Management of Change

Dr.Lakshmi Priya.H
Balraj.G.S
S2 M.B.A
UNIVERSITY OF KERALA
IMK ADOOR

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THE NEW D.N.A OF H.R.M

To
my Parents
Who taught me the first lesson of
Human Resource Management

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Some famous quotes

• To exist is to change, to change is to

mature, to mature is to go on creating
oneself endlessly….Henri Bergson
• The World hates Change, But it is the
only one thing that has brought
progress……Charles F.Kettering.
• Change is concerned with making
things different …Stephen P.Robbins.
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Learning Objectives

• To understand the definition and

factors affecting change.
• To identify the different forms of
change.
• To explain the approaches to managing
organizational changes.
• To understand the resistance to
change and techniques for overcoming
this resistance. 4
• INTRODUCTION TO CHANGE
a) Definition.
b) Forces of Change.
c) Planned Vs Unplanned Change.
d) Change Agents – Internal & External.
e) Resistance to change.
f) Other forms of change
Change - Definition

• When an organizational system is

disturbed by some internal or external
forces, there occurs a modification of
the structure or process of that
system. This modification which
occurs, can be good or bad to the
organization, but is called as change.

Dr.K.Aswathappa.
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Practical Examples

• Hiring a new employee – Changing the

Work Group.
• Purchasing a New Piece – Changing the
work methods equipment.
• Re-arranging Work Station – Changing
Work Flows.

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Forces For Change

The great Six Forces affecting Change

1. Nature of the Workforce.
2. Technology.
3. Economic Shocks.
4. Competition.
5. Social Trends.
6. World Politics.

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Forces For Change

1. Nature of the Work Force

a) More cultural Diversity.
b) Increase in Professionals.
c) Many New Entrants with Inadequate Skills.
2. Technology
a) More computers & Automation.
b) TQM Programmes.
c) Re-Engineering Programmes.

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Forces for Change

3. Economic Shocks.
a)Security Market Crashes.
b)Interest Rate Fluctuations.
c)Foreign Currency Fluctuations.
4. Competition.
a)Global Competitors.
b)Mergers & Consolidations.
c)Growth of Specialty Retailers. 10
Forces for Change

5. Social Trends.
a)Increase in attendance.
b)Delayed Marriages by Young People.
c)Increase in Divorce Rate
6. World Politics.
a)Collapse of Soviet union.
b)Iraq’s Invasion of Kuwait.
c)Overthrow of Dictators. 11
EXTERNAL & INTERNAL FORCES

• External forces • Internal forces

• Technological • Declining
change effectiveness
• Globalization • Changes in work
• Social & political climate
changes • Deficiencies in the
• Workforce diversity existing system
• Crisis
• Employee
expectations 12
Forms of Change

• Two Forms –
a) Planned Change.
b) Un Planned Change.

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Planned Change

• A Change resulting from a deliberate

decision to alter the organization. It is an
intentional , goal directed activity.
The main goals are :-
a)First it seeks to improve the ability of the
organization to adapt to the changes in the
environment.
b)Second, it seeks to change the behaviour of
the employees.
For Example : Computerization of Banks. 14
Unplanned Change

• Any Change which is imposed on

organization and which is quite
unforeseen.
• Here organizations have to be more
flexible, responsive and adaptive.
• Examples are changes in Government
regulations, Changes in Economy.

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1.TYPES OF CHANGE
According to Henry Mintzberg changes
may be of four types:

• Incremental Change
• Piecemeal Change
• Transformational Change
• Flux Change
INCREMENTAL CHANGE
These changes takes place frequently
and in a gradual manner.
These changes are logical and
involved little deviation from the
past.
PIECEMEAL CHANGE

• Change only in some strategies while

other remains unchanged.

Eg: The marketing strategy of the

organization is being changed
because of growing competition
without affecting other functional
strategies
TRANSFORMATIONAL CHANGE

 Changes take place rarely but they

are major and involve significant
departure from the past.

Eg: Adoption of new technology,

diversification of organizations
operations
FLUX CHANGE

Changes in the strategic of the

organization without any clear
direction.

