Chapter Three: Overview
of Change Management
Introduction:
·
Change is
inevitable and continuous in organizations.
·
Proper change
management is the responsibility of the management.
·
Proactive
adaptation to changes is essential for stability and improvement.
Meaning and Implications of Change:
Ø Change refers to alterations in the overall work
environment of an organization.
Ø It encompasses alterations in technology, structure,
processes, environment, policies, and roles.
Ø Perception plays a significant role in people's
acceptance or resistance to change.
Ø If the change is beneficial, people accept it
willingly. If it is not desirable, there is great resistance. If it is of no
consequence to the people, they may adopt an attitude of indifference.
Ø Change should be strong enough to overcome
resistance and achieve equilibrium.
Ø Continuous change is necessary due to technological
advancements and evolving social environments.
The Need for Change:
Ø Institutional theorists focus on explaining
stability but face challenges due to rapid environmental changes.
Ø Rapid environmental changes requires fundamental
transformations or change of the organizations overall work environment.
Ø Organizational change involves not just structural
but cognitive leadership reorientation.
Ø Identifying and analyzing the need for change is a
crucial initial step.
Ø Change presents opportunities and threats and
requires leadership adaptation.
Ø Comprehensive analysis of internal and external
environments is necessary before implementing change.
Forces for Organizational Change
A. External
Forces:
Ø Organization interacts with and depends on the
external environment.
Ø Changes in the external environment necessitate
internal change in an organization.
Ø External forces include changes in consumer
preferences, market competition, suppliers, and stakeholders.
Ø General environmental factors like political, legal,
economic, socio-cultural, and technological forces influence the organization.
Ø For example, government policy changes or shifts in
societal needs can impact the organization.
B.
Internal
Forces:
Ø Once the organization adapts to external changes,
internal systems must be addressed.
Ø Managers take steps to align internal systems with
external changes.
Ø Internal forces include process
changes, modifying human behavior, training and development, and
adopting new policies.
Ø Changes may be driven by customers, shareholders, board of
directors, and employees.
Ø Internal changes should align with external factors
and not be arbitrary.
|
External
Forces: |
Internal
Forces: |
|
- Competition Laws and regulations |
- Strategy modifications |
|
- Social change |
- New equipment |
|
- New technologies |
- New processes |
|
- Labor market shifts |
- Workforce composition |
|
- Business cycles |
- Job restructuring |
|
|
- Compensation and benefits |
|
|
- Labor surpluses and shortages |
|
|
- Employee attitudes |
The process of organizational change
A. Unfreezing:
Ø This stage involves creating awareness and
motivation for change among individuals.
Ø Employees need to understand the need for change in
advance and be prepared for it.
Ø Unfreezing involves breaking the existing patterns
and creating a readiness for change.
Ø Communication, meetings, and promotion of the change
idea throughout the organization are important in this stage.
B. Changing:
Ø In this stage, new behaviors, practices, and systems
are introduced.
Ø Change results from discomfort with negative
behaviors and exposure to new behaviors, role models, and support.
Ø Managers initiate the actual implementation of
change in various aspects of the organization, such as tasks, people, culture,
technology, and structure.
Ø People must be ready and willing to embrace the
change.
C. Refreezing:(stabilization)
Ø Refreezing involves integrating the new behaviors
into the individual's personality and attitude.
Ø The new behaviors become the new norm and are
stabilized within the organization.
Ø Continuous reinforcement is needed to ensure that
the new behaviors are sustained and do not diminish over time.
Ø Refreezing aims to make the change a permanent part
of the organization's culture and practices.
Ø Change process is not a onetime process but it is
continuous.
Resistance to change
Resistance to change is
a common occurrence in organizations and can stem from various factors,
including self-interest, habit, fear, peer pressure, and organizational
culture.
1.
Self-interest: Some
individuals resist change because they have a personal stake in the current way
of doing things. Change threatens their work flow or position, which they may
enjoy or benefit from.
2.
Habit: People
often find comfort in the familiarity and routine of their daily tasks. Changes
in personnel, work processes, structure, or technology disrupt established
habits, leading to resistance.
3.
Fear: Change
introduces uncertainty and the potential for failure. People may fear having to
learn new ways or adapt to new leaders, which can be daunting and unsettling.
4.
Peer Pressure: Peers
can exert influence on individuals to resist change, especially if there is a
collective resistance within a group.
5.
Organizational culture, which shapes employees' behaviors and identities,
can be a significant factor in resistance to change.
Managing
Resistance to Change
Resistance to change is
counterproductive and destructive, hindering organizational growth. Effective management
of change involves:
1.
Proper
Communication:
·
Explain why
change is necessary.
·
Communicate
benefits and how they will be shared.
·
Maintain free
flow of information and encourage two-way communication.
2.
Addressing
Negative Attitudes:
·
Negative
attitudes can form if proper communication is lacking.
·
Correct false
impressions that benefits accrue only to the organization and management.
·
Recognize
workers as key elements and involve them from the planning stage.
3.
Worker
Cooperation:
·
Full cooperation
of workers is essential for planning, implementing, and enjoying the benefits
of change.
·
Acknowledge
workers as crucial to organizational growth.
4.
Participation:
·
Involve workers
in the planning stage of change.
·
Participation
should go beyond a mechanical act and be meaningful.
Types of
Change
1.
Strategic
Change:
·
Occurs when the
mission of an organization is changed.
·
Example: Defense
forces participating under the UNO banner adapting to new strategies and
doctrines.
·
Involve
international cooperation, adapting to new cultural factors, or implementing
different strategic and tactical doctrines.
·
It is usually a
planned change aimed at aligning the organization with new objectives or
circumstances.
2.
Structural
Change:
·
Involves decentralization
of authority and introducing flatter organizational structures.
·
Promotes
autonomy and empowerment among employees.
·
Enhances the
social climate and fosters team spirit.
3.
Process-oriented
Change:
·
Necessitated by
developments in technology, automation, and information technology.
·
Requires heavy
investment but cuts down time and energy.
·
Affects work
environment, organizational culture, and employee behavior patterns.
4.
Cultural
Change:
·
Necessary due to
electrifying changes in communication and exposure to social changes.
·
Requires top
management to instill organizational philosophy, culture, and ethical business
practices.
·
People-oriented
changes, achieved through interaction, behavioral sciences training, and
building a sense of belonging.