PAMANTASAN NG LUNGSOD NG MAYNILA

Graduate School of Business and Government

(University of the City of Manila) Intramuros Manila

Report on

In partial Fulfillment of the Requirements in Master in Government Management Course (Regular Program) National Police Commission

MANAGEMENT OF CHANGE

Submitted to:

DR. NERI S. PESCADERA

Submitted by:

DIMSY V. LUCAS

Page 1 of 12

MANAGEMENT OF CHANGE
THE NATURE OF CHANGE Change is any shift or alteration in the present state of a system. The shift or change may be in a way we perceive things or in how items are organized, processed, created, or maintained. Example, in physical systems, the change is induced from outside the system thus, external force may apply on at rest object to put in the state of motion. Or, heat applied to an object to change temperature. In social organizations, change is initiated, implemented, and maintained to achieve a new level of performance by the system. Dimensions of Change The three Major Areas of Change: Strategic Change. In the course of business operations it is necessary to change the strategy to achieve goals or even to change the mission of the organization in order to divest them of unrelated business. Structural Change Organizations often find it necessary to change the structural design of the company. As the plans change the organization changes. When a company changes its procedures, policies, and rules it is changing its structure. People-Centered Change This type of change focuses on changing the attitudes, behaviors, skills, or performance of employees in the company. In changing the skills and performance of employees this can be done through training, replacing present employees, or increasing the job performance expectations of new hires. Sources of and Reason for Change External Sources of Change External source of change may include technology, competition, government actions, economic variables, and social values. Government regulations on health, safety, and the conduct of business affect an organization. Equal Employment Opportunity Commission guidelines that have been enacted that influencing hiring, pay, training, and promotion decisions. Tax Law Change. Economic conditions, such as recession, inflation, and interest rates are sources of changes. Lastly, the cultural changes in such areas as modes of dress, reasons for people working, composition of workforce, and changes in traditional female and male roles can affect the organizational environment.

Page 2 of 12

Internal Sources of Change Internal sources of change might include managerial policies and styles, systems, and procedures; technology; and employee attitudes, with their resultant behavior. Example, if a manager develops a new set of expectations for job performance, this change will influence the values and behaviors of the employees affected. The employees could adapt to these expectations or resist them. Planning for Change One way a company can deal with the sources and reasons for change is to try and anticipate them ahead of time and plan for them. A company and its managers can adopt of philosophy of planned change, which involves trying to anticipate when changes will occur in the environment, both inside and outside of the company, to which management will have to respond and then thinking about the type of response it will take. Steps in Planned Change 1. Need for Change. The first step in the process is recognition of the need for a change. It can come from either external or internal source. 2. Development of goals. Before any action can be taken it is necessary to determine why the change is necessary and what specific goals are to be achieved. 3. Selection of a Change Agent. At this point manager has to decide who will be the change agent or who will manage the change. 4. Diagnosis. In this step the co-change agents set about gathering data about the climate of the organization, costs, and the policies developed by other organizations. 5. Selection of Intervention Method. This step requires a decision on the best way to bring about the change. The change agents review the data and the goals. The options are (1) to create a policy themselves or (2) to form a task force representative of the work group to develop the policy. 6. Development of Plan. This step involves the actual putting together the what. The task force will decide the alternatives of the change. 7. Planning for Implementation. In this phase the task force must decide the when, where, and how of the plan. When will the policy go into effect? What problems can be anticipated? How will the policy be communicated? How will the policy be evaluated? 8. Implementation. After the questions have been answered and the target date identified, it is now the process of putting the plan into actions. 9. Follow-Up and Evaluation. After the implementation and all the squeaks have been smooth out. Next is follow up and evaluate. The actual results should be compared to the goals. Reactive and Pro-active Adaptation Reactive the internal changes are made in response to external forces. The technological, economic, social, and political environment of the firm changes. Markets and industries develop, grow, and mature. Industry competitors come and go, increasing or decreasing the intensity competition. All of these require appropriate responses from the

