CHANGE

Management
Types of change:
■ Happened change
■ Reactive change
■ Anticipatory change
■ Planned change
■ Incremental change
■ Operational changes
■ Directional change
■ Fundamental Change
■ Total Change
External forces influencing change:
■ Political Forces
■ Economic Forces
■ Government Impact : Deregulation, foreign exchange
fluctuations, protectionism
■ Global competitiveness
■ Changing customer needs and preferences
Internal forces influencing change:
■ System Dynamics
■ Inadequacy of administrative policies
■ Individual/group speculations
■ Structure focussed change: Decentralization, job redesign,
downsizing
■ Technological changes
■ Persons focussed change
■ Profitability issues
■ Resource constraints
Planned internal change:
■ Changes in products and services
■ Changes in administrative systems
■ Change in organizational size and structure
Planned external change
■ Introduction of new technologies
■ Advances in information processing and communication
Unplanned internal changes
■ Changing employee demographic
■ Performance Gaps

Unplanned external changes

■ Government Regulation
■ Economic Competition
Characteristics of a good change program:
John Kotter’s 8 steps to transforming your
organization:

1. Establishing a sense of urgency

2. Forming a powerful coalition
3. Creating a vision
4. Communicating a vision
5. Empowering others to act on the vision
6. Planning for and creating short term wins
7. Consolidating improvements and producing more change
8. Institutionalizing new approaches
Kurt Lewin: Force Field Model
Model of perpetual transition management:
Skills to Manage Change:
1. Preparing to manage change
 The skills of tracking environmental, social, political, economic, technological, and
industrial forces for change
 The skills of conceptualizing external changes and detecting meaningful patterns

2. Articulating choices
 The skills of predicting the likely flow of changes and detecting both opportunities and
threats—scenarios of what might happen
 The skills of exploring possible future strategies
3. Visioning the future
 The skills of auditing one’s own organization in order to determine current
strengths and weaknesses
 The skills of developing a vision of the future that provides a template to effect
the transformation of the organization

4. Implementing change programs

 The skills of planning effective change programs
 The skills of leading and implementing change programs
Change programs :
Change programs need to be coordinated toward:
■ Understanding the potential sources of competitive advantage.
■ Identifying what value the firm provides at the present time.
■ Identifying the potential added value that the firm could provide.
■ Understanding the real drivers of costs within the firm.
■ Developing a coherent competitive strategy.
■ Communicating the elements of the competitive strategy to all concerned.
■ Nourishing the change processes necessary to refine and implement the chosen
competitive strategy.
■ Continuously questioning and redeveloping the strategic intent of the firm within a
context of environmental change.
Scope of Change:
1. The individual level—adopting the attitudes and acquiring the skills to manage
continuous personal development
2. The team level—developing a close, energetic, effective, and supportive team
capable of managing cooperation toward collective objectives
3. The inter-team level—building effective linkages between different departments,
groups, and functions
4. The strategy formation level—ensuring continuous analysis of the organization with
appropriate processes for developing sustainable competitive strategies
5. The structural level—developing the organization’s structure to fulfill the identified
strategy at minimum cost
6. The cultural level—developing the values and attitudes of the organization to instill
pride in performance
7. The stakeholders’ level—identifying all those who have an interest in the
organization and building bridges with each stakeholder
 Management Control Mechanisms:

A. Personal power—direct control by one person

B. Job specification—control by job structuring
C. Defined skills—control by training
D. Defined outputs—control by measurement of results
E. Ideology/vision—control by inspiration
F. Teamwork—control by peer pressure
G. Policies—control by generalized rules
Points to be considered while implementing change:

■ Predominant control styles used

■ Why these styles are employed
■ Degree of appropriateness
■ Different Views -------- Why These Occurred?
■ What needs to change in the style of control
■ What is the organizations strategy going to be?
■ Forms of control needed for implementation
■ Actions needed to install the needed controls
An Individual’s perception of control:
A. Personal power:
A high score indicates an organization that is directly controlled by one individual. Formal
systems are weak. This is often found in small organizations or organizations in crisis.
B. Job specification:
A high score indicates an organization that is controlled through a tight definition of the
behavior that is expected from each employee. Formal systems are strong. This is often
found in large organizations that perform routine tasks.
C. Defined skills:
A high score indicates an organization that is controlled by values, methods, and skills
implanted in employees through extensive education and training. Formal systems set the
boundaries within which employees operate. This is often found in professional
organizations.
D. Defined outputs:
A high score indicates an organization that is controlled by a process of management by
objectives. Formal systems specify results to be achieved. This is often found in
organizations where employees have considerable discretion about how they work.
E. Ideology/vision:
A high score indicates an organization that is controlled by communication of strategic intent
and organizational culture. Formal systems ensure that communication takes place. This is
often found in organizations based on a strong set of values.
F. Teamwork:
A high score indicates an organization that is controlled by peer pressure—employees take
their definition of what is right or wrong from discussion with other members of their team.
Formal systems are sometimes ignored. This is often found in organizations that require
employees to work in teams and where there is a high degree of interdependence between
employees.
G. Policies:
A high score indicates an organization that is controlled by policies, general rules, and
principles that have been formally published on the authority of senior management. Exact
details of desired behavior are excluded. This is often found in organizations where
employees have a degree of discretion about how they act in the fact of complex
circumstances.