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1. Change Management
Presented by: -
Ankur Kejriwal
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2. What is “Change Management”?
Change management is an important aspect of management that tries to ensure that a
business responds to the environment in which it operates.
There are four key features of change management:
• Change is the result of dissatisfaction with present strategies
• It is essential to develop a vision for a better alternative
• Management have to develop strategies to implement change
• There will be resistance to change
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3. Forces for Change
Internal forces for change
1. A general sense that the business could “do better”
2. Desire to increase profitability
3. Reorganization to increase efficiency
4. Natural ageing and decline in a business (e.g. machinery, products)
5. Conflict between departments
6. The need for greater flexibility in organizational structures
7. Concerns about ineffective communication, de-motivation or poor business
relationships
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4. External forces for change
1. Increased demands for higher quality and levels of customer service
2. Uncertain economic conditions
3. Greater competition
4. Higher cost of inputs
5. Legislation & taxes
6. Political interests
7. Ethics & social values
8. Technological change
9. Globalization
10. Scarcity of natural resources
11. Changing nature and composition of the workforce
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5. Resistance to Change
Despite the potential positive outcomes, change is nearly always resisted. A degree of
resistance is normal since change is:
• Disruptive, and
• Stressful
Management trying to implement change will often come across other people in the
business responding with phrases such as:
“My needs are already being met”
“We don’t need to do this”
“This sounds like bad news”
“The risks outweigh the benefits”
“What does this mean for me?”
Of course a degree of scepticism can be healthy especially where there are weaknesses
in the proposed changes. However resistance will also impede the achievement of
business objectives.
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6. Some common reasons why change is resisted
include:
1. Habit Habit provides both comfort and security
Habits are often well-established and difficult to change
2. Misunderstanding Communications problems
Inadequate information
3. Low tolerance of change Sense of insecurity
4. Different assessment of Disagreement over the need for change
the situation Disagreement over the advantages and disadvantages
5. Economic implications Employees are likely to resist change which is perceived as
affecting their pay or other rewards
Established patterns of working and reward create a vested
interest in maintaining the status quo
6. Fear of the unknown Proposed changes which confront people tend to generate
fear and anxiety
Introducing new technology or working practices creates
uncertainty
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7. We have touched earlier on personal barriers to change – there are also several
organizational barriers to change, including:
•Structural inertia
•Existing power structures
•Resistance from work groups
•Failure of previous change initiatives
Change is also resisted because of the poor way in which change is managed!
For example, a failure by management responsible for the change to:
•Explain the need for change
•Provide information
•Consult, negotiate and offer support and training
•Involve people in the process
•Build trust and sense of security
•Build employee relations
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8. Overcoming Resistance to Change
• Involve interested parties in the planning of change by asking them for suggestions and
incorporating their ideas.
• Clearly define the need for the change by communicating the strategic decision personally
and in written form.
• Address the "people needs" of those involved. Disrupt only what needs to be changed. Help
people retain friendships, comfortable settings and group norms wherever possible.
• Design flexibility into change by phasing it in wherever possible. This will allow people to
complete current efforts and assimilate new behaviours along the way.
• Be open and honest.
• Focus continually on the positive aspects of the change. Be specific where you can.
• Do not leave openings for people to return to the status quo. If you and your organization
are not ready to commit yourselves to the change, don't announce the strategy.
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9. Approaches to Managing Organizational
Change
• From several approaches of organizational change, two most
important are as under :
1. Lewin’s Three-Step Model
2. Kotter’s Eight-Step Plan
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10. Lewin’s Three-Step Model
Refreezin
Unfreezing Moving g
Change involves a sequence of organizational processes that occurs over time. Lewin
(1951) suggests this process typically requires three steps: unfreezing, moving, and
refreezing
Unfreezing: This step usually means reducing the forces acting to keep the
organization in its current condition. Unfreezing might be accomplished by
introducing new information that points out inadequacies in the current state or by
decreasing the strength of current values, attitudes, and behaviors. Crises often
stimulate unfreezing. Examples of crises are demographic shifts in population, a
sudden increase in employee turnover, a costly lawsuit, and an unexpected strike.
Unfreezing may occur without crises as well. Climate surveys, financial data, and
enrollment projections can be used to determine problem areas in an organization
and initiate change to alleviate problems before crises erupt.
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11. Cont…
Moving: Once the organization is unfrozen, it can be changed by moving. This step
usually involves the development of new values, attitudes, and behaviors through
internalization, identification, or change in structure. Some changes may be minor
and involve a few members—such as changes in recruitment and selection
procedures—and others may be major, involving many participants. Examples of
the latter include a new evaluation system, restructuring of jobs and duties
performed by staff, or restructuring a department or entire organization, which
necessitates relocating staff to different sites within the organization.
Refreezing: The final step in the change process involves stabilizing the change at a
new quasi-stationary equilibrium, which is called refreezing. Changes in
organizational culture, changes in staff norms, changes in organization policy, or
modifications in organizational structure often accomplish this.
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12. Kotter’s Eight-Step Plan
1. Establish a sense of urgency : Unfreeze the organization by creating a
compelling reason forwhy change is needed.
2. Create the guiding coalition: Create a cross-functional, cross-level group of
people with enough power to lead the change.
3. Develop a vision and strategy: Create a vision and strategic plan to guide the
change process.
4. Communicate the change vision: Create and implement a communication
strategy that consistently communicates the new vision and strategic plan.
5. Empower broad-based action: Eliminate barriers to change, and use target
elements of change to transform the organization. Encourage risk taking and creative
problem solving.
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13. Cont…
6. Generate short-term wins: Plan for and create short-term “wins” or
improvements. Recognize and reward people who contribute to the wins.
7. Consolidate gains and produce more change: The guiding coalition uses credibility
from short-term wins to create more change. Additional people are brought into the
change process as change cascades throughout the
organization. Attempts are made to reinvigorate the change process.
8. Anchor new approaches in the culture: Reinforce the changes by highlighting
connections between new behaviors and processes and organizational success.
Develop methods to ensure leadership development and succession.
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14. Thank you
“Change is the only
constant in life!”
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