Eg: Some new product has been

added to existing product line so as
to broaden it
VARIOUS OTHER TYPES OF
CHANGES

According to David Nadler and Michael

Tushman organizational changes may
be of four:

Anticipatory Change
Reactive Change
Incremental Change
Strategic Change
ANTICIPATORY CHANGE

 Changes made with an intention to

take advantages of situations which
are expected to rise.
 Changes are systematically planned
so the manager monitor the situation
regularly.
 It helps the manager to make a
change in organization as to get its
benefits.
REACTIVE CHANGE

Changes which are forced on the

organization by unexpected
environmental pressures.
Changes are generally made for the
survival of the organization.
Changes are made to exploit new
opportunities
INCREMENTAL CHANGES
• Changes which are made with an intention
to maintain functioning of organization on
its chosen path.

STRATEGIC CHANGES
 Changes are more basic in nature.
 These changes alter overall shape and
direction of the organization.
Eg: change in technology, Change in
location of plant
PROACTIVE CHANGE
 Proactive change is brought out of the
anticipation of the likely behaviour of the
forces having impact on the organizations
 The organizations are constantly interact
with their environment to identify new
opportunities and threats.
 Before these opportunities or threats force
them to change, they undertake change
programmes on regular basis in order to
avoid developing inertia of inflexibility
Change Agent

• Any individual or group that

undertakes the task of introducing and
managing a change in an organization
is known as a change agent.
Change Agents are :-
• Internal Change Agents
• External Change Agents

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Internal Change Agents

• Any Manager or an Employee who are

appointed to oversee the change
process
Advantages
a) Aware of history, culture, political system etc..
b) They live with the results of their change efforts, hence will be more
careful.
Disadvantages
a) Can be accused of favouritism.
b) May have only an Objective View.

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External Change Agents

• Any External consultant or any person

who is appointed by the management,
but is external can act as an external
change agent.
Advantages
a) Can be impartial , so welcomed by the employees.
b) More power in directing changes since they are support staff.
c) May have a track record that establishes their credibility.
Disadvantages
a) Limited knowledge of organization's history.
b) May be viewed with suspicion by other employees.
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• BEHAVIOURAL REACTIONS TO CHANGE
Behavioural Reactions to Change

• Proposed by H.Woodhard and S.Beechholz.

Four basic behavioural reactions:-
a)Disengagement.
b)Disidentification.
c)Disenchantment.
d)Disorientation.

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Behavioural Reactions to Change
Reaction Expression Managerial
Intervention
Disengagement Withdrawal Confront, Identify,
Disidentification Sadness Explore, Transfer,
Disenchantment Worry Neutralize,
Disorientation Anger Acknowledge, Explain,
Confusion Plan etc..
Frustration etc

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Disengagement
Reaction Expression Managerial
Intervention
Psychological Appear to Lose Confront them with
withdrawal initiative, lose interest, their reaction and draw
from change physically present but them out so that they
mentally absent, can identify their
Attitudes like – “No concerns that needs to
Problem”, “I don’t be addressed.
Mind”, “This wont
affect me” etc..

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Disidentification
Reaction Expression Managerial
Intervention
Here , the employees Vulnerable at times, Make them able to
feel that their identity display sadness, separate their work life
has been threatened worry, they think that and emotions, think
by change. they are victims of from modern point of
change, highly view rather than
emotional reactions. traditional ways of
performing. Explore
their feelings and help
them to transfer their
negatives to positives.

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Disenchantment
Reaction Expression Managerial
Intervention
Always Sabotage, Very difficult to deal
Negative/Angry. Backstabbing, with them as they
Statements like “This don’t stand for any
will never work out”, “ reasoning. Try to shift
I am moving out of the employees from
this company ASAP” their highly negative,
etc.., Contagious, Try emotionally charged
to form groups @ work mental states.
place. Acknowledge that the
employees anger is
normal and assure that
the manager will not
hold it against them in
future.
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Disorientation.
Reaction Expression Managerial
Intervention
Disorientation Lost & Confused, not Get them rid of their
sure about their ambiguity, make them
feelings, Quite often understand the pros of
becomes “Analysis – change. Make them
Paralysis”, ask realize the broader
questions like “ Now context of change.
what do I do?” or Manager then can plan
“What do I do First”, a series of steps to
confused. make the employee
adjust with the
situation. Set priorities
for the employees to
cope with the change.

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• MODELS OF CHANGE
Approaches / Models to Managing Change

• Lewin’s Change Model.

• Lippit’s Planning Model of Change.
• Nadler’s Organizational Model.
• Contingency Model.

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• LEWIN’S MODEL OF CHANGE
Lewin’s Model Of Organizational Change

 Introduced by KURT LEWIN – Social Psychologist.

Base of the Model :- THE CONCEPT OF FORCE FIELD ANALYSIS.

