Managing Major Changes

Lecturer: Umair HussainManaging Major ChangesSkills for Effective Organizational ChangeTo manage change effectively involves the ability to create a new synthesis of people, resources, ideas, opportunities and demands. Therefore,

Manager needs skills rather like those of an orchestral conductor.Skills for Effective Organizational Change (cont)To manage change Vision is essential and creativity paramount.the logistics of resources, support, training and people is central to any change programme.People must be influenced, departmental boundaries crossed or even swallowed upnew ideas accepted, new ways of working embraced and new standards of performance and quality achieved.politics of the organization are crucialSupport must be mobilized, coalitions built and supported, opposition identified and consideredSkills for Effective Organizational Change (cont)To manage change People need help to cope with the stress, anxiety and uncertainties of change.Continuity and tradition must be overturnedin part, as the old is replaced by the new.

The effective management of organizational change demands attention to all these somewhat conflicting issues and challenges. So in a period of change, synthesis is the key.Three Skill Areas to Managing ChangeManaging transitions.

Dealing with organizational cultures.

The politics of organizational change.Managing TransitionsManaging this transition to effectiveness, then, demanded both learning and change, as indicated by the following five criteria:Learning is produced by exploring dilemmas or contradictions (e.g. improved quality was essential and end-users had to be convinced that they should continue to use company As product, but ageing plant, managerial problems and low morale made this difficult to achieve).Learning is based on personal experience and experimentation. People will only learn if they understand the problems and are brought into the process of seeking solutions.Learning can be encouraged in a climate which encourages risk taking, doing things and trying out new ideas. (Google one day for innovation)Managing Transitions (Cont)Learning requires the expression of deeply held beliefs and will involve conflict. Only then can ideas emerge and be properly assessed before being incorporated into new systems, products, strategies, etc. (Brain storming is important)Learning can be helped by recognizing the value of people and ideas, developing learning styles which encourage individuals rather than close off discussion (Argyris and Schon, 1974).Dealing with organizational culturesManagement autonomy, particularly with regard to reward systems: to what extent should local management have the ability to make decisions about gradings and salary dependent on market conditions etc.Interchangeability: To what extent should promotion depend on diversity of experience? Moves of this kind can sustain task forces or project teams. It can also reinforce individual autonomy, creativity and knowledge.Dealing with organizational cultures (Cont)Openness or public testing of issues and problemsRecent developments in management information systems seem likely to bring about systems which managers can interrogate! This help in simplification of procedures and paperwork that such developments promise.Functional and professional advice can be provided where the focus should be on business needs rather than on professional demands.The politics of organizational changeFocus on the so-called dominant coalitionDominant coalitions provide a structure to an organizations political process.Need of focus on structures of interests,Goals alignment with organizations, power and statusDealing with agency problemCoping with Organizational ChangeCoping with the process of change places demands on the individuals involved.Various issues need to be faced either by the individuals or by managersHowever, that these issues are of concern to all those who are affected by an organizational change, including managers.Rebuilding self-esteemChanges which have a significant impact on the work that people do will have a significant impact on their self-esteem.

To rebuild self-esteem individual have 4 needsintelligible informationnew skillsSupport to deal with problemempathy (Ability to see and understand how other people construct reality,)

Rebuilding self-esteem

Managing Major Changes

Coping with ChangeChange creates anxiety, uncertainty and stress, even for those managing change, and even if they are fully committed to change. Thus it effects the performance of employees.

Coping with Change

If change causing stress then we move to right side.Beyond threshold the behavior become volatile.Coping CycleHave 5 stages in coping cycle to cope with change.DenialDefenseDiscardingAdaptationInternalization

Coping Cycle (Cont)DenialWhen significant changes are first mooted the initial response may be to deny the need for change: We have always done things this way. Why change, we are making a profit, arent we? Dont change a winning team. We tried that before

Coping Cycle (Cont)DefenseRealities of change become clearer and people must begin to face new tasks, working for a new boss or with a different group of people, perhaps in a different department or a new location.This can lead to depression and lower performance.

Coping Cycle (Cont)DiscardingNow people begin to let go of the past and look forward to the future.Optimistic feelings emergePeople understand change is both inevitable and/or necessary.

Coping Cycle (Cont)AdaptationNow a process of mutual adaptation emerges. Rarely do new systems, procedures, structures or machines work effectively first time. Individuals begin to test the new situation and themselves trying out new behaviors.

Coping Cycle (Cont)InternalizationNew relationships between people and processes have been tried, modified and accepted. These now become incorporated into an understanding of the new work situation.

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