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Change is largely defined by the magnitude of change required and is often only recognisable in mass form, however change is a continuing process within both our economic and social boundaries .the nature of change is that change itself is a continuum. By accepting that change does not stop but only varies in pace and magnitude, we can better manage the implementation of change and its resulting effects on each of the above three levels, and minimise the problems associated with change.
According to Cummins/Worley, (1993); & Carnall (2007)
"Change involves moving from the known to the unknown"
Change is defined as a transition from an existing quasi equilibrium to a new quasi equilibrium. The process of change can be complicated. It can be slow and painful. It can also be fast and painful. Significant organizational change occurs not only when an organization changes its overall strategy for success, adds or removes a major section or practice, and/or wants to change the nature by which it operates. But it also occurs when an organization evolves through various life cycles. Businesses, actually, don't like change but an organization must undergo significant changes at various points in their development to develop more.
1.2 Organizational Change management
"Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level. A somewhat ambiguous term, change management has at least three different aspects, including: adapting to change, controlling change, and effecting change. A proactive approach to dealing with change is at the core of all three aspects. For an organization, change management means defining and implementing procedures and/or technologies to deal with changes in the business environment and to profit from changing opportunities."
"Organizational change management (OCM) is a framework for managing the effect of new business processes, changes in organizational structure or cultural changes within an enterprise.Â "
Organizational Change Management begins with an analysis and systematic diagnosis of the current situation in order to determine the need for change that leads to find out the capability to change. The objectives, content, and process of change all are specified as part of Change Management. Organizational changes are of different types, planned versus unplanned, organization-wide versus change primarily to one part of the organization, incremental (slow, gradual change) versus transformational (radical, fundamental), etc. Organizational Change Management put in straight lines all the aspects including group's expectations, communicates, integrates teams and manages people training, in a management plan. To design appropriate strategies, In order to avoid change failures or solve troubled change projects, it also includes analysis of financial results, operational efficiency, leadership commitment, communication effectiveness .In an organization lack of knowledge about rationale for change can be a cause for problems in the change management process that is ,actually, a management component.
Examples of Organizational Change management
Operational changes (including Structural changes)
Changing the attitudes and behaviours of personnel
Strategic Change Management
2.1 What is Strategic Change?Â
In business terms strategic change is about having a strategy to manage change. The word "Strategy "is derived from the Greek wood "strategos", meaning: stratos (army) and ago (ancient Greek for leading). Strategic changeÂ refers to the change in the organizational vision, mission, the objectives and the strategy adapted to achieve those objectives. For example: a company or organization decides to revamp its products and give them a new look, a new design, a new feel, changing the product's design, changing the marketing strategy, changing the price, etc. are all part of the strategic changes
A strategy is a long-term plan to achieve specific desired objectives or goals. Strategies are focused on the future and actually bring about sustained change, and typically require detailed planning and analysis. In Business, strategy planning is often seen as key to future success or even survival in some cases.
The nature of strategic change is like to be slightly problematic when it does involve people, as these people must adopt the change for it to be successful. The Strategic change that geared for continuous improvement or change, or intentional and specific change known as episodic change. It is obvious that Change is always implemented by and through people and therefore, it is imperative that employers must be skilled in change management. Strategic change must include the organizational needs, the group needs, and the individual needs to be successful. The interacting needs as the company or organisational culture, the work or group culture, and the individual or home culture must illustrate. Where they interact with each other they will show common values, beliefs, attitudes and customs. Where only one or two of these cultures meet, the values and beliefs will differ and may cause resistance or inertia.
2.2 Definition of Strategic Change ManagementÂ
Strategic managementÂ is the process of specifying anÂ organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans.
"Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment." (Lamb, 1984)
Strategic change managementÂ plays an important role in the development process of a company.
The task of introducing and managing change in an existing system is a very difficult job. These changes can be of different kinds, it may be a change in the project, change in the line of action, change in the production level, change in the mechanism or change in the ownership.Â
If these changes initiated properly, they can yield heavily for the company. However, if the process is not controlled, it can make worse affect on the entire business.
