Change Management

HRM209 Change Management

HRM209 Change ManagementLecture 12/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide11Contact DetailsLecturer : Ahmed Shathir

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75784822/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide22HRM209 Change ManagementThe Subject OutlineOn completion of this subject the students will be able to:Demonstrate a critical understanding of why organizations need to have good change management techniques and policies in place.

Critically evaluate the difference between 21st century organization and historic organization in the area of change management.

Explain the importance of indentifying, brining and sustaining important changes for the organization.

2/8/2016HRM209 Change Management Semester 1/ 2016 MNU Business SchoolSlide 3HRM209 Change ManagementDemonstrate a clear understanding of why and how change management practices are easier to implement in learning organization comparatively.

Discuss the recent developments in the change management area including Emergent approach to change.

Describe basic approaches to strategy that organizations can adopt.

Identify the implications for organizational change of both quantitative and qualitative tools and techniques.

2/8/2016HRM209 Change Management Semester 1/ 2016 MNU Business SchoolSlide 4HRM209 Change ManagementWorkloadCredit points: 15Total Credit hours: 168Classes are timetabled for 4 hours of class contact per week for 14 weeks (14 x 4 = 56 hours).You are expected to spend eight hours per week in private reading, study, and coursework for this subject (14 x 8 = 112 hours). Mode of DeliveryLecture (2 hours)Tutorial (2 hours)2/8/2016HRM209 Change Management Semester 1/ 2016 MNU Business SchoolSlide 5HRM209 Change ManagementAssessment MethodsAssessment Schedule

To obtain a pass in this subject, students must:Complete all assessment components; andObtain a minimum of 50% in the final examination.

2/8/2016HRM209 Change Management Semester 1/ 2016 MNU Business SchoolSlide 6Assessment EventPercentageDue DatesAssignment 1: Written Assignment30%Week 11Assignment 2: Presentation 20%Week 12 - 14Final Examination50%During the examination weekHRM209 Change ManagementPolicy on Late AssignmentsAssignments are due at 2.00 pm on the date specified and must be professionally presented (i.e., word processed, stapled, spell-checked, etc) and submitted in hard-copy form. The penalty for late submission of items for assessments is 5% of the maximum mark for each day late.AttendenceMinimum 80% requiredProvide Medical Form2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide7HRM209 Change ManagementPlagiarismCopying out part(s) of any document or audio-visual material (including computer - based materials)Using or extracting another persons concepts, experimental results or conclusionsSummarizing another persons workIn an assignment where there was collaborative preparatory work, submitting substantially the same final version as another student whether in whole or in part.

2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide8HRM209 Change ManagementReferencing Referencing is a standardised method of acknowledging sources of information and ideas that you have used in your assignment in a way that uniquely identifies their source.Use APA style referencing in your assignments

2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide9What Is Organizational Change?Organizational change involves movement from the present state of the organization to some future or target state

Future state can include a new strategy, new technology, or changes in the organizations culture

2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide10What Is Organizational Change? Changes in the external environment effect changes in a companys strategy, which drives technology, business processes, and organization

Addressing organizational change problems involves the introduction of Organizational Change Management (OCM)

2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide1111What Is Organizational Change?TimeAAOrganizational change: moving from thepresent state of the organization to somefuture or target state.2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide12Many sources of pressure on managers to change their organizations exist and will continue in the futureIdentify the pressures on organizations and their managers to changeWant to know the probable effects on you as a member of a changing systemWhat Is Organizational Change?2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide13Know how to deliberately change an organizationUnderstand the sources of resistance to changeLearn how to manage the change process to reduce resistance

Who Moved My Cheese? (Spencer Johnson)

What Is Organizational Change?2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide14Why do organizations need to change?challenges of growth, especially global marketseconomic downturns and tougher trading conditionschanges in strategytechnological changescompetitive pressures, including mergers and acquisitionscustomer pressure, particularly shifting marketslearning new organisation behaviours and skillsgovernment legislation/initiatives

2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide15Why is managing change important?There is evidence to suggest that most change initiatives fail.

Less than 60% of re-organisations met their stated objectives which are usually bottom line improvement (CIPD, 2015).

Failure to introduce effective change can have a high impact: loss of market position, removal of senior management, loss of stakeholder credibility, loss of key employees, and reduction in engagement.2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide16Theoretical foundationsThree schools of thought that form the central planks on which change management theory stands:the Individual Perspective school;the Group Dynamics school;the Open Systems school.2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide17Theoretical foundationsThe Individual Perspective school;The Behaviourists Human actions are conditioned by their expected consequences. Behaviour that is rewarded tends to be repeated, and behaviour that is ignored tends not to be. Therefore, in order to change behaviour, it is necessary to change the conditions that cause itA behaviour will stop eventually if it is not rewarded behaviour modification involves the manipulation of reinforcing stimuli so as to reward desired activity2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide18Theoretical foundationsThe Individual Perspective school;The Gestalt-Field psychologistslearning is a process of gaining or changing insights, outlooks, expectations or thought patterns

Therefore, from the Gestalt-Field perspective, behaviour is not just a product of external stimuli; rather it arises from how the individual uses reason to interpret these stimuli.

2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide19Theoretical foundationsThe Group Dynamics schoolOriginated with the work of Kurt Lewin.

Its emphasis is on bringing about organisational change through teams or work groups, rather than individuals (Bernstein, 1968).

Individual behaviour is a function of the group environment or field. This field produces forces, tensions, emanating from group pressures on each of its members.

