ORGANISATIONAL CHANGE

JUSTINE P JAMES

“Change everything except your spouse and children.”-Kun Hee Lee, The Former CEO of Samsung

ORGANISATIONAL CHANGE

ORGANISATIONAL CHANGE IS THE PROCESS BY WHICH ORGANISATIONS MOVE FROM THEIR PRESENT STATE TO SOME DESIRED FUTURE STATE TO INCREASE THEIR EFFECTIVENESS.

Cause for Change/ Forces for Change Vital for a company to avoid stagnation Causes for change/Forces for change External Globalisation, Work force diversity,

Technological change, Managing ethical behaviour, Govt policies, Competition, Scarcity of resources.

Internal Organisational silence, Falling effectiveness,

Crisis, Changing employee expectations, change in the work climate.

Types of Change

Change falls into two categories. 1. Evolutionary Change 2. Revolutionary Change. Evolutionary Change-

Gradual,incremental and specifically focussed.

Revolutionary Change-Sudden, drastic and Organisation wide.

Evolutionary change involves not a drastic or sudden change in the basic nature of an organisation`s strategy and structure but the constant attempt to incrementally improve, adapt and adjust strategy and structure to better match the changes that are taking place in the environment.

Revolutionary change is more likely to result in a dramatic shift that involves a whole new way of doing things, new goals and a new structure.

Total Quality Management is a technique used for evolutionary change.

Re-engineering is the technique used for revolutionary change.

Total Quality Management

TQM is a philosophy that involves everyone in an organisation in a continual effort to improve quality and to achieve customer satisfaction.

That is never ending push to improve(continuous improvement) and a goal of customer satisfaction which involves meeting or exceeding customer expectations.

Total-Made up of the whole. Quality-Degree of excellence a product or service

provides. Management-Act, Art, or manner of handling,

controlling, directing.

Re engineering

Fundamental rethinking and radical redesign of business processes to increase organisational effectiveness.

Organisations that take up reengineering deliberately ignore the existing arrangement of tasks, roles and work activities. They start to reorganise the way the work is done, the business processes to provide best quality.

LEVELS OF CHANGE

INDIVIDUAL LEVEL CHANGE- CHANGES AT THE INDIVIDUDUAL LVEL WILL HAVE SIGNFICANT IMPLICATIONS FOR THE TOTAL ORGANISATION

GROUP-LEVEL CHANGE- IT CAN AFFECT WORK FLOWS,JOB DESIGN,SOCIAL ORGANISATION AND COMMUNICATION PATTERNS.

ORGANISATION LEVEL CHANGES-CHANGES AT THIS LEVEL INVOLVE MAJOR PROGRAMMES THAT AFFECT BOTH INDIVIDUAL AND GROUPS.

Individual level of change

Changes in job assignment, physical move to a different location.

Individual level changes will have an impact on group.

Organisational level change

Decisions regarding this is taken by the senior management.

Require considerable planning Ex.Reorganisation of organisation

structure. Employee remuneration system Major shift in organisation`s objectives. Change at organisation level is

considered as Organisation development.

Organizational Change targets

ObjectivesSet or modify

specific performance

targets

ObjectivesSet or modify

specific performance

targets

Purpose Clarify

objectives

PeopleUpdating

recruiting and selection practices,

improve T & D

PeopleUpdating

recruiting and selection practices,

improve T & DTechnology

Improve equipme

nt, Facilities

StructureUpdating

the structure

TasksUpdate job designs for indvdls or

gps

CultureClarify or

create core beliefs or values.

StrategyClarify or

create strategic

plans

RESISTANCE TO CHANGE

ORGANISATION-LEVEL RESISTANCE SUB-UNIT LEVEL RESISTANCE TO

CHANGE GROUP- LEVEL OBSTACLES TO CHANGE INDIVIDUAL- LEVEL RESISTANCE TO

CHANGE

ORGANISATION-LEVEL RESISTANCE TO CHANGE ORGANISATIONAL STRUCTURE ORGANISATIONAL CULTURE ORGANISATIONAL STRATEGY

SUB-UNIT LEVEL RESISTANCE TO CHANGE DIFFERENCES IN SUB-UNIT ORIENTATION-

Each sub-units may lobby for their interests and try to influence the change process so that change benefits them.

-resource allocation. -task inter dependence POWER AND CONFLICT-Changes will affect

the power equation within the organisation. Some people will gain power at the cost of others.

GROUP-LEVEL OBSTACLES TO CHANGE GROUP NORMS-GROUPS DEVELOP THEIR

OWN NORMS TO PROMOTE DESIRABLE BEHAVIOURS.ANY CHANGE THAT DISRUPTS GROUP NORMS WILL RESULT IN RESISTANCE.

