MANAGING CHANGE

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Ammi Hofilena and April Joy Suarez

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CHANGE
is

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any alteration occurring in the work environment that affects the ways in which employees must act.

Changes may be:

Planned Positive Strong Slow

or unplanned or evolutionary or negative

Catastrophic

or weak

or rapid

either externally 5/25/12 internally or

Stimulated

Regardless of their source, nature, origin, pace or strength, changes can have profound effects on their recipients. A safe generalization is that the whole organization tends to be affected by the change in any part of it. is a human as well as a technical problem

Change

Changes

may lead to pressures and conflicts that eventually cause a 5/25/12

Equilibrium
a

state of relative balance between opposing forces.

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of relations with their environment. They learn how to deal with one another, how to perform their jobs, and what to expect next. 5/25/12

This is established when people develop a relatively stable set

Disequilibrium
a

state of unbalance that happens when employees are unable to make adjustments.

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Roles of the Manager:

Proactive
To

introduce continual organizational changes to bring about a better fit between the firm and the environment events change

Anticipate Initiate
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Reactive
To

restore and maintain the group equilibrium and personal adjustments that change upsets. to events to change the consequences of

Responding Adapting
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Tempering

RESPONSES TO CHANGE

Work change operates through each employees attitudes to produce a response that is conditioned by feelings towards the change. change is interpreted by individuals according to their attitudes. way people feel about changes is one factor that determines how they 5/25/12

Each

The

 These

feelings are not the result of chance; they are caused. One cause is personal history A second cause is the work environment itself
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From

the studies conducted by F.J. Roethlisberger on the Hawthorne factory. was done using the simplistic theory that better lighting would result to greater productivity; which it did. However, productivity was still great regardless of the lighting conditions leading them to
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The Hawthorne Effect

Research

The

Hawthorne effect means that the mere observation of a group, or more precisely, the perception of being observed and ones interpretation of its significance tends to change the group. people are observed, or believe that someone cares about them, they behave differently. These
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When

Group Response to Change

People

interpret change individually and have their own probable response to it. however, they often show attachment to the group by joining with other group members in some uniform response to the change.
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Homeostasis
A

self-correcting mechanism by which energies are called up to restore balance whenever change threatens. act to establish a steady state of need fulfillment and to protect themselves from disturbances of that balance
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People

All

changes are likely to have some costs. organizational goal always is benefits greater than costs. costs affect a persons inner self, the psyche. Almost any change involves some psychological loss because of the strain that it imposes on people as they try to adjust. cases the psychic costs of

COSTS AND BENEFITS

The

Psychic

In some 5/25/12

Repetitive

change syndrome is a sustained series of small or moderate changes over a period of time, producing cumulative effects that finally overload a persons system. other instances a single major change of high significance overloads a persons ability to cope with a situation. (Ex. Moving to a new
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In

RESISTANCE TO CHANGE
Consists

of any employee behaviors designed to discredit, delay, or prevent the implementation of a work change. Employees resist change because it threatens their 5/25/12 needs for security, social

Other causes of resistance or passivity include:

Organizational cultures that overvalue criticism of new ideas Employees who mouth support in public but undercut changes behind the scenes Indecisive managers who suffer from analysis paralysis An emphasis on flashy proposals instead of follow-through
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Nature and Effects

One

lesson for management is that a change is likely to be either a success or a problem, depending on how skillfully it is managed to overcome or minimize resistance. chain reaction effect is a situation in which a change or other condition, that directly affects only one person or a few persons may lead to a direct or indirect reaction from many people, even
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Reasons for Resistance v They may feel uncomfortable

with the nature of the change itself.
It

may violate their moral belief system fear the unknown are reluctant to exchange the comfort of certainty and 5/25/12

They They

v Resistance

stems from the method by which change was introduced. may resent having been ill-informed may reject an insensitive or authoritarian approach that did not involve them in the 5/25/12

People They

v The

inequity experienced when people perceive themselves being changed when someone else appears to gain the benefits of the change.

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Types of Resistance
v Logical
Based

Resistance

on disagreement with the facts, rational reasoning, logic and science. Arises from the actual time and effort required to adjust to change, including new job
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v Psychological
Based

Resistance

on emotions, sentiments, and attitudes. Is internally logical from the perspective of the employees attitudes and feeling about change.
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v Sociological
A

Resistance

product of a challenge to group interests, norms, and values.

