Introduction and concepts of change, nature, forces and types of change

1. Introduction and
concepts of change,
Nature, Forces and
Types of Change

2. Change
• To transform or convert
• ‘Change is the law of nature’
• Nothing is permanent except change
• Make or become different.
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3. Organizational change
• Organizational change is about reviewing and
modifying management structures and business
processes.
• Organizational change is both the process in which
an organization changes its structure, strategies,
operational methods, technologies, or organizational
culture to affect change within the organization and
the effects of these changes on the organization.
• Organizational change can be continuous or occur
for distinct periods of time.
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4. Organizational change
• Organizational change: the process by which
organizations move from their present state to some
desired future state to increase their effectiveness
• Goal is to find improved ways of using resources
and capabilities in order to increase an
organization’s ability to create value
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5. Management of Change is Defined as…
• A conscious and concerted initiative by those who
are in-charge of the destiny of the business
undertaking or firm
– to keep a constant and intelligent watch over the
behaviour of uncontrollable forces,
– to assess their impact and influence of the
controllable forces, and
– to evolve appropriate strategies and action
programmes to maintain a dynamic equilibrium
between the controllable and uncontrollable
forces.
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6. Change Management
• There are many different types of change and
different approaches to managing change.
• Finding an approach that suits you and your
situation goes to the heart of being an effective and
professional manager.
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7. Lets take a look back in time
Age of Discontinuity
• 1968
• Peter Drucker
• Described the way change
forces disruptions in our
routine life.
Future Shock
• 1970
• Alvin Toffler
• Accelerating speed of
change and how it is
affecting technology and
culture.
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8. Lets take a look back in time
Strategic Windows
• 1978
• Derek Abell
• Importance of Entry and
Exit of a given strategy
Beings of Habit
• 1983
• Noel Tichy
• We all have habit and we
tend t repeat the same no
matter what ever changes
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9. Lets take a look back in time
Nothing fails like success
• 1990
• R. Pascale
• Business needs to
continuously invent
something new to be
successful. Hence changes
are inevitable
Occurrence Evaluation
• 1991
• Peter Schwartz
• Strategic Planning cannot
be done in advance. We
tend to change or act based
on situations.
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10. Lets take a look back in time
Strategic Anticipations
• 1996
• Slywotzky
• We can predict the future by
evaluating the current
situations and can change
our self based on that
Disruptive Technology
• 1997
• Christensen
• People tend to adopt
change when they adopt
disruptive technology and
try to adopt a technology
which makes their life
simple.
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11. Lets take a look back in time
Strategic Decay
• 2000
• Gary Hamel
• No matter how brilliant the
idea is it is old after some
time
Complexity Theory
• Present
• Some Business Planners
• Multiple agents interact
together.
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12. Why Change
• It is not the strongest who have survived, nor
the most intelligent, It was those who were
most responsive to Change
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13. Why Change
• Development of new product
• Entry of new competition
• Change in consumer taste and preference
• Shifting in socio- political, environment and cultural
framework
• Advancement in technology
• New emergent Market
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14. Change
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Dissatisfaction
Vision
First Action
Resistance

