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Change management is a way through which an organization finds out the way to attain success. While an organization feel urgency of change in organization, change management focus the effective, reliable and achievable plan to achieve the new goal. Which is Lewin describe as a three stage model for managing the change, in this three stage model we can observe the must effective phenomena which are most important tools for change management. This theory seems as combination of sociology and psychology focus on habit and action. This model was developed in 1950 and still popular. It has three stages-unfreeze, change and refreeze
Even though Lewin's three stage model is most popular in change management but in other side there is various weakness which are follows:
Less emphasis in resistance
Less emphasis to time
Indifference about progress of each stage
Indifference in down-top model
Ignorance about intra-organization politic
In conclusion, the success of every change project depends upon strength of change leader, team as well as change model. The Lewin change model is a strength full macro change model useful for change manger to understand the dynamic change and how to tackle with resistance and solve.
Beckhard and Harris innovative change model in 1977. It is still popular in change project to make the change mode successful following equation must be true.
Dissatisfaction X desirability X practicality > Resistance to change
This statement can work as a pillar in change project. Let see significant of each element in change project.
Dissatisfaction :- When organizational feel uneasy in current situation by any component business stakeholder then dissatisfaction prevail and change take place
Desirability: - The change project must be clear, attractive and understandable.
Practically: - The change must base on reality and confidently to achieve the goal.
Resistance: - In first stage of change project have to face resistance. The team resist going new project because of scarce about various things and uncertainty.
In above equation there must not be zero in any element if there is any zero then whole projects will be zero.
Present state refers to where the organization running on. In order to identify this state organization needs to scan environmental forces. When present state is uncomfortable and unsuitable for market exercise, the organization feels urgency of change. Change may vary according to nature of organization.
Transition state refers to changing process of mechanism, process, employee and environment of an organization. In this state, the mechanism, process, employee and environment is vary from present state and people are more confuse because they do not have exact image about further and they already leaved present state. Again, they don't have any frame of desired state. New structure and process are not in proper place.
The future state refers to the desired state where organization wishes to stand. In this state, the mechanism, process, employee and environment of an organization are stable and all mechanisms are in proper place. All problems are settled down.
Applying a range of creative problem solving techniques to address sells change challenges
Change process is a challenging task if change is not follow the procedure then it could be unsuccessful so in change process there is a great role of change path. In change path consist many types of change in term of expansion of change and speed of change that need to be undertaken for the require change outcome to be determined such as revolutionary change.
Revolutionary is a jumping process like one generation to another generation it also known as quicker process. Similarly revolutionary change is an incremental change process which triggers to step by step and it is longer process
Speed and change of scale increases.
It is progressive as well as destructive process
It affects people process value, culture, difficult and change culture in short-term
It gives result in short time.
Step by step process towards next generation
It overcome timely
Comparatively less risk and provide action and plans
It deliver good and performance in long term
KMC change project launch after long research. This concept is developed by new CEO Radhesh Panta who was just appointed from 27th July 2009. (Kumari Bank News) and the change project KMC launched 17th August 2010 so it is the evolutionary change path. Bank has not followed the revolutionary change path because in revolutionary path there is many risks.
Speed change and more risk
It affects peoples value, culture behaviour in short period
Sometime it can be destructive because it is weak process
It is an initial stage or zero point for change project. There are some methods for change project such as top-down and bottom-up method.
This approach triggers change from top level of organization and impose existing lower level employee in the change process. This process is quick change process. The problem of this process is more resistance because leaders makes all decision and impose in lower level.
This approach to management implies the change down to up level there are many benefit of down up approach some of them are
Focus on working level and level of success high
Down up approach
Kumari Bank launched KMC top to down change point because change process develop by CEO and circulated to downwards
Change style differs on kind of organization. There are four type of change style
Consultative: This change refers that creating the change within them rather than imposing the change on them.
Co-operation:- This approach implies that at least you are near with the people who affected by change, doing meeting, directors tours and so on.
