Introduction and

concepts of change,

Nature, Forces and

Types of Change

Change

• To transform or convert

• ‘Change is the law of nature’

• Nothing is permanent except change

• Make or become different.

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Organizational change

• Organizational change is about reviewing and

modifying management structures and business

processes.

• Organizational change is both the process in which

an organization changes its structure, strategies,

operational methods, technologies, or organizational

culture to affect change within the organization and

the effects of these changes on the organization.

• Organizational change can be continuous or occur

for distinct periods of time.

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Organizational change

• Organizational change: the process by which

organizations move from their present state to some

desired future state to increase their effectiveness

• Goal is to find improved ways of using resources

and capabilities in order to increase an

organization’s ability to create value

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Management of Change is Defined as…

• A conscious and concerted initiative by those who are in-charge of the destiny of the business undertaking or firm

– to keep a constant and intelligent watch over the behaviour of uncontrollable forces,

– to assess their impact and influence of the controllable forces, and

– to evolve appropriate strategies and action programmes to maintain a dynamic equilibrium between the controllable and uncontrollable forces.

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Change Management

• There are many different types of change and

different approaches to managing change.

• Finding an approach that suits you and your

situation goes to the heart of being an effective and

professional manager.

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Lets take a look back in time

Age of Discontinuity

• 1968

• Peter Drucker

• Described the way change

forces disruptions in our

routine life.

Future Shock

• 1970

• Alvin Toffler

• Accelerating speed of

change and how it is

affecting technology and

culture.

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Lets take a look back in time

Strategic Windows

• 1978

• Derek Abell

• Importance of Entry and

Exit of a given strategy

Beings of Habit

• 1983

• Noel Tichy

• We all have habit and we

tend t repeat the same no

matter what ever changes

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Lets take a look back in time

Nothing fails like success

• 1990

• R. Pascale

• Business needs to

continuously invent

something new to be

successful. Hence changes

are inevitable

Occurrence Evaluation

• 1991

• Peter Schwartz

• Strategic Planning cannot

be done in advance. We

tend to change or act based

on situations.

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Lets take a look back in time

Strategic Anticipations

• 1996

• Slywotzky

• We can predict the future by

evaluating the current

situations and can change

our self based on that

Disruptive Technology

• 1997

• Christensen

• People tend to adopt

change when they adopt

disruptive technology and

try to adopt a technology

which makes their life

simple.

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Lets take a look back in time

Strategic Decay

• 2000

• Gary Hamel

• No matter how brilliant the

idea is it is old after some

time

Complexity Theory

• Present

• Some Business Planners

• Multiple agents interact

together.

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Why Change

• It is not the strongest who have survived, nor

the most intelligent, It was those who were

most responsive to Change

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Why Change

• Development of new product

• Entry of new competition

• Change in consumer taste and preference

• Shifting in socio- political, environment and cultural

framework

• Advancement in technology

• New emergent Market

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Change

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Dissatisfaction

Vision

First Action

Resistance

Prerequisites for Change

• Vision: Develop, articulate and communicate a

shared vision of the desired change

• Need: A compelling need has been developed and is

shared

• Means: The practical means to achieve vision:

planned, developed and implemented

• Rewards: Aligned to encourage appropriate

behaviour compatible with vision and change

• Feedback: Given Frequently

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An Effective Change Sponsor Must Have

• Power: to legitimize change

• Pain: Personal Stake

• Vision: Total in-depth view

• Public/Private Role: Commitment and ability to

support change publicly/ meet privately with agents

• Performance Management: Ability to

reward/confront

• Sacrifice: Pursue change despite personal price

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What Effective Change Leaders Do

• Embrace change when it’s needed

• Develop a vision for change

• Communicate effectively

• Shake things up by challenging status quo and

encouraging others to do the same

• Stay Actively Involved by walking the walk and being

visible about it.

• Direct, Review Implementation of change -

continued participation - never done attitude.

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Roles: The Change Players

• Sponsors: Senior management leaders - the driving

force of change.

• Advocates: Allies of leaders, deploy the vision -

communicate - involve - sell - motivate

• Agents: Influence sponsors’ commitment, target

resistance, measure readiness, assess existing

people/structures

• Targets: Everyone in organization - develop, train,

reinforce, support

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What to expect from change

• Sense of loss, confusion.

• Fear of letting go of that which led to success in the

past.

• People hold onto & value the past.

