1

Management
Management
.

Of
Of Change
Change
 Change Management
2

Session Objectives
 After completion of this session, students will be able to:
 Define what mean by change
 Describe types of change
 Explain purpose of change
 Describe factors that cause change
 Explain Lewin’s three step of change process
 Describe reasons for resistance of change
 Explain technique to overcome resistance during change
 Discuss about stress management during change
 Definition
3

 Manager with leadership character is not about preserving

the status quo, but about creating the highest rate of change
which the organization and its people can sustain.

 Change is the process of alteration or transformation of

individuals, groups, and organization undergo in response to
internal and external factors.
 Four Types Change
4

1. Change by Exception: Change by exception is usually

handled by setting up a project to manage its implementation.
 It has a distinct beginning and end where success can be
relatively measured.

 It will often have little impact on the way the remainder of the
organization works.
 Types of Change…
5

2. Incremental Change: By far the most usual type

of change is that occurs in an evolutionary way, often
without the participants realizing that it has
happened.
 For example, people only occasionally notice that the
trees have grown.
 Types of change…
6

3. Pendulum Change: Pendulum change is often

associated with fashion. In other words, the change swings
from side to side of a spectrum as moods change.
 An obvious example is the fashion for centralization or
decentralization. Another good example is the swings towards
work measurement and performance pay, which was in
fashion in the 1960s.
 Types of change…
7

4. Paradigm shift (Radical change)

By far the most type of change in the present environment is paradigm
shift.
 A paradigm is a way of viewing the world, or the values, which
underpin our viewpoint.
 Many would argue that a paradigm shift is taking place in public
administration at the moment.
 The new public management tends to emphasize keeping
administration lean and purposeful.
 Purpose of change
8

 Organizations must change because their environments change.

 They must continually change and adapt.
 Organizations that do not adapt to change in a timely way are
unlikely to survive.
 To survive and thrive; they must develop new products or services,
expand into new markets, reorganize their structures, introduce
new technology, and change working methods and practices.
 Purpose of change…
9

In general change is needed for the following

purposes:
 To meet changing customer needs.
 To meet changing market conditions.
 To respond to internal pressures.
 To take advantage of new opportunities.
 To respond to competitive pressure.
 To respond to government policy shift.
 Factors that Cause Change
10

 Changes in organization are stimulated by:

i. Internal forces
ii. External forces

i. Internal forces
 Pressures for change may arise from a number of
sources within the organization, particularly from :
 New strategies – Top management decisions.
 Factors that cause change…
11

 Change in internal technologies: would lead to a change in

work routines.
 Introduction of automated equipment to perform tasks that
previously required human labor.
 Innovative suggestions: coming from employees.
 Change in social mix : The entrance of more women and
minorities into the work force.
 Work dissatisfaction: as manifested in high turnover rates or
strikes, may lead to changes in management policies and practices.
 Factors that cause change…
12

ii. External Forces:

 An enormous variety of external forces, such as:

1. Technological Environment – advances in information

and technologies are transforming the modern organization.
 Many major technologies such as computers, robotics,
television, space communications, jet engines, atomic energy,
and genetic engineering are relatively recent development.
 Factors that cause change…
13

 Change in each of these categories occur at breath taking speed

,and companies and organizations desperately try to keep pace.

2. Economic Environment – Economic factors outside an

organization such as inflation or deflation, growth or recession
(decline in economic activity), and full employment or
unemployment all influence how the organization operates.
 Organizational change occurs as managers adapt to
changing economic conditions.
 Factors that cause change…
14

3. Political and legal Environment –These can occur at

every level- global, national, regional, and the local
communities.
 Some of the political and legal conditions that can affect the
proper functioning of business and public sector organizations
include:
 Privatizations.
 Diplomatic problems with foreign governments.
 Change in civil services.
 Other changes in federal and state laws.
 Pressure from civic societies.
 Factors that cause change…
15

4. Social Conditions: Multitudes of social factors can also

entail changes in organizational function.
 These take various forms. For example, organizations are much
more than they used to be about the rights of women, minorities,
and the physically disadvantaged.
 Organizations must respond and adapt to these multiple social
forces if they are to survive and prosper.
 Factors causing change…
16

5 . Competitive environment: Competitive pressures

can also bring about significant changes in organizational
operations.
 Competitive pressure spurs management to adapt or suffer
marketing loses.
 To survive and prosper, an organization must adapt to a new, up-
and coming-competitor, which enters the marketplace or offers
promising new products or services to the society.
 Managing change in organization...
17

Key factors in managing change;

 Change can be planned or unplanned. The latter just
happens in the natural course of events.
 Planned change, on the other hand, is the result of
consciously designed preparation to reach a desired goal of
the organization.
 Managing change in organization…
18

 The key questions to be answered in the process of

change management are:
1. What do we want to achieve?

