Change Management

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MUHAMMAD ARSLAAN

ROLL NO. 38
Change Management

Change management is a structured approach to


transitioning individuals, teams, and
organizations from a current state to a desired
future state.
Objective of Change Management

“The objective of Change Management in this


context is to ensure that standardized methods
and procedures are used for efficient and
prompt handling of all changes to controlled , in
order to minimize the number and impact of any
related incidents upon organization.”
change management principles

• At all times involve and agree support from people within


system (system = environment, processes, culture,
relationships, behaviors, etc., whether personal or
organizational).
• Understand where you/the organization is at the
moment.
• Understand where you want to be, when, why, and what
the measures will be for having got there.
• Plan development towards above No.3 in appropriate
achievable measurable stages.
• Communicate, involve, enable and facilitate involvement
from people, as early and openly and as fully as is
possible
Features of change management
Four key features of change management:
• Change is the result of dissatisfaction with
the present strategies
• It is essential to develop a vision for a better
alternative
• It is necessary to develop strategies to
implement change
• There will be resistance to the proposals at
some stage
Forces for Change
• Internal forces
• Desire to increase profitability
• Reorganization to increase efficiency
• Conflict between departments
• To change organizational culture
• External forces
• Customer demand
• Competition
• Cost of inputs
• Tax changes
• New technology
• Political
MOHSIN ISLAM

ROLL NO. 35
Effect of Change
Change affects all aspect of people management:
• Organizational structure
• Personnel of teams
• Process
• Location
• Work load
• Work role
• Work practices
• Supervision
• Work teams
THE FRAME WORK FOR CHANGE
The effective management of change
involves three steps:

a) Understanding the current state of the


organization.
b) Establishing the state in which the
organization wants to be in the future.
c) Moving the organization through a transition
towards the foreseen state.
Types of change
• Changing structure
• Changing technology
• Changing people
TECHNICAL V. PEOPLE FACTORS:

 This aspect is important, it is often unclear


whether changes in the way organizations work
can be achieved by first changing the people or
the technical factors.
 Most change programmes focus on changing
individual attitudes, though at times the most
effective way to change behaviour is to put
people into a new organizational context, which
imposes new rules, responsibilities and
relationships.
MARIA SHAFIQUE

ROLL NO. 33
WHAT NEEDS TO BE CHANGED ?

 Examining the various elements of an


organization and short-listing those
which need to be changed in order to
achieve the new state.
 Identifying the hurdles or impediments
to change.
WHAT NEEDS TO CHANGE?
Identify points from where change can be initiated:
 The key components of the organization may be
used as a starting point.
 These are six critical areas viz., key tasks and
work process, individual competencies,
technology, organizational structures, systems
and culture. These points help to identify where
to initiate change and highlight where change
may evolve from internally.
 Change in one area will probably result in
compensatory or retaliatory changes in another,
as these components are interdependent.
WHY IS CHANGE NECESSARY?

 Identifying the present


condition and problem(s).
 Determining whether there is a
need for change.
 Establishing change goals and
the new state or condition after
the change.
IDENTIFYING PROBLEMS AND
DETERMINING THE NEED FOR CHANGE

 The level and the need for change is determined by the


extent of mismatch of internal competencies with that of
external demands.
 Another reason for change could also be the estimated
mismatch between internal and external factors in the
future.
 Several pointers which help indicate a potential mismatch.
 A decline in financial indicators of effectiveness.
 A change in other indicators such as market share.
 Increased turnover of key personnel.
 Lowering of results on quality indices.
 Increased clients complaints.
 Increasing stress among employees.
 Decreasing morale among employees.
ESATABLISHING CHANGE GOALS
AND THE NEW END STATE
 Defining explicitly what the organization
should look like will serve as a descriptive
guide for determining the change strategy to
be adopted.
 Executives need to clearly identify the kind of
organization they are trying to create, in as
much detail as possible.
 Executives should specify the expected
organizational structure, reward system,
personnel policies, authority and task
responsibility distributions, managerial styles
and roles, performance review systems and
performance outcomes.
MIRZA NAVEED

ROLL NO. 34
Process of Change

 Selecting a change strategy.