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Implications of Resistance
All

three types of resistance must be anticipated and treated effectively if employees are to accept change cooperatively. the impact of psychological and social factors is critically important to the success of the proposed change. are different and will not give

Recognizing

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Management

should seek a climate in which people trust managers, have a positive feeling toward most changes, and feel secure enough to tolerate other changes. management cannot win support, it may need to use
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If

Possible Benefits of Resistance

It

can bring a broad range of benefits. It may encourage management to re-examine its change proposals, thus making sure they are appropriate.
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If

reasonable employee resistance causes management to screen its proposed changes more carefully, then employees have discouraged careless management decisions. can help identify specific problem areas where a change is
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It

 Management

may be encouraged to do a better job of communicating the change. It gives the management information about the intensity of employee emotions on an issue, provides emotional release for pent-up employee 5/25/12

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CHANGE SUCCESSFULLY

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IMPLEMENTING CHANGE SUCCESSFULLY

Some changes originate within the organization, but many come from the external environment. Although stable environments mean less change, dynamic environments are now the 5/25/12 norm, and they require more

Transformational Leadership and Change Management has a key role in initiating and implementing change successfully.

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Transformational leaders
managers who initiate bold strategic

changes to position the organization for its future

articulate a vision and promote it

vigorously.

Help employees rise above their narrow

focus on their individual jobs or departments to see a broader picture

charismatically model the desired behaviors. 5/25/12

Stimulate employees to action and

Important Elements of Transformational Leadership

Creating Vision

Transformational leaders create and communicate a vision for the organization. a crystallized long-range image or idea of what can and should be accomplished.
Stretches people beyond their current

Vision

capabilities and thinking.

Excites them to new levels of commitment and

enthusiasm.
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Important Elements of Transformational Leadership

Communicating Charisma
Even

if employees are intellectually convinced that the vision is desirable, leaders still have two tasks: to persuade employees that that the vision is urgent and to motivate their employees to achieve it.

Charisma

leadership characteristic 5/25/12 can help influence employees to that

Important Elements of Transformational Leadership

Stimulating Learning
Transformational

leaders recognize that the legacy they leave behind is not simply the change itself but an organization that will continue to change.

Critical

task: develop peoples capacity to learn from the experience 5/25/12 of change.

THREE STAGES IN CHANGE

Behavioral

awareness in managing change is aided by viewing change as a three-step process:

Unfreezing Changing Refreezing

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THREE STAGES IN CHANGE

Unfreezing

old ideas and practices need to be cast aside so that new ones can be learned. new ideas and practices are learned. what has been learned is integrated into actual practice.

Changing

Refreezing
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Manipulating the Forces

Any

organization is a dynamic balance of forces supporting and restraining any existing practice. is introduced within a group by a variety of methods, as follows:
Adding new supporting forces Removing restraining forces Increasing the strength of a supporting force Decreasing the strength of a restraining force

Change

Converting 5/25/12

a restraining force into a supporting

Building Support for Change

The forces of support need to be built before, during, and after a change.

1. Use of Group Forces

Effective

change focuses not only on the individuals but also on the group itself. behavior is firmly grounded in

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Building Support for Change

2. Providing a Rationale for Change
Capable If

leadership reinforces a climate of psychological support for change. the reasons are compelling and substantial, they should be given. If not, maybe the intended change needs to be abandoned. is more likely to be successful if the leaders introducing it voice high

Change
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Building Support for Change

3. Participation
It

encourages employees to discuss, to communicate, to make suggestions, and to become interested in change.

It

encourages commitment rather than mere compliance with 5/25/12 change.

Building Support for Change

4. Shared Rewards
Whats

in this for me?

Rewards

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give employees a sense that progress accompanies a change. Both economic and psychic rewards are useful.

Building Support for Change

5. Employee Security
Existing

employee benefits need to be protected. during a change is essential.

Security

Grievance systems give employees a feeling of security that

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Building Support for Change

6. Communication and Education
Communication

is essential in gaining support for change.

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Building Support for Change

7. Stimulating Employee Readiness
Closely

related to communication is the idea of helping employees become aware of the need for a change.

This

approach builds on the premise that change is more likely to be accepted if the people 5/25/12

Building Support for Change

8. Working with the Total System
Resistance

to change can be reduced by a broader understanding of employee attitudes and natural reactions to change.

Managements

role is to help employees recognize the need for 5/25/12

Building Support for Change

It

is also essential for managers to take a broader, systemsoriented perspective on change to identify the complex relationships involved.

Organization

development can be a useful method for achieving this objective. 5/25/12

Organizational development (OD)

Systematic

UNDERSTANDING ORGANIZATIONAL DEVELOPMENT

application of behavioural science knowledge at various levels (group, intergroup, and total organization) to bring about planned change.

