Management - Change Lecture Notes

Change Management
Organizational change is both the process in

which an organization changes its structure,
strategies, operational methods, technologies,
or organizational culture to affect change
within the organization and the effects of
these changes on the organization.
Organizational change can be continuous or
occur for distinct periods of time.
Forces for Change

Nature of the Workforce
Greater diversity
Technology
Faster, cheaper, more mobile
computers and handheld devices
Economic Shocks
Debt meltdown
Competition
Global marketplace
Social Trends
Environmental awareness and liberalization
of attitudes towards gay, lesbian and transgender employees
World Politics
Opening of markets of China
17-3
Planned Change
Change
Making things different
Planned Change
An intentional, goal-oriented activity
Goals of planned change
Improving the ability of the organization to adapt to changes
in its environment
Changing employee behavior
Change Agents
Persons who act as catalysts and assume the responsibility
for managing change activities
17-4
LEVELS OF CHANGE
(a) Individual Level Change
Job assignment, physical Move, Change in maturity of a
person
Not significant on organisation, but significant on group
b) Group Level Changes

Major effect because organizational activities are done in
groups like departments or informal groups
affect workflows, job design, social organisation, influence
and status systems, and communication patterns.
Managers must consider group factors
(c) Organization Level Changes

involves major programs that affect both individuals and
groups
Decisions regarding these changes are generally made by
senior management and are seldom implemented by only a
single manager
TYPES OF CHANGE
a) Strategic Change
Change in the mission (when acquired)
b) Structural Change
Decentralization
c) Process-oriented Change
In manufacturing operations
d) People-oriented Change
Self actualization (Motivation, Loyalty, Training,
Relationships)
Resistance to Change
Resistance to change appears to be a natural and
positive reaction to change.
Forms of Resistance to Change:
Overt and Immediate
Voicing complaints, engaging in job actions
Implicit and Deferred

Loss of employee loyalty and motivation, increased errors or
mistakes, increased absenteeism
Deferred resistance clouds the link between source and
reaction
17-7
Sources of Resistance to Change
17-8
Tactics for Overcoming Resistance to

Change
Education and Communication
Show those effected the logic behind the change
Participation
Participation in the decision process lessens resistance
Building Support and Commitment

Counseling, therapy, or new-skills training
Implementing Change Fairly

Be consistent and procedurally fair
Manipulation and Cooptation

Spinning the message to gain cooperation
Selecting people who accept change

Hire people who enjoy change in the first place
Coercion
Direct threats and force
17-9
The Politics of Change

Impetus for change is likely to come from
external change agents, new employees, or
managers outside the main power structure.
Internal change agents are most threatened
by their loss of status in the organization.
Long-time power holders tend to implement
incremental but not radical change.
The outcomes of power struggles in the

organization will determine the speed and
quality of change.
17-10
Lewins Three-Step Change Model

Unfreezing
Change efforts to overcome the pressures of both
individual resistance and group conformity by increasing
the driving force and decreasing the restraining force
Moving
Moving from the status quo to the desired end state
Refreezing
Stabilizing a change intervention by balancing driving and
restraining forces
Unfreeze
Move
17-11
Refreeze
Lewin: Unfreezing the Status Quo

Driving Forces
Forces that direct behavior away from the status
quo
Restraining Forces
Forces that hinder movement from the existing
equilibrium
17-12
Kotters Eight-Step Plan

A detailed approach to implementing change that
is built on Lewins three-step model
To implement change:
1.
2.
3.
4.
5.
6.
7.
8.
Unfreezing
Establish a sense of urgency

Form a coalition
Create a new vision
Communicate the vision
Empower others by removing barriers
Create and reward short-term wins
Consolidate, reassess, and adjust
Reinforce the changes
17-13
Movement
Refreezing

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Change Management

Organizational change is both the process in

Forces for Change

Opening of markets of China

b) Group Level Changes

(c) Organization Level Changes

Implicit and Deferred

Sources of Resistance to Change

Tactics for Overcoming Resistance to

Building Support and Commitment

Implementing Change Fairly

Manipulation and Cooptation

Selecting people who accept change

The Politics of Change

The outcomes of power struggles in the

Lewins Three-Step Change Model

Lewin: Unfreezing the Status Quo

Kotters Eight-Step Plan

Establish a sense of urgency

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