2.3 Types of Strategic Change ManagementÂ
According to nature of Strategic change, there are two types of strategic change management
Internal Strategic Change Management
There are certain situations in which it becomes essential for the companies to introduce new changes in the internal system of the company. This restructuring may be done in different areas like the production process, in the labour codes, in the machineries and so on. The changes may occur at any level and it is the proper strategic change management of the process that decides the future of the company
External Strategic Change Management
Strategic change management is very important in reference of the introduction of external change in a company's product-line or in the marketing policy. If the process is introduced all of a sudden, it may create confusion amongst the consumers / common people thereby resulting in a downfall in the sale of product.Â
Laws of Strategic Change Management
There are three laws of change management
Figure 1: Laws of Strategic Change Management
Find out the natural resistance or inertia overcomes the natural inertia in organizations.
The rate of force required to change the resisting behaviour depends on the rate of resistance that means greater the inertia or resistance to change, the greater the required forces for change.
To treat the resistors, change agents should choose the same way that resisters will treat change agents.
Modals of Change Management
3.1 Kotter's 8-Step Change Model
John Kotter A professor at Harvard Business School and a world-renowned change expert introduced his eight-step change process in his 1995 book, "Leading Change."
Step 1: establish a sense of Urgency
If there is a need of change in organization, a sense of urgency must be developed around the need for change. This will be a spark and work as the initial motivation to get things moving. This isn't simply a matter of showing people poor sales statistics or talking about increased competition and many other reasons. Open an honest and convincing dialogue with others about what's happening in the marketplace and with competitors. If many people start talking about the required change it means the urgency can build and feed on itself.
Step 2: Form a Powerful Coalition
Convince stakeholders that change is necessary. This often takes strong leadership and visible support from important people within the organization. Managing change is not enough; the main point is this "one have to lead it". To lead change in organization, one should bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance. Once the "change coalition" formed it needs to work as a team, continuing to build urgency and momentum around the need for change.
Step 3: Create a Vision for Change
When someone first starts thinking about change, there will probably be many great ideas and solutions floating in your mind. Link these concepts to an overall vision that others can grasp easily and remember. A clear vision for the change/ plan can help everyone understand why you're asking them to do something.
Step 4: Communicate the Vision
The success will be determined by the vision for change created by change maker. Use the vision daily to make decisions and solve problems. By keeping it fresh on everyone's minds, they'll remember it and respond to it. What you say is very important but it is also important to "walk the talk. Change maker should demonstrate the kind of behaviour that they want from others.
Step 5: empower others
After achieving all the steps (talking about the vision and building buy-in from all levels of the organization) hopefully, the staff wants to get busy and achieve the benefits that have been promoted. Put in place the structure for change and continually check for barriers to change. Find out the resistance removing obstacles .it can help the change move forward.
Step 6: plans for and Create Short-term Wins
Success is very important motivator. Within a short period of time a month or a year, depending on the type of change, some results must be shown that your staff can see. Otherwise critics and negative thinkers might hurt the progress. Try to create short-term targets - not just one long-term goal
Step 7: consolidate improvement
Most of the change projects fail because victory is declared too early. Real change always runs deep. It must keep in mind that Quick wins are only the beginning of what needs to be done to achieve long-term change. Each success in the project provides an opportunity to build on what went right and identify what you can improve.
Step 8: institutionalize changes
Corporate culture is the core of your organization. What gets done, so the values behind your vision must show in day-to-day work is determined by corporate culture. Continuous effort is very important this will help to give the required change a solid place in organization. Existing staff and new leaders are the actual support if you lose the support of these people, you might end up back where you started.
3.2 LEWIN'S CHANGE MANAGEMENT MODEL
Kurt Lewin, a physicist as well as social scientist, developed one of the cornerstone models for understanding organizational change in the 1950s, and still holds true today. His model is known as Unfreeze - Change - Refreeze. It refers to the three-stage process of change in which he explained organizational change using the analogy of changing the shape of a block of ice.
The first stage is to prepare the organization to accept that the change is necessary. This process involves break down the existing situation before you can build up a new way of operating.
First of all develop a compelling message showing why the existing way of doing things cannot continue for example declining sales figures, poor financial results, worrying customer satisfaction surveys. Then everyone understands that things have to change in a way.
To prepare the organization successfully there is a need first to challenge the beliefs, values, attitudes, and behaviours. It must keep in mind that the first part of the change process is usually the most difficult and stressful. When you start cutting down the "way things are done", you put everyone and everything off balance. You may evoke strong reactions in people, and that's exactly what needs to done.