2. Why are we inducing change?

3. How do we plan to make that happen?

4. What consequences do we anticipate from the change?

 Managing change in organization…
19

An effective management of change involves the

following key factors;
A. Change agents
B. Performance gaps
C. Levels and targets of change
D. Systems approach.
 A. Change Agent
20

 Catalyst for change

 In every situation in which a change is desired, some person or
group must be designated as the catalyst for change. That person or
group is called the change agent.
 The change agent is the individual who is responsible for
taking a leadership role in managing the process of change.
 Managers or Staff at various levels in organizations can serve as
change agents.
 Characteristics of Successful
21
Change Agents
 Consultants brought in from outside can also be change agents.
 Their role is to recognize the need for altering the status quo
and to plan as well as manage the implementation of the
desired changes.

 The change agent must possess certain (distinguished) qualities or

characteristics which identify him/her to be more effective than
others.
 The effective change agent is "an extrovert, has considerable
interpersonal skills, is creative and takes risks, and is good in
organizing activities."
 Characteristics of Successful
22
Change Agents …
 The way the change agent manages the process of change is indicated
by certain factors and characteristics 'HELP SCORES'. These are:

1. Homophily : It is the degree of closeness and similarity between the

change agent and the client.
 The closer the relationship the easier and more successful the change will
be.

2. Empathy : It involves understanding of feelings, emotions and

thoughts.
 This sincere understanding leads to improved communications between
the client and the change agent, which is very helpful in bringing about the
desired change.
 Characteristics of Successful
23
Change Agents…
3. Linkage : It refers to the degree of collaboration
between the change agent and the client. The tighter
the linkage, the more likely the success.

4. Proximity: The client and the change agent should

have easy access to each other.
 The closer the proximity, the better the relationship
between the two and easier to develop the
collaborative linkages.
 Characteristics of Successful
24
Change Agents…
5. Structuring: This factor involves proper and clear planning
of all activities that are related to change.
 If these activities are planned in a clear-cut, step-by-step,
sequential factors then the implementation will be easier.

6. Capacity: This factor refers to the organization's capacity to

provide the resources that are needed for a successful
organizational development effort and implementation.
 These resources must be adequate and available when
needed.
 Characteristics of Successful
25 Change Agents ….
7. Openness: It refers to the conceptual environment or mental
framework, which is conducive to the development of respect and
understanding for each other's ideas, needs and feeling.
 The degree of openness between the change agent and the client
would considerably affect the out come of the program.

8. Reward : All members expect that the change will bring

potential benefits. These rewards should be both in the short run
and in the long run.
 The greater the potential for rewards, the more determined the
effort in making the change.
 Characteristics of Successful
26 Change Agents…
9. Energy : Energy refers to the amount of effort put into the
change process.
 This effort involves both the physical and the psychological
energy.

10. Synergy : Synergy simply means that the whole is greater than
the sum of its parts.
 This simply means that the previous nine factors involving a variety
of people, resources, energies, and activities result in synergy, if
they mutually support success and also if individually they are as
favorable to the program as possible.
 Competence Required by the change agent
27

In three areas;
i. Technical competence : with respect to the substance of
the changes to be implemented.
 For example if the change involves the introduction of a new
computerized management information system, the competence in
the analysis of such systems is important.

ii. Planning and monitoring techniques : Such as

critical path analysis, Program evaluation and review techniques, are
important for an effective sequencing of change processes.
 Monitoring progress should enable plans to be rescheduled and
 Competence Required by the
28 change agent …
iii. Process Competence : Which includes a range
of communication, team building, influencing and
negotiating skills.
 The extent to which each of these three areas needs to be
emphasized will vary with the change situation.
 Frequently technical skills and planning and monitoring
techniques are prioritized to the detriment of process
concerns.
 B. Performance Gaps
29

 Performance gaps is the difference between the

status quo and the desired new standard of
performance or desired organizational state.
 The change agents think in terms of
performance gaps.
 C. Targets of Change
30

Target Example
Individual  Change knowledge, skill, attitude, or behavior
 Fire a person and replace him or her with some one new
Technology  Replace existing technology with a more modern machine or way
of doing work.
Structure  Change from a functional structure to a product division structure
 Add a new department or division, or consolidate the existing ones.