15. Prerequisites for Change
• Vision: Develop, articulate and communicate a
shared vision of the desired change
• Need: A compelling need has been developed and is
shared
• Means: The practical means to achieve vision:
planned, developed and implemented
• Rewards: Aligned to encourage appropriate
behaviour compatible with vision and change
• Feedback: Given Frequently
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16. An Effective Change Sponsor Must Have
• Power: to legitimize change
• Pain: Personal Stake
• Vision: Total in-depth view
• Public/Private Role: Commitment and ability to
support change publicly/ meet privately with agents
• Performance Management: Ability to
reward/confront
• Sacrifice: Pursue change despite personal price
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17. What Effective Change Leaders Do
• Embrace change when it’s needed
• Develop a vision for change
• Communicate effectively
• Shake things up by challenging status quo and
encouraging others to do the same
• Stay Actively Involved by walking the walk and being
visible about it.
• Direct, Review Implementation of change -
continued participation - never done attitude.
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18. Roles: The Change Players
• Sponsors: Senior management leaders - the driving
force of change.
• Advocates: Allies of leaders, deploy the vision -
communicate - involve - sell - motivate
• Agents: Influence sponsors’ commitment, target
resistance, measure readiness, assess existing
people/structures
• Targets: Everyone in organization - develop, train,
reinforce, support
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19. What to expect from change
• Sense of loss, confusion.
• Fear of letting go of that which led to success in the
past.
• People hold onto & value the past.
• High uncertainty, low stability, high emotional stress
• Perceived high levels of inconsistency.
• High energy — often undirected.
• Control becomes a major issue.
• Conflict increases — especially between groups.
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20. Conditions That Facilitate Organizational
Change
• A dramatic crisis
• Leadership turnover
• Stage of life-cycle
• Age of the organization
• Size of organization
• Strength of current culture
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21. Forces of Change
• Controllable forces are those forces about which
sufficient information is available. Such forces can
be managed easily
• Uncontrollable forces are those about which not
much is known.
• These forces exert a powerful influence on the
behaviour of controllable forces and limit the scope
of managerial action.
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22. External & Internal forces
• External Forces
– Macro environment (PEST factors)
– Micro Environment (Consumers, Suppliers, Stake
Holders)
– Opportunities & Threats (SWOT)
• Internal Forces
– Internal Environment (Men, Money, Machinery,
Materials, Minutes)
– Strengths & Weaknesses (SWOT)
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23. Forces of Change
• Nature of the workforce
• Technology
• Economic shocks
• Competition
• Social Trends
• World Politics
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24. External Forces
• Competition Laws and regulations
• New technologies
• Labor market shifts
• Business cycles
• Social change
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25. Internal Forces
• Strategy modifications
• New equipment
• New processes
• Workforce composition
• Job restructuring
• Compensation and benefits
• Labor surpluses and shortages
• Employee attitude
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26. Shift of Trends
FROM
• Industrial Era
• National Economy
• Technology Development
• Stability and Predictability
• Long Term
• Centralised
• Hierarchical
• Emphasis on Continuity
TO
• Information Era
• Global Economy
• Technology Sophistication
• Sudden Change
• Short Term
• Decentralisation
• Networked
• Emphasis on Change
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27. Types of Organisational Change
• Structural:
• Organizations often find it necessary to redesign the
structure of the company due to influences from the
external environment.
• Structural changes involve the hierarchy of authority,
goals, structural characteristics, administrative
procedures, and management systems.
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28. Types of Organisational Change
• Process‐oriented:
• Organizations may need to reengineer processes to
achieve optimum workflow and productivity.
• Process‐oriented change is often related to an
organization's production process or how the
organization assembles products or delivers
services.
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29. Types of Organisational Change
• People centric:
• This type of change alters the attitudes, behaviours,
skills, or performance of employees in the company.
• Changing people centric processes involves
communicating, motivating, leading, and interacting
within groups.
• This focus may entail changing how problems are
solved, the way employees learn new skills, and
even the very nature of how employees perceive
themselves, their jobs, and the organization.
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30. Types…………
• Organization-wide Versus Subsystem Change
• Transformational Versus Incremental Change
• Remedial Versus Developmental Change
• Unplanned Versus Planned Change
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31. Types of Change
• Happened Change
• Reactive Change
• Anticipatory Change
• Planned Change
• Incremental Change
• Operational Change
• Strategic Change
• Directional Change
• Fundamental Change
• Total Change
• Transformational Change
• Revolutionary Change
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32. Levels of change
• Individual Level Change
– Job assignment, physical Move, Change in maturity of a person
– Not significant on organisation, but significant on group
• Group Level Changes
– Major effect because organizational activities are done in
groups like departments or informal groups
– affect workflows, job design, social organisation, influence and
status systems, and communication patterns.
– Managers must consider group factors
• Organization Level Changes
– involves major programs that affect both individuals and groups
– Decisions regarding these changes are generally made by
senior management and are seldom implemented by only a
single manager
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33. Targets of change
• Human resources
• Functional resources
• Technological capabilities
• Organizational capabilities
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34. Targets of Change
• Human Resource changes include:
– Investment in training and development
– Socializing employees into the organizational
culture
– Changing organizational norms and values to
motivate a multicultural and diverse workforce
– Promotion and reward systems
– Changing the composition of the top-
management team
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35. Targets of Change
• Functional Resources changes Include:
– Transferring resources to the functions where the
most value can be created in response to
environmental change
– An organization can improve the value that its
functions create by changing its structure, culture,
and technology
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36. Targets of Change
• Technological capabilities changes include:
– Efforts intended to give an organization the
capacity to change itself in order to exploit market
opportunities
– Adoption and use of new technologies
– Development of new products/ technologies and
the changing of existing one’s
– Technological capabilities are a core competence
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37. Targets of Change
• Organizational capabilities changes include:
– Changing organizational design
– Culture and structure
– Changing strategy
– Changes that permeate entire organization
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38. Model for Planned Organizational Change
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