By forcing the organization to re-examine its core, a (controlled) crisis will be created which in turn can build a strong motivation to seek out a new equilibrium. The buy-in and participation necessary to effect any meaningful change cannot get without this motivation.
In the change stage, the people begin to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction but it is time consuming process. The transition from unfreeze to change does not happen overnight: People take time to accept the new direction and participate proactively in the change. Because people need to understand how the changes will benefit them. Not everyone will fall in line just because the change is necessary and will benefit the company. This is a common assumption and pitfall that should be avoided.
Two keys to success for the changes are Time and communication. People want time to understand the changes and there is also need to feel highly connected to the organization throughout the transition period. Hands-on management is usually the best approach during the process.
The organization is seems to be ready to refreeze if the changes are taking shape and people have embraced the new ways of working. The common outward signs of the refreeze are a stable organization chart, consistent job descriptions. This stage also needs to help people and the organization internalize or institutionalize the changes. This means making sure that the changes are used all the time; and that they are incorporated into everyday business. Even though change is a constant in many organizations, this refreezing stage is still very important. Without refreeze stage, employees get caught in a transition trap where they aren't sure how things should be done, so nothing ever gets done to full capacity. In the absence of a new frozen state, it is very difficult to handle the next change initiative effectively. As part of the Refreezing process, make sure that you celebrate the success of the change and your success is actual success not the part of success - this helps people to find closure, thanks them for enduring a painful time, and helps them believe that future change will be successful.
Reaction to Change
4.1 Types of Reaction to Change
There are four types of reaction to organizational change.
These change recipients are intrinsically wedded to the change idea. They may agree dispassionately that the change will be of benefit to the organization, or they may stand to receive some personal gain from the change, such as a guarantee of job security, more status or a higher salary. Enthusiasts are those who will use opportunities to broadcast approval for the change and will try to convince others of its merits. They will also model the new behaviour early and will volunteer for membership of teams. These early adopters may also make good choices as trainers and coaches during the implementation process.
Followers range from those who are generally compliant, wishing to take the path of least resistance, to those that are initially reticent to adapt, but eventually do so once they accept the inevitability of the change. These change recipients will do what is required.
Objectors will display their resistance to change whenever the opportunity arises. They may disrupt meetings, not attend training, take unapproved leave and refuse to carry out instructions. Objectors will continue to use superseded systems and processes when others are taking up the new ways of doing things. They are not averse to arguing with managers and fellow workers and will try to convince others to continue with the old ways. In a unionized environment, resistance can take the form of strikes, lockouts, "work to rule", legal challenges and boycotts.
Change recipients working for the underground have solid motivations for not making their resistance public. They may fear direct punishment, such as termination or fines, or more personal costs, such as ridicule or loss of status and authority. Managers who are against the change but need to be seen to be in support of it are prime candidates for promoting underground resistance. This style of resistance is, by its nature, always covert and can take many forms. Common among these are falsifying reports, inputting incorrect data, stealing, damaging infrastructure and equipment, using sarcasm, spreading rumours, excessive absences, shoddy work and "go slow".
Resistance to Change
Resistance to change in strategy takes many forms. The most obvious forms consist of active resistance, where people will object, or refuse to cooperate with the change. It is very important for the change manager to anticipate, and planÂ strategiesÂ for dealing with resistance. This application should not be only at the introduction of the change, but there must be follow-through, so that the change managerÂ monitorsÂ the change over the long-term, being alert for difficulties as it appears.
It is essential to have an understanding of why people resist change, because understanding this allows us to plan strategies to reduce resistance for change. Also, some of the reasons that people resist change do not seem to make sense even at times they seems nonsense and illogical.
5.1 Causes of Resistance
It is not essential that all strategic changes met with resistance. But where resistance occurs following may be one of the reasons of resistance
According to the Conceptual Framework 'iceberg' model, most common factor for resistance to change is that people are not aware of the rationale for change or do not understand it.
The second most common cause for resistance is switching in specific behaviour that is unable to make the behavioural change and require skill enhancement or further learning.
This problem can be solved by educating the unwilling to adopt change for the betterment of all or simply to move on.
According to The Uncertainty principle that when people are faced with ambiguous or uncertain situations, where they feel they do not know what to expect, they will resist moving into those situations.
The lack of job security may create a sense of fear that leads to resistance.