To bring about change, therefore, it is useless to concentrate on changing the behaviour of individuals. The individual in isolation is constrained by group pressures to conform. 2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide20Theoretical foundationsThe Open Systems schoolSees organisations as composed of a number of interconnected sub-systems.It follows that any change to one part of the system will have an impact on other parts of the system and, in turn, on its overall performance.The Open Systems schools approach to change is based on a method of describing and evaluating these subsystems, in order to determine how they need to be changed so as to improve the overall functioning of the organisation.2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide21Theoretical foundationsThe Planned approach to organisational changeChange that was consciously embarked upon and planned by an organizationField theory (Kurt Lewin)This is an approach to understanding group behaviour by trying to map out the totality and complexity of the field in which the behaviour takes place (Back, 1992).

Lewin maintained that to understand any situation it was necessary that: One should view the present situation the status quo as being maintained by certain conditions or forces

2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide22Filed Theory

Lewins view was that if one could identify, plot and establish the potency of these forces, then it would be possible not only to understand why individuals, groups and organisations act as they do, but also what forces would need to be diminished or strengthened in order to bring about change.2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide23Theoretical foundations

TimeAAPresent state ofthe organizationDesired state ofthe organizationForces forchange Forces againstchangeA Force FieldTheoretical foundations2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide24Forces For and Against ChangeExternal forces for changeCompetitors and marketsAcquisition threatsInternational: global marketsWorkforce diversityQuality management2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide25Forces For and Against Change (Cont.)Internal forces for changeHigh dissatisfactionFelt stressLoss of control of processesDysfunctionally high conflictSlow decision makingHigh turnover and absenteeismCommunication dysfunctions2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide26Forces For and Against Change (Cont.)Forces against changeInternal: resistance to change from individuals and groupsExternal: special interest groups such as consumer groups and unionsView the forces for and against change asa force field working on the organization2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide27Theoretical foundationsThree-Step model

Step 1: UnfreezingThe equilibrium needs to be destabilised (unfrozen) before old behaviour can be discarded (unlearnt) and new behaviour successfully adopted.

2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide28

Theoretical foundationsThree-Step model

Step 2: MovingGroups and individuals to move from a less acceptable to a more acceptable set of behaviours.Step 3: RefreezingRefreezing seeks to stabilise the group at a new quasi-stationary equilibrium in order to ensure that the new behaviours are relatively safe from regression.


Theoretical foundationsThree-Step model


Models of planned organizational changeEvolutionary modelIncremental changeExample: changing the organizations pay scale to stay market competitiveRevolutionary modelChange many parts of an organizationExample: strategic shiftPlanned Organizational Change2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide31Planned Organizational ChangeEvolutionary model of organizational changeThree phases with no distinct boundaries. Each phase blends into the next phaseA manager or other change agent develops a need for change among those affectedThe change agent then tries to move the organization or part of it toward the changed stateThe change agent tries to stabilize the change and make it a part of the organization2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide32Evolutionary model of organizational changeSees change happening in small bits that add to a total amount of changeUnexpected events can occur along the way, forcing a return to an earlier phasePlanned Organizational Change2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide33Revolutionary model of organizational changeOrganizational change unfolds over long periods of stability followed by bursts of major change activitiesUses three conceptsEquilibrium period: organization moves steadily toward its mission and goalsRevolutionary period: a major change in the strategic direction of the organizationDeep structures: enduring features of the organization that let it succeedPlanned Organizational Change2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide34Revolutionary model of organizational change (cont.)Two events trigger a revolutionary periodDissatisfaction with the organization's performanceStrong feelings among organization members that it is time for changePlanned Organizational Change2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide3535Revolutionary model of organizational change (cont.)Dissatisfaction with the organization's performanceMisfit between the organizations deep structure and its current environmentFollows a clear organizational failure or when many believe failure is imminentPlanned Organizational Change2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide36Revolutionary model of organizational change (cont.)Strong feelings among organization members that it is time for changeOrganization members feel uneasy with the current equilibrium periodDevelop feelings of little forward movementCharacterizes organizations that must shift directionPlanned Organizational Change2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide37Resistance to ChangeNo matter what the target, changes affect the social system of an organizationPeople develop long-standing, familiar patterns of social interactionStrong resistance develops when organizational change affects these social networks2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide38Resistance to Change (Cont.)Resistance can take many formsLack of cooperation with the change effortSabotage of the change effortDysfunctionally high conflict levels2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide39Resistance to Change (Cont.)Reasons for resistance to changePerceive the loss of something valued such as social statusMisunderstand the goal of the changeDistrust the change agentNo common perception of the value of the changeLow tolerance for change2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide40Resistance to Change (Cont.)Managers orientation to resistance to changeProblem to overcomeForcefully reduce resistanceCan increase resistanceSignal to get more informationAffected targets may have valuable insights about the changes effectsChange agent can involve the targets in diagnosing the reasons for the resistance2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide41Resistance to Change (Cont.)Managers orientation to resistance to change (cont.) Absence of resistanceAlso a signal to get more informationLow commitment to the change can make the change less effectiveResisters can focus the change agents on potentially dysfunctional aspects of a proposed change2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide42Resistance to Change (Cont.)Managing the change process to reduce resistanceUse change agents with characteristics similar to the change targetUse dramatic ceremonies and symbols to signal disengagement from the pastWidely communicate information about the change2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide43Resistance to Change (Cont.)Managing the change process to reduce resistance (cont.)Involve those affected by the changeCommit enough resourcesNegotiation may be necessary, when a powerful person or group is a potential source of resistance2/8/2016HRM209 Change Management Semester 1/ 2016MNU Business SchoolSlide44Tutorial Microsoft Case1.Why do you think change initiated from top to bottom usually fail?

2.State the reasons why Microsoft needed to change?

3.Which factors contributed to the success of Brummels change initiatives?

4.Use a theoretical model to explain the change process of Microsoft.


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Change Management