Directive:-This process is more forceful process in the change process. There may be resistance which is difficult to remove be various causes like trade union, other groups etc. for this there needed some high level communication and bargaining, sometimes power as well package required.
Coercive:-This approach shows some thing listen to anyone else this solution is destructive but when the alternative is failure then it will be the best solution.
Kumari Bank use change style on another side Co-operation. This approach implies that at least you are near with the people who affected by change, doing meeting, directors tours and so on.
To implement the change project the bank has used following intervention:-
Intra personnel intervention
In this change project (KMC) make successful change, strategically every stakeholder has vital role in successful change such as HR specialist change teams, change consultant hybrids etc. In term of role of HR can foster effective change process by communicating by vision, mission and way of achieving change by providing updates at all stage of change. HR has pivot role in anticipation of fourth coming good feature similarly change team has great role in any organizational change this is a challenge for a global climate because successful change depend upon the strength of change team. Another key components of change management is role of consultant which has unique role to drive change project towards successful in the change project we can appoint two type of consultant which is shown in figure
Internal change expert
No Internal change knowledge
Identifying and justifying change solution that link organizational strategic plan
With aiming to be market leader of Nepalese financial market, Kumar bank has launch mobile banking as a change project. This project should be successful because all previous change project showing good result (from CEO interview) and it is US based technology which is already examined and proved. This change project (mobile banking) gives various benefits to customers which are follows:-
Customer can send and receive money from any part of Nepal
Easy to send money to family
Customer can visits shop and stores without having cash to pay for merchandise
Customer can use service to pay bill
As a change manager believes this change add the one bricks to be the market leader. This change is technological based change it will bring fast, easy and sound service then previous. However, this change project increase experiences for bank in short term because some training and development needs for staff. There is various culture and individual behaviour in organization which is difficult to understand. Similarly in other side it is so difficult to change as well. They can argue react and can capture. So in this change Kumari bank has not faced because of good change management skill (article ) but sometime in change project arise natural reaction deny that the change is compulsory. Change manager showed determined what is actual cause of resistance and manage with enough flexible in their approach to overcome them in the appropriate manner. From which people can feel that there situation will be better in new change. With strategic plan be the financial market leader in long term bank has providing service in 38 districts and it would be expanded to 50 districts within the current fiscal year so mobile banking as a change project would be supportive project for strategic plan of short term as well as long term. Therefore, this change project involves as a compliment strategic plan which promote as a whole business. (Article, Kumari cash launch)
2.1 Evaluating a range of change implementation models
There are many different models to implement the organisational change some of them are:
Katter's 8 stage model
Action research model
Beer et al six step model
Balance scorecard model
Balance scorecard model:-
This model is basically popular in non profitable organisation beside of this some business organisation also use this model to evaluate the change process
This method is traditional financial change evaluating method
This method evaluate change from four prospective
Learning and growth
Action research mode
This model is known as other various name as well such as including participatory research, celebratory enquiry, emancipator research, learning by doing etc. This model is strength for social research mostly, however model used in business organisation also.
Six key principle of this model
Theory, practice, transformation
Kotter's change model
Step 1: Acting with urgency
Step 2: Strength coalition development
Step 3: Create a clear vision
Step 4: Calculate the vision top-to-down, individual to group
Step 5: Remove obstacle
Step 6: Generating short-term wings
Step 7: Build on the change
Step 8: Develop the change as culture
This model address following questions which is mostly arises in change project.
How to change delivery?
Where do you start?
Who need to involve? And
How to safe landing?
2.2 identifying the criteria to select a change implementation model that supports organizational change
Acting with urgency
To compete the modern banking marketing Kumari bank launched KMC because it's rival Laxmi bank launched this mobile banking one year before and successful as well. As a second mobile banking kumari bank launched this strategy by knowing that there is more opportunity to earn new customer by this project.
Strength coalition development
To make successful this project, bank has collective and strength team because team is itself motivated and encouraged.
Create a clear vision
Bank has given the periodic goal and ultimate goal of achievement so all employees has strong believed on the project and it would be successful project.
