Lesson Number: 06 .
Change Management.
Change is inevitable and affect all organiza ons. It involves altera on in exis ng
organiza onal or working system – may face resistance from the employees.
Change Management is a process that allows a company to implement a change
in an exis ng organiza on effec vely and efficiently.
The Change Management is broadly classified in 3
i) Evolu onary
ii) Revolu onary
iii) Planned
Evolu onary: This type of change is gradual, slow and o en faces no or li le
resistance.
Revolu onary: This might be violent and is o en resisted.
Planned: It is altera on in exis ng organiza onal system to achieve a goal.
This is conscious and deliberate a empt of management to modify the exis ng
organiza onal structure. It is result of both inside and outside of organiza on. It is
a empt to disturb the exis ng equilibrium and lead to a new equilibrium. It is
inten onal a empt to influence ‘status quo’.
The planned change can be broadly of two types.
Proac ve Planned Change: The change introduced by the organiza on.
Reac ve Planned Change: The change is introduced by the organiza on under the
influence of some external forces.
These Change are of 3 Types:
Developmental Change: It improves the current business procedures. It is
incremental in nature as it is in response to desire of improved efficiency. It suffers
low resistance.
Transi onal Change: These changes are made to replace old procedures with new
ones. It deals with dismantling of old working procedures and new working
procedures are implemented at its place. As, it is planned and seeks to achieve a
known state which was desired.
Transforma onal Change: This stage generally comes a er the transi on. It is
combina on of both developmental and transi onal change. It is introduced to
completely reshape the working procedure, business strategy of a company. It is in
response to extreme market changes. It can produce fear, doubt and insecurity in
staff, thus managed well.
Need For a planned Change:
External Forces,
Market Situa on: Increase in compe on, The need of consumer changes,
Organiza on should change in order to survive.
Technology: Rapid Change, Automa on
Popula on Dynamics: Shortage of skilled workers
Poli cal and Legal Systems: Chang in govt, ac on in global and na onal level
affect business.
Internal Forces
Deficiency in Exis ng System Change become Necessary if the current system or
framework of company are unable to achieve a company’s goal.
Need For Improving Produc vity
Need to reduce cost
Need to improve Quality of work life
Domino’s Effect: One change triggers another change.
Structure, People, Technology and Task.
Response to Change
Whenever a change take place or is made a reac on comes in response to it.
I) Acceptance: The change will be accepted.
II) Indifferent: No reac on
III) Resistance: Objec on
Resistance to a Change
Individual
Habit and conven on
Fear of Economic Loss
Obsolescence of skills
Status Quo
Ego
Peer pressure
Organiza onal
Emo onal resistance to a change in social group
organiza onal structure
Resource Constraints
Managements lack of faith in change
Costs involved
Overcoming Resistance to a change
Educa on and communica on
Par cipa on and Involvement
Nego a on and agreement
Manipula on and Coopta on
Coercion
Facilita on and Support
Management of a planned Change
Iden fying Need o fa change
Define elements to be changed
Planning the change
Assessing Change forces
Implemen ng the change
Follow Up and Feedback
Kurt Lewin’s Change Management:
Given by Kurt Lewin in 1940
Propose that individual or group of individuals is influenced of a group of forces.
Resis ng forces called restraining forces; and posi ve forces called Driving forces.
Both counter each other in order to maintain status Quo.
Unfreeze: (disintegra on of status quo)
Breaking down the exis ng ways of doing things, discarding conven onal
methods. Accep ng and introducing new alterna ve methods. Employees realize
that old methods are of no use.
Steps
Recognizing Driving Forces
Increasing Driving Forces
Managing the Restraining Forces.
Change or Move: (Introducing the change)
As the people become ready for the change, it is introduced. The new way of
learning take place. Employees or members are given new alterna ves and learn
to behave in new ways.
Elements:
Compliance or force
Internaliza on
Iden fica on
Refreezing: (Sustaining the Change)
The Change is than made permanent. Employees accepts the new beliefs,
behaviors etc.
The managers check that the change is blended with employees’ behavioral
pa ern or not.
ADKAR Model
Given by Jeffrey Hiat or Jeff Hiat in 1990’s. The owner of ProSci Company.
A – Awareness
D – Desire
K – Knowledge
A – Ability
R – Reinforcement