A lack of knowledge about the rationale for change is a main reason. Change always met with questions about the necessity of change. Such queries may include; 'if all we do is continue to change, how can we ever improve?', or 'why should we use this new system when the current system works fine?' if These questions left unanswered then become problematic to an organisation as people resist change.
Another major reason why people resist change is the potential for loss on a personal level, objectively there may be little threat.
during change processes Some of the things people feel are at risk (friends and contacts
money,Â freedom, pride and satisfaction, responsibility, authority, good working conditions, status)
Negative attitude towards the organization
Change perceived as implying personal criticism
Change simply adds more work and confusion.
A desire to challenge authority hearing about the change.
5.2 Tips to Overcome Resistance for Change
It is very important part of strategic change management. The main role of the change manager is to work towards reducing the resistance towards change, and increasing the enthusiasm and level of commitment for the change. Mostly people will have mixed reactions towards proposed change, so the changeÂ agentÂ can be helpful in highlighting the positive aspects in a realistic manner. By knowing how people might accept or welcome change you will be better able to formulate aÂ communicationÂ plan to foster acceptance.
Following are tips to mange resistance for change that will help out in accepting the change.
Better working conditions
Better personal contacts
Less time and effort
Provides a new challenge
Likes/respects the source
Likes the way change is being communicated reduces boredom
Provides opportunity for input improves future
Choose the most powerful restraining force and devote time and energy to weakening them.
Show the resisters what is in it for them. Appeal to them either in terms of personal gain (such as status, salary bonus, recognition, and so on) or loss avoided (such as financial loss or job outplacement prevented).
Get customers or suppliers to explain to change resisters face to face and tell how the current situation disadvantages them.
Try to put resisters on teams that allow them to play some decision-making part in the change process, however small.
Defuse political power should be played amongst managers and other employees by conducting broad-based meetings where goals and tactics are openly discussed and introduce processes that leave little room for individual discretion.
Try to look at the world through the eyes of the change resister. Listen openly and honestly to what they are trying to say. Examine your own basic beliefs and assumptions. Through engaging resisters, be prepared to change yourself.
Stakeholder's Involvement in Change
Almost 90% of Change Management is good leadership, transparency, a little bit of good luck and a strong belief in the higher Gods of management. Most of the large organizations run so many change projects at the same time, that change fatigue predominates the attitude of their staff: new companywide software (ERP), new training programs, new leadership guidelines, merger and acquisitions, implementation of matrix organization, new customer relation management programs, etc. - all this happens, if not in parallel, then at least in a short subsequence. It is fact that change is firstly a threat, and only secondly an opportunity. Involving many stakeholders in a change process does not only need a lot of resources but also needs a new approach to leadership that identifies more with process facilitation than with process control.
6.1 Steps of Involvement of Stakeholders
As change practitioners, one should need to see the reality of the organization, and make appropriate suggestions for a change strategy. The following matrix is based on a design of Peter Senge that he has provided in his famous Fifth Discipline Fieldbook. This design shows different steps of involvement and participation in change processes:
It means that decisions about the change process are taken on the highest managerial level. Stakeholders and employees have only the choice of accepting the top-down plan or to leave the system. Implementation of an entire chance process top-down leads to frustration and refusal of co-operation.
It means that change plans are designed at top-level and stakeholders are invited to join in--the change is advocated. The limitation of this step lays in the fact that the top management wants to hear a "yes", and the staff's wants to hear that they will keep their jobs. So, most will give a compliant "yes", which is not a safe base for commitment.
Testing is a top-down approach, lays the vision out for inspection by the stakeholders and asks for their comments. The management try to find out whether stakeholders support the change process, and opens up for proposals. Testing can be done on a limited scale ("piloting") perhaps it is better to expand, to differentiate between representation and piloting, but could also concern the whole system. The vision remains as it is, but the way to reach the vision is subject to negotiations between the different stakeholder groups.
Consultation to the stakeholders about the change is very important to strengthen the vision of change. It is the preferred mechanism for a management that recognises that it cannot possibly have all the answers. Now a day, many tools have been developed to allow a large number of stakeholders to participate in the planning process. This process takes time and requires commitment at the top-level to correct initial decisions.
This procedure secures the highest degree of ownership. It means developing a vision jointly with stakeholders from the very beginning.
