organization change organizational change is the process through which an organisation moves from...
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Types of change Evolutionary change and revolutionary change Reactive change & proactive changeTRANSCRIPT
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Organization Change
Organizational change is the process through which an organisation moves from the present state to an improved state.
Change management comprises three elements: evolution of the firm, its management and organization, and the people who work for it.
Three levels of change are observed: individual level, group level, and organisations.
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Nature of Change
» vital if a company were to avoid stagnation; » a process and not an event; » normal and constant; » fast and is likely to increase further in the present competitive
business; » ‘directive’, that is, implemented by ‘top down’ management or
‘participative’, that is, involving those parties impacted by change; » is ‘natural’, that is, evolutionary or ‘adaptive’, that is, a reaction to
external circumstances and pressures; » is ‘incremental’, that is continuous small changes or ‘step’, that is,
radical shift from current to new processes; and » is interdependent on organizational environment or culture.3
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Types of change
Evolutionary change and revolutionary change
Reactive change & proactive change
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Forces for Change
Force Examples
Nature of the workforce More cultural diversityAging populationMany new entrants with inadequate skills
Technology Faster, cheaper, and more mobile computersOn-line music sharingDeciphering of the human genetic code
Economic shocks Rise and fall of stocks Global economy slowdown
Competition Global competitors
Mergers and consolidationsGrowth of e-commerce
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Forces for Change
Force Examples
Social trends Internet chat rooms Retirement of Baby BoomersRise in discount and “big box” retailers
World politics Iraq–U.S. war
Opening of markets in China War on terrorism following 9/11/01Outsourcing noise
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Managing Planned Change
Goals of Planned Change:
Improving the ability of the organization to adapt to changes in its environment.
Changing the behavior of individuals and groups in the organization.
ChangeMaking things different.Planned ChangeActivities that are intentional and goal oriented.
Change AgentsPersons who act as catalysts and assume the responsibility for managing change activities.
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Resistance to Change
Forms of Resistance to Change– Overt and immediate
• Voicing complaints, engaging in job actions
– Implicit and deferred• Loss of employee loyalty and motivation, increased
errors or mistakes, increased absenteeism
• Deferred resistance clouds the link between source and reaction
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Sources of Resistance to Change
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Sources of Individual Resistance to Change
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Sources of Organizational Resistance to Change
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Overcoming Resistance to Change
Tactics for dealing with resistance to change:
• Education and communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation and cooptation
• Coercion
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Tactics for Overcoming Resistance to Change
Education and Communication– Show those effected the logic behind the change
Participation– Participation in the decision process lessens
resistance Building Support and Commitment
– Counseling, therapy, or new-skills training Implementing Change Fairly
– Be consistent and procedurally fair Manipulation and Cooptation
– “Spinning” the message to gain cooperation Selecting people who accept change
– Hire people who enjoy change in the first place Coercion
– Direct threats and force
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Six Methods for Dealing With Resistance to Change
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The Politics of Change
Impetus for change is likely to come from outside change agents.
Internal change agents are most threatened by their loss of status in the organization.
Long-time power holders tend to implement only incremental change.
The outcomes of power struggles in the organization will determine the speed and quality of change.
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Lewin’s Three-Step Change Model
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Lewin’s Three-Step Change Model
Unfreezing– Change efforts to overcome the pressures of
both individual resistance and group conformity
Refreezing– Stabilizing a change intervention by balancing
driving and restraining forces
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Force field analysis
• Driving Forces Forces that direct behavior away from the status quo.
• Restraining Forces Forces that hinder movement from the existing equilibrium.
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Unfreezing the Status Quo
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The Six-Stage Change Process
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Kotter’s Eight-Step Plan for Implementing Change
1. Establish a sense of urgency by creating a compelling reason for why change is needed.
2. Form a coalition with enough power to lead the change.3. Create a new vision to direct the change and strategies for
achieving the vision.4. Communicate the vision throughout the organization.5. Empower others to act on the vision by removing barriers to
change and encouraging risk taking and creative problem solving.
6. Plan for, create, and reward short-term “wins” that move the organization toward the new vision.
7. Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.
8. Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.
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Kotter’s Eight-Step Plan
Builds from Lewin’s Model
To implement change:1. Establish a sense of urgency2. Form a coalition 3. Create a new vision4. Communicate the vision 5. Empower others by removing barriers6. Create and reward short-term “wins”7. Consolidate, reassess, and adjust8. Reinforce the changes
Unfreezing
Movement
Refreezing