There are various forces that operate in social systems to keep the
system either in balance /equilibrium or in state of change.

Two sets of such forces operate. They are :-

 The Driving Forces ( the forces that operate for change)
 The Resisting Forces ( the forces that operate against change)

If these two forces are equal in strength , then the system is said to be
in equilibrium or balance.
For any behavioural change to occur, the forces maintaining the status
quo must be overcome. For this you can increase the forces of change
or weakening the forces of status quo or by a combination of both. 39
Lewin’s Model Of Organizational Change

Forces For Change Forces for Status Quo

Weight Gain. Lack of Time.
No exercise facility at work
Minimally Passing the
Treadmill Test Spouse/Partner hates to
EQUILIBRIUM
Feel Lethargic, No Energy. exercise.
Family history of cardio - No interest in physical act-
vascular disease. ivity or sports.
New Physically demand- Made a grade of D in Ph-
Ing job ysical.

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Lewin’s Model Of Organizational Change

UNFREEZING REFREEZING
CHANGE

Reducing the forces Developing new Reinforcing new

Of status quo attitudes,values, & attitudes,values, &
behaviours. behaviours.

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Lewin’s Model Of Organizational Change

Unfreezing:-

Unfreezing means “melting” resistance to change.

Old ideas and attitudes are set aside to give place to
new ideas. More stimulative environment.
Management creates an environment where
employees are more self motivated and creates a
climate for innovative discourses and practices.

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Lewin’s Model Of Organizational Change

• Changing/Moving
• Here new attitudes, new values and new behaviours are
substituted for old ones. Here the organization provides
training to the employees to develop the new skills.
• Either structure, technology or the physical setting has to be
altered.
• Old & New Ideas Co-Exist.

Structure Technology People

Authority Relations Work Processes Attitudes

Coordinating Mechanisms Work Methods Expectations
Job Redesign Equipment Perceptions
Spans of Control Behaviour 43
Lewin’s Model Of Organizational Change

• Refreezing:-
• Here the new attitudes, values and behaviours are established
and the old ones are replaced.
• In some cases, the people affected by change will clearly
benefit from it. This will reinforce them.
• In other cases, managers play a vital role in reinforcing
change.
• The new way of operating should thus be cemented and
reinforced.

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• PLANNING MODEL OF CHANGE
Planning Model

• Developed by Lippit, Watson and

Westley in 1958.
• Modified by Kolb ans freshman
(1970)
• Follows a seven step process.
Planning Model
Scouting

Entry

Diagnosis

Planning

Action

Stabilization
& Evaluation

Termination
Planning Model

SCOUTING :- PHASE WHERE THE CHANGE AGENT AND THE

ORGANIZATION JOINTLY EXPLORE THE NEED FOR AND
AREAS REQUIRING CHANGE.

ENTRY :- REFERS TO THE DEVELOPMENT OF MUTUAL

CONTRACT AND MUTUAL EXPECTATIONS.

DIAGNOSIS :- FURTHER EXPLORATION OF WHERE SPECIFIC

IMPROVEMENT GOALS ARE NEEDED.

PLANNING :- THE ACTUAL AND POSSIBLE REASONS FOR

RESISTANCE TO CHANGE ARE IDENTIFIED IN ADDITION TO
PLANNING THE SPECIFIC IMPROVEMENT GOALS.
Planning Model

ACTION:- IMPLEMENTATION OF STEPS IDENTIFIED

IN THE PLANNING STAGE.

STABILIZATION&EVALUATION:- EVALUATION IS
CONDUCTED TO DETERMINE THE EXTENT OF
SUCCESS OF PLANNED CHANGE AND THE NEED
FOR FURTHER ACTION OR TERMINATION.

TERMINATION:- DECISION IS MADE TO LEAVE THE

SYSTEM OR TO END AND BEGIN ANOTHER.
• NADLERS MODEL OF ORGANISATIONAL CHANGE
Nadler’s Organizational Model

 Proposed by David Nadler.

 Model is based on the Open Systems Model of Organisations.
BA
IM
W ER
PO NCE
LA

INFORMAL
ORGANISATION

TASK REDEFIN LOSS OF CON

ITION CHALL FORMAL ORG TROL.
ENGES TASK ANISATION

INDIVIDUAL
NCE
ISTA E
G
HAN
TO C
ES

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R
Nadler’s Organizational Model

Transformation process is as a result of interaction of four elements in the

organization. They are:-
a) Task
b) Individuals.
c) Formal Organizational arrangements ( Structures, Process, Systems).
d) Informal Organisation ( Patterns of Communication, Power & Influence, Values
& Norms).

