Management - change lecture notes

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    Change Management

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    Organizational changeis both the process in

    which an organization changes its structure,

    strategies, operational methods, technologies,

    or organizational culture to affect change

    within the organization andthe effects of

    these changes on the organization.

    Organizational change can be continuous oroccur for distinct periods of time.

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    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

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    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 changesin its environment

    Changing employee behavior Change Agents

    Persons who act as catalysts and assume the responsibilityfor managing change activities

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    LEVELS OF CHANGE

    (a) Individual Level Change

    Job assignment, physical Move, Change in maturity of aperson

    Not significant on organisation, but significant on group

    b) Group Level Changes

    Major effect because organizational activities are done ingroups like departments or informal groups

    affect workflows, job design, social organisation, influenceand 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 bysenior management and are seldom implemented by only a

    single manager

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    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 Selfactualization (Motivation, Loyalty, Training,

    Relationships)

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    Resistance to Change

    Resistance to change appears to be a natural andpositive 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 ormistakes, increased absenteeism

    Deferred resistance clouds the link between source andreaction

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    Sources of Resistance to Change

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    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

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    The Politics of Change

    Impetus for change is likely to come fromexternal change agents, new employees, ormanagers outside the main power structure.

    Internal change agents are most threatenedby their loss of status in the organization.

    Long-time power holders tend to implementincremental but not radical change.

    The outcomes of power struggles in theorganization will determine the speed andquality of change.

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    Lewins Three-Step Change Model

    Unfreezing

    Change efforts to overcome the pressures of bothindividual resistance and group conformity by increasingthe 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

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    Unfreeze Move Refreeze

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    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

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    Kotters Eight-Step Plan

    A detailed approach to implementing change thatis built on Lewins three-step model

    To implement change:1. Establish a sense of urgency

    2. Form a coalition

    3. Create a new vision

    4. Communicate the vision

    5. Empower others by removing barriers

    6. Create and reward short-term wins

    7. Consolidate, reassess, and adjust

    8. Reinforce the changes

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    Unfreezing

    Movement

    Refreezing