Sub: Principles of Management

CHAPTER 8
MANAGING CHANGE

Lecturer: Mr. Ali Mohamed Alim (Ali Yare)

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Chapter 8
MANAGING CHANGE

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Chapter outline

 Causes of Organizational Change

 Types of Organizational Change
 Challenges of Organizational Change
 Diagnosing the Need for Change
 Steps in Planned Change
 Opposition to Organizational Changes
©2020, Mr. Ali Mohamed Alim (Ali Yare)
 Introduction
This is a time of unprecedented
(extraordinary )change in our society. The
changes one experiences are happening at
faster and faster rates (angry). As
examples, the telephone, radio, TV, and
microwave weren’t even in use decades
ago, and today these device are
commonplace, along with the computer,
Internet, and fax machine.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

Continue…
In just a few months, the technology
that an organization uses on an
everyday basis may be outdated and
replaced. That means an organization
needs to be responsive to advances in
the technological environment; its
employees’ work skills must evolve as
technology evolves.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Causes of Organizational Change
Every organization goes through periods of
transformation that can cause stress and uncertainty.
To be successful, organizations must embrace (hold)
many types of change. Businesses must develop
improved production technologies, create new
products desired in the marketplace, implement new
administrative systems, and upgrade employees’
skills. Organizations that adapt successfully are both
profitable and admired.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Causes of Organizational
Change cont…..
Managers must compete with all factors that affect their
organizations. The following lists internal and external
environmental factors that can encourage organizational
changes:
The external environment is affected by
political, social, technological, and economic stimuli
outside of the organization that cause changes.
The internal environment is affected by the
organization’s management policies and styles, systems,
and procedures, as well as employee attitude.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Causes of Organizational Change
cont…..
Typically, the concept of organizational change is
used to describe organization-wide change, as
opposed to smaller changes such as adding a new
person, modifying a program, and so on. Examples of
organization-wide change might include a change in
mission, restructuring operations (for example,
restructuring to self-managed teams or due to
layoffs), new technologies, mergers (amalgamation),
or new programs such as Total Quality Management,
re-engineering, and so on.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Types of Organizational Change
For organizations, the last decade has been fraught
with restructurings, process enhancements,
mergers, acquisitions, and layoffs—all in hopes of
achieving revenue growth and increased profitability.
While the external environment (competitive,
regulatory, and so on) will continue to play a role in
an organization’s ability to deliver goods & services,
the internal environment within the organization
will increasingly inhibit it from delivering products
required to meet the demands of the marketplace
unless it is able to adapt quickly.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Types of Organizational
Change cont….
The major areas of changes in a company’s internal
environment include:
1. Strategic: Sometimes in the course of normal
business operation it is necessary for management to
adjust the firm’s strategy to achieve the goals of the
company, or even to change the mission statement of
the organization in response to demands of the
external environments.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Types of Organizational Change
cont….
2. Structural: Organizations often find it necessary
to redesign the structure of the company due to
influences from the external environment. Structural
changes involve the hierarchy of authority, goals,
structural characteristics, administrative procedures,
and management systems. Almost all change in how
an organization is managed falls under the category
of structural change.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Types of Organizational Change
cont….
3. Process-oriented: Organizations may need to
reengineer processes to achieve optimum
workflow and productivity. Process-oriented
change is often related to an organization’s
production process or how the organization
assembles products or delivers services. The
adoption of robotics in a manufacturing plant or of
laser-scanning checkout systems at supermarkets
are examples of process-oriented changes.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Types of Organizational Change
cont….
4. People-centered: This type of change alters
the attitudes, behaviors, skills, or performance of
employees in the company. Changing people-
centered processes involves communicating,
motivating, leading, and interacting within groups.
This focus may entail changing how problems are
solved, the way employees learn new skills, and
even the very nature of how employees perceive
themselves, their jobs and the organization.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Types of Organizational Change
cont….
Remember that strategic, structural,
process-oriented, and people-centered
changes occur continuously in dynamic
businesses. Often, changes in one
of these areas impact changes in the other
areas.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Challenges of Organizational
Change
Planning and managing change, both cultural and
technological, is one of the most challenging
elements of a manager’s job.
Obviously, the more a manager can plan in
anticipation of a change, the better she serves her
subordinates and the organization.
Diagnosing the causes of change and structuring a
program to promote a smooth transition to the
new process, structure, and so on, is critical to a
manager’s success.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Challenges of Organizational
Change cont…
Managers need to be aware that organizations
change in a number of dimensions that often
relate to one another. These dimensions
include
degree of planning: Although experts differ
about how much change can be planned,
managers still need to take steps to set up
conditions that permit and even encourage
change to occur.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Challenges of Organizational
Change cont…
Degree of change: Changes may be incremental
(relatively small, involving fine-tuning processes
and behaviors within just one system or level of
the organization) or quantum (significant change
altering how a company operates).
Degree of learning: This dimension relates to
the degree to which organizational members are
actively involved in learning how to plan and
implement change while helping solve an existing
problem (see Chapter 12)

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Challenges of Organizational
Change cont…
Target of change: Organizational change
programs can vary with respect to the
hierarchical level or functional area of which
the change is targeted. Some changes are
designed to influence top management and
assist them in becoming stronger leaders.
Other change programs may involve basic
learning, such as customer services
techniques for lower level employees.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Challenges of Organizational
Change cont…
Organization’s structure: Is it very stiff
(rigid ) and bureaucratic? Is there a need for
emphasis on policies, procedures, and rules?
Some organizations are very stiff and
bureaucratic and may need to “loosen up.”
Other organizations may suffer from lack of
organization structure. They may need to
emphasize policies, procedures, and rules.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Diagnosing the Need for
Change
To plan change, managers must predict and
diagnose the need for change.
An organizational development theory developed
by Larry E. Greiner is helpful in change
management. Greiner’s model shows an
organization as it evolves through the five stages
of growth, and the end of each of these stages is
marked by a crisis that calls for a change.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Diagnosing the Need for Change Continue

