadership based on values can only bring in sustained and positive change in the organization. Changes based on values such as selflessness, compassion, tolerance and respect can bring efficiency, responsiveness and learning in the organization.

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