Strategic Change Management Interventions
The evaluation and selection of the most appropriate change management intervention techniques to support the implementation of innovation and continuous improvement strategy is the main goal. In fact, there is no one right formula for this as every organisation and environmental context is different. Implementation of the strategy requires changes to any one of a number of systems, processes and people.Â This is very difficult that's whyÂ many argue that the implementation of strategy is much harder than the strategic direction setting and strategy formulation processes.Â
This therapy is based on the seven steps intervention technique, which a person can affect by a change.
THE RESISTANCE FORMULA
In 1992 Beckhard develop an intervention technique, not in the true sense of the word, but rather an indication regarding what is important in an organisational change situation. Beckhard defined a formula to check the effectiveness of management actions towards implementation of organisational change. His formula serves as a focusing tool for project teams.
Beckhard's resistance formula.
Successful change= A x B x D
Beckhard`s Resistance Formula
A = Degree of dissatisfaction with the present situation
B = Desire for the new situation
D = Practicability of the change effort
R = Resistance (cost of change)
Formation and Implementation of Strategic Change Management Plan
Strategy formation and implementation is a process that is on-going, never-ending, integrated process requiring continuous reassessment and reformation. Strategic management is aÂ dynamic procedure and involves a complex pattern of actions and reactions. This procedure is partially planned and partially unplanned while Strategy is always planned and emergent, dynamic, and interactive. By Andy Grove_Â at Intel, there are critical points at which a strategy must take a new direction in order to be in step with a changing business environment. These types of critical points of change are calledÂ strategic inflection points.
8.1 Formation of Strategic Change Management Plan
Strategic plan formation is a combination of these three main processes:
Performing three analysis; situation analysis, self-evaluation and competitor analysis including both internal and external; as well as both micro-environmental and macro-environmental.
Desired objectives are set by Concurrent with this assessment, all the objectives should be parallel to a time-line; some of the objectives are in the short-term and others on the long-term. This process involves crafting vision statements i.e. long term view of a possible future, mission statements; the role that the organization gives itself in society, overall corporate objectives; both financial and strategic, strategic business unit objectives both financial and strategic, and tactical objectives.
At last these objectives suggest a strategic change plan in the light of the situation analysis. The change plan provides the details of how to achieve these objectives.
8.2 Implementation of Strategic Change Management Plan
Implementation of strategyÂ involves:
First allocate the sufficient resources i.e. financial, personnel, time, and computer system support.
Try to Establish a chain of command or some alternative structure (such as cross functional teams)
Assigning responsibility of specific tasks or processes to specific individuals or groups in organization.
Management of the process is also involved. This process includes monitoring results, comparing to benchmarks and best practices, evaluating the efficacy and efficiency of the process, controlling for variances, and making adjustments to the process as necessary.
implementation of specific programs involves acquiring the requisite resources, developing the process, training, process testing, documentation, and integration with (and/or conversion from) legacy processes.
Development and implementation of modal for change by Using Lewin's Model
1. Figure out and highlight what needs to change.
Understand the current state of organization.
Point out why change has to take place.
2. Make sure there is strong support from upper management.
Win the support of key people by UsingÂ Stakeholder AnalysisÂ andÂ Stakeholder ManagementÂ .
Make the issue as one of organization-wide importance.
3. Then create the need for change.
Tell others why change has to occur.
Try to Use the vision and strategy as supporting evidence.
Communicate to others about the vision in terms of the change required.
Highlight the "why".
4. Control and understand the doubts and concerns.
Always be open to the employee concerns and address in terms of the need to change.
1. Communicate with others.
Communicate with others throughout the planning and implementation of the changes.
Brief them about the benefits.
Tell how the changes will affect everyone.
Try to Prepare everyone for what is coming.
2. Dispel rumours.
Answer all the questions of employee openly and honestly.
Try to Deal with problems fast.
Always relate the need for change back to operational necessities.
3. Empower action.
Lots of opportunity must be provided for employee involvement.
Managers must be there to provide day-to-day direction.
4. Involve people in the process.
Work on short-term wins to reinforce the change.
If required Negotiate with external stakeholders (such as employee organizations).
1. Anchor the changes into the culture.
Identity the supporters of the change.
Identify the barriers that sustain change.
2. Develop ways to maintain the change.
Be sure that leadership support is present.
A reward system must be developed.
Feedback systems must establish.
Change the organizational structure as necessary.
3. Provide support and training.
Support and inform everyone.