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The students will understand the reasons why employees resist change how mangers

effectively over come it

Learning OutcomesLearning Outcomes

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Introduction Introduction

We all living in the world of change ………

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Definition of change managementDefinition of change management

Change management is an approach to transitioning individuals, teams, and organizations to a desired future state

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Organizational Change Organizational Change

It is defined as adoption of a new idea or a behavior by an organization(Draft 1995)

It is the way of altering an existing organisation to increase organisation effectiveness for the accomplishments of the objectives

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Consultant David A.Nadler and Management professor Michael Tushman togather developed instructive typology of organisational change

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Types of changeTypes of change

Anticipatory change : Any systematically planned changes intended to take advantage of expected situations

Reactive change: these are those changes necessitated by unexpected environmental situation or pressure

Incremental change :Involve subsystem adjustment needed to keep the oganisation on its chosen path

Strategic change:It alter the overall shape or direction of the organisation

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ch ch

IBM Said that it would sell its PC (Personal computer) business to lenovo china’s No.1 PC maker in $1.75 billion that marks the end of an era

Lenovo will pay IBM upto $1.25 billion cash and equity for IBM PC division which produced the first IBM PC in 1981

Q:In terms of Nadler Tushman model ,what type of change it this ?Explain

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Sources of Individual Resistance to ChangeSources of Individual Resistance to Change

Why do employees resist?Why do employees resist?

1. Surprise

2. Misunderstanding/Ignorance/Lack of skills

3. Emotional Side effects

4. Lack of trust

5. Fear of failure

6. Personality conflicts

7. Poor timing

8. Threat to Job security

9. Break up of work group

10.Passive/ aggressive organization culture

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Forces for ChangeForces for Change

Force Examples

Nature of the workforce More cultural diversityAging populationMany new entrants with inadequate skills

Technology Faster, cheaper, and more mobile computersOn-line music sharing

Economic shocks Rise and fall of dot-com stocks 2000–02 stock market collapseRecord low interest rates

Competition Global competitors

Mergers and acquisition Growth of e-commerce

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Forces for ChangeForces for Change

Force Examples

Social trends Internet chat rooms Rise in discount and “big box” retailers

World politics Iraq–U.S. war

Opening of markets in China War on terrorism following 9/11/01

Internal Changes:Change

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Managing Planned ChangeManaging Planned Change

Goals of Planned Change:

Improving the ability of the organization to adapt to changes in its environment.

Changing the behavior of individuals and groups in the organization.

Goals of Planned Change:

Improving the ability of the organization to adapt to changes in its environment.

Changing the behavior of individuals and groups in the organization.

ChangeMaking things different.Planned ChangeActivities that are intentional and goal oriented.

Change AgentsPersons who act as catalysts and assume the responsibility for managing change activities.

Life cycle of changeLife cycle of change

Phase 1:Few people,critisized ridiculed Phase 2:Movement for change for and against Phase 3:Direct conflict (Life and death of change) Phase 4(If supporters are more ,wisdom is necessary Phase 5 :Last Stage

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Leading ChangeLeading Change

Advocate change :Person(CEO) Degree of change :Sales form or product Time frame:Lengt Impact on culture:

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Resistance to ChangeResistance to Change

Forms of Resistance to Change

– Overt and immediate

• Voicing complaints

– Implicit and deferred

• Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism

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Sources of Organizational Resistance to Change

Sources of Organizational Resistance to Change

Some External Forces for ChangeSome External Forces for Change

InformationInformationTechnologyTechnology

GlobalizationGlobalization& Competition& Competition

DemographyDemography

Courtesy National Board of Antiquities, Finland

Reactions of Change Reactions of Change

Anger Denial Acceptance

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Overcoming Resistance to ChangeOvercoming Resistance to Change

• Education and communication

• Create a vision (Fortune survey that 98

%)

• Participation(CEO of P &G)

• Facilitation and support

• Negotiation

• Leadership

• Reward System (ESOP)• Coercion

• Education and communication

• Create a vision (Fortune survey that 98

%)

• Participation(CEO of P &G)

• Facilitation and support

• Negotiation

• Leadership

• Reward System (ESOP)• Coercion

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Technology in the WorkplaceTechnology in the Workplace

Continuous Improvement Processes

– Good isn’t good enough.

– Focus is on constantly reducing the variability in the organizational processes to produce more uniform products and services.

• Lowers costs and raises quality.

• Increases customer satisfaction.

– Organizational impact

• Additional stress on employees to constantly excel.

• Requires constant change in organization.

External Environment

This includes such factors as markets, legislation, competition and the economy. All of these will have consequences for organisations, and, as a change manager, it is vital that you continually scan the environment for issues that will affect you and your team.

For example, in the world of accountancy, International Accounting Standards and International Financial Reporting Standards will have a significant impact on the way companies manage their accounts and report their results. In the public sector, legislative changes across health, local government and other services have a direct impact on the work organisations are required to carry out.

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Technology in the WorkplaceTechnology in the Workplace

Process Reengineering

– “Starting all over”

– Rethinking and redesigning organizational processes to produce more uniform products and services.

• Identifying the organization’s distinctive competencies—what it does best.

• Assessing core processes that add value to the organization’s distinctive competencies.

Warner Burke LitwinWarner Burke Litwin

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Lewin’s Three-Step Change ModelLewin’s Three-Step Change Model

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Lewin’s Three-Step Change ModelLewin’s Three-Step Change Model

UnfreezingChange efforts to overcome the pressures of both individual resistance and group conformity.

RefreezingStabilizing a change intervention by balancing driving and restraining forces.

Driving ForcesForces that direct behavior away from the status quo.

Restraining ForcesForces that hinder movement from the existing equilibrium.

Models Burke litwin model Models Burke litwin model

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Unfreezing the Status QuoUnfreezing the Status Quo

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Contemporary Change Issues for Today’s Managers: Stimulating Innovation (cont’d)

Contemporary Change Issues for Today’s Managers: Stimulating Innovation (cont’d)

Idea Champions

Individuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented.

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Scenario #1: “Greener Telco”Scenario #1: “Greener Telco”

Scenario #1 refers to

Bell Canada’s Zero

Waste program, which

successfully changed

wasteful employee

behaviours by altering

the causes of those

behaviours. Courtesy of Bell Canada

Courtesy of Continental Airlines

Scenario #2: “Go Forward Airline”Scenario #2: “Go Forward Airline”

Scenario #2 refers to

Continental Airline’s “Go

Forward” change

strategy, which

catapulted the company

“from worst to first”

within a couple of years.

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Contemporary Change Issues for Today’s Managers: Stimulating Innovation

Contemporary Change Issues for Today’s Managers: Stimulating Innovation

Sources of Innovation:Sources of Innovation:

• Structural variablesStructural variables

• Organic structuresOrganic structures

• Long-tenured managementLong-tenured management

• Interunit communicationInterunit communication

• Organization’s cultureOrganization’s culture

• Human resourcesHuman resources

Sources of Innovation:Sources of Innovation:

• Structural variablesStructural variables

• Organic structuresOrganic structures

• Long-tenured managementLong-tenured management

• Interunit communicationInterunit communication

• Organization’s cultureOrganization’s culture

• Human resourcesHuman resources

Innovation

A new idea applied to initiating or improving a product, process, or service.