Change Management

What is Change Management?

 Change management refers to the task of managing

change.
 Managing change refers to the making of changes in a
planned and managed or systematic fashion.
 Change Management characteristics
Following characteristics:
 Change makes things different
 Change is inevitable
 Change is an ongoing activity
 Change results from factors both inside and outside the
organization
 Change takes place in all parts of an organization.
Advantages of Proper Organizational Change
Management

Successful / proper change management may provide

following advantages to business firms :
 Lower or neglible staff dissatisfaction
 Lower or negligible resistance to change process
 Lesser time and efforts are required for implementing
change
 Lower costs associated with change
 Participation of majority in change, thus leading to
increased motivation
 Successful implementation of change
 Sustainable change with very less probability of rollback
Advantages of Proper Organizational Change
Management

Contd …
 May help the organization to adapt to changes at a faster
rate and thus help the organization to survive in the ever-
changing environment
 May lead to increased efficiency, increased productivity
 May lead to lower cost of operations i.e. cost reduction
 May lead to improvement in quality
 May help in gaining technological leadership
 May lead to more profitability
Reasons for change:
 Change in government policies
 Technological advancements/progress
 Change in demographic characteristics
 Market changes
 Change in economic conditions
 Strong leadership
 Pool of dedicated managers and senior managers
Types Of Organisational Change:
 Planned and Unplanned Change
 Fast and Slow Change
 First Order and Second Order Change
Types Of Organizational Change:
 Planned changes are introduced internally by the
management in a systematic manner.
 Unplanned changes are sudden in nature as a result of
some sudden development.
 Fast and Slow changes: Depending upon
environmental changes, organizational change may be
slow or fast.
 First Order change (Incremental)
 Second Order change (Radical)
Change Management Process

Change management comprises process six main

activities as under:
 Identify potential change: formal request
 Assess
 Plan change
 Implement change
 Review and
 Close change.
Resistance to Change
 The biggest challenge to any change comes through
resistance to change. Change disturbs existing
equilibrium, existing procedures, power structures etc
within the system or organization, which may not be
liked by many persons, thus leading to resistance to
change.
 Immediate: Easier to anticipate, diagnose and deal.
 Implicit- Difficult to anticipate, diagnose or deal.
 Resistance to change can occur at any level i.e.
individual level, group level and
organization level.
Building Culture for Change
The ADKAR model developed by Jeff Hiatt (1998, 2006) can be
highly helpful for individual change management. The model
presents five building blocks which must be obtained /
implemented to realize change successfully. It is management's
job to create an environment in which people can go through
these five stages as quickly as possible, which include:
 Building AWARENESS as to why the change is needed
 Creating DESIRE to support and participate in the change
 Developing KNOWLEDGE as to how to change
 Fostering ABILITY to implement new skills and behaviours
 Providing REINFORCEMENTS to sustain the change
Building Culture for Change
ADKAR MODEL
Building Culture for Change
Change Management Strategies

Some of the strategies are discussed as below :

 Proper timing / tact
 Education & communication
 Seeking participation
 Facilitation & support
 Negotiation : reaching to some acceptable solution
 Introducing incentives / rewards
Role of Leader in Change
 Who is a leader ?
 As per James Mcgregor Burn –“ A leader is one who instills
purposes , not one who controls by brute force”.
 Few other definitions of a leader or leadership are as under:
 “ A leader is one who can take a group of people to a place they
don’t think they can go”.
 “ Leadership is --- we, not me; mission, not my show; vision, not
division; community, not domicile”.
 Many other definitions of the word leader or leadership are also
available, but there is no single exhaustive or all-inculsive
definition.
 A leader can play both positive as well as negative role in change
management.
Role of Leader in Change
 A leader can play the following positive roles by helping the
mangement during the process of change:
 Encouraging collaboration rather than comeptition
 Encouraging customer-orientation
 Encouraging training and coaching
 Encouraging quality consciousness
 Improving communication
 Encouraging team work
 Improving participation of work force
 Can reduce conflicts by problem-solving
 Helping and encouraging for better productivity
 Can encourage creativity in an organization
 Helping in creating proper culture for improvement,
problem solving, prevention etc.
INVOLVING PEOPLE IN CHANGE
MANAGEMENT /
PEOPLE LEVER IN ORGANIZATIONS
 Teams both multi-functional as well as of same function can be
used to harness people lever for change management in
organizations.
 Multi functional teams are usually used in case of New product
development, new projects etc
 Committees like purchase committee, budget committee are
frequently used in organization to gain advantage of pooling of
ideas. Special Task Forces, Project Monitoring Groups may also
be made.
 Japanese organizations have gained global competitiveness by
using people lever. Japanese organizations have frequently
used people lever through Kaizen, Ringi etc. for gaining
quality improvement and problem solving.
INVOLVING PEOPLE IN CHANGE
MANAGEMENT /
PEOPLE LEVER IN ORGANIZATIONS
Kaizen - is the Japanese concept of continuous improvement.
Motto of Kaizen is – “Today better than yesterday and
Tomorrow better than today.” Kaizen practice means deep,
systematic and continuous involvement of people (everybody)
and by using certain techniques, but mainly by their brain, to
cause a process of improvement to start, develop and never-
end.
 Under this concept, plant is treated as a living institution. It is
continuously learning and changing.
 Work-teams focus on how to improve what they are doing.
 Job rotation & cross –training are frequently employed / used
to give workers a complete prespective of production processes.
INVOLVING PEOPLE IN CHANGE
MANAGEMENT /
PEOPLE LEVER IN ORGANIZATIONS
Contd .. -The five main elements of kaizen
 Teamwork
 Personal discipline
 Improved morale
 Quality circles
 Suggestions for improvement
INVOLVING PEOPLE IN CHANGE
MANAGEMENT /
PEOPLE LEVER IN ORGANIZATIONS
Contd ..
A quality circle is a volunteer group composed of workers (or
even students), usually under the leadership of their
supervisor (they may elect a team leader), who are trained to
identify, analyze and solve work-related problems and
present their solutions to management in order to improve
the performance of the organization, and motivate and
enrich the work of employees. When matured, true quality
circles become self-managing, having gained the confidence
of management.
INVOLVING PEOPLE IN CHANGE
MANAGEMENT /
PEOPLE LEVER IN ORGANIZATIONS
 The Ringi System is a unique way of coming to consensus
about new ideas within Japanese companies.
 It is based on widely held consultations among different level
managers on new ideas or projects.
 The ideas are usually proposed by the lower rank managers
who have operational responsibilities. The concept would then
be discussed among the same rank personnel and once having
reached the consensus it would be passed to the next level of
managers, where it would undergo the same procedure.
 After such broad consultations the proposal will reach the top
management, where it would or would not get the final
approval.