CHANGE MANAGEMENT

DR.R.P.DAS
PROFESSOR, DIRECTOR AND DEAN
FACULTY OF MANAGEMENT STUDIES

Pt.Ravishankar Shukla University Raipur, CG

ORGANISATIONAL DEVELOPMENT
OD is a Response to Change, A Complex Educational Strategy intended to Change: Beliefs, Attitudes, Values and Structure of an Organization, so that they can better adopts to: New Markets, Technology, Challenges and Constant Changes. Bennis

ORGANISATIONAL DEVELOPMENT
OD is a: i. Planned Efforts ii. Organization wide Efforts iii. Efforts Managed from Top to increase Organizational Effectiveness through planned intervention in Organizational process Using behavioural Science Knowledge Beckhard

ORGANISATIONAL DEVELOPMENT
Organization development is an ongoing process of change aimed at resolving issues within an organization through the effective diagnosis and management of the organizations culture.
According to Warner Burke, OD is a Process of Fundamental Change in an Organizational Culture

OD IS ALL ABOUT CHANGE

CHANGE
Change is a structured approach to shifting or transitioning individual, teams, and organization from a current state to a desired future state. It is an organizational process aimed at helping employees to accept and embrace changes in their current business environment.

ORGANIZATIONAL CHANGE
It is generally considered to be an organization-wide

change, as opposed to smaller changes such as adding a new person. It includes the management of changes to the organizational culture, business processes, physical environment, job design / responsibilities, staff skills / knowledge and policies / procedures.
When the change is fundamental and radical, one might

call it organizational transformation

Basic Assumptions
It deals with medium and long- range changes It is about people and recognises their worth It involves the organisation as a whole as well as its parts It emphasises the concept of a change agent/facilitator
Change is continuous. Development of the organisation is treated as being central to its well-being.

Basic Assumptions
Change is not a one-off event, but is rather an iterative, cyclical process which is continuous as part of everyday organisational life. Change management takes time Some changes challenge basic assumptions, for example, the role of supervisory staff

Responsibility for Change

It is of the change Agent Change agent Can be : An insider An Outsider

ROLE OF CHANGE AGENT

The role of the change agent is important. Debates occur as to whether the use of an internal or external change agent is preferable. Buchanan and Boddy (1992) have written about CHANGE AGENTS competencies. Sensitive, clear, flexible goal setting. Team building, networking, handling ambiguity. Communicating, dealing with people and meeting, enthusing, motivating. Selling ideas, negotiating. Dealing with the politics, influencing the broader view.

Role of Change Agents

CHANGE AGENTS help the organisation to: Define the problem. Examine and diagnose the problem. Come up with alternative solutions. Direct implementation of solutions. Crystallise the learning.

FACTORS RESPONSILE FOR CHANGE

FACTORS CAN BE External and /OR Internal

External Factors
Govt. Regulations Change in economy Competition Raw material prices Pressure Groups Technological Developments Social Trend World Politics

FACTORS RESPONSILE FOR CHANGE

INTERNAL FACTORS Change in Corporate leadership Implementation of New technology Decline in corporate performance Obsolete products or services Union Action Low Moral and Motivation

Planned Change Process

It is the deliberate design and Implementation of structural innovation, new policy or goals or change in philosophy, style or climate. OD is planned change in organizational context. Three Stage Changes Unfreezing Moving- Refreezing (Creating Readiness) (Cognitive restructuring)(Fitting the change into individual surrounding)

Lewins Three Step Process to Changing Behaviour

UNFREEZING
Resistance to change lessened, need for change created (Equilibrium disturbed) MOVING

From old behaviour to the new (Changes)

REFREEZING Change made permanent

Unfreezing
Shaking up Disconfirmation of old ways of doing things Questioning & challenging of established wisdom

Moving
Making the actual changes to move to the new state of existence. Includes the development of new strategies, structures, systems & responsibilities and the shedding of old ones.

Refreezing
Stabilizing, institutionalizing the changes. Making sure the organization doesn't go backwards to the old state. Reinforcement of the changes through symbols, such as changed logos, dress, building design, structures.

Resistance to Change

Expressed and Immediate Implied and Deferred

Sources of Resistance
Individual Resistance (Loosing Something) Due to: Habit, Security, Economic Factor, Fear of unknown, Selective information processing

Individual Resistance
People will feel Awkward and self conscious People will Think What they have to Give Up People will Feel Lonely, Isolated People will be concerned that They do not have Enough Resource Different People have Different Level of readiness to Cope with Changes When you take pressure off, people will Revert to old Behaviour

Individual prerequisites for change to occur

Why should I change?
Thinking & understanding Emotional/ Motivational

Whats in it for me?

Head
Behavioral

Heart

Hands

What do I do differently?

Individual Behaviour
Individual Behaviour is Always regarded as an Instrument to Organizational Change

Change in behaviour includes: Values, attitudes,skills

Organizational Resistance
Due to: Structural Inertia Limited focus of Change Group Inertia Threat to expertise Threat to Established Power Relationship Threat to established Resource Allocation

The OD model for change

PRESENT STATE (1a) Diagnose current situation
FUTURE STATE (1b)

Develop a vision for change

(5) Assess and reinforce change

(2)

(4) Implement change

(3) Develop an action plan JOURNEY TO THE FUTURE

Gain commitment to the vision

Stage 1 - Understanding Present & Future States

At stages 1a and 1b the issues, problems and opportunities are to be fully explored and the (generally) multiple perspectives of people in the change situation should be understood. Diagnosing the current situation should not be rushed through without sufficient consideration of the underlying issues as well as the present ones.

Stage 2 - Gaining Commitment to the Vision

Once the vision for change has taken shape (stage 1b), commitment to it has to be gained. Consequently, sharing the vision with all concerned is important, which might mean a review, again, of the vision for change. It is vital to listen to the organisation - people's responses in words and deeds to the vision proposal.

Stage 3: Develop an Action Plan (4)

Responsibility charting helps in the assessment of the alternative behaviours for those involved in the series of actions for change. It involves identifying and assigning the specific people involved in each action or decision.
who is responsible (one person). who are the approval givers (not too many). who are the supporters, resource providers (vital). who should be informed.

Developing Action Plan 5

Possible stakeholders who are starting points for change:
Top management. Groups who are management-ready, i.e. ready for change.
Includes hurting systems. Those in pain.

New teams or systems. Change agents. Staff members who will facilitate subsequent change. Temporary change implementation project teams.

Stage 3: Develop an Action Plan (6)

Pughs (1986) OD matrix on p. 323 is very

useful in deciding where, in an organisation, change efforts should start and be planned.
start with desired behaviour that needs to change. move to organising the system, structure, info. flows, etc. that may need to change. move to organise the contextual setting that may also need to change.

Stage 3: Develop an Action Plan (7) Decide what needs to change:

behaviour systems/structure, or contexts Action plan must be:
relevant specific integrated in the right time frame adaptable

Approaches to Manage Changes

Providing Information Training Counseling Selection and Placement Termination Sensitivity Training Participation and Involvement Negotiation Facilitation and Support Coercion

The Effective Management of Change Involves An Integrated Approach In Each Of These Three Arenas

Change management
Effective Change

Equals
Altering Mind-set

Harnessing Motivation

Shaping Behavior