What is Change????

We can say that change means the alteration of status quo or making things different The term change refers to any alteration which occurs in the overall work environment of an organization.

Organizational Change
Organizational change occurs when business strategies or major sections of an organization are altered. It is defined as a change that has significant effects on the way work is performed in an organization. Organizational change may be apparent when there is a gap between how the work area is operating and how it should be operating to ensure successful future growth. Organizational change may be a result of the work area identifying goals that they want to achieve

Forces for change

Every organization goes through periods of transformation that can cause stress and uncertainty. To be successful, organizations must embrace many types of change. Businesses must develop improved production technologies, create new products desired in the marketplace, implement new administrative systems, and upgrade employees' skills. Organizations that adapt successfully are both profitable and admired.

Forces for change

Managers must contend with all factors that affect their organizations. The following lists internal and external environmental factors that can encourage organizational changes: The external environment is affected by political, social, technological, and economic stimuli outside of the organization that cause changes. The internal environment is affected by the organization's management policies and styles, systems, and procedures, as well as employee attitudes.

Forces for change

Typically, the concept of organizational change is used to describe organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, and so on. Examples of organizationwide change might include a change in mission, restructuring operations (for example, restructuring to self-managed teams or due to layoffs), new technologies, mergers, or new programs such as Total Quality Management, re-engineering, and so on. Managers should note that all changes should be implemented as part of a strategy to accomplish an overall goal; these transformations should not take place just for the sake of change.

Organizational Change: Process

Problem Recognition

Identify the causes of problem

Implementing the change

Generating motivation for change

Managing the transition state Supporting the Change

Evaluating the Change

Problem Recognition

Problem Recognition:- Mgmt acknowledges that the problem exists in the organization. Data Gathering Processes: highlights the problem in organization. Affects the productivity and make the management aware about the problem. Example:- Employee turnover, absenteeism, Union disputes, Employee Grievances Gap Analysis helps to identify the problem Gap between current stage and desired stage.

Identify the causes of problem

Identify

the root causes of problem If profitability decline is identify Ex:- Decline in employee productivity, increase in production of scrap in manufacturing stages, reduction of order from customer. Manager should go and talk to employee. Questionnaire can ne very effective tools for locating the causes of organization

Identify the causes of problem

After

holding the discussion with employee about the causes of problem and analyzing the feedback gathered through questionnaire. The mgmt must then design a change plan to improve the situation and solve the problem In order to convince the employee to participate in change process, Mgmt should have the clear vision of outcome of plan and how it would benefit organization and its employee.

Implementing the change

To

make the change plan succeed only If:If employees are motivated to participate in change process. If concerns of various employee groups are addressed. The reinforcement of change continues even after the change process has formally ended

Generating motivation for change

Most

of the change programs fails because they do not involved employee in the change process
The

success of change program depends on management ability and motivated employee to participate in change process

Managing the transition state

Employees get confused about the existing system to new system. They do not know there roles? What skill are required to perform their new roles? Whom they should report? What is the new performance criteria & so on? So company should convey the change program to all employee at every level.

Supporting the Change

To

implement change successfully management must obtain support & cooperation of various employee groups. This can be achieve through negotiation , cooperation and compromise. Give employees a role play

Evaluating the Change

Check

whether new system has been able to solve the problem, identified in old system.

Types of Changes
Planned change:- When organization initiate change activities deliberately and consciously in order to accomplish certain organizational goals, it is known as planned change or managed change. Unplanned Change:- The change that occur in organization suddenly without any significant effort or involvement on the part of the employees or management are called unplanned change

Types of Changes
Incremental change:- When the new state of things have the same basic nature as the old state of things, except for some moderate adjustments as the existing structure of the organization , the change is known as incremental change. Fundamental Change:-When the new state of things have a completely different nature from the old state of things, the change is known as fundamental or second order change.

