Change management is a systematic approach to dealing with change at both the organizational and individual level. It involves adapting to change, controlling change, and effecting change. There are different types of change like structural, cost cutting, process, and cultural change. There are also two main theories of change - Theory E which focuses on rapid shareholder value and cost cutting, and Theory O which emphasizes employee participation and building bonds between the enterprise and employees. For change to be successful, an organization needs to be change-ready by having respected leaders, personally motivated employees, and a non-hierarchical collaborative culture. Key steps to managing change include assessing change-readiness, developing participative approaches, giving employees a voice, and driving out fear.
2. What is Change Management?
Change management is a systematic approach to
dealing with change, both from the perspective of an
organization and on the individual level. A somewhat
ambiguous term, change management has at least
three different aspects, including: adapting to change,
controlling change, and effecting change. A proactive
approach to dealing with change is at the core of all
three aspects. For an organization, change
management means defining and implementing
procedures and/or technologies to deal with changes
in the business environment and to profit from
changing opportunities.
3. Types of Change
Structural Change - Treat the Organization as a
set of functional parts-the machinemodel
Cost Cutting - Focus on the elimination of
nonessential activities.
Process Change - Focus on altering how things
get done.
Cultural Change - Focus on the human" side
of the organization.
4. Theories of Change
There are two different approaches to change:
Theory E: An Economic Approach
Change aims for a dramatic and rapid increase in shareholder value .It
relies on cost cutting, downsizing, and asset sales to meet its objectives.
Theory O: An Organizational Capabilities
Approach
Characterized by high levels of employee participation and attempts to built
bonds between the enterprise and its employees.
5. Are You Change Ready?
It means that the people and structure of the
organization are prepared for and capable of
change.
6. An organization is change ready when
three conditions are present:
Leaders are respected and effective.
People feel personally motivated to change.
The organization is non-hierarchical and
people are accustomed to collaborate work.
7. BECOMING CHANGE-READY
To make an organization change ready
following steps should be taken:
Do a unit-by-unit Change-readiness
assessment.
Develop more participative approaches to
how everyday business is handled.
Give people a voice.
Drive out fear.
8. Seven steps to change
Mobilize energy and
commitment through
joint identification of
business problems and
their solutions.
Develop a shared vision
of how to organize and
manage for
competitiveness.
Identify the leadership.
Focus on results and
not on activities.
Start change at the
periphery, then let it
spread to other units
without pushing it from
the top.
Institutionalise success
through formal policies,
systems and structures.
Monitor and adjust
strategies in response
to problems in the
change process
9. Roles For Leaders, Managers & Hr Played
During This Process
LEADERS : leaders create an appealing vision of the future
and then develop a logical strategy for making in a reality.
MANAGERS : Managers on other hand, have job of making
complex tasks run smoothly
10. Role of HR
Helping management
with hiring and
assignment of
consultants.
Reassigning or
outplacing personnel
displayed by change.
Arranging for
employee training
Facilitating meetings
and offsite
conferences.
Helping institutionalize
successful change
through employee
development, rewards
and organizational
design.
11. Relationship of Leadership and
Management
Short-term results are possible,
especially through cost cutting or
mergers and acquisitions. But real
transformation programs have
trouble getting started and major,
long-term change is rarely
achieved.
Transformation efforts can be
successful for a while but often fails
after short-term. Results become
erratic.
All highly successful transformation
efforts combine good leadership
with good management.
Transformation efforts go nowhere.
12. Mistakes to Avoid
Imposing a canned solution.
Driving change from the top.
Putting HR in charge.
Banking on a technical solution.
Trying to change everything at once
13. Steps to implement the change
Enlist the support
and involvement of
key people
Craft an
implementation
plan
Support the plan
with Consistent
Behaviours and
messages
Develop Enabling
Structures
Celebrate
Milestones
Communicate
Relentlessly
Using Consultants
14. Social and Human Factors
Reactions to Change
Change is complicated by the fact that organizations are social systems
whose participants have identities, relationships, communities, routines,
emotions and differentiated powers.
Thus managers must be alert to how a change will conflict with existing
social systems and individual routines
The three identity categories that employees fall into are:
The Rank
and File.
Change
Resisters.
Change
Agents.
15. The Rank & File
Discovery Learning, Inc. of Greensboro, North Carolina, has developed a
helpful methodology for measuring an individual's disposition to change,
indicating where that person is likely to fall on a preferred style continuum.
In this model there are three types of people:
Conservers
People who prefer
current
circumstances over
the unknown
people who are
more comfortable
with gradual
change than with
anything radical
Originators
People who prefer
more rapid and
radical change.
Originators are
representative of
the reengineering
approach to
change.
Pragmatists
People who
support change
when it clearly
addresses current
challenges. They
are less wedded to
the existing
structure than to
the structures that
are likely to be
successful.
16. The Resisters
Resistors actively attempt to undermine efforts.
The first thing is to identify potential resistors by
determining where and how change will create pain or
loss in the organization.
Once the potential resistors are identified the next step
is to neutralize their resistance and make them active
participants in adapting change.
This include explaining the urgent need to
change, describing how change will produce
benefits for them and finding new ways in which
they can contribute.
People who do not respond to such efforts should be
outplace or removed from the unit
17. Change Agents
Change agents are the figures with one foot in the old world and the
other in new---Creators of a bridge across which others can travel.
They help other to see what the problems are and convince them to
grapple with them. They play a critical role, as they:
Articulate the need for change.
Are accepted by others as trustworthy and competent.
See and diagnose problems from the perspective of their audience.
Motivate people to change.
Work through others in translating intent into action.
Stabilize the adoption of innovation.
Foster self-renewing behavior in others so that they can go out of the business as
change agents.
18. Helping people adapt
Reactions to change: A sense of loss and
anxiety
The Conventional Advice
What Individuals Can Do for Themselves
Overcome Powerlessness
Inventory the Gains and Losses
Re-anchor
19. Stages in reaction to change
Shock Defensive retreat
Acknowledgement
Acceptance and
adaption
20. CONTINOUS INCREMENTAL CHANGE
If change programmes are eventually followed by
periods of organizational complacency and stasis
the alternative situation is one in which the
organization and its people continually sense and
respond to external environment .
Change is ongoing and takes place through many
small steps that is through continuous incremental
change
21. ADVANTAGES OF CONTINUOUS INCREMENTAL
CHANGE
Small changes are easier to manage
Small changes enjoy greater probability of success
than big ones
Disruption is short-term and confined to small units
at any given time.
The org and its people are kept in a constant state of
competitiveness and change readiness.
22. IMPLEMENTING CONTINUOUS CHANGE
Make your organization change ready
Conduct continuous external monitoring
Conduct continuous internal monitoring
Provide meaningful anchors
23. Addressing behaviors
Identify training needs & communicate upwards.
Create goals to work toward: a vision of success.
Help people create specific, concrete behavior-change plans
as needed.
Communicate in multiple forms.