management of change1
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Sterling Institute OfManagement Studies
Project Report On
Management of change
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Project FlowSection I Synopsis,Introduction
Section II Managing Change, Types of changes, What
companies would like to change, approaches to
organizational change, models of organizationalchange
Section III Resistance to change, how to overcome resistance,
communication strategy for change, Managerialimplications
Section IV Planning & implementing change
Section V Case in action, Conclusion & bibliography
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Introduction
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Management of change?
Process through which changes in
organization are managed in a most efficient
way
Management of Change usually involves the
introduction of new procedures, people or
ways of working.
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Section IIManaging Change
Types of Change
What companies would like to change?
Approaches to organizational change
Models to manage change
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Managing Change
It refers to the making of changes in aplanned and managed or systematic
fashion.
Aim
Effectively implement new methods and
systems in an ongoing organization
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Formula for change
D x V x F > R
D Dissatisfaction with how things are now
V Vision of what is possible
F First, concrete steps that can be taken towards the vision.
If the product of these three factors is greater than R =
Resistance, then change is possible. Because of the multiplication
of D, V and F, if any one is absent or low, then the product will
be low and therefore not capable of overcoming the resistance.
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Clear responsibility and priorities with extensive
communication and freedom to improvise.
Enhance learning about future possibilities by
experimenting with ideas.
Link current projects to the future withpredictable intervals
Role of Manager
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Types of changes
1. Strategic change
2. Cultural change
3. Structural change
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What companies would like to change?
1. Changes in people behaviour
2. Changes in Organizational Culture
3. Change in Task & Technology
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Management implicationsManagement has to take the following steps to implement the change
successfully.
1. Participation of employees
2. Planning for change
3. Protecting employees interest
4. Group dynamics
5. Cautions and slow introduction
6. Training and development
7. Career lannin and develo ment
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Models
To
Manage Change
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1. Unfreezing
2. Change
3. Refreezing
Lewins Change Manage model
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Change Management Process
A Structured Approach
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Section III
Resistance to change
How to overcome change
Communication strategy for change
Management implication
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Resistance to change
Reasons
1. Economic reasons
2. Personal reasons
3. Social reasons
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How to overcome resistance
Increasing the strength of pressure for
change.
Reducing the strength of the resisting
forces or removes them from scene.
Modify the direction of a force.
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Communication strategy
for change
A communications strategy should coincide withthe general stages of a planned change and the
relevant associated information requirements.
For the purposes of this analysis we choose to
use the Kurt Lewinian model incorporating
three general stages of change: unfreezing,
changing or moving, and refreezing.
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Communication during unfreezing
stage
1. Readying the organization for change
2. Challenging the status quo
3. Providing a rationale
4. Focusing on communication principles
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Communication during Changing
stage
1. Dealing with uncertainty
2. Focusing on specifics
3. Reporting the progress
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Communication during
Refreezing stage
1. Building understanding
2. Understanding personal implication for
change
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Managerial implications
1. Communication must come from top
2. Devise a communication system3. Monitor & evaluate system
4. Be open & honest all the times
5. Combine written & face to face communication
6. Be relevant
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Section IV
Planning & implementing change
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Implementation is the institutionalization and
internalisation of a change after it has been accepted by
an organization.The implementation process should start with planning.
The three important stages of implementation of change
process are:
Monitoring the change
Taking action in relation to the change
Making necessary adjustment in the program
accepted for implementation.
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The Model of Implementation of
Change in an Organization.
Involvement
in Process
Involveme
nt in Task
Corporate
Management
Consultant
Countertpart
Chief Implementor
Implementation
Team
Task Forces
Initiat- Motivat Diag Info- Delib- Action Implem- Stab-
tion tion nosis coll- eration prop. Entation ilisation
ection
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Sequential process of Implementation of
changeProcess
Strategies
Monitoring
Implementation Team
Minimum control
Review & feedback
Dissemination of information
Action
Adaptation
HRD
Resources
Linkages
Mana ement commitment
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Case in action
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Managing change in New Product
Development at Volvo
During the 1990s the car industry faced a number of tough
challenges. Not only did it need to put new products with
higher quality into the market, increasing competition across
the globe meant that cycle times also needed to be reduced.
Problem areas
Executives realized that the existing New Product
Development (NPD) system within the organization was
simply not going to generate the required increases in
productivity. But how could they change a system that was so
full of non-routine processes?
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In a typical scenario of product development of cars there
are thousands of people involved in several years of NPD
using standard, routine and non-routine processes.
Solution
1993 Volvo merged with Renault. Merger collapses at the
end of 1993 and Volvo decided to change its NPD works in
order to tackle competition.
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In 1994 company strategists started thinking about ways to
increase the product portfolio with first car to be launched in 1998.
The change program was initiated at the end of 1994 and was
based on the following three principles
Initial Phase Identification of change
Identification of levels that could build a base for the needed re-
engineering of the NPD organization in all stages of the process
A person that focused on the improvement of the engineering workmethods was needed
A top-down and bottom-up change management approach was
designed.
How did Change took place?
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Development stage Making changes
VCC decided to build a new system based upon the "state of the
art" concept of NPD- this included platforms modularization andcross-functional teamwork & by 1996 it was able to adopt
platform modularization.
A pilot team was put together that participated in workshops to
develop new ideas which were then tested in daily work. In 20
weeks, this team managed to shorten their development loop cycle
time from 17 to 9 weeks and had the manufacturing process
defined 15-20 weeks earlier than normal.
Launch took place in 1998 as predicted
P R f i h
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Post stage Refreezing changes
Between 1995 and 1999, VCC increased product development
output by 65 percent, measured in the number of parallel-
developed new cars, with only a seven percent increase inpersonnel.
With the new platform system, people work cross-functionally
together on a daily basis.
The company has also installed much IT software that facilitates
these cross-functional teams and the platform approach means
many cars are created at the same time.
Although this method of working is more complex on the surface,
it is ultimately a more efficient way of ensuring a competitive edge
in the car industry.
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What man does notalter
for the better, time alters
for the worse.
-Francis Bacon
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Thank You