The University of the West Indies

Department of Management Studies

Management of Change MS32D Lecturer: Jacqueline Irons The Diagnostic Stage

The Diagnostic Stage

Going to the doctor to determine what is the problem! Process of understanding how the organization is currently functioning Provides information necessary to design change interventions It is a collaborative process involving managers and consultants They collect pertinent data, analyze it Draw conclusions for action planning and interventions Aimed at discovering the causes of specific problems to ensure future development

Determining External Environment Change

Organizations live in an ever-changing environment and their survival depends on their ability to adapt to new demands and opportunities. Organizations are required to change because of a broad variety of different forces. These forces can be analyzed in terms of both internal forces within the organization and external forces in the environment

Individual resistance to change

Fear of the unknown New learning Disruptions of stable friendships Distrust of Management

Organizational resistance to change

Threat to the power structure Inertia of organization structure System relationships Sunk costs and vested interests

Environmental sectors
all organizations interact with their environment. Environment provides necessary resources and consumes products and services

Environmental Change

Why is the change necessary?

What has caused the change? Can the organization do without change?

Environmental Forces causing change

1.
2. 3. 4. 5.

Competition Changes in consumer demands Resource availability Social and political change International changes

Environmental Forces
Environmental change is external to the control of the organization: Competition: -Who is the organizations competition? -What are they doing? -Where is the organization placed? -local and international competition?
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Environmental Forces
Changes in consumer demands: - What is the current consumer trends? - Can the organization accommodate the trends? Resources availability - Can the organization afford to adjust? - What is the cost in dollars and people? - Do we have the skill bank to make the changes? - Are funds available to make the change?

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Environmental Forces
Social and political change - What is the political scene? Is it legitimate? - Do any of these changes (social and political) affect the company? If so to what extent? - Will there be a need to redefine the Company? - What about health, education and ethics in the society?

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Environmental Forces

International changes Impact on organizations goods & services Buy-outs and mergers Redundancies Culture of new company if necessary Technology

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The Internal Environment

People Products & services Finance Facilities Marketing

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People- HR, Admin & Mgt. systems

Tangible Training Programmes Contracts & Commitments Employee grievance procedures Satisfactory salary & benefits

Intangible

Technical expertise Leadership stability (on all levels) Is skilled labour readily available
Emphasis on interpersonal skills Creative input from all employee levels Labour management cooperation

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Products & services

nature of Companys business

Tangible Ready supply of raw material Copyright, patents Quality control progamme Review of competition

Intangible Production flexibility (systems & methods) Strong research and development focus Quality assurance policy Contracts with industry ( networks, allies, friends)

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Finance - financial position, assets & liabilities,

control systems, short & long term needs

Tangible Control systems Budget & update information regularly Adequate capital for short & long term Debt facility available as needed

Intangible

Strong financial controller & Accts. Staff Financial goals explicit & agreed Financial planning & skilled advisors Good relationships with investors & lenders
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Facilities - geographical location, physical plant, What will changes

mean?

Tangible

Intangible

Modern technology: equipment & machinery Adequate space, lighting & cleanliness Janitorial & equipment mtn. arranged. Safety standards met

Efficient use of time and materials Attractive work environment Efficiency & minimum down time Minimum liability and staff sense of security

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Marketing & Sales

- promoting image and position within industry

Tangible Distribution network Publicity programme Geographical location Customer complaints and response programme

Intangible

Reputation for reliability Brand name recognition Access to a range of markets Customer preferences understood

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Internal forces causing change

New technology Changing work values Creation of new knowledge Product obsolescence Desire for leisure and alternative work schedules

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Internal forces

New technology - manual to machinery - machine upgrade more services or production - change or computer technology for increase efficiency. Use of Microsoft office as a base
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Internal forces
Changing work values - 8 hour day, shift system, flexi time Creation of new knowledge - New product information or service - New ways of doing old processes - The asbestos experience- product obsolescence - Products come and go the needs of the consumer

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Internal forces
Product obsolescence - Does there have to be a change in services or products? - Products not selling - market reduction - New discoveries the asbestos experience Desire for leisure and alternative work schedules - Time for family, time for self, week end work etc.

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External forces
Impact extremely difficult to estimate Essential to meeting the change challenge Plans for change may lack vital features for success

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External forces causing change

Government Social values Technology Consumer needs Competition

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External Forces

Government: Political activity legitimate & illegitimate authority Past present and possible future regulations including procedures, taxes and interest rates

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External forces

Social values: Health Education morals Ethics Social class issues

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External forces

Technology: New equipment to cut costs and expand current market Over investment possible improvement needs and long term innovative measures

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External forces

Consumer needs: Who are your customers? What do they want from you? Where are they located? demographic changes e.g. growth of Portmore Customer concerns of your business Current and potential customers
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External forces
Competition - thorough awareness of initiatives and developments in industry - Provides consumers with alternatives - Positive or negative changes. Positive or negative impact

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