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UNDERSTANDING CHANGE MANAGEMENT

UNIT 02

v Definition of changev Types of changev Forces for changev Planned vs. unplanned changev Why change fail?

TOP TEN MOST USED TOOLS

WHAT IS CHANGE?v Change is any planned or unplanned alternation

to existing situation.

WHAT IS CHANGE?v Organizational change² The process by which organizations move from their present state

to some desired future state to increase their effectiveness.² Any alternations in people, structure or/and technology² Goal is to find improved ways of using resources and capabilities in

order to increase an organization�s ability to create value

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WHAT IS CHANGE? v Targets of change include improving

effectiveness at four different levels² Human resources² Functional resources² Technological capabilities² Organizational capabilities

TYPES OF CHANGE

Structure

Technology

People

Changing structure includes anyalternation in:

v authority relations,

v coordination mechanism,v degree of centralisation,

v job redesign, or

v similar structural variables.

TYPES OF CHANGE

Structure

Technology

People

Changing Technology encompasses modifications in: the way work is performed or methods and equipment that are used.

v Introduction of new equipment, tools or work methods

v Automation

v Computerisation

TYPES OF CHANGE

Structure

Technology

People

Changing People includes anyalternation in:

v Attitudesv Expectationsv Perceptions, andv Behaviour

DISCUSSION

Why do business organizations change?

Or What are forces for change in

business organizations?

EXTERNAL FORCES FOR CHANGE

Industrial Revolution 4.0

Globalization& Competition

Demography

v IR4.0: IoT, Robotics, AI, Autonomous Vehicles, Blockchain, 3D Printing

Impact:v Easier information transfer

v Facilitates global structures

v Requires new competencies and expectations

v Facilitates telecommuting; new employment relationships

v More emphasis on knowledge management

Others

EXTERNAL FORCES FOR CHANGE

Industrial Revolution 4.0

Globalization& Competition

Demography

v Global competition

v Technology makes it easier to compete quickly

v Results in restructuring, outsourcing, mergers ²produces many employment changes

Others

EXTERNAL FORCES FOR CHANGE

Industrial Revolution 4.0

Globalization& Competition

Demography

v More educated workforce²want involvement; interesting work

v Younger generation²less intimidated by status²want a more balanced work life

v Cultural changes²more individualism in traditionally

collectivist countriesOthers

EXTERNAL FORCES FOR CHANGE

Industrial Revolution 4.0

Globalization& Competition

Demography v Governments laws and regulations

v Economic changesOthers

INTERNAL FORCES FOR CHANGE

Strategy

Workforce change

New equipment& Technology

EmployeeAttitudes

v Changes in: field of business, customer segment, goals, competitive advantages

v Results in the changes in:²Structure²Technology²HRM policies²Business processes

INTERNAL FORCES FOR CHANGE

Strategy

Workforce change

New equipment& Technology

EmployeeAttitudes

v Downsizingv Motivationv Diversity

INTERNAL FORCES FOR CHANGE

Strategy

Workforce change

New equipment& Technology

EmployeeAttitudes

v Introduction of new equipment, tools or work methods

v Automationv Computerisation

PLANNED VS. UNPLANNED CHANGE

Change

Planned Unplanned

To achieve a specifiedfuture scenario

Reaction to changes inthe organization's

operating environment

Total QualityManagement

StatisticalProcessControl

BusinessProcess Re-engineering

DISCUSSION

Why change fail?

WHY CHANGE FAIL?v Too much complacencyv Failing to create a sufficiently powerful guiding

coalitionv Underestimating the power of visionv Under-communicating the visionv Permitting obstacles to block the new visionv Failing to create short-term winsv Declaring victory too soonv Neglecting to anchor changes firmly in the

corporate culture.

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