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12-12-2015 MS 102 1
Unit II (16 Hours)
Change Management

Module Content:
1. Introduction to Organizational Change & its importance.
2. Understanding the Nature, Importance, Forces, Types of Change;
3. Diagnosing Organizational Capability to Change-strategy, Structure, Systems
and People;
4. Personal Imperatives for Change,
5. Building Culture and Climate for Change.
6. Change Imperatives of New Technologies.
7. Role of Leadership;
8. Managing Transformations.

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Change ??? परिव्तन ???

Is it a matter of Life or slow Death


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We believe that :

You cannot change the world but you can change

yourself, and if everyone decides to change
himself / herself in “positive” – the world will
eventually change.

Do you think it is possible to do this bit of change?

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We are all potential Change Agents

One person can change the larger system or

organization in which he or she exists. . . .When we
have successfully experienced a deep change, it
inspires us to encourage others to undergo similar
experience. We are all potential Change Agents. As
we discipline our talents, we deepen our perceptions
about what is possible . . . We must continually
choose between deep change or slow death.

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Realize that Fear of
the unknown is

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What is a Reform?

What is Innovation?

How is a reform different from innovation?

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All these terms are about the process of

improvement. Innovations involve fragment,

cosmetic changes, Reforms are different in scope;

they involve systemic alterations. Change is a

result of the reform or innovation.

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Change is a result of the reform or innovation.

Definitions: 
A Reform is an Action to improve social or economic conditions
without radical or revolutionary change.
An Innovation is the act of starting something for the first time;
introducing something new; a creation resulting from study
and experimentation.
A Change is the act, process, or result of altering or modifying; a
transformation or transition from one state, condition or phase
to another.

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“The illiterate of the 21st century
will not be those who cannot read
or write, but those who cannot
learn, unlearn, and relearn.”
Alvin Toffler
What is he saying to us? We must
learn how to change to increase
our knowledge.
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“It’s not so much that we’re afraid of change, or so in love with

the old ways, but it’s the place in between that we fear… it’s like

being between trapezes. It’s Linus when his blanket is in the dryer.

There’s nothing to hold on to.”

- M. Ferguson

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 Organization is a social system.
 All parts of organization affect all other parts
 Anything happening at one end is transmitted to the other
 Interrelationship between the elements & environment
 Orderly behaviour – equilibrium
 Becomes an established way of life
 Disturbance to this naturally exercises pressure
 Evokes a reaction – acceptance/rejection
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 Alternation which occurs in the overall work environment
of an organization
 ‘Change is the law of nature’
 Nothing is permanent except change
 Change often results from the pressure of forces which are both
outside and inside the organisation;
 The whole organisation tends to be affected by the change in any
part of it; and
 Change takes place in all parts of the organisation, but at varying
rates of speed and degrees of significance.

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Organizational Change

 Change is the single most important factor in
business today:
 every business is an ongoing source of change.
 every professional discipline is a process of change.
 every fundamental business principle directs us to

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Organizational Change

Every market force (customers,
competitors, technology,
regulations, distribution channels,
suppliers, etc.) creates change that
forces our change in response.
Globalization of markets demands
globalization of businesses.
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Organizational Change

 Change with times, or get left behind.
 You will be hired to bring about change; not to just
maintain the status quo.
 You will need to become a change agent.

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Organizational Change

People who drive change are
change agents.
We are all agents of change:
 Change-agent skills are as important to our
success as our professional discipline skills.
 The purpose of our jobs is to change what is
possible, as companies and as individuals, by
adding value every day.
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Organizational Change

Change is everywhere – it’s
Everyone is affected by change.
The pace of change is accelerating.
If the above is true, why do people and organizations
resist change?
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Change In an

 It is in a constant interactional and interdependent
relationship with its environment
 Change in its external environment, such as changes in consumer
tastes and preferences, competition, economic policies of the
Government, etc., make it imperative for an organisation to make
changes in its internal system
 Composed of a number of subsystems which are also in a
dynamic relationship of interaction and interdependence
with one another
 Any change in a subsystem creates a chain of changes
throughout the entire system
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 ‘Organizational change’ implies the creation of imbalances
in the existing pattern of situation
 Operations & Functions for a long time establishes
structural set-up
 Members evolve a tentative set of relations with the
environment, adjustment with job, working conditions,
friends and colleagues etc.
 Change requires individuals to make new adjustments.
Hence the fear of adjustment gives rise to the problem of
change and resistance to change
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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

 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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The Nature of Change

Change in business is not new — it’s just accelerating
due to…
 New technology.
 Global competition.
 Growth & increased complexity.
 The result: Change or die

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What to expect from change

• Sense of loss, confusion.

• Mistrust and a “me” focus.
• 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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Individual prerequisites for change to
Why should I change?
Thinking &
 Emotional/
What’s i it for e?
understanding Motivational

Head Heart



What do I do differently?

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Change management
The Effective Management of Change Involves An

Integrated Approach In Each Of These Three Arenas

Effective Change


Altering Harnessing Shaping

Mind-set Motivation Behavior

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Stages of change
Co i g to Grips ith the Proble

Worki g through the Cha ge

Attai i g a d “ustai i g I pro e e t

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Arenas of
Motivation Behavior

Stages (Thinking/ (Emotional/ (Capability)
of Change Understanding) Intuitive Dynamics)
1. Co i g to
Grips with
the Proble Breaking the Dealing with Changing
Conventional Reactions to Behavior and
Mind-set and Loss and Developing
2. Worki g Generating a Creating the Competency
through the Picture of the Will to and Capability
Cha ge
Future Succeed

3. Attai i g a d
I pro e e t

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