Processes  Change the pay system from hourly wages to salaries.

Culture  Implement a program to encourage valuing quality and
service.
Management  Encourage participation in the diagnosis and solution of
problems by people at lower levels to replace a top
down approach.
 D. Systems Approach
31

 A change in any single target often leads to changes in the

systems.
Example of system approach;
 People had to learn new skills because of the new technology.
 New data processing department has to be introduced into the
structure.
 People through out the organization had to learn a new
vocabulary, over time, jobs will be altered.
 For instance, the need for middle managers will decrease in some
companies.
 Lewin's 3-step Model of the Change
32
Management.
 Sociologist Kurt lewin (1951) envisioned that any
potential change as an interplay of multiple opposing
forces.
 These forces are broadly categorized under two major
fields;
 The driving forces and
 Restraining forces.

 The driving forces are the factors that encourage or

facilitate the change.
 The restraining forces are the factors that obstruct
change.
 Lewin's 3-step Model of the Change
33
Management…
 If these opposing forces are approximately equal, there will be no
movement away from status quo.

 For change to occur the driving forces must be increased and/or

the restraining forces must be reduced.
 This requires thorough understanding and analysis of the forces
likely to resist change as well as those creating the need for
change.

 Lewin called this process "force-field Analysis," He noted that

force-field analysis is an important diagnostic and problem-solving
technique.
 Lewin's 3-step Model of the Change
34
Management …
It involves;

1. Analyzing the restraining forces or driving forces, which will

affect the transition to the future state.
 These restraining forces will include the reactions of those who
see change as unnecessary or constituting a threat.

2. Assessing which of the driving or restraining forces are critical.

3. Taking steps both to increase the critical driving forces and to

decrease the critical restraining forces.
 Three Step Change Process…
35

1. Unfreezing:
 It involves making the need for change so obvious that the
individual, group, or organization can readily see and accept it.
 It is the process of creating a climate ready for change.
 In this stage, the management realizes that the current strategy is
no longer appropriate and the organization must break out of
(unfreeze) its present shape.
 As such, it tries to make other people (employees) realize that
some of the past ways of thinking, feeling, and doing things are
obsolete.
 It convinces individuals and groups that present conditions or
behavior are inappropriate.
 Three Step Change Process…
36

2. Changing : Once the members have been prepared to accept

change, their behavioral patterns have to be redefined.
 There are three methods of reassigning individuals' new patterns of
behavior. These are:
 Compliance. It is achieved by strictly enforcing the reward
and punishment strategy for good or bad behavior.
 The fear of punishment or actual reward seems to change
the behavior for the better.
 Identification. It occurs when the members are
psychologically impressed upon to identify themselves with some
given role models, whose behavior they would like to adopt and try
to become like them.
 Three Step Change Process…
37

 Internalization. Internalization involves some internal

changing of the individual's thought processes in order to adjust to a
new environment.
 Members are left alone and given the freedom to learn and adopt
new behavior in order to succeed in the new set of circumstances.
 As a whole, in this stage, new behavior is developed and change is
effected through a conscious process as individuals seek to resolve
the anxieties that surfaced during unfreezing stage
 Three Step Change Process…
38

3. Refreezing: It means locking the new behavior

pattern into place by means of supporting or reinforcing
mechanisms, so that it becomes the new norm.
 It is the process of institutionalizing the new state of
behavior or work by rewards (Praise, etc).
 Resistance to change and
39 gaining support
 Change is neither always accepted nor always rejected. Some people
desire change and welcome new experiences as a break from
monotony.
 On the other hand, there are many people who resist change for
various reasons.