• High uncertainty, low stability, high emotional stress

• Perceived high levels of inconsistency.

• High energy — often undirected.

• Control becomes a major issue.

• Conflict increases — especially between groups.

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Conditions That Facilitate Organizational

Change

• A dramatic crisis

• Leadership turnover

• Stage of life-cycle

• Age of the organization

• Size of organization

• Strength of current culture

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Forces of Change

• Controllable forces are those forces about which

sufficient information is available. Such forces can

be managed easily

• Uncontrollable forces are those about which not

much is known.

• These forces exert a powerful influence on the

behaviour of controllable forces and limit the scope

of managerial action.

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External & Internal forces

• External Forces

– Macro environment (PEST factors)

– Micro Environment (Consumers, Suppliers, Stake

Holders)

– Opportunities & Threats (SWOT)

• Internal Forces

– Internal Environment (Men, Money, Machinery,

Materials, Minutes)

– Strengths & Weaknesses (SWOT)

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Forces of Change

• Nature of the workforce

• Technology

• Economic shocks

• Competition

• Social Trends

• World Politics

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External Forces

• Competition Laws and regulations

• New technologies

• Labor market shifts

• Business cycles

• Social change

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Internal Forces

• Strategy modifications

• New equipment

• New processes

• Workforce composition

• Job restructuring

• Compensation and benefits

• Labor surpluses and shortages

• Employee attitude

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Shift of Trends

FROM

• Industrial Era

• National Economy

• Technology Development

• Stability and Predictability

• Long Term

• Centralised

• Hierarchical

• Emphasis on Continuity

TO

• Information Era

• Global Economy

• Technology Sophistication

• Sudden Change

• Short Term

• Decentralisation

• Networked

• Emphasis on Change

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Types of Organisational Change

• Structural:

• Organizations often find it necessary to redesign the

structure of the company due to influences from the

external environment.

• Structural changes involve the hierarchy of authority,

goals, structural characteristics, administrative

procedures, and management systems.

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Types of Organisational Change

• Process‐oriented:

• Organizations may need to reengineer processes to

achieve optimum workflow and productivity.

• Process‐oriented change is often related to an

organization's production process or how the

organization assembles products or delivers

services.

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Types of Organisational Change

• People centric:

• This type of change alters the attitudes, behaviours,

skills, or performance of employees in the company.

• Changing people centric processes involves

communicating, motivating, leading, and interacting

within groups.

• This focus may entail changing how problems are

solved, the way employees learn new skills, and

even the very nature of how employees perceive

themselves, their jobs, and the organization.

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Types…………

• Organization-wide Versus Subsystem Change

• Transformational Versus Incremental Change

• Remedial Versus Developmental Change

• Unplanned Versus Planned Change

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Types of Change

• Happened Change

• Reactive Change

• Anticipatory Change

• Planned Change

• Incremental Change

• Operational Change

• Strategic Change

• Directional Change

• Fundamental Change

• Total Change

• Transformational Change

• Revolutionary Change

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Levels of change

• Individual Level Change– Job assignment, physical Move, Change in maturity of a person

– Not significant on organisation, but significant on group

• Group Level Changes– Major effect because organizational activities are done in

groups like departments or informal groups

– affect workflows, job design, social organisation, influence and status systems, and communication patterns.

– Managers must consider group factors

• Organization Level Changes– involves major programs that affect both individuals and groups

– Decisions regarding these changes are generally made by senior management and are seldom implemented by only a single manager

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Targets of change

• Human resources

• Functional resources

• Technological capabilities

• Organizational capabilities

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Targets of Change

• Human Resource changes include:

– Investment in training and development

– Socializing employees into the organizational

culture

– Changing organizational norms and values to

motivate a multicultural and diverse workforce

– Promotion and reward systems

– Changing the composition of the top-

management team

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Targets of Change

• Functional Resources changes Include:

– Transferring resources to the functions where the

most value can be created in response to

environmental change

– An organization can improve the value that its

functions create by changing its structure, culture,

and technology

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Targets of Change

• Technological capabilities changes include:

– Efforts intended to give an organization the

capacity to change itself in order to exploit market

opportunities

– Adoption and use of new technologies

– Development of new products/ technologies and

the changing of existing one’s

– Technological capabilities are a core competence

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Targets of Change

• Organizational capabilities changes include:

– Changing organizational design

– Culture and structure

– Changing strategy

– Changes that permeate entire organization

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Model for Planned Organizational Change

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