LEWINs three- step model

Kurt

Lewin (founder of modern social psychology) He suggested that organization should use three steps to introduce permanent change. Unfreeze:- Employee are educated about the external and internal factors that make change imperative. Sometimes people are consistent or content with existing system, work environment, organization rules and procedures and unwilling to change. So such people should be told about the benefits that change can bring the level of satisfaction increases and level of satisfaction decreases with existing condition

Movement to change:- After resisting employees are convinces or prepared for change , the actual change process begin. This involve doing away old practices and adopting the new methods Ex:- Advanced equipment are installed. Refreeze:- After change implemented it is to be assimilated in organization process. These three steps involve reinforcing change so that org. does not revert to old state of things. Ex:- Change process involves acquiring new skill and behavior then they Should to do the role play before returning to their jobs.

Skills of Change Agents

The change agents are these factors which are responsible for bringing about the change in the individual behavior pattern. This is the most important type of change since other types of change such as strategy , structure or process can always be introduced by management and most often changes are accepted by the workers also because behavior is highly complex phenomenon and may require a number of strategies to make desirable changes in such human behavior. So change agent may either be initiator of change or serve as catalysts for such change.

Skills of Change Agents

The way the change agent manages the process of change is indicated by certain factors and characteristic which have been identified by Havelock and Shaskin. The first letters of these factors together spell HELPSCORES. Homophily It is the degree of closeness and similarity between the change agent and the client. The closer the relationship , the easier and more successful the change Empathy:- It involve the understanding of feeling and emotions and thoughts This sincere understanding leads to improves communication between the client and the change which helps in bringing the desired change.

Skills of Change Agents

Linkage:- It refers to the degree of collaboration between the change agent and the client. The tighter the linkage , the more likely is the success. Proximity:- The change agent and the client should have easy access to each other.

Skills of Change Agents

Structuring :- This factor involves proper and clear planning of all activities that are related to change , so that implement should be easier. Capacity:- This factor refers to the organization s capacity to provide the resources that are needed for successful organization development effort and implementation. These resources must be adequate and available when needed.

Skills of Change Agents

Openness:- The degree of openness between change agent and client would considerably affect the outcome of the program. Reward:- All members expect that the change will bring potential benefits. It should be both in short run and in long run.

Skills of Change Agents

Energy:- It refers to the amount of effort put into the change process. This effort evolves both physical and psychological energy. Synergy:- Synergy simply means that the whole is more than sum of its parts. This means that the previous nine factors involving a variety of people, resources, energies, and activities together result in synergy.

Resistance to Change

Change is a continuous ad natural process It is necessary thing for the survival and growth of business enterprise. It is necessary for enterprise to forecast change to take advantages of opportunities. Yet people Resist to change

Resistance to Change

It must be an objective for management To study the causes and sources of resistance to change. To overcome this resistance. To build in his own organization an awareness of change To develop an ability to forecast change To form an attitude to welcome it

Resistance to Change

Why do people resist to change?????

Change of any type requires a readjustment while it is not simple; possible and favorable to all.

Why do people resist to change?????

Some of the important reason why to people resist change in organization are classified into two broad categories they are:-

Individual source of resistance Organization resistance

Individual source of resistance

Selective Information Processing Individual form their own perceptions about people and the world around them and like to stick to these perceptions. They do no like to receive any information that contradicts their perceptions They hear only that information that they want to and ignore the rest that contradicts their perceptual world.

Fear of unknown

People associate change with uncertainty. They are anxious about their ability to adapt to the requirement of new system For example: Computer replaced manual system.

Economic Factors

Employees resist to change if it is likely to decrease their income or sources of earnings. For example :- Job redesigning

Security

People are generally concerned about their security and resist any change that threatens their safety and security. For example:- Introduction of new machinery in organization that are likely to replace the manual labor.

Habit

When the change is implemented , it may require employees to for go or change some of their habits, which they resist to change.

Social factors

People resist change when they anticipate that the change might affect their status in the society adversely For example :- Job redesigning

Peer pressure.

Often, we utilize some kind of informal punishment for colleagues who supports change which others not support. This can affect on appearing and increasing resistance to change;

Organization resistance

Organizational politics. Some resist change as a political strategy to prove that the decision is wrong. They may also resist to show that the person leading the change is not up to the task. They are committed to seeing the change effort fail.