 Management may recognize the need for change, but most

employees may resist the process.
 No matter what the resistance might arise, the change must occur
continually in order to adjust to dynamic forces that are
continuously at play.
 Resistance to change and gaining support
40

 The society will become stagnant if no changes

took place.
 The reasons for resistance to change must be studied
carefully and thoroughly.
 Therefore, it is important to understand why people
often resist change.
 Reasons for resistance to change
41

 They stipulated four main reasons for resistance to

change:
1. Parochial: self interest
- Threat to core skills and competence.
- Threat to status.
- Threat to power base.
- Low trust of organizational climate.
2. Misunderstanding and lack of trust
- Lack of information.
- Misinformation.
- Low trust of organization climate.
- Poor relationships (quarrelsomeness).
 Reasons for resistance to change…
42

3. Contradictory assessments.
• No perceived benefits.
• An assessment that the proposed change is
wrong/ill thought-out.
4. Low tolerance of change
• Fear of the unknown.
• Fear of failure.
• Fear of looking stupid.
• Reluctance to experiment.
• Custom-bound (inertia-Unwillingness to disturb
status quo).
 Techniques to overcome resistance
43
during changes

1. Education and Communication: Management should

educate employees about upcoming changes before they occur.
 It should communicate not only the nature of the change but
its logic.
 This process can include one-to –one discussions, presentations
to groups (variety of conferences), brochures, or reports and
memos.
 Techniques to overcome resistance
during changes…
44

2. Participation and Involvement: If management

involves those who might resist change with the design and
implementation of the change, resistance may be prevented.
 Considerable research has demonstrated that, in general, when
employees participate in the decision to change, they are
committed to implementing it.
 Therefore, employees should also be involved in the change’s
design and implementation.
 Techniques to overcome resistance
45
during changes …

3. Facilitation and Support : Management should

make the change as easy as possible for employees and be
supportive of their efforts.
 This could be achieved through providing training in new skills,
or giving employees time off after a demanding period of
change, or simply listening and providing emotional support.
 Techniques to overcome resistance
46
during changes …

4. Negotiation and Agreement: When necessary,

management can offer concrete incentives for cooperation with
the change.
 Rewards such as bonuses, wages and salaries, recognition, job
assignments, and advantage can be examined and perhaps
restructured to reinforce the direction of change.

 For example, an employee may receive additional wages for

accepting a new work procedure.
 This is particularly helpful when it is obvious that a person has
something to lose as a result of the change.
 Technique to overcome resistance change …
47

5. Manipulation and co-optation : This process

involves making covert attempts to influence others.
 It can be done through the selective use of information and the
conscious structuring of events.

 One common form of manipulation is co-optation.

 Co-optation involves giving an informal leader (a resisting
individual) a desirable role in the design or implementation of a
potential change.
 As a person becomes involved in the change, he or she may
become less resistant to the actions of the group or
organization.
 Technique to overcome resistance change
48
…
6. Explicit and Implicit Coercion: Some managers
apply punishment to those who resist change.
 With this approach, managers use force to make people comply
with their wishes.
 For instance, a boss may force employees to go along with a change
by threatening them with dismissal, with being passed over for
promotion, with unattractive job assignment, or through other
negative suggestions.
 Stress management during change
49

Manifestation of stress during change.

1. Personal Behaviors
 Shaking, trembling.
 Complaints of headaches and other aches and pains.
 Physical slowing lack of energy, weakness.
 Mental slowing, failing memory and lower mental ability.
 Increased drinking, smoking or other drug use
 Over-eating or loss of appetite.
 Less laugher, fun and joking.
 More anger, irritation, rapid mood swings, etc.
 Stress management during
50
change…
2. Work Manifestations
Deteriorating relationships, arguments, conflicts, etc.
Indecisiveness and unreasonable complaints.
Lowered quantity and quality.
Lowered problem-solving and decision-making.
Increased absenteeism and lateness.
Expressions of dissatisfaction, low moral, etc.
Acts of damage, restrictions of output, etc.
 Factors that exacerbate problems
related to organizational changes
51

 Lacking the knowledge and skills needed to

respond to the new circumstances
 Have inadequate opportunities to talk things with
someone in a supportive atmosphere.
 Not motivated to change, perhaps because they have
a vested interest in the status quo.
 Helping Others Under Stress
52

 Let people know what is going on.

 Listen to them.
 Involve them in the change process.
 Encourage behavior that is directed towards goals
and tackles problems encountered.
 Provide education and training in the areas of stress
management, assertiveness, career planning and
time management.
 Providing proper counseling- helping the victims of
stress to help themselves.
Why Change management
fails ?
 Change management often fails because of;
 Miss starts
 Making change an option
 Focussing only on process
 Focussing only on results
 Not involving stakeholders
 Delegated to outsiders to do
 No change in the reward system
 No follow-through
Questions