1. CHANGE
MANAGEMENT

2. Change & Change Management.
• Adoption of a new idea or behavior by an
organization.
– Organizations need to continuously adapt to
new situations if they are to survive and
prosper
– Constant change keeps organizations agile
– Indicative of “learning” organizations

3. Shifting
Demographics
World
Politics
Technology
Forces For
Change
Economic
Shocks
Globalization
Competition

4. Technology
• Introduction of computers, cell phones are
now considered as necessitiy
• E.g., music industry facing the challenge
of online music sharing
• Deciphering of genetic code offers
potential for pharmaceutical companies to
produce drugs designed for specific
individuals

5. Competition
• Global economy
• Mergers and consolidations
• Growth of e-commerce

6. Social Trends
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Popularity of internet
Increase in no. of women in workforce
Consumer preferences changing
Brand awareness has increased
Rise in discounts

7. Nature of workforce
• More cultural diversity
• Educational level
• New entrants with knowledge and skills

8. TYPES OF CHANGES

9. Types of Changes:
1) Planned
2) Accidental
Organizational
Change
Planned Changes
• Changes in products and
services
• Changes in administrative
systems
• Changes in organizational
size or structure
• Introduction of new
technologies
• Advances in information
processing and
communication
Accidental Changes
• Changing employee
demographics
• Performance gaps
• Governmental regulations
• Economic competition in the
global arena

10. Planned change
Change activities that are intentional and
goal oriented
• First order change
Linear and continuous, no major shifts
(small QIPs)
• Second order change
Multidimensional, multilevel, discontinuous
and radical (e.g., drastic cutting down of
cost/ inventory level)

11. Planned change can also be classified as:
Operational Change
based on efforts to improve basic work and
organizational processes
Transformational Change
involves redesign and renewal of the total
organization

12. Continuous Change
• Minor changes made in strategies, structures, people
and processes
• Include refining policies, procedures; improving
selection, training and appraisal procedures, introducing
new machinery

13. Discontinuous changes
• Discontinuous changes occur due to critical
environmental changes:
e.g.,
- Product life cycle shifts
- Internal company dynamics

14. CHANGE IMPLEMENTATION
APPROACHES
• PARTICIPATIVE APPROACH
• DIRECTIVE APPROACH

15. PARTICIPATIVE APPROACH
Rationale• Information, better ideas
• Reduces resistance to change
• Involvement increases stake and hence
reduces opposition

16. DIRECTIVE APPROACH
Rationale• Discontinuous change needs to be
implemented swiftly; participation
consumes time , may lead to consolidation
of resistance
• E.g., downsizing, delayering, re-structuring

17. • A mix of two approaches essential
• Two issues central to choosing the mix:
1. need for better information and ideas
2. managing resistance to change

18. Lewin’s Three-Step Process
• The first step, “unfreeze” involves the
process of letting go of certain restricting
attitudes
• The second step, "change" involves
alteration of self-conceptions and ways of
thinking during the experience.
• The third step, "refreeze" involves
solidifying or crystallizing the changes into
a new, permanent form for the individual

19. Resistance to Change
Resistance may be• Overt
• Implicit
• Immediate
• Deferred

20. • Resistance may be at Individual level
or/and organisational level

21. Individual resistance
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Habit
Security
Economic factors
Fear of the unknown
Selective information processing

22. Organisational resistance
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Structural Inertia
Limited focus of change
Group inertia
Threat to expertise
Threat to established power relationships
Threat to established resource allocations

23. Overcoming Resistance to
Change

24. Tactics for Overcoming Resistance to
Change
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Education and Communication
Participation
Facilitation and Support
Negotiation
Manipulation and Cooptation
Coercion

25. Education
• Teach people about the need for change
and how embracing change is a far more
effective life strategy than staying where
they are or resisting.
• Teach people the methods of change,
about how to be logical and creative in
improving processes and organizations.

26. Coaching
• When you have individual people who are
having difficulty in managing to adapt to
change, be a Coach to them.
• Coaching helps explore deeper
motivations and beliefs about other
people, and find practical ways to change
these.

27. Facilitation
• Use skilled facilitators (HR) to support
change activities.
• Facilitators can be used to guide various
group events, from brainstorming and
planning to improvement projects and
change activities.
• Facilitators can also act as team coaches,
helping people to improve within
themselves and work together in better
ways.

28. Involvement
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Get them involved in the change.
Invite them to participate in discussions.
Give them things to do.
When people are a part of something, they
bond with it, making it a part of their
identity.