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Change Management

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G.SHUBHAKAR/GHRM-UNITI/IIISEM/JNTU/2011-13

Some Thoughts About Change


Things do not change; we change. Henry David Thoreau We must be the change we wish to see in the world. Gandhi

There is a better way for everything. Find it!. Thomas Edison


Everyone thinks of changing the world, but no-one thinks of changing himself.Leo Tolstoy We do not succeed in changing things according to our desire, but gradually our desire changes. Proust And if not nowwhen? Talmud Treat people as if they were what they ought to be and you help them to become what they are capable of being. Goethe
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The Imperative(Vital, Essential) of Change


Expect nothing; be prepared for anything Samurai saying

At this time there are six major external changes which influence organisations:
1. A bigger global market-place made smaller by technology and competition from abroad.

2. A worldwide recognition of the environment as an influencing variable.

3.

Health consciousness as a permanent trend amongst all age groups throughout the developed world.

4. The demographic slump in the developed world means there are fewer young people to go round.

5. The changing workplace and skills shortages create a need for nontraditional employees.
6. Women in work and management is an ever increasing trend.
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The Major Causes of Change


Think of changes that have occurred in your working life. How often were the following causes of change involved in some way?

Changes in the level of technology used?


Changes in customer expectations or tastes? Changes as a result of competitors activities? Changes as a result of Government legislation?

Changes as a result of alterations in the economy?


The Result: You will change. There is no alternative. The organisation and employees can either be reactive or pro-active.

Those that survive will be world class.

The quality of people and their management is going to make a bigger difference than the quality
of products or the quality of services Rosabeth Moss Kanter
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Examples of Environmental Influences


Economic Factors and Restructuring Capital Markets Labor Market

e.g. re-united Germany 1990s

e.g. corporate losses

e.g. drive to reduce costs, higher skills Labor Policy & Industrial Relations The Enterprise Environm ental Sensing R & D Policy Ecology

Competition e.g. increase in tendering organic and acquisitive

Economic Forecasting
Demographic s e.g. ageing population

Financial Policy

Marketing Policy Lobbying


Government e.g. national and trans-national budgets, interest rates, employment law

The Enterprise Environmen tal Sensing R & D Policy Technology e.g. reduces product life cycle, investment costs increase

Forecasting

Represe ntation

Purchasing Policy
Supplies e.g. raw materials scarcity, supply and demand
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Socio-Cultural e.g. quality of life, health, mobility


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e.g. environmental laws and protection

G.SHUBHAKAR/GHRM-UNITI/IIISEM/JNTU/2011-13

A FRAMEWORK FOR MANAGING STRATEGIC CHANGE


Effective change management is a continuous process of confrontation, identification, evaluation and action James McCalman & Robert Paton
Understanding processes of strategic change

Diagnosing strategic change needs

Managing the strategic change process

Styles of managing change

Changing organizational routines

Symbolic activity

Political activity

Leadership and change agency G.SHUBHAKAR/GHRM-UNITI/IIISEM/JNTU/2011-13

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Organisational Resistance to Change

It is widely assumed that resistance to change is a common and natural phenomenon A Huczynski

The strategic direction of an organisation builds up a MOMENTUM of its


own which may be reinforced by ongoing success

The CULTURE of the organisation is likely to support this momentum of strategy. These two factors when linked may result in ORGANISATIONAL INERTIA when it comes to change

Faced with change there may be POLITICAL resistance within and around the
organisation

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G.SHUBHAKAR/GHRM-UNITI/IIISEM/JNTU/2011-13

Change Management
Concepts

G.SHUBHAKAR/GHRM-UNIT-I/IIISEM/JNTU/2011-13

10/8/2012

CHANGE

DEFINITION
A move from one state to another, which is visible on the outside and of a relatively lasting nature Any relatively lasting modification within a sub-system of an organization, provided that the modification is visible to its members or the people involved with the system

PROCESS Unfreezing Changing Refreezing

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Phases of change
ACT 1:
Corporate dynamics Need for transformation Perceived need (pressure) Resistance No hasty decisions

UNFREEZING
Individual dynamics Turning over a new leaf Cutting ties with the past Disidentifying with the past Tackling disenchantment

ACT 2:
Corporate dynamics A motivating vision More questions than answers Securing commitment

CHANGING
Individual dynamics Trial and error Process of "death and rebirth" Awarenesss of past and of fresh start

ACT 3:
Corporate dynamics Social structures Creative destruction Rebuilding the social fabric Mobilizing people
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REFREEZING
Individual dynamics Making a fresh start Putting things in order internally New rules New energy