The five stages of growth are as follows:

1. Creativity. The founders of the organization dominate
this stage, and the emphasis is on creating both a product
and a market. But as the organization grows, management
problems occur that cannot be handled through informal
communication.
2. Direction. During this period, a strong manager, who is
acceptable to the founder and who can pull the
organization together, is appointed. During this phase the
new manager and key staff take most of the responsibility
for instituting (foundation) direction, while lower level
supervisors are treated more as functional specialists than
autonomous decision-making managers.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Diagnosing the Need for Change continue

3. Delegation. This stage often poses problems for top

managers who have been successful at being directive:
They may find giving up responsibility difficult. Moreover,
lower level managers generally are not familiar to making
decisions for themselves.
4. Control. This stage is characterized by the use of
formal systems for achieving greater coordination, with top
management as the watchdog.
5. Collaboration. The last of Greiner’s phases emphasizes
greater spontaneity (naturalness) in management action
through teams and the skillful confrontation (argument ) of
interpersonal differences. Social control and self-discipline
take over from formal action.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Steps in Planned Change
Once managers and an organization commit
to planned change, they need to create a
logical step-by step approach in order to
accomplish the objectives. Planned change
requires managers to follow an eight-step
process for successful implementations,
which is illustrated in Figure 8-1.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

Figure 8-1

©2020, Mr. Ali Mohamed Alim (Ali Yare)

Steps in Planned Change Continue
1. Recognize the need for change. Recognition of the
need for change may occur at the top management level
or in peripheral parts of the organization. The change may
be due to either internal or external forces.
2. Develop the goals of the change. Remember that
before any action is taken, it is necessary to determine
why the change is necessary. Both problems and
opportunities must be evaluated.
3. Select a change agent. The change agent is the
person who takes leadership responsibility to implement
planned change.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Steps in Planned Change
Continue
4. Diagnose the current climate. In this step,
the change agent sets about gathering data about
the climate of the organization in order to help
employees prepare for change.
5. Select an implementation method. This step
requires a decision on the best way to bring about
the change.
6. Develop a plan. This step involves actually
putting together the plan, or the “what” information.
This phase also determines the when, where, and
how of the plan.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

Steps in Planned Change Continue
7. Implement the plan. After all the questions
have been answered, the plan is put into
operation. Once a change has begun, initial
anticipation can scatter (scatter ) in the face of
everyday problems.
8. Follow the plan and evaluate it. During
this step, managers must compare the actual
results to the goals established in Step 4. It is
important to determine whether the goals were
met, and a complete follow-up and evaluation of
the results aids this determination.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

Opposition to Organizational Changes
A manager designs his or her change effort, and then
faces the toughest (difficulty) step: the inevitable
opposition. History shows that workers have resisted
some of the best-laid plans. A few may openly fight it.
Many more may ignore or try to damage a manager’s
plan.
Here are some of the most common reasons
employees resist change:
■ Uncertainty and insecurity
■ Reaction against the way change is presented
■ Threats to vested interests
■ lack of trust
■ Perceptual differences and lack of understanding

©2020, Mr. Ali Mohamed Alim (Ali Yare)

Steps for overcoming opposition
To implement planned change effectively,
managers must understand how to overcome
resistance to change, why change efforts fail, and
what techniques they can use to modify behavior.
Managers can use two approaches to change
attitudes and behaviors at the individual level: the
three-step approach and force-field analysis.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

Steps for overcoming opposition
The process of change has been characterized as
having three basic stages: unfreezing, changing, and
refreezing.
Unfreezing. This step involves developing an initial
awareness of the need for change and the forces
supporting and resisting change.
This approach includes the use of one-on-one
discussions, presentations to groups, memos, reports,
company news letters, training programs, and
demonstrations to educate employees
about an coming up change and help them see the
logic of the decision.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

Steps for overcoming opposition

Changing. This step focuses on learning new

behaviors. Change results from individuals being
uncomfortable with the identified negative
behaviors and being presented with new
behaviors, role models, and support. In this
phase, something new takes place in a
system, and change is actually implemented.
This is the point at which managers initiate
change in such organizational targets of tasks,
people, culture, technology, and structure.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

 Steps for overcoming opposition
Refreezing is the final stage. Refreezing centers
on reinforcing new behaviors, usually by positive
results, feelings of accomplishment, or rewards.
After management has implemented changes in
organizational goals, products, processes,
structures, or people, they cannot sit back and
expect the change to be maintained over time.
Behaviors that are positively reinforced tend to be
repeated.

©2020, Mr. Ali Mohamed Alim (Ali Yare)

Force-field analysis
One of the earliest and most fundamental
models of change, the Force-Field
Analytic Problem-Solving Model, was
developed by behavioral scientist Kurt
Lewin in the 1940s. Since that time, this
model has been widely used as a
technique for encouraging groups of
people to tackle organizational issues
that previously seemed too complex or
too deeply rooted to approach.
©2020, Mr. Ali Mohamed Alim (Ali Yare)
THE END

©2020, Mr. Ali Mohamed Alim (Ali Yare)

Questions and Comments

©2020, Mr. Ali Mohamed Alim (Ali Yare)