OD 7-Change Mgt

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    Change ManagementChange Management

    Change is omnipresent . Only constant in businessChange is omnipresent . Only constant in business

    environment is the change itself.environment is the change itself.

    Todays Change is different from Yesterdays changeTodays Change is different from Yesterdays change.. ItItis not necessarily related to the past. It is also notis not necessarily related to the past. It is also not

    predictive of the future. It is discontinuous demandingpredictive of the future. It is discontinuous demandingflexibility of response.flexibility of response.

    Continuous change is slow and incremental, while theContinuous change is slow and incremental, while the

    discontinuous change is rapid and radical.discontinuous change is rapid and radical.

    Discontinuous change has gained popularity due toDiscontinuous change has gained popularity due toglobal competitions, deglobal competitions, de--regulation and technologyregulation and technology

    changes. Goss, Pascale and Athos call thechanges. Goss, Pascale and Athos call the

    discontinuous change as rediscontinuous change as re--invention. Reinvention. Re--invention isinvention is

    not changing what is but creating what isnt.not changing what is but creating what isnt.

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    Contd..Contd.. Change is just like a wind that can come fromChange is just like a wind that can come from

    in any direction, as we cannot stop the windin any direction, as we cannot stop the windbut we can adjust our sails, so as to changebut we can adjust our sails, so as to changealso.also.

    Change means the New state of things which isChange means the New state of things which isdifferent from the old state of things.different from the old state of things.

    Change Management is the continuous processChange Management is the continuous process

    of aligning an organization with its Market placeof aligning an organization with its Market placeand doing it more responsively and effectivelyand doing it more responsively and effectivelythan competitors.than competitors.

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    An organization is confronted byAn organization is confronted bypressures for change from manypressures for change from manysources. The broad categories ofsources. The broad categories ofpressures that affect organizations arepressures that affect organizations are

    People, Technology, InformationPeople, Technology, Informationprocessing and communication andprocessing and communication andCompetition.Competition.

    All the organizations today, need toAll the organizations today, need toadapt themselves to this dynamic andadapt themselves to this dynamic andchanging environment.changing environment.

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    Demands for change come from forcesDemands for change come from forcesboth external and internal to theboth external and internal to theorganization. External forces includeorganization. External forces include

    regulators, competitors, market forces,regulators, competitors, market forces,customers, technology, and the largercustomers, technology, and the largersociety.society.

    Internal forces include obsolescence ofInternal forces include obsolescence ofproducts and services, new marketproducts and services, new marketopportunities, new strategic directions, anopportunities, new strategic directions, anincreasingly diverse workforce.increasingly diverse workforce.

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    Change can be deliberate (planned) orChange can be deliberate (planned) oraccidental (unplanned). Its magnitudeaccidental (unplanned). Its magnitude

    can be large or small. It can effect manycan be large or small. It can effect manyelements of the organization or only aelements of the organization or only afew. It can be fast (abrupt, revolutionary)few. It can be fast (abrupt, revolutionary)or slow (evolutionary). The new state ofor slow (evolutionary). The new state of

    things can have an entirely differentthings can have an entirely differentnature from the old state of thingsnature from the old state of things(fundamental, quantum, or second(fundamental, quantum, or second--orderorder

    change), or the new state of things canchange), or the new state of things canhave the same nature with somehave the same nature with somemodifications (incremental, firstmodifications (incremental, first--orderorderchange)change)

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    Change Management ProcessChange Management Process

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    Lewins Model for changeLewins Model for change

    Kurt Lewin introduced two ideasKurt Lewin introduced two ideasabout change. The first idea statesabout change. The first idea statesthat whatever is happening rightthat whatever is happening right

    nownow--is the result of forces pushing inis the result of forces pushing inopposing direction.opposing direction.

    In any situation there are bothIn any situation there are both

    driving and restraining forces thatdriving and restraining forces thatinfluence any change that mayinfluence any change that mayoccur.occur.