Page 3 of 12

organization or it will simply be left behind. Structure of industry competition is the primary source of external pressures in which the organization can develop a new strategy, restructure the organization, acquire new technology, introduce new products or services, or it can change the behavior of the people involve in organization. Pro-active when the organization are forward looking. They initiate changes in anticipation of pressure in the future, the people in organization has the desire for creativity, innovation, and imagination for the excellence of their performance as well as the organization, also pro-active organizations seem as changing their environment as well as themselves. Innovation - changing the yield of resources. Changing the value of satisfaction obtained from resources by the consumer, improving and modifying what already exists, creating new and different values, and new and different satisfactions, converting a material into a resource, or combining existing resources in a new and more productive configuration. (Peter Drucker) Characteristics of Innovative Companies Eight attributes which distinguish excellent and innovative companies: (Thomas J. Peters and Robert H Waterman, Jr.) 1. Bias for Action. The most distinctive trait among the excellent companies is an action orientation. Experiments, ad hoc task forces, small groups, and temporary structures abound. They dont indulge in long reports nor do they install formal matrices. They appreciate the basic human limitation that people can only handle a little bit of information at one time. 2. Close to the Customer. Companies listen and learn to their customers intently and regularly, because the customers provide the best product ideas for the companies. In contrary they provide customers with unparalleled quality, service, and reliability; Things that work and last. 3. Autonomy and Entrepreneurship. Innovative companies support many leaders and innovators throughout the organization. They seek and encourage product pursue product innovations. They dont try to hold everyone on so short a rein that he cannot be creative. They foster practical risk-taking, and support good tries. 4. Productivity through People. Companies treat the rank and file as the root source of quality and productivity gain. They do not foster we/they labor attitudes; instead they see themselves as just one team. They do not consider capital investment as the fundamental source of efficiency improvement. 5. Hand-on, Value-driven. Excellent companies are clear on what they stand for, and take the process of value-shaping seriously. The ones with the most precise financial targets had done less well financially than those with broader, less precise, more qualitative statements of purpose.

Page 4 of 12

6. Stick to the Knitting. High-performing companies tend to stay reasonably close to the business they know. Organization that branch out, still they stay very close to their central skill. Businesses that pursue some diversification, yet stay close to their distinctive competence tend to be superior performers. 7. Simple Form, Lean Staff. Excellent companies never formally run with matrix organization structure, and thus the underlying structural forms and systems in the excellent companies are elegantly simple. Top-level are lean. 8. Simultaneous Loose-tight Properties. Excellent companies are both centralized and decentralized. Most part, they push more autonomy down to the shop floor or product development team. On the other hand, they are centralists around the few core values they hold dear. Adoption of New Behavior Patterns An organizations level of adaptation is not improved until many of its employees have adopted new patterns of behavior in relation to each other and to their jobs. Changes becomes effective only when it results in people and groups actually improving their collective performance no matter how elegant on paper it appears to be. Individual Change in Behavior Individual change in behavior involves a complex process of personal and social learning. It is a process whereby people unlearn old patterns of behavior and adopt new ones. The change process consist of several steps and each step sets is the necessary condition to the next step. Three Steps in the change process: (1) Unfreezing. Old ideas and practices need to be cast aside so that new ones can be learned. This is the step of getting rid of old practices and to learn the new ones. The unfreezing stage constitutes a necessary first step to stimulate people to feel and recognize the need for the change. In this stage the agent develops a case for change and aims to create a motivation for change on the part of the changee. (2) Changing Changing stage involves the introduction and application of new patterns of behavior. In this phase, new ideas and behaviors are learned, tried, and tested additionally, consequences of alternative behaviors is determined. It can be time of confusion, disorientation, overload, and despair. Fortunately, the changing step is also usually mixed with hope, discovery, and excitement. (3) Refreezing In this stage, means that what has been learned is integrated into actual practice. The changer provides the reinforcement to insure that the new patterns of behavior are adopted on a permanent basis. The changer sees to it that the new ideas and new behaviors are integrated into actual practice.
Page 5 of 12

