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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?
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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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