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    Driving forces are those forcesDriving forces are those forcesaffecting a situation that are pushingaffecting a situation that are pushing

    in a particular direction; theyin a particular direction; theyindicate a change and keep it going.indicate a change and keep it going.For example, in case of increasingFor example, in case of increasingproductivity, incentives, pressureproductivity, incentives, pressure

    from the supervisor, competitionfrom the supervisor, competitionetc., may be the driving forcesetc., may be the driving forces

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    Restraining forces are forces acting toRestraining forces are forces acting to

    restrain or decrease the driving forces.restrain or decrease the driving forces.

    Examples for restraining forces workingExamples for restraining forces working

    counter to increase production such ascounter to increase production such as

    hostility, apathy, poor maintenance or veryhostility, apathy, poor maintenance or very

    old machineries, ineffective or autocraticold machineries, ineffective or autocratic

    supervision. An equilibrium of these twosupervision. An equilibrium of these twoforces is attained when the sum of theseforces is attained when the sum of these

    forces are equal in magnitude.forces are equal in magnitude.

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    ExampleExample

    To increase the present level ofTo increase the present level ofproduction, if a manager attemptsproduction, if a manager attemptsautocratic style of leadership andautocratic style of leadership andapplying pressures on the workers toapplying pressures on the workers to

    produce more and more, the productionproduce more and more, the productioncan be increased for a certain period ofcan be increased for a certain period oftime. Though there is an apparenttime. Though there is an apparentincrease in production, restraining forcesincrease in production, restraining forcessuch as hostility, turnover, absenteeism,such as hostility, turnover, absenteeism,problem in interproblem in inter--personal relations arepersonal relations arelikely to develop in and work against thelikely to develop in and work against theefforts towards productivity.efforts towards productivity.

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    This situation may explain a newThis situation may explain a newequilibrium at a lower productivity. Whenequilibrium at a lower productivity. Whena new manager takes over at such time,a new manager takes over at such time,he may decide not to increase the drivinghe may decide not to increase the driving

    forces but to bring down the restrainingforces but to bring down the restrainingforces. The new managers efforts will beforces. The new managers efforts will betowards problem solving operations andtowards problem solving operations andtraining and development, instead oftraining and development, instead ofconcentrating on production alone. Suchconcentrating on production alone. Suchoperation may bring down output.operation may bring down output.

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    But in the long run, the employees willBut in the long run, the employees will

    develop a commitment to objectives,develop a commitment to objectives,develop skills and gain increased interdevelop skills and gain increased inter--personal relations which will slowly helppersonal relations which will slowly helpto increase the production. Theseto increase the production. Thesevariables will start acting as a drivingvariables will start acting as a drivingforce for production. The increase inforce for production. The increase indriving forces will gradually reduce thedriving forces will gradually reduce the

    effect of restraining forces. Now lowereffect of restraining forces. Now lowerlevel trend will move the balance to alevel trend will move the balance to ahigher level of output.higher level of output.

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    The managers philosophy is to be notThe managers philosophy is to be notonly concentrating on the output but alsoonly concentrating on the output but also

    to attend to intervening variables too.to attend to intervening variables too.They should focus their attention towardsThey should focus their attention towardsnot only shortnot only short--term goals but also onterm goals but also onlonglong--term goals as well.term goals as well.

    In a situation, when a manager hasIn a situation, when a manager hasdetermined that there is a discrepancydetermined that there is a discrepancybetween what is actually happening andbetween what is actually happening and

    what he would like to be happening, hewhat he would like to be happening, hewould do some analysis on how thatwould do some analysis on how thatdiscrepancy exists. At that moment forcediscrepancy exists. At that moment force

    field analysis will be helpful.field analysis will be helpful.

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    Prior to finalizing a change strategy, thePrior to finalizing a change strategy, themanager should determine, what aremanager should determine, what arethe helpful factors in the change effortsthe helpful factors in the change efforts(driving forces) and which are going to(driving forces) and which are going towork against the change effortwork against the change effort

    (restraining forces). If a manager starts(restraining forces). If a manager startsimplementing a change strategy withoutimplementing a change strategy withoutdoing such an analysis, he will face adoing such an analysis, he will face a

    number of difficulties.number of difficulties.

