unit v ob notes

8/13/2019 unit v ob notes

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Change and Change Management

According to Stephen Robbins,Change is concerned with

making thing different.

At its most basic level, change is a movement out of a current

state (how things are today), through a transition state and to

a future state (how things will be ).

Change happens all around us - at home, in our community

and at work. Changes can be internally motivated or externally

motivated.

The change can be a dramatic departure from what we know or

it can be minor. Changes can be anticipated or unexpected.


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But in all cases, the fundamental nature of change is a

movement from the current state through a transition state to a

future state.

Change managementis an approach to transitioning

individuals, teams, and organizations to a desired future state.


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Importance of Change

Any business in today's fast-moving environment that is lookingfor the pace of change to slow is likely to be disappointed. In fact,

businesses should embrace change. Change is important for any

organization because, without change, businesses would likely

lose their competitive edge and fail to meet the needs of

customers.

Customer Needs:As the world evolves, customer needs change

and grow, creating new demand for new types of products and

services -- and opening up new areas of opportunity for companies

to meet those needs.


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The Economy

The economy can impact organizations in both positive andnegative ways . A strong economy and increasing demand for

products and services will mean that companies must considerexpansion that might involve the addition of staff and newfacilities. A weak economy can create even more problems ascompanies find themselves needing to make difficult decisionsthat can impact employees' salaries and benefits and even

threaten their jobs. The ability to manage both ends of thespectrum are critical for organizations that want to maintain astrong brand and strong relationships with customers as wellas employees.

Growth Opportunities

Change is important in organizations to allow employees to learnnew skills, explore new opportunities and exercise theircreativity in ways that ultimately benefit the organizationthrough new ideas and increased commitment.


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Forces of Change

External

Technological Advancements

Customer and Market Changes

Social and Political Changes

The Need for Change

Change in managerial personnel

Deficiency in existing organisation


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External Forces

Technological changes: When there is a change in technology in

the organization's environment and other organizations adopt

the new technology, the organization under focus becomes lesscost-effective and its competitive position weakens. Therefore, it

has to adopt new technology.

Customer and market changes: As time changes, there may be

changes in customers in terms of their needs, liking-disliking,and income disposal for a product. These changes force the

organizations to bring those products which meet buyers

requirements.

Social changes: In the last 2 decades, there is a very big shift onboth the cultural and social opinions and perspective of people

that includes greater concern on health and environment

lifestyle.


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The environmental concern has had a very big impact on

businesses that resulted in expensive plastic bags and other

packaging that can be recycled easily. Another major area for

social changes is the use of low fat, and fat free diet products

and foods. These are used mainly by higher social status and

become a part of many multi-million dollar industries.

Political changes: For example, Tata Nano project in

Singur faced the political backlash when farmers protestedagainst forceful takeover of 400 acres of agricultural land for

the project by West Bengal government. Trinamool party

supported the farmers, played hardball and Ratan Tata took a

decision to shift the project from West Bengal to Gujarat. Onestates loss was another states gain.


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Internal Forces

Change in managerial personnel: in an organization old

mangers are replaced by new mangers because of retirement,

promotion, resignation and transfer. Every manger has its own

way of working .The relationships, especially, informal ones

are affected or change due to change in managerial personnel.

Moreover, changes in the organizations take place when the

executives at the top change. No two top executives have the

same philosophy and style. The new executive will follow his

own style and would like to put into practice his own ideas nad

philosophy.

Deficiencies in existing structure: Changes are required toovercome the weaknesses present in the existing organizations

such as lack of coordination among various departments,

obstacles in communication, larger number of managerial

levels, unmanageable span of management etc.


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Resistance to Change

Resistance to change is the action taken byindividuals and groups when they perceive achange that is occurring as a threat to them.

Key words here are 'perceive' and 'threat'. Thethreat need not be real or large for resistanceto occur.


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Reasons for resistance to Change

1. Individual Resistance

a). Economic Factors

The economic reasons for the resistance to change may be the following:

Skill Obsolescence: In organization when the development or changein technology takes place, employee resists the change. Employee

may fear that the change will lead to technological unemployment.Generally, new technology is associated with reduced proportion oflabor intake and therefore they resist the change.

Fear of Economic Loss: In organization where pay is tied toproductivity individuals usually resists change as they fear that theywill not be able to perform new task effectively, thus causing a declinein productivity and a decrease in their income.

Workers may fear that they will be demoted if they do not acquire theskills required for the new jobs.


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b). Psychological Factors

Status Quo: Change in technology brings new method of

doing the job and it must be learnt and adopt the newideas of doing the job. To learn these ideas they need towork hard and they do not want to take the trouble inlearning new things.

