implementation of change by planning and introducing it systematically, taking into account the likelihood of it being resisted.
• The circumstances of an ever-changing market
and an ever changing product are capable of breaking any business organization if that organization is unprepared for change.’ Change cannot just be allowed to happen. It needs to be managed. Why Is Organizational Change Difficult? • Human nature’s resistance to change • Organizational inertia • Unanticipated consequences of organizational change initiatives
ANTICIPATORY CHANGE REACTIVE CHANGE Anticipatory change is a little fairly straightforward when more complex and initiates organization experiences a changes in anticipation of drop in performance as a changes in the environment. result of changes in Anticipatory environment. changes is Reactive and anticipatory relatively more risky as the anticipated shifts in the changes are distinguished by environment may not take place the level of uncertainty in an environment. or the environment may shift in Reactive changes are usually the direction different from what the managers anticipated. low on uncertainty, the performance drop is visible Anticipatory changes the cause and the cause is clear and for failure disruption are concrete. uncertain and unclear. Firm that engage in reactive managing anticipatory change is change tend to follow rather vital for an organization survival than lead competition and growth. Two Types of Change on the basis of process
RADICAL CHANGE INCREMENTAL CHANGE • Radical change stands for large Incremental change refers to discontinuous changes small, continuous changes implemented rapidly over introduce over a longer time shorter time frame. frame. • Radical changes tend to replace Incremental changes build existing structures, processes on existing structures and and people with newer one. processes. They also occur infrequently. Change management effort can be mapped into a grid so as to enable us to look at change as an opportunity as well as a challenge. Dimensions of Organizational Change Radical Incremental
15 FOUR APPROACHES TO CHANGE LEADER DRIVEN PROCESS DRIVEN TEAM DRIVEN CHANGE APPROACH APPROACH APPROACH MANAGEMENT APPROACH Who leads the Leader or chief Experts or outside Teams within the Experts (consultant) change effort executive consultants organization and teams
How change •Leader (CEO) •Experts or •Employee teams •Experts/ consultants
communicated •Leader uses consultants recommend recommend changes executed authority and power •Leader support changes with employee inputs. •Experts and •Leader (CEO) •Leader approval consultants execute •Parallel •Parallel organizations change organizations created
assumptions best knows best best with employee inputs knows best When approach •Uneducated work •Uneducated work •Workforce •Workforce educated suitable force force educated and and skilled •Leader has •Experts/ consultants skilled •Business focus knowledge and have specialized •Organization is needed in the change power knowledge large and complex •No single person has •Leader is supportive •No single person all the knowledge. has all the knowledge
16 Kotter’s Eight-Step Model • Kotter’s eight-step model is one of the best known: 1. Establish the need for urgency 2. Ensure there is a powerful change group to guide the change 3. Develop a vision 4. Communicate the vision 5. Empower the staff 6. Ensure there are short-term wins 7. Consolidate gains 8. Embed the change in the culture 8-17 Resistance To Change The main reasons for resisting charge are as follows:
• The shock of the new – people are suspicious of
anything that they perceive will upset their established routines, methods of working or conditions of employment.
• Economic fears – loss of money, threats to job
security. • Inconvenience – the change will make life more difficult. • Uncertainty – change can be worrying because of uncertainty about its likely impact. 8–18 Resistance To Change (Cont’d) • Threat to interpersonal relationships – anything that disrupts the customary social relationships and standards of the group will be resisted.
• Threat to status or skill – the change is perceived as reducing the
status of individuals or as de-skilling them.
• Competence fears – concern about the ability to cope with new
demands or to acquire new skills.
Implementing Change The following guidelines on implementing change were produced by Nadler and Tushman (1980). Guidelines on implementing change, Nadler and Tushman (1980) • Motivate in order to achieve changes in behaviour by individuals.
• Manage the transition by making organizational arrangements
designed to assure that control is maintained during and after the transition and by developing and communicating a clear image of the future.
• Shape the political dynamics of change so that power centres
develop that support the change rather than block it.
•Build in stability of structures and processes to serve as anchors for
people to hold on to – organizations and individuals can only stand so much uncertainty and turbulence, hence the emphasis by Quinn (1980) on the need for an incremental approach. Change Management vs. OD There is a debate between proponents of OD and proponents of change management: ◦ OD is criticized for giving attention only to human development, and not to technology, operations, and strategy ◦ Change management is criticized for having a focus on the concerns of management rather than on those of the organization as a whole being the product of management consultancy firms
8-21 Activity!
• Take one example of any organization that you
think it needs to adopt change. Moreover, how do you recommend the change management and change models for them and how to manage the resistance to such change.
