Module Name: Human Resource Management Module Code: MMBA 704 Module Tutor: Md.

Sajjad Hosain Week: 07 Lecture No: 07 Lecture Topic: Change Management -------------------------------------------------------------------------------------------------------------------------

Work Change-

Work change is any alteration that occurs in the work environment. The effect of change can be illustrated a balloon(an organization). When a finger(external change) is pressed against the point of the balloon, the shape of it visibly changes(intended) at the point of contact. Here an obvious pressure, representing change, has produced a clear change to the balloon. Therefore, the whole organization tends to be affected by change in any part of it. It is apparent that those at the spot of pressure must make drastic adjustments. Though the change do not make direct contact with all the employees, it has affected them passively. Repeated changes may lead to pressures and conflicts that eventually cause a breakdown somewhere in the organization. An example is an employee who becomes dissatisfied and resigns. Proactive and Reactive RolesProactive role to change is the process of anticipating events, initiating change, and taking control of their destinations. On the other hand, reactive role is to restore and maintain the group equilibrium and personal adjustments. Here, the employees respond to events, adapt the change, and temper the consequences of change. Many of the organizational changes are somewhat minor. They affect only a few people and relatively predictable. A typical example is the addition of a new member in an organization. For these kind of change, all the members do not need to change all dimensions of their jobs or do not require a new behavior. A wide variety of forces, however, may bring about more dramatic changes that touch the entire core of an organization. Many of these have become much more common as the economy, competition and pace of technological change have become more volatile. Examples include hostile takeover of a firm, leveraged buyouts and subsequent organizational restructuring, the natural disasters like oil spills and gas leaks. Responses to Change-

There are no direct connection between the change and response. Some other intervening variables, such as employee attitudes had affected the pattern later. Behavioral scientist Roethlisberger and his followers later illustrated the new pattern by means of a model of response to change known as the X chart. The chart is shown in figure-1. Each change is interpreted by individuals according to their attitudes. The way that people feel about a change determines how they will respond to it. These feelings are not the result of chance; rather they are caused. One cause is personal history, which refers to peoples biological processes, their backgrounds and all their social experiences away from work. A second cause is the work environment. It reflects the fact that workers are members of a group and are influenced by its codes, patterns and norms. Change Response

Attitudes (Sentiments)

Personal history Social situation at work Figure-1 change Roethlisbergers X chart regarding individual response to

Feelings are not a matter of logic. They are neither logical nor illogical but entirely apart from logic. They are nonlogical. Feelings and logic belong in two separate categories. For that reason, logic alone is an ineffective means of trying to modify feelings because it does not get at them directly.

Group response to ChangeThough people individually interpret change, they often show their attachment to the group by joining with it in some uniform response to the change as shown in figure 4. This response makes possible such seemingly illogical actions as walkouts when obviously only a few people actually want to walk out. Other employees who are unhappy seize upon the walkout as a chance to show their dissatisfaction and confirm their affiliation with the group by joining with it in social action. Basically, the group responds with the feeling, We are all in this together. Whatever happens to one of us affects all of us. Resistance to ChangeResistance to change consists of any employee behaviors designed to discredit, delay or prevent the implementation of a work change. Why Resistance OccursEmployees resist change because it threatens their needs for security, social interaction, status or self-esteem. The perceived threat stemming from a change may be real or imagined, intended or unintended, large or small. Regardless of its nature, employees will try to protect themselves from the effects of change. Their actions may range from complaints, foot-dragging and passive resistance to absenteeism, sabotage and work slowdowns. All types of employees tend to resist change because of the cost that accompany it. Employees may resist changes for two broad reasons. First, they may not feel comfortable with the nature of the change itself. It may violate their moral belief system, they may believe that the decision of change is technically incorrect or they may simply be reluctant to exchange the comfort of certainty and familiarity for uncertainty. A second reason for resistance stems from the method by which change is introduced. They may resent having been ill informed or they may reject an authoritarian approach that did not involve them in the change process. Their resistance will be even more intense if they disagree with both of the change and the method used. Types of ResistanceResistance to change can be of three different types. These types work in combination to produce each employees total attitude toward a change. (a)Logical Resistance: This is based on disagreement with the facts, rational, reasoning, logic and science. Logical resistance arises from the actual time and effort required to adjust to change, including new job duties that must be learned. These are true costs borne by the employees. Even though a change may be favorable for employees in the long run, theses short run costs must be paid. (b)Psychological Resistance: This is typically based on emotions, sentiments and attitudes. Psychological resistance is internally logical from the perspective of the employees attitudes and feelings about change. They may fear the unknown, mistrust managements leadership or feel that their security and selfesteem are threatened. Even though management may believe there is no justification for these feelings, they are very real to employees and managers must deal with them.