 Implementing the change strategy.
 Establishing systems and processes
to maintain the new situation.
 Evaluating the change effort.
LEVEL OF MANAGEMENT INVOLVED
 Change is often aimed at the lower or
middle levels of the organization.
 Organization frequently get into trouble
because the senior staff do not support
the change strategy.
 The senior executives either need to be
won over or worked around and this
requires considerable skill on the part of
the executive initiating change.
DEPTH OF CHANGE REQUIRED
 Minor changes take place on a continuous basis in any
organization. This is known as ‘first order’ change. This level of
change may have an impact on systems, structures or people to
improve the effectiveness of the organization, but, at this depth,
the change process, largely, leaves the underlying infrastructure
and core patterns of behaviour and thinking intact. This change
can be easily reversed.
 Due to major mismatches between internal capabilities and
external factors, at times major fundamental reorganizations
must occur which disturb the organizational equilibrium. Here,
mere first-order changes are inappropriate: the need is to
transform.
 Transformational change, or ‘second order' change involves
alteration of the system’s basic governing rules and is a multi-
dimensional, multi-component and multi-level alteration that
shifts the systems irreversibly to a new and revolutionary state.
IMPLEMENTING CHANGE
Has two important sequences:

1. First Stage : RECOGNITION


 Stimulus: Initially there will be some kind of
stimulus, such as a downturn in profits or the
loss of key personnel, which will cause the
executive to consider whether change is
necessary.
 Reaction: A stimulus will usually give rise to
some kind of reaction, however, it is unlikely
that one’s initial response will give rise to
anything deeper than first order change.
 Response: The four responses which are
related to mindsets are Despair, Denial,
Resistance or Consideration
2. Second Stage : DEVELOPMENT & ACTION
 Development: To progress, people not only
have to be prepared to consider new ways of
operating, they must also discard old patterns of
thinking and behaving before they genuinely try
to adopt different approaches
 Full Transition: As the organization or
individual begins to master most aspects of the
situation they experience feelings of rising
certainty and capability
MUDASSIR AFZAL

ROLL NO. 36
RESISTANCE AND HOW
TO DEAL WITH IT
APPROACH… COMMONLY USED ADVANTAGES DRAWBACKS
Education & Where there is a lack of Once persuaded, people will Can be very time
Communication information or inaccurate often help with the consuming if many people
information and analysis implementation of the change are involved

Participation & Where the initiators do not have People who participate will be Can be very time
Involvement all the information they need to committed and any relevant consuming if the
design the change and where information they have will be participators design an
others have considerable power integrated into the change inappropriate change and
to resist plan may defeat the purpose of
the whole process

Facilitation & Where people are resisting This approach works best with Can be time – consuming,
Support change because of adjustment adjustment problems expensive and still not be
problems successful

Negotiation & Where someone or some group Sometimes it is a relatively Can be very expensive in
Agreement will clearly lose out in a change, easy way to avoid major may cases if it alerts others
and where that group has resistance to also negotiate for
considerable power to resist compliance

Manipulation & Where other tactics will not It can be a relatively quick and Can lead to future
Co-opting work or are too expensive inexpensive solution problems if people feel
manipulated

Explicit & Implicit Where speed is essential, and It is fast and can overcome Can be risky if it leaves
Coercion the change initiators possess any kind of resistance people angry at the
considerable power initiators
MINDSET- ‘UNFREEZING,
CHANGING AND REFREEZING’:
 The ‘unfreezing’ process involves the individuals
unlocking their current mental approach towards
doing things. They need to be prepared to accept
new ideas and behaviour, which is helped by
adopting a more flexible mindset.
 A mindset, which is ‘unfrozen’, offers the
possibility for new learning to take place.
 Finally, there is a process of ‘refreezing’ or
consolidation. In other words, new patterns of
behaviour and thinking must be supported by
social cues and a reward systems both formal
and informal, so they become more natural
processes.
Establishing maintenance systems
and evaluating the change effort
 Having gone through a period of change, and in
some cases quite traumatic change, it is but natural
to feel exhausted or easy to become complacent.
 There is a real danger that having achieved a major
organizational transformation, capability then gives
way to complacency; exhilaration to fatigue;
strategizing to habituation.
 This must be avoided and steps should be taken to
evaluate the change effort and also to strengthen the
employees so that complacency does not set in at
any time.

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