Ego defensiveness: Workers may not like criticism implied

in a change that the present method is inadequate andunsuitable.

Lack of trust in change agent: The effect of change isperceived in terms of change agent, that is, the personwho initiates change. if people have low degree of

confidence in change agent, they show resistance tochange. e.g. labor unions resist change initiated bymanagement.


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Fear of Unknown: A change may be perceived as entering into

an area which is unknown. The change will bring results in

future which is always not certain. This lack of certainty

creates anxiety and stress in the minds of people and they want

to avoid it.


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c). Social Factors

Desire to maintain existing Social Interaction: Every individual

have social needs like friends, belongingness, etc. Inorganization, while working employee develop socialrelationship with the other employees. They become membersof certain informal group. The change will bring a fear in mind ofpeople because generally people dislike new adjustment,

breaking present social relationship . Feeling of outside Interference: A change brought by the change

agent is considered to be an interference in the working of thepeople. This phenomenon is heightened if the change agentbelongs to another social class e.g. change initiated by mangers

affecting workers. The workers may feel that mangers try tomake workers an instrument for higher productivity but theoutcome of this productivity will be retained by them.


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2. Organizational Resistance

Organizational resistance means that the change is resisted at the level ofthe organization itself. Some organizations are so designed that they

resist new ideas, this is specifically true in case of organizations whichare conservative in nature. Government agencies want to continue doingwhat they have been doing for a number of years even though there isneed for the change in their services.

Reasons for Organisational Resistance

Threat to Power. Top management generally considers change as athreat to their power and influence in the organization due to which thechange will be resisted by them. The introduction of participativedecision making or self-managed work teams is the kind of changewhich is often seen as threatening by the middle and top level

management. Resource constraints: Changes may be resisted by an organization it it

lacks some resources which are critical for implementing the change.The organization may have inadequate financial resources for trainingchange agents and for offering rewards to those who support the

change.


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Sunk cost: Most of the organizations resist change because

huge amount of capital blocked in fixed assets and training

costs of human resources may go waste if the change is

introduced.

Continuing past successes: A major problem before the

organizations which have past success stories ,is how to face

challenges of the changing environment. Since these

organizations have achieved success by following a particular

set of management practices ,they become too rigid to change

and they hide their failure to change in the guise of past

successes.


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Methods to Overcome Resistance to change

Effective communication of Change: The management mustinform the workers about the type of change, it's reason, its

benefits to the organization and workers. Before introducingthe change, the reaction of the workers should be analyzed

properly and modifications may be introduced whenever

necessary. There should be two way communication betweenmanagement and workers.

Consultation with Union leaders: Very often in anorganization a change is resisted by the representatives of theworkers to protect the workers from the real or perceivedthreat brought by the change. Under such conditions, it would

be suitable for the management to take the labor leaders intoconfidence before introducing any change. Their objectionsnad doubts must be removed to win their cooperation.


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Education and training of subordinates: In order tosuccessfully implement the change, subordinates must betaught new skills. They must be given the information they

need to understand where they fit into the picture and how theywill be expected to operate under the new set-up. Theeducational process can be aided by training classes, meetingsand conferences.

Facilitation and Support for change: Easing the change processand providing support for those caught up in it is another waymanagers can deal with resistance to change. These includelistening, providing guidance, providing facilitative andemotional support. Facilitative support means removing

physical barriers by providing training, tools, materials.Emotional support is provided by showing personal concernfor the subordinates during the period of stress and strain.


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Negotiation or bargaining with Subordinates: Negotiation with

those resisting change and offering them incentives may be a

useful tactic for overcoming resistance. e.g. promotion of

nominees of the union, increased economic benefits to

employees etc.

Manipulation and Co-Optation: Sometimes, managers keep

individuals or groups away from resistance to change by

releasing information selectively or by consciously structuringthe sequence of events or they may co-opt an individual, who

is a key person within a group, by giving him an important

role in designing or carrying out the change process.

Coercion or Pressure to accept change: Mangers may force

people to go along with a change by giving threats involving

loss of jobs, denial of promotion etc. They may also dismiss or

transfer employees who stand in the way of change.


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Process of Planned Change

Unfreezing Involves finding a method of making it possible for people to

let go of an old pattern. It involves unlearning of old things to

learn new ones.

At this stage, the change agent tries to explain to the changetargets about the problems with the present state of affairs,the

need for change. He clears all the doubts of the people about

the proposed change.

