MANA 3319MANA 3319A PANDEYA PANDEY

Managing ChangeManaging Change

September 17, 2007September 17, 2007

A MetamorphosisA Metamorphosis

1865- Fredrik Idestam( a mining engineer 1865- Fredrik Idestam( a mining engineer by trade ) built a by trade ) built a wood pulp millwood pulp mill on the on the banks of the Tammerkoski rapids, in banks of the Tammerkoski rapids, in southern Finland. southern Finland.

1902 – The company added 1902 – The company added electricity electricity generationgeneration to its business activities to its business activities

1912- founded Finnish Cable Works1912- founded Finnish Cable Works 1968- began to manufacture mobile 1968- began to manufacture mobile

phonesphones Today- has just sold its billionth mobile Today- has just sold its billionth mobile

phonephone

Types of ChangeTypes of Change

Planned Change-change that is Planned Change-change that is anticipatedanticipated and allows for and allows for advanced preparationadvanced preparation

Dynamic Change-change that is Dynamic Change-change that is ongoing or happens so quickly ongoing or happens so quickly that the impact on the that the impact on the organization cannot be organization cannot be anticipated and specific anticipated and specific preparations cannot be madepreparations cannot be made

Forces for Change: Forces for Change: Environmental ForcesEnvironmental Forces

Environmental forces includeEnvironmental forces include::TechnologyTechnologyMarket forcesMarket forcesPolitical and regulatory agencies Political and regulatory agencies

and lawsand lawsSocial trendsSocial trends

Put pressure on a firm’s Put pressure on a firm’s relationships with customers, relationships with customers, suppliers, and employees.suppliers, and employees.

Forces for Change: Forces for Change: Internal ForcesInternal Forces

Events Events withinwithin the company. the company.

May originate with May originate with top top executives and managersexecutives and managers and and travel top-downtravel top-down

May originate with May originate with front-line front-line employees or labor unionsemployees or labor unions and and travel bottom-uptravel bottom-up . .

Why Don’t we like change?Why Don’t we like change?

1.1. Lack of Trust and Lack of Trust and UnderstandingUnderstanding

2.2. Self InterestSelf Interest

3.3. UncertaintyUncertainty

4.4. Different Perspectives and Different Perspectives and GoalsGoals

5.5. Cultures that Value Tradition Cultures that Value Tradition

Lawler’s Star ModelLawler’s Star Model

Type: Evolutionary or Transformational

Structure: decisions and people

Reward System: Team or Individual

Processes: Information communication and behavior control

People: skills and capabilities. Within or outside organization

1. Unfreezing: melting away resistance

3. Refreezing: change becomes routine

Present State

Desired state

Time

Lewin’s Three Step Model

2. Change: departure from the status quo

Restraining forces

Driving forces

Status quo

Desired state

Time

Force-field Analysis Model of Change

1. Decrease Restraining Forces

2. Increase Driving Forces

3. Both

Implementing Implementing Organizational ChangeOrganizational Change

Top-down Change: initiated by executives

Change Agents: people who act as catalysts to change

Bottom-up Change: originates with employees.

How to introduce Change:How to introduce Change:

Communication and EducationCommunication and Education Employee involvementEmployee involvement NegotiationNegotiation CoercionCoercion Top Management SupportTop Management Support