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Objectives of OD:
Higher

UNDERSTANDING ORGANIZATIONAL DEVELOPMENT

quality of work life

Productivity Adaptability Effectiveness

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Foundations of OD
Systems Orientation
OD

is concerned with the interactions of various parts of the organization as they affect one another. is concerned with the interplay of structure, departments, and locations. is on the manner in

OD

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Foundations of OD
Understanding Causality
One

contribution of the systems orientation is to help managers view their organizational processes in terms of a model with three types of variables: casual, intervening, and endresult. 5/25/12

Foundations of OD
Casual
significant

because they affect both intervening and end-result variables that management can change most directly structure, controls,

ones

organizational
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Foundations of OD
Intervening
Immediately

affected by causal

variables
Employee

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attitudes, perceptions, motivation, skilled behaviors, teamwork, intergroup

Foundations of OD
End-result
Represent Improved

the objectives sought by management productivity, increased sales, lower costs, more loyal customers, higher earnings the reason that the OD program was initiated

Represent
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Foundations of OD
Casual variables

Intervening variables Attitudes Perceptions Motivation Skilled behaviors Teamwork Intergroup relations

End-result variables Improved productivity Increased sales Lower costs Customer loyalty Higher earnings

Organization structure Controls Policies Training Leadership behavior OD

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Foundations of OD
Assumptions Underlying Organizational Development
OD

practitioners make a set of assumptions that guide their actions.

wide range of assumptions can be made, but certain ones are relatively common at the individual, group, and 5/25/12

Common Organizational Development Assumptions

Individuals
People

want to grow and mature

Employees

have much to offer (energy, creativity) that is now being used at work employees desire the opportunity to contribute

Most
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Common Organizational Development Assumptions

Groups
Groups Groups The
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and teams are critical to organizational success have powerful influences on individual behavior complex roles to be played in groups require skill development

Common Organizational Development Assumptions

Organization
Excessive Conflict

controls, policies, and rules are detrimental can be functional if properly channelled and organizational goals can be compatible

Individual
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CHARACTERISTICS OF OD
1. Humanistic Values positive beliefs about the potential and desire for growth among employees. To be effective and selfrenewing, an organization needs employees who want to expand their skills and increase their contributions.
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CHARACTERISTICS OF OD
2. Use of a Change Agent
OD

programs generally use one or more change agents whose role is to stimulate, facilitate, and coordinate change.

Usually

acts as a catalyst, sparking change within the 5/25/12 system while remaining

CHARACTERISTICS OF OD
Either

internal or external

Usually

consultant from outside the company more objective and they have diverse experiences; able to operate independently without ties to the hierarchy and politics of the firm

Advantage:

Are

usually paired with an internal coordinator from the human resource 5/25/12 department

CHARACTERISTICS OF OD
3. Problem Solving
OD

trains participants to identify and solve problems that are important to them. These are actual problems that the participants are currently facing at work, so the issues are stimulating and their resolution challenging. approach commonly used to improve problem-solving skills is to have employees identify system problems, gather data about them, take corrective action, assess

The

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CHARACTERISTICS OF OD
4. Interventions at Many Levels
The

general goal of OD is to build more effective organizationsones that will continue to learn, adapt, and improve.

An

overall OD strategy is developed with one or more interventions, which are structured activities designed to help individuals or groups improve their work effectiveness. 5/25/12

CHARACTERISTICS OF OD
5. Contingency Orientation
Although

some OD practitioners rely on just one or a few approaches, most OD people are flexible and pragmatic, selecting and adapting actions to fit assessed needs.

Usually

there is open discussion of several useful alternatives rather than the 5/25/12 imposition of a single best way to proceed.

ORGANIZATION DEVELOPMENT PROCESS

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ORGANIZATION DEVELOPMENT PROCESS

Benefits of OD
Change Greater

throughout organization motivation productivity

Increased Better Higher

quality of work job satisfaction teamwork resolution of conflict

Improved Better 5/25/12

ORGANIZATION DEVELOPMENT PROCESS

Limitations

of OD

Major

time requirements expense payoff period failure invasion of privacy psychological harm conformity

Substantial Delayed Possible Possible Possible

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CASE STUDY
The The

New Sales Procedures

Marin company has more than 100 field sales representatives who sell a line of complex industrial products. Sales of these products require close work with buyers to determine their product needs, so nearly all sales representatives are college graduates in engineering and science. Other product lines of Marin company, such as consumer products,
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Recently,

the firm establish a new company-wide control and report system using a larger computer. The system doubles the amount of time the industrial sales representatives spend filling out forms and supplying information that can be fed into the computer. They estimate that they now spend as much as two hours daily processing records, and they complain that they now have inadequate time for sales effort. 5/25/12

field sales manager commented, Morale has declined as a result of this new controls and reports. Sales is a rewarding, gratifying profession that is based on individual effort. Sales representatives are happy when they are making sales, since this directly affects their income and self-recognition. The more time they spend with reports, the less time they have to make sales. As a result, they can see their income and 5/25/12

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THANK YOU!
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