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THE DYNAMICS OF CHANGE

Pressures Calling into question

Involvement Integration

Informing

Recognizing

The unknown Insecurity Listening


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Experimentation Supporting Giving feedback


(point of inflexion)
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RESISTANCE

SIGNIFICANCE DEFINITION Implicit or explicit expression of defensive reactions to the change Resistance contains information; The intensity of the resistance reveals: The degree of openness to change Where the person is sensitive Systemic factors or neglected impacts

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SOURCES OF RESISTANCE TO CHANGE


Connected with personality:
Habits Fear of the unknown Preference for stability Selective perception Fulfilment of needs Identification with the existing situation

Connected with the way change is brought in:


Respect for people and skills Time and resources provided for adapting Credibility of the change agent

Connected with the social system:


Conformity with the norm Coherence of the system Established interests and rights Sacrosanct nature of certain things Rejection of the unfamiliar

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ROLE OF MANAGEMENT
-Planning the change project -Sharing the vision and purpose of the project -Communicating urgency -Highlighting the benefits for those concerned -Acknowledging and celebrating success -Consolidating gains -Keeping the end result in sight -Balance between demands and support

1
-Listening to resistance -Understanding resistance -Fine-tuning, aligning and adjusting where necessary -Acting promptly -Giving people responsibility -Involving people as quickly as possible

4
-Being a reference point -Training, assisting, providing support -Allowing people to make mistakes -Planning quick victories

3
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PREPARATIONS FOR CHANGE

DEFINITION
A conscious effort to change a situation considered to be unsatisfactory, by a series of actions chosen and orchestrated via systematic analysis of the situation
G.SHUBHAKAR/GHRM-UNIT10/8/2012 I/IIISEM/JNTU/2011-13

PROCEDURE
Diagnosis Action planning Implementation Evaluation of results

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MANAGING CHANGE
Post implementation

Successful change

Implementation

Concepts & Design

Business needs For project

Awareness
Phases of change

Desire
For employees

Knowledge

Ability

Reinforcement

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4 WAYS OF CHANGING

RESTRUCTURING
Make it different

RESOURCING
benchmarking continuous improvement

TYPES OF CHANGE

REALIGNING
Control/accountability

REDEPLOYING
new client offer

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ROLES
SPONSOR CHANGE AGENT MANAGEMENT CONSULTANT TARGET AUDIENCE

G.SHUBHAKAR/GHRM-UNIT-I/IIISEM/JNTU/2011-13

KEY CONCEPTS
Nature
Reorganization Renewal Realignment redeployment

Guidance
content(subject matter expertise) process

Process
Current situation Desired situation Steps for planning and implementing

Phases
Reactions Management role

Roles
Sponsor Change agent Target audience Consultant Management

Management
The technical part The human side

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KEY QUESTIONS
What is the unsatisfactory situation that needs changing? Who considers it unsatisfactory? What are the undesirable effects of the situation? What situation is wanted? Who would benefit from it and how? What kind of resistance might there be? What does the resistance mean? If we were in the position of those affected by the change, how would we react? How far might the resistance hamper the execution of the project? What is the best approach to adopt?
G.SHUBHAKAR/GHRM-UNIT-I/IIISEM/JNTU/2011-13

THE MECHANICS OF CHANGE

Unsatisfactory situation Analysis of factors Desired situation Targets of change Planning the change Managing the transition

Resistance

Strategies

Monitoring and regulation Execution

Objectives Players Plan of action

Criteria for evaluation


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Evaluation of results

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USEFUL PRINCIPLES
Change occurs only when each person involved decides to make the change People are afraid of change that "comes out of the blue" Conventional systems treat people like children and expect them to act like adults Truth is more important than good news during a process of change If the project aims are clear, people can identify the best way to obtain results The more information people have on changes that will affect their work, the more they will feel responsible for the results Finally, if you wish to change individuals, start by changing the system
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DO NOT FORGET

WHY MEANINGFUL WHAT WHATS IN IT FOR THEM HOW

G.SHUBHAKAR/GHRM-UNIT-I/IIISEM/JNTU/2011-13

A CHANGE PROCESS

The context of change: determining factors


Complexity of the change Legitimacy (authority) of the change

Change process
Inertia within the organization Availability of resources Outside pressures

Senior management

Support from interested groups

Framework

Champions

Change teams

Plan

Scnario Scenario

Targets

Persons affected

Regeneration
Integration Training Awareness Orientation

Pace

G.SHUBHAKAR/GHRM-UNITThe conditions to be created within the organization: desired effects 10/8/2012 - 24 I/IIISEM/JNTU/2011-13

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