The steps that can be adopted to motivate employees forunfreezing can be:

a) Demeaning and humiliating experiences to help individuals to

see their old patterns or behaviour as unworthy and think to be

motivated to change.


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The consistent linking of reward with willingness to change

and of punishment with unwilling to change.

Moving to a new level or Changing

Once the change targets become receptive to change, the

change agent should introduce the change in a systematic

manner. It involves two steps: Identification: Change is presented through role models from

whom individuals can learn new behaviour patterns by

identifying them and trying to become like them.

Internalisation: The individuals are placed in a situation inwhich new behaviour patterns are demanded of them if they

are to succeed in that situation.


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Refreezing

Is establishing the change as a new habit, so that it now

becomes the standard operating procedure. Without this

stage of refreezing, it is easy to backslide into the old ways.

At this stage, the individuals internalize the new beliefs,

feelings, and behaviour learned during the changing phase

They adopt these changes as the permanent part of their

behaviour.

Generally, after sometime the people revert back to their old

behaviour in absence of suitable reinforcement. Therefore,reinforcement is necessary for the internalization of new

behaviour.


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Organizational Development

Organization Development is an effort (1)planned, (2)

organization-wide, and (3) managed from top, to (4) increase

organization effectiveness and healththrough (5)planned

interventions in organizations processes, using behavioral-

science knowledge.

Organization Development is a systematic application ofbehavioral science knowledge to the planned development

and reinforcement of organizational strategies, structures,

and processes for improving an organizations effectiveness.


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Objectives of OD

Its objectives include higher quality of work life, productivity,

adaptability and effectiveness.

It seeks to use behavioral knowledge to change beliefs,

attitudes, values, strategies, structures and practices so that the

organization can better adapt to competitive actions,

technological advances, and the fast pace of other changes in

the environment.


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Why is OD Important?

Organizations are increasingly challenged by change. The world ismoving faster and faster. Competitive pressures are becoming moreand more demanding. Rapid technological change and theglobalizing economy both confuse us and open new doors. In themidst of this, employees seek more satisfaction and meaning fromtheir work lives, and more balance in their lives as a whole.

Whether the organizations are private, public or non-profit, theymust adapt to this new world if they are to survive and thrive. Theyneed to become more nimble, more customer-driven, moreinnovative, more effective. They need to attract and retain

competent and committed employees. This will require moreflexible organizational structures, new types of leadership, and newways of managing. OD can help organizations navigate this difficultterrain.


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The characteristics of OD are:

1. It is a planned strategy to bring about organizational change

2. OD always involves a collaborative approach to change. Itincludes involvement and participation of all theorganization members in the process of implementingchange.

3. OD programmes include an emphasis an ways to improve &enhance performance.

4. OD relies on a set of humanistic values about people &organisation. It is based on positive beliefs about thepotential and desire for growth among employees.

5. OD represents a system approach. It considers theinterrelationship of divisions, departments, groups, and

individuals as interdependent subsystems of the totalorganization.


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PROCESS OF OD

The OD Process is based on the action research model which

begins with an identified problem or need for change. The

process proceeds through assessment, planning of an

intervention, implementing the intervention, gathering data to

evaluate the intervention, and determining if satisfactory

progress has been made or if there is need for furtherintervention. The process is cyclical and ends when the desired

developmental result is obtained.

The OD process begins when an organization recognizes that a

problem exists which impacts the mission or health of theorganization and change is desired. It can also begin when

leadership has a vision of a better way and wants to improve

the organization. An organization does not always have to be

in trouble to implement organization development activities.


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Once the decision is made to change the situation, the next

step is to assess the situation to fully understand it. This

assessment can be conducted in many ways including

documentation review, organizational sensing, focus groups,interviewing, or surveying. The assessment could be

conducted by outside experts or by members of the

organization.

After the situation is assessed, defined, and understood, thenext step is to plan an intervention. The type of change desired

would determine the nature of the intervention. Interventions

could include training and development, team interventions

such as team building for management or employees or theestablishment of change teams, structural interventions, or

individual interventions. Once the intervention is planned, it is

implemented.


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During and after the implementation of the intervention,

relevant data is gathered. The data gathered would be

determined by the change goals. For example, if the

intervention were training and development for individualemployees or for work groups, data to be gathered would

measure changes in knowledge and competencies.

This data is used to determine the effectiveness of the

intervention. It is reported to the organizations decision-makers. The decision-makers determine if the intervention met

its goals. If the intervention met its goals, the process can end,

which is depicted by the raising of the development bar. If it

did not, the decision is made whether to continue the cycle andto plan and carry out another intervention or to end it.

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