(c)Sociological Resistance: Sociological resistance is also logical when it is seen as a product of a challenge to group interests, norms and values. Since social values are powerful forces in the environment, they must be carefully considered. There are political conditions, labor union values and even different community values. On a small group level there are work friendships and status relationships that may be disrupted by changes. Managers must try to make these conditions as favorable as possible if they intend to deal successfully with sociological changes.

Three Stages in Change ProcessBehavioral awareness in managing change is aided by viewing change as a three step process: Unfreezing Changing Refreezing Unfreezing means that old ideas and practices need to be cast aside so that new ones can be learnt. Often this step of getting rid of old practices is just as difficult as learning the new ones. It is an easy step to overlook while concentrating on the proposed change itself, but this is what often leads to resistance to change. Just as a farmer must clear a field before planting new seeds, so must a manager help employee clear their minds of old roles and old purposes. Only then they will be able to embrace new ideas. Changing is the step in which the new ideas and practices are learnt. This involves helping an employee think, reason and perform in new ways. It can be a time of confusion, disorientation, overload and despair. Fortunately, the changing step is also usually mixed with hope, discovery and excitement. Refreezing means that what has been learnt is integrated into actual practice. In addition to being intellectually accepted, the new practices become emotionally embraced and incorporated into the employees routine behavior.

Implementing Changes SuccessfullyManagement has a key role in initiating and implementing change successfully. Successful managers do not overlook any factors that can affect in implementing change and may have a overall plan to develop the implementation process.

Generally, the following activities might be helpful to implement the change process. 1.Use of Group ForcesEffective change focuses on the group along with individuals. The group is an instrument for bringing strong pressure on its members to change. Since ones behavior is firmly grounded in the groups to which one belongs, any changes in the group forces will encourage changes in individual behavior. The idea is to help the group join with management to encourage desired change. 2.Providing a Rationale for ChangeCapable leadership reinforces a climate of psychological support for change. The leader will present the requirements to the staffs why the change is needed. Change requirements should be impersonal, rather than for the managers personal requirements. 3.Employee ParticipationA fundamental way to build support for change is through participation of employees on the change process. It encourages them to discuss, communicate, make suggestions and to become make them interested in change. Employees need to participate in a change before it occurs, not after. When they can be involved from the beginning, they feel protected from surprises and feel that their ideas are wanted. On the other hand, employees are likely to feel that involvement after a change is nothing more than a selling device and manipulation by management. 4.Shared RewardsAnother way to implement change successfully is to be sure that there are enough rewards for employees in the change process. Rewards also give employees a sense of progress with a change. Both economic and psychic rewards are useful. Employees appreciate a pay increase or promotion, but they also appreciate emotional support, training in new skills and recognition from management. 5.Employee SecurityAlong with shared rewards, existing employee benefits need to be protected. Many firms guarantee workers protection from reduced earnings when new machines and methods are introduced. Others offer retaining and delay installation of labor saving machinery, seniority rights, opportunities for advancement etc. when change is made. All these practices help employees feel secure in the presence of change. 6.CommunicationCommunication is essential in gaining support for change. Even though a change will affect only one or two in a work group of ten person, all of them need to know about the change in order to feel secure and to maintain group cooperation. 7.Stimulating Employee ReadinessEmployees should be aware of the need for a change. This approach builds on the premise that change is more likely to be accepted if the people affected by it recognize the need for it before it occurs. The awareness can be induced by management through sharing operating information with employees.

8.Working with UnionsManagement in the performance of its function is primarily an initiator of change. The union, on the other hand, serves more as a resistant on management and as a protector of security for its members. This difference between management and unions tend to cause union-management conflict about change. Therefore, the organization should work closely with the unions about the change process and should make them understand that it will be helpful for the firm in the long run. 9.Working with the Total SystemAnd above all, the management team must evaluate and re-evaluate the total system, its possible effect on the organization and employees. Everybody in the process should be involved and work together as team to implement the change. Performance AppraisalAll the companies have some formal or informal means of appraising their employees performance. Performance appraisal involves (1)setting work standards, (2)assessing the workers actual performance relating to those standards and (3) providing feedback to the employee with the aim of motivating him/her to eliminate performance deficiencies or to continue to perform above par. Therefore, performance appraisal is evaluating an employees current and/or past performance relative to his/her set standards. It assumes that the employee knew what the standards were, and received the feedback required to remove any lackings or deficiencies. The should always be to improve the employees as well as the companys performance.