Responses to Change In interacting with the environment, organizations tend to achieve internal equilibrium over a period of time. People and groups know what to do and they know to what to expect or they become accustomed in doing things the way they have been done before, also they feel comfortable with things as they are. Meaning there is stability, continuity and predictability. Change constitutes a discontinuity that threatens the existing equilibrium. If change threatens the group, it responds to oppose it and to maintain the equilibrium that has been used to. Two responses: 1. Individual Response is conditioned by the persons feelings and attitudes toward the change. Force for change interacts with the individuals internal desires, values, and motivations to produce a response. The persons interpretation of change will, likewise, be influenced by his experience both inside and outside the organization. 2. Group response group forces operates on individuals so that they present a common response to change. Homeostasis - People act to establish a steady state of need fulfillment and to protect themselves from disturbance of that balance. - Self-correcting property Hawthrone Effect (Studied by Roethlisberger) The mere observation of a group tends to change it. When people are observed they act differently. These changes are unintended and not recognized. They contaminate the research design, but normally they cannot be prevented. Resistance to Change People resist most changes because they already have been settle down and become habituated to a certain conditions and thus, these are threat to their status quo. This changes threatens peoples need for security, social relationships, and status. People need to make necessary adjustment to the new situation. At the same time, change forces people to confront uncertainty and unpredictability. Resistance to change consists of behavior that tends to delay if not to stop the process of change. It includes habitual complaints, work slowdowns, and sabotage; also, it can derail the entire process. Employees resist changing because it threatens their need for security, social interacting status, or self-esteem. Possible Benefits of Resistance Resistance may encourage management to reexamine its change proposal, thus making sure they are appropriate. In this way employees operate as a check and balance to ensure that management properly plans and implements change. If reasonable employee resistance causes management to screen its proposed changes more carefully, then employees have discouraged careless management decisions.

Page 6 of 12

Resistance also can help identify specific problem areas where a change is likely to cause difficulties, so that management can take corrective actions before serious problems develop. Resistance also gives management information about the intensity of employees emotions on an issue, provides emotional release for employee feelings, and may encourage employees to think and talk more about a change so that they understand it better. Kinds of Resistance Rational objections result from a logical appraisal of the merits and demerits of change. Resistance can also be based on emotions. Feelings and attitudes toward the change, the change agent, and other involve in the change process. Also objections can be based on social factors. Group forces and the desire to maintain relationships operate to sustain the status quo. Change can be rejected due to political considerations, on the basis; there is a desire to preserve existing power relationship. Lastly, the psychological resistance based on emotions, sentiments, and attitudes of individual of a company. Different bases on resistance of people to change: Rational - Possible unemployment - Interference in career patterns - Time to adjust - Costs of change Emotional - Dislike of change agent - Distrust of other people involved in the change - Desire to keep the status quo - Fear of uncertainty Social - Need for stable human relationships - Desire to maintain existing friendships - Loyalty and group solidarity - Inconsistency of change with group values Political - Desire to maintain power - Need to retain existing coalitions - Preservation of decision-making authority - Narrow vested interests Psychological resistance - Based on emotions, sentiments, and attitudes. - Logical from the perspective of the employees attitudes and feelings about the change. - Fear the unknown, mistrust managements leadership, or feel that their security and self-esteem are threatened.

Page 7 of 12

Force field Analysis (Kurt Lewin) Used as general approach to altering the existing equilibrium to make way for proposed changes. A person, group, or organization can be seen as being in the midst of a force field. These forces may be internal or external to the system; and they may be physical, psychological, social, political, economic, and technological. Transformational Leadership and Change Management has a key role in initiating and implementing change. Managers sometimes overlook simple but important details, they may fail to develop a master strategy for planned change. An overall plan should address behavioral issues, such as employees difficulty in letting go of old methods, the uncertainties inherent in change that cause workers to be fearful, and the general need to create an organization that welcomes change. Transformational leaders are instrumental in this process. They are managers who initiate, strategic changes to position the organization for its future, they articulate a vision and sell it vigorously, help employees rise above their narrow focus on their individual jobs or departments to see a broader picture. It also stimulates employees to action and characteristically models the desired behaviors. They attempt to create learning individuals and organizations that will be better prepared for the unknown challenges that lie ahead. Building Support for and Overcoming Resistance to change Implementation is the most difficult aspect of changing. No matter how cogent the argument for change may be, chances are, its implementation will conflict with some interest and disturb existing relationships. Some activities that management can undertake before, during and after the change are as follows: Information and Communication. People who would be affected by the change should be informed about it before it takes place not after. Communication educates the users of change about the need for it and its consequences. Full disclosure and transparency prevent the formation of rumors, misunderstandings, and intrigues. Management should provide as much information about the proposed change as possible to ensure that it is properly understood. Consultation and Participation. Consultation about the proposed change should begin early in the initiation stage. Participation in change planning and decision-making generates commitment to implement the changes rather than mere compliance. It also gives users of change a sense of control over the change process. The proponents should discuss the proposed changes with the users of change. Comments and suggestions should be elicited. Shared Rewards. The employees would undertake a benefits-cost analysis of change from their own personal perspectives. If the proposed change were only going to cost them without compensating benefits, it would naturally not be implemented. Thus, rewards derive from improvements in task performance should be shared with those who actually made the behavioral adjustments to make those improvements a reality.