WHEN AN ORGANISATION UNDERGOES CHANGE, ITS ORGANISATIONAL

COMPONENTS START OUT WITH ONE SET OF CHARECTERISTICS, THEN
CROSS OVER THROUGH A TRANSITIONAL STATE , TO FINALLY REACH A
FUTURE STATE WHERE THEY HAVE A DIFFERENT SET OF CHARECTERISTICS.
DURING THIS TRANSITION, A CHANGE IN ANY ONE OF THE COMPONENT WILL
CALL FOR CHANGES IN OTHER COMPONENTS.

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Nadler’s Organizational Model

• Resistance :- Individuals resist to

change.
a)Anxious to change.
b)Feel they will lose control.
c)Be unable to cope
d)Have a vested interest in the existing
state of things.

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Nadler’s Organizational Model

• Control :- During transition and

afterwards, the previous structure may
no longer be effective.Managers should
take control over the new structures to
monitor performance and to make
necessary corrections.

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Nadler’s Organizational Model

• Power:
Changes disrupt the existing balance of
power and especially during the
transition state cause individuals to
engage in political seeking behaviour.
Awareness of these problem areas
enables managers to prepare
themselves to implement change
successfully. 55
• CONTINGENCY MODEL OF CHANGE
Contingency Model of Analyzing Change

• Proposed by Kotter & Schlesinger.

Identified six approaches. They are:-

a) Education + Communication.
b) Participation + Involvement.
c) Facilitation + Support.
d) Negotiation + Agreement.
e) Manipulation + Co.optation.
f) Explicit + Implicit Coercion.

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Contingency Model of Analyzing Change

a) Education + Communication - Providing facts

and information, increased communication about
change.
b) Participation & Involvement – Letting those
affected to have a voice in how the change will
occur, what are its pros and cons.
c) Facilitation & Support – Providing training for
change, effective listening, counselling and
understanding of emotional reaction to change.
Contingency Model of Analyzing Change

d) Negotiation & Agreement –

Bargaining over various aspects of
change.
e) Manipulation & Co-optation –
Using information about change
selecting a representative (or informal
leader) from the group to participate
in the change.
f) Explicit & Implicit Coercion – Using
power position and threats to force
compliance.
Contingency Model of Analyzing Change
Approach Commonly Used Advantages Drawbacks
in Situations
Education + Where there is lack Once persuaded Can be very time
Communication of information or people will often consuming if lots of
inaccurate help with the people are involved
information and implementation of
analysis the change
Participation + Where the People who Can be very time
Involvement initiators do not participate will be consuming if
have all the committed to participators
information they implementing design an
need to design the change, and any inappropriate
change and where relevant change.
others have information they
considerable power have will be
to resist integrated to the
change plan.
Facilitation + Where people are No other approach Can be time
Support resisting because of works as well with consuming,
adjustment adjustment expensive and still
problems problems may fail.
Negotiation + Where someone or Sometimes it is a Can be too
Agreement some grip will relatively easy way expensive in many
clearly lose out in a to avoid major cases if it alerts
change, and where resistance others to negotiate
the group has for compliance.
considerable power
to resist.
Manipulation + Where other It can be relatively Can lead to future
Co-Optation tactics will not quick and in problems if people
work, or are too expensive solution feel manipulated.
expensive to resistance
problems
Explicit + Implicit Where speed is It is speedy and Can be risky if it
Coercion essential and the can overcome any leaves people mad
change initiators form of resistance. at the initiators.
possess
considerable
power.
 RESISTANCE TO CHANGE
Why employees resist to change?
What are the sources of resistance to change?
How to overcome this resistance?
RESISTANCE TO CHANGE

• People often resist change in a rational

response based on self interest.
• Resistance can be overt , implicit ,
immediate , deferred.
• The greater challenge is managing
resistance that is implicit or deferred.
• The sources of resistance to change
can be categorized into two;individual
and organizational.
INDIVIDUAL RESISTANCE

Reasons are
 Economic reasons
 Fear of the unknown
 Fear of loss
 Security
 Status quo
 Peer pressure
 Social displacement
ORGANIZATIONAL RESISTANCE

 Resource constraints.
 Structural inertia.
 Sunk costs.
 Politics.
 Threat to established power
relationships.
 Threat to expertise.
 Group inertia.