GROUP COHESIVENESS- GROUP MEMBERS MAY UNITE TO PRESERVE THE STATUS-QUO AND PROTECT THEIR INTERESTS.

GROUP THINK-GROUP MEMBERS MAY STICK ON TO THE GROUP DECISION EVEN WHEN THEY REALISE THAT THE DECISION MADE IS WRONG.

INDIVIDUAL-LEVEL RESISTANCE TO CHANGE HABIT-People will be very comfortable

with the present way of doing things. UNCERTAINTY-Uncertainty of the outcome

of the change. FEAR OF LOSS-Fear of loss of power. COGNITIVE BIASES-It can influence an

individual`s perception of a given situation and make them interpret the situation in ways that will benefit themselves.

LOGICAL REASONS-Employees have justifiable reasons for their resistance to change.

SELECTIVE PERCEPTION-There is a tendency for selective perception.

FORCE FIELD THEORY OF CHANGE IN ANY ORGANISATION, THERE ARE PEOPLE

WHO PUSH FOR CHANGE AND THERE ARE INDIVIDUALS WHO DESIRE STATUS QUO.

WHEN THESE TWO FORCES ARE IN BALANCE, ORGANISATION IS IN A STATE OF INERTIA AND DOES NOT CHANGE.

TO GET THE ORGANISATION TO CHANGE, MANAGERS MUST ADOPT A STRATEGY TO INCREASE THE FORCES FOR CHANGE,REDUCE THE RESISTANCE TO CHANGE, OR DO BOTH SIMULTANEOUSLY.

KURT LEWIN`S FORCE FIELD THEORY RESISTANCE TO CHANGE RESISTANCE TO CHANGE

P2

CHANGE

s

P1

FORCE FOR CHANGE FORCE FOR CHANGE

TIME

LEV

EL O

F

PER

FO

RM

AN

CE

UNFREEZING- THIS INVOLVES ENCOURAGING INDIVIDUALS TO DISCARD OLD BEHAVIOURS. THIS INVOLVES PRESENTING A PROVACATIVE PROBLEM OR EVENT TO MAKE PEOPLE REALISE THE NEED FOR CHANGE.

MOVING- IT IMPLIES DEVELOPING NEW BEHAVIOURS, VALUES AND ATTITUDES SOMETIMES THROUGH STRUCTURAL CHANGES AND SOMETIMES THROUGH ORGANISATIONAL DEVELOPMENT TECHNIQUES.

REFREEZING- THE CHANGE BECOMES PERMANENT. NEW ATTITUDES, VALUES AND BEHAVIOURS ARE ESTABLISHED.

TRANSITION MANAGEMENT-ENSURES THAT BUSINESS CONTINUES WHILE THE CHANGE IS OCCURING.

MANAGING RESISTANCE TO CHANGE EDUCATION AND COMMUNICATION-Most of

the times, people resist change because they are unaware of the significance of the change. So, the best way is to properly communicate the significance of change.

PARTICIPATION AND INVOLVEMENT-It will be difficult to resist a decision if employees are also a part of the decision making process.

NEGOTIATION AND AGREEMENT-Through negotiation management comes to an agreement with employees, so that they will accept change.

MANIPULATION AND COOPTATION-Twisting and distorting facts to make them appear more attractive, with holding undesirable information and creating false rumors to get employees to accept a change

Cooptation is a form of both manipulation and participation.It seeks to buy off the leaders of a resistance group by giving them a key role in the change decision.

SELECTING PEOPLE WHO ACCEPT CHANGE

COERCION-Threats of transfer, loss of promotions, negative performance evaluations, a poor letter of recommendation

John P Kotter`s Change Management Approach There are many theories about how to

"do" change. John Kotter, a professor at Harvard Business School and world-renowned change expert, introduced his eight-step change process in his 1995 book, "Leading Change." We look at his eight steps for leading change below.

Step One: Create Urgency

For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving.

Step Two: Form a Powerful Coalition Convince people that change is

necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough – you have to lead it.

You can find effective change leaders throughout your organization –

Step Three: Create a Vision for Change When you first start thinking about

change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember.

Step Four: Communicate the Vision What you do with your vision after you

create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do.

Don't just call special meetings to communicate your vision. Instead, talk about it every chance you get.

Step Five: Remove Obstacles If you follow these steps and reach this

point in the change process, you've been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you've been promoting.

Step Six: Create Short-term Wins Nothing motivates more than success. Give

your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress.

Create short-term targets – not just one long-term goal. You want each smaller target to be achievable, with little room for failure

Step Seven: Build on the Change Kotter argues that many change projects

fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change.

Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working.

Step Eight: Anchor the Changes in Corporate Culture Finally, to make any change stick, it

should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work.

Conclusion

Managing resistance to change is very important in organisations.

Managers have to develop suitable strategy to manage resistance to change.

THANK YOU