Page 8 of 12

Impact of Employee Security. Change usually has impacts on careers and jobs. Proponents should take steps to ensure that the change will have minimal or no adverse consequences on employees. Existing employee benefits need to be protected. Seniority and career advancement opportunities have to be safeguarded. Retraining can be provided to those workers who would be displaced so they can be transferred to other units of the organization instead of being laid off. Stimulating Employee readiness. This approach builds on the premise that change is more likely to be accepted if the people affected recognized the need before it occurs. This awareness may happen naturally as when a crisis occurs, or it can be induced by management through sharing operating information with employees. Working with Unions. Unions sometimes support management in encouraging workers to accept change. Unions, as a matter of policy, favor improvement through technological change and will approve a change that is carefully planned to protect member interest. Working with the Total System. Resistance to change can be reduced by helping employees to recognize the need for each change and to participate in it and again from it. Creating Vision. A vision is a crystallized long-range image or idea of what can and should be accomplished. It typically stretches people beyond their current capabilities and thinking, and it excites them to new levels of commitment and enthusiasm. It also integrates the shared beliefs and values that serve as a basis for changing an organizations culture. Communicating Charisma. Charisma is a leadership characteristic that can help influence employees to take early and sustained action. Charismatic leaders are dynamic risktakers who show their expertise and self-confidence symbols and language to inspire others. In response, followers respect and trust charismatic leaders as they introduce change, and tend to be more emotionally committed to the vision of such leaders. Using the Group as a Medium of Change Managers cannot afford to overlook the fact that groups exert considerable influence on members behavioral patterns. The influence of the groups on the behavior of members is a subtle but powerful one. Any attempt to change must consider the dynamics of groups or the forces operating in groups. Change efforts can be supported or blocked by pressures on members coming from the groups. Five Management Guidelines for responsible change: 1. Make only necessary and useful change. Avoid unnecessary change. 2. Change by evolution, not revolution (that is, gradually not dramatically) 3. Recognize the possible effect of change, and introduce it with adequate attention to human needs. 4. Shared the benefits of change with employees 5. Diagnose the problems remaining after a change occurs, and treat them. Change, when improperly handled, manifests itself in slowdowns and showdowns.

Page 9 of 12

Five considerations concerning the group as a medium of change: 1. Strong Sense of Belonging. If the group is to be used effectively as a medium of change, both those people who are going to be changed and those who are to exert influence for change must have a strong sense of belonging to the same group. The chances for change are increased whenever a strong sense of we-feeling is present. 2. Attractiveness of the Group. The more attractive the group is to its members, the greater is the influence that the group can exert on its members. The stronger the identification and loyalty of a person to a group, the greater the group influence would be. To make the group more attractive and thus increase its influence over members, it must be able to address and promote the interest of its members. 3. Range of Influence. In attempt to change attitudes, values, or behavior, the more relevant they are to the basis for attraction to the group, the greater the influence that the group can exert upon them. A group has a range of activities that are relevant to it. A members attraction to a group is based more on some of the groups activities rather than others. 4. Actual Leader. The greater the prestige of a group member in the eyes of the other members, the greater the influence he can exert. A group has a formal leader but the one with the real influence may be another person. This explains why the formal leader and the actual leader of a group are often not the same person. To change agent, this means that he could first elicit the support of the key members of a group. Once the key members support the change, other individuals are more likely to follow. 5. The Price of Deviation from Group Norms. Efforts to change individuals or subparts of a group that, if successful, would have the result of making them deviate from the norms and expectation of the group will encounter strong resistance. The group exerts strong pressures upon members to conform to the groups norms. The price of deviation usually rejection. If the member really wants to belong and be accepted, he may not be able to withstand this pressure. STRATEGY FOR MANAGING CHANGE Change managers need to develop an explicit strategy in order to increase the likelihood of successful change. The strategy will consist of a number of activities that should be carried out to help managers initiate and implement changes effectively. Most essential Components in Strategy for Managing Change are as follows: Strategy for Making Changes Determine a Real Need for Change Look for an Idea that Suits the Need Consider the Benefits and Costs of Change Obtain Support for Change Change by Small Steps at a Time Assign an Idea Champion Determine any Post-Change Problems and Treat Them

