Change Management
What Is Change?
Organizational Change
Any alterations in the people, structure, or technology of an
organization
Characteristics of Change
Is constant yet varies in degree and direction
Produces uncertainty yet is not completely unpredictable
Creates both threats and opportunities
Managing change is an integral part
of every manager’s job.
Forces for Change
External Forces Internal Forces
Marketplace Changes in
Governmental laws and organizational strategy
regulations Workforce changes
Technology New equipment
Labor market Employee attitudes
Economic changes
Sources for Resistance to Change
o Habit o Group Inertia
o Security o Threat to expertise
o Economic Factor o Threat to established power
o Fear of Unknown relationship
o Selective Information o Threat to established
Processing resource allocation
Change Process
Levin's description of the change process as a break in the
organization’s equilibrium state
▪ Unfreezing the status quo
▪ Changing to a new state
▪ Refreezing to make the change permanent
The lack of environmental stability and
predictability requires that managers and
organizations continually adapt (manage change
actively) to survive.
The Change Process
Stages in Change Process
1. Becoming aware of the pressure for change.
2. Recognizing the need for change.
3. Diagnosing the problem.
4. Planning the change.
5. Implementing the change.
6. Following up on the change.
Change Agents
Change Agents
Persons who act as catalysts and assume the responsibility
for managing the change process.
Types of Change Agents
Managers: internal entrepreneurs
Outside consultants: change implementation experts
Three Categories of Change
Types of Change
Structural People
Changing an organization’s Changing attitudes,
structural components or its expectations, perceptions, and
structural design behaviors of the workforce
Technological
Adopting new equipment,
tools, or operating methods
that displace old skills and
require new ones
▪ Automation: replacing certain
tasks done by people with
machines
▪ Computerization
Managing Resistance to Change
Why People Resist Change?
The ambiguity and uncertainty that change introduces
The comfort of old habits
A concern over personal loss of status, money, authority,
friendships, and personal convenience
The perception that change is incompatible with the goals
and interest of the organization
Managerial Actions to Reduce Resistance to Change
• Education and communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation and co-optation
• Selecting people who accept change
• Coercion