CHANGE MANAGEMENT

LEARNING OUTCOME Types of change Change process Change models Reasons for resistance to change Overcoming resistance to change Implementing change Role of HR in leading and facilitating

change

CHANGE MANGEMENT Definition

Change management is defined as the process of achieving the smooth implementation of change by planning and introducing it systematically, taking into account the possibility of it being resisted or at least misunderstood

(Kotter emphasises on leading change rather than managing change)

TYPES OF CHANGE Transformational change Strategic change Operational change

TRANSFORMATIONAL CHANGE Gamma change

Fundamental

structures, processes & behaviour

Comprehensive

Have dramatic effect on the way the organisation functions

STRATEGIC CHANGE Concerned with

Broad, long term , organisation wide issues Moving to a future state in terms of

strategic vision and Affects the mission, corporate philosophy

Etc Background:

External competitionEconomic/social environemnt Internal resources etc

STRATEGIC CHANGE Implementation

Thorough analysis of factors responsible for change

Planning – Implementation: continual assessment,

repeated choices , multiple adjustments

OPERATIONAL CHANGE New systems, procedures, structures,

technology Immediate effect on the working

arrangement in a part of the organisation Implication: can be more significant on

people than strategic change

THE CHANGE PROCESS Awareness for the need for change Analysis of the situation and factors Diagnosis of their distinctive characters An indication of the direction in which

action is to be taken

THE CHANGE PROCESS - contd Possible course of action identified,

evaluated, and preferred action finalised Decide how to get from here to there

( “as is” to “To be” )Critical phase in change process

New process,system installed Change is embedded and maintained

Hold the gain : continuous monitoring, taking corrective action

ROAD BLOCKS Resistance to change Instability High levels of stress Misdirected energy Conflict Loss of momentum

CHANGE MODELS Explains the mechanism for change and

the factors that affect its success Best known models are by

Lewin-1951Beckhard-1969

Other importantThurley – 1979Bandura – 1986Beer et al - 1990

LEWIN

Unfreezing Changing Refreezin

g

Mechanism for managing change

LEWIN Methodology for analysing change- “

field force analysis”

Analyse the restraining /driving forces which will affect the transition

Assess which of these driving/restraining forces are critical

Take steps- increase the critical driving forces/decrease the critical restraining forces

BECKHARD- 1969 Change program should incorporate the

following processesSet goals & define future state/condition desired after the

change

Diagnose the present condition in relation to these goals

Define the transition state activities/commitment required to meet the future state

Develop strategies/action plan to manage these transition by analysing factors likely to affect change

KEITH THURLEY – 1979 5 approaches for managing change

1. Directive.2. Bargained.3. Hearts and minds.4. Analytical.5. Action based.

BANDURA- 1986 Describes the ways in which people

changePeople makes conscious choice about their

behavior. The information based on which choices are made come from their environment. Choices are based upon the things that are important to them, the belief about their own abilities and the consequences of particular behavior.

To change the peoples behavior , we have to change the environment, convince them new behavior is accomplishable, and it will lead to an outcome that they will value.

BEER, EINSTAT & SPECTOR Six steps for effective change- “ task

alignment”1. Mobilise commitment to change – analysis of

system2. Develop shared vision to organise and manage

to achieve goals3. Foster consensus for the new vision, competence

to enact it, cohesion to move it along4. Spread revitalisation to all department without

pushing from top5. Institutionalise the revitalisation through formal

policies, systems and structures.6. Monitor and adjust strategies in response to

prolems in the revitalization process.

RESISTANCE TO CHANGE Why ? Threat to the familiar pattern of

behavior. Resistance is rational in terms of the

individuals prespective However

Some people welcome change as an opportunity- they can be used to introduce change as change agents

REASONS FOR RESISTING CHANGE The shock of the new Economic fears- job security Inconvenience Uncertainty Symbolic fears Threat to interpersonal relationships Threat to status or skill Competence fears.

OVERCOMING RESISTANCE TO CHANGE Analyze the potential impact of change

– on people Understand the feelings of those

affected- clear the ambiguities Change agents should understand new

ideas are likely to be suspected- make ample provision for discussions

Involve the people in change process to get ownership

Communication strategy to explain the change should be implemented

DIFFICULTIES IN IMPLEMENTING CHANGE Time over run= cost over run Unforeseen problems In effective coordination Management distracted from

implementation bcos of crises / competitiveness

Incapability of employees involved Inadequate training and handholding Uncontrollale external factors

SOLUTIONS Motivate employees to achieve

behavioral change Manage the transition to have proper

control during and after transition by developing and communicating clear image of the future

Shape the political dynamics of change to create power centres that will support the change than block it

Build in stability of structures and processes to serve as anchors for employees to hold on

ROLE OF CHANGE AGENTS People who help to manage change by

providing advice and support on its introduction and management.

“An internal or external individual or team responsible for initiating, sponsoring, managing and implementing a specific change initiative or complete change program.”

Role – to lead change

CHANGE COMPETENCIES Project management Coordinating with clients- defining the

task, establishing relationships Team building Analysis and diagnosis- data collection,

problem solving, system thinking Data utilization- qualitative/

quantitative, paper based review, survey technique

Interpersonal skills- leadership, dealing with people

COMPETENCIES Communication skills- written,

presentation Political awareness- sensitivity Intervention implementation-

participation, involvement Monitoring and evaluation- criteria

setting . Reviewing, measuring effectiveness

Technical skills- financial interpretation Process skills- facilitation Insight- reflection, awareness of key

issues, critical thinking, intuition

ROLE OF HR IN CHANGE Leading change Facilitating change

GUIDELINES FOR CM Strong commitment and visionary

leadership from the top Understanding the culture of the

organisation Temperamental and leadership skills for

those involved in change management develop a conducive working

environment People support what they help to create-

create ownership for change Reward innovation and recognise

success Failures must be expected and learnt

from

GUIDELINES FOR CM Hard evidence and data to support the

need for change Select the champions of change as

change agents In age of global competition,

technological innovation, turbulence, chaos, change is inevitable. The organisation must do all it can do to explain the need for change and its effect on every one. Effort must be made to protect the interest of those affected by change

REFERENCE Armstrongs hand book of management

and leadership- 3 rd edition