Calculate the vision top-to-down, individual to group
Kumari bank has using all wings such as notice board, website, face book, to make aware about change project (KMC) by this, every employee has clear image about KMC
Bank has given training and development to employee and some benefits which is given to who are opposite view towards the KMC and settle the obstacles.
Generating short-term wings
The bank has published the progress report of 1st month of launched KMC and CEO has given thanks to all staff who directly indirectly involved this change project.
Build on the change
The CEO gave special thanks by a speech to Ram Raja Rana who play special role to bring this project in this place and CEO announced a reward will be given in anniversary to good team leader.
Develop the change as culture
This bank has successful change project study and this project is not first change project for all employee. They all are aware about it and they are confident to make success it.
3.1 Demonstrating the use of analytical tools to monitor the progress the effect of change.
w x y z
Phase of change fore employee
a= Business needs w= awareness
b= concept of design x= desire
c= implementation y= ability
d= post implementation z= reinforcement
Any change brings horrible condition first because change develops uncertainty from any angle to stakeholders (employees, shareholders, customers). Kumari bank used tools to be sure what kind reaction from stakeholders has unchanged. Bank organized a line managers meeting. From line manager view, it came to know that staff are on stress because of they are unknown about functional system of technology about possibility of doing mistake and its loss about transformation of their old work, responsibility, place and job security. Some employees are positive towards change. They are excited to team about change and a interview organized by bank with marketing depart where marketing manager involved. Marketing team has big question that how much reliable this technology because they have to give guarantee to customers. Beside of this they have great excitement on change.
Bank has done free text programme from customer it showed customer are worried about security about their money. These all kinds of uncertainty responded by CEO Radesh Panta by communicating with communicating line manager and marketing manager and some training had given to staff; benefit announced success of this programme. To give the confidence CEO has given example about mobile banking of Kenya where this programme success.
3.2 Assessing monitoring and measurement techniques to change within an organization.
According to CEO, Kumari mobile cash is that kind of plan which helps to earn great market share of Nepal because of physically far where only 20% people to access. This plan gives them access where they live? So this project will be successful. Anyway it has some risk such as security of money, lack of efficient people and information gap people to people but we can avoid this problem without taking long time. Bank plan to make the small group to implement this change where is applicable such as marketing team, monitoring team, acting and report review team.
By this plan Kumari bank went in market when this programme lunched in market first result is good but reports showed that it needs to some advertisement to bring confident to customers they are just practising in this technology.
Kumari bank made a monitoring team and this team gave the periodic progress report to management team. According to this report management team audited and act the planned in intervals.
To compete in market economy, organisation should have to make it unique by providing good service to customers and fulfilling interest of stakeholders. In this scenario, Kumari bank has entered a KMC as technological change in bank, which is appropriate in Nepali banking sectors. Bank has followed information top to downward by meeting, seminar and using web and available medium to its stakeholders.
3.3 Analysing strategies to minimise adverse effects of change.
Kumari bank when it lunched the project (KMC) there arise some resistance which are based on their own interests such as their job, working place, position etc. Some are they don't have real image about change, some are aware of advantage and disadvantage of project.
Kumari change leader addressed these problems by consulting them through line manager. Kumari mobile cash project done activities, participate and involvement programme makes them this project is own mine project and they involved actively.
Kumari bank supported them who are affected from this project and gave some programme as initiative package. To run the project ahead some people are abused to go further then there is tactics that is give and take process but in Kumari bank has used this tool to settle the resistance.
Changing leader of kumari bank used the tools of manipulation and co-option to make effective of change that he gave dream that if change team done good task then that team given a great award. Some time in change project have to take hard decision that who deny the project but KMC change project hasn't faced this problem
Identifying the process to review the impact of change.
The financial statement of Kumari bank showed there was a significant increase in the performance of bank in banking market. In first quarter achieved growth of 13.6% in deposit comparison to previous quarter and the profitability was up by 11.9% in comparison to previous years corresponding quarter the bank attract Kumari mobile cash(KMC) and increase the profitability of bank.