Climate of mistrust.

Meaningful organizational change does not occur in a climate of mistrust. Trust, involves faith in the intentions and behavior of others. Mutual mistrust will doom an otherwise wellconceived change initiative to failure.

Non-reinforcing reward systems.

There is a common business saying that managers get what they reward. Organizational stakeholders will resist change when they do not see any rewards. When working with managers, I will ask them, Where is the reward to employees for implementing your change? Without a reward, there is no motivation to support the change over the long term. This often means that organizational reward systems must be altered to support the change that management wants to implement. The change does not have to always be major or costly.

Limited focus on change

An organization consists of many subsystems that are interrelated and interdependent . Due to this interdependency of subsystems, change in one subsystem will affect the other subsystems as well.

Group Inertia

Sometimes group norms may prevent an individual from adopting change. For Example:- An individual may favor a proposal of change from management but the may not accept it if the union is not in favor in which he is a member.

Threat to Expertise

The expertise of specialized group may be threatened by changes in organization pattern. For example:- A general manager may prefer to make crucial decisions himself rather than delegating them to his subordinates due to fear of decentralization.

Threat to Established power Relationships

When organization initiates a redistribution of decision making authority , by removing the additional layers in the hierarchy and implementing participative decision making, it is usually resisted by middle level manager and supervisors. This is because , such a change takes away the power and authority which they enjoyed in bureaucratic system

Overcoming Resistance to change

Participation of Employees. Planning for change Protection of their Interests Negotiation Group Dynamics Cautions and Slow Introduction

Overcoming Resistance to change

Positive motivation Sharing the benefits of change Change should be Timely Taking union leaders into Confidence

Models of Change

Change models , framework and processes help people and organization to diagnose situations and then make change happen. These are the models for Change:Lewins Three Step change Model Edgar Huses seven stages Model of of Change John P Kotter's 'eight steps to successful change'

Edgar Huses seven stages Model of of Change

1.In 1980, Edgar Huse proposed a seven-stage OD model based upon the original three-stage model of Lewin 2.Scouting - Where representatives from the organization meet with the OD consultant to identify and discuss the need for change. The change agent and client jointly explore issues to elicit the problems in need of attention. 3.Entry - This stage involves the development of, and mutual agreement

Edgar Huses seven stages Model of of Change

4.Diagnosis - Here, the consultant diagnoses the underlying organizational problems based upon their previous knowledge and training. This stage involves the identification of specific improvement goals and a planned intervention strategy. 5. Planning - A detailed series of intervention techniques and actions are brought together into a timetable or project plan for the change process.

Edgar Huses seven stages Model of Change

6. Action - The intervention is carried out according to the agreed plans. Previously established action steps are implemented. 7. Stabilization & Evaluation - The stage of 'refreezing' the system. Newly implemented codes of action, practices and systems are absorbed into everyday routines. Evaluation is conducted to determine the success of the change process and any need for further action is established

John P Kotter's 'eight steps to successful change

Kotter's eight step change model can be summarized as 1. Step 1: Create Urgency - inspire people to move, make objectives real and relevant. Step 2 Build the guiding team - get the right people in place with the right emotional commitment, and the right mix of skills and levels.

John P Kotter's 'eight steps to successful change

3.Get the vision right - get the team to establish a simple vision and strategy, focus on emotional and creative aspects 4.Communicate for buy-in - Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs. De-clutter communications - make technology work for you rather than against.

John P Kotter's 'eight steps to successful change

5.Empower action - Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognize progress and achievements. 6.Create short-term wins - Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress.

John P Kotter's 'eight steps to successful change

Create short-term targets not just one longterm goal. You want each smaller target to be achievable, with little room for failure. Your change team may have to work very hard to come up with these targets, but each "win" that you produce can further motivate the entire staff.

John P Kotter's 'eight steps to successful change

7.Don't let up - Foster and encourage determination and persistence ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones. 8. Make change stick - Reinforce the value of successful change via recruitment, promotion, new change leaders. Weave change into culture.

John P Kotter's 'eight steps to successful change

Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture. It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started.