181

Learning
Learning Outcomes
Outcomes

The students will understand the reasons why

employees resist change how mangers
effectively over come it

182

183

Introduction
Introduction
We all living in the world of change

184

Definition
Definition of
of change
change management
management
Change management is an approach to
transitioning individuals, teams, and
organizations to a desired future state

185

Organizational
Organizational Change
Change
It is defined as adoption of a new idea or a
behavior by an organization(Draft 1995)
It is the way of altering an existing organisation
to increase organisation effectiveness for the
accomplishments of the objectives

186

 Consultant David A.Nadler and Management

professor Michael Tushman togather developed
instructive typology of organisational change

187

Types
Types of
of change
change
Anticipatory change : Any systematically planned
changes intended to take advantage of expected
situations
Reactive change: these are those changes
necessitated by unexpected environmental
situation or pressure
Incremental change :Involve subsystem
adjustment needed to keep the oganisation on its
chosen path
Strategic change:It alter the overall shape or
direction of the organisation

188

ch
ch
IBM Said that it would sell its PC (Personal
computer) business to lenovo chinas No.1 PC
maker in $1.75 billion that marks the end of an
era
Lenovo will pay IBM upto $1.25 billion cash and
equity for IBM PC division which produced the
first IBM PC in 1981
Q:In terms of Nadler Tushman model ,what type of
change it this ?Explain

189

Sources
Sources of
of Individual
Individual Resistance
Resistance to
to Change
Change

1810

Why
Why do
do employees
employees resist?
resist?
1. Surprise
2. Misunderstanding/Ignorance/Lack of skills
3. Emotional Side effects
4. Lack of trust
5. Fear of failure
6. Personality conflicts
7. Poor timing
8. Threat to Job security
9. Break up of work group
10. Passive/ aggressive organization culture

1811

1812

Forces
Forces for
for Change
Change
Force

Examples

Nature of the workforce

More cultural diversity

Aging population
Many new entrants with inadequate skills

Technology

Faster, cheaper, and more mobile computers

On-line music sharing

Economic shocks

Rise and fall of dot-com stocks

200002 stock market collapse
Record low interest rates

Competition

Global competitors
Mergers and acquisition
Growth of e-commerce

1813

Forces
Forces for
for Change
Change
Force

Examples

Social trends

Internet chat rooms

Rise in discount and big box retailers

World politics

IraqU.S. war
Opening of markets in China
War on terrorism following 9/11/01

Internal Changes:
Change

1814

Managing
Managing Planned
Planned Change
Change
Change
Making things
different.
Planned Change
Activities that are
intentional and goal
oriented.
Change Agents
Persons who act as
catalysts and assume
the responsibility for
managing change
activities.

Goals
Goalsof
ofPlanned
Planned
Change:
Change:
Improving
Improvingthe
theability
abilityof
of
the
theorganization
organizationto
to
adapt
adaptto
tochanges
changesininits
its
environment.
environment.
Changing
Changingthe
thebehavior
behavior
of
ofindividuals
individualsand
and
groups