1. 2. 3. 4. 5. 6. 7.

Page 10 of 12

1. Determine a Real Need for Change. The change should focus on a real need and should be manifest itself in terms of a problem, a challenge, or an opportunity; and it may be felt by clients, customers, employees or managers. Generally, a need for change exists when there is a gap between actual and desired performance. 2. Look for an Idea that Suits the Need. An idea is another way of doing things. In finding this there is way of formal and informal search of procedures. A small task force may be formed to do research on the problem, or other managers may be consulted for idea inputs. The solution maybe a new product, or a new way of managing people. Whatever it is, it should possess the potential to produce new and higher levels of performance. 3. Consider the Benefits and Costs of Change. The benefits of change in terms of improved task performance, innovativeness, and organizational effectiveness should be balanced against the costs that such change would entail. The decision to initiate and implement change should be made with a careful consideration of its costs. Some costs are economic in nature and therefore are easily computable. But, other costs are psychological and social and they do not readily yield to computations. 4. Obtain Support for Change. A frequent cause of failure in implementing changes is lack of support. Therefore, proponents should obtain the support of other people in the organization beside themselves. The scope of support required depends on the nature and extend of change contemplated. For large-scale changes such as corporate reorganizations, top management support is essential. For other changes, support of key managers is necessary. If these influential people have other priorities, the proposed changes may simply be forgotten. 5. Change by Small Steps at a Time. It is preferable to carry out changes one manageable step at a time rather than all at once. That way, should the change process falter at any changes in multiple directions may create so much tension and anxiety that can only increase resistance. 6. Assign an Idea Champion. Idea champion are people in the organization who take it upon themselves to initiate and implement changes. They are mavericks that seem to be unable to accept things as they are. They are the dreamers. They are energetic and impatient but above all they take action. If the manager himself cannot assume the role of idea champion, this role can be assigned to somebody else of are enthusiastic and highly committed to the proposed changes. 7. Diagnose Post-Change Problems and Solve Them. If the desired levels are not being reached, something must be wrong. The problems remaining after the change should not be left unattended for people would simply revert to their old ways. The job of change managers does not end after the changes have been made. If performance has not improved, the root causes have to be found and corrective measures taken.

Page 11 of 12

SUMMARY Change is everywhere, and its pace is increasing. The work environment is filled with change that, while positive in intent, upsets the social system and requires employees to adjust. When they do, employees respond with their emotions as well as rational reasoning. Resistance to change can focus on the change itself or on the way it may introduce. Further, it can be rational, emotional, political, psychological, or social. Change has costs as well as benefits, and both must be considered to determine net effects. Management reduces resistance by influencing the supporting and restraining forces for change. Managers are encouraged to apply a systematic change procedure spanning unfreezing, change, and refreezing activities. Since there is an organizational learning curve for change, time is required for the potential benefits of change to occur. Transformational leadership can be instrumental in bringing about effective changes. Leaders need to create and share a vision, to inspire followers through their charisma, and to encourage them so that future changes will be even more successful. A wide range of activities to support change can also be used, such as participation, shared rewards, and adequate communication.

References:

Management of Human Behavior in Organization

Second Edition: By: Concepcion Rodil Martires/Galileo S. Fule

Introduction to Management
Fourth Edition; By: Plunkett/Attner

Organizational Behavior Human Behavior on Work

9th Edition: By: John W. Newstrom/Keith Davis

Page 12 of 12