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    If the driving forces are greater than theIf the driving forces are greater than therestraining forces in power and frequencyrestraining forces in power and frequencyin a change situation, managersin a change situation, managersinterested in driving for change can ofteninterested in driving for change can oftenpush on and overpower the restrainingpush on and overpower the restrainingforces.forces.

    In case of the restraining forces found toIn case of the restraining forces found tobe greater and much stronger than thebe greater and much stronger than thedriving forces, managers interested indriving forces, managers interested indriving for change have several choices.driving for change have several choices.

    If they understand that change effortsIf they understand that change effortswould be very difficult, they can drop thewould be very difficult, they can drop thechange efforts, secondly they canchange efforts, secondly they canimplement the change effort,implement the change effort,

    concentrating on driving forces andconcentrating on driving forces and

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    also attempting to change restrainingalso attempting to change restraining

    forces one by one into driving forces, orforces one by one into driving forces, orto make the restraining forces to getto make the restraining forces to getweakened. The process is timeweakened. The process is timeconsuming.consuming.

    If the driving forces and restrainingIf the driving forces and restrainingforces are almost equal in a changeforces are almost equal in a changesituation , managers will have to begin tosituation , managers will have to begin toutilize the driving forces, and at the sameutilize the driving forces, and at the same

    time attempting to convert or immobilizetime attempting to convert or immobilizesome or all of the restraining forces.some or all of the restraining forces.

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    Lewins second idea was a model of theLewins second idea was a model of thechange process itself. He suggested thatchange process itself. He suggested that

    change is a threechange is a three--stage process;stage process;unfreezing the old behavior, moving to aunfreezing the old behavior, moving to anew level of behavior, and refreezing thenew level of behavior, and refreezing thebehavior at the new level.behavior at the new level.

    Take the example of a man who smokesTake the example of a man who smokescigarettes and wants to quit. The threecigarettes and wants to quit. The three--stage model says he must first unfreezestage model says he must first unfreeze

    the old behavior of smoking, that is,the old behavior of smoking, that is,believe that cigarette smoking is bad forbelieve that cigarette smoking is bad forhim and that he should stop smoking.him and that he should stop smoking.

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    Next, he must move, that is, changeNext, he must move, that is, changehis behavior from being a smoker tohis behavior from being a smoker tobeing a nonsmoker. Finally, thebeing a nonsmoker. Finally, thenonsmoking behavior must becomenonsmoking behavior must becomepermanentpermanent--not smoking becomes thenot smoking becomes thenew equilibrium point. Refreezing thenew equilibrium point. Refreezing the

    desired behavior requiresdesired behavior requiresestablishing a new field of forces toestablishing a new field of forces tosupport the new behavior.support the new behavior.

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    UnfreezingUnfreezingDisconfirmation creates pain andDisconfirmation creates pain and

    discomfort, which cause guilt anddiscomfort, which cause guilt andanxiety, which motivate the person toanxiety, which motivate the person tochange. But unless the person feelschange. But unless the person feelscomfortable with dropping the oldcomfortable with dropping the oldbehaviors and acquiring new ones,behaviors and acquiring new ones,change will not occur. That is, thechange will not occur. That is, the

    person must develop a sense ofperson must develop a sense ofpsychological safety in order topsychological safety in order toreplace the old behaviors with newreplace the old behaviors with newbehaviors.behaviors.

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    MovingMoving

    The person undergoes cognitiveThe person undergoes cognitiverestructuring. The person acquiresrestructuring. The person acquiresinformation and evidence showinginformation and evidence showingthat the change is desirable andthat the change is desirable andpossible. This motivating evidence ispossible. This motivating evidence isgained by, for example, identifyinggained by, for example, identifying

    with exwith ex--smokers and learning aboutsmokers and learning aboutthe health risks of smoking.the health risks of smoking.

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    RefreezingRefreezing

    It is to integrate the new behaviorsIt is to integrate the new behaviorsinto the persons personality andinto the persons personality andattitudes. That is , stabilizing theattitudes. That is , stabilizing thechanges requires testing to see ifchanges requires testing to see ifthey fitthey fit--fit with the individual, and fitfit with the individual, and fitwith the individuals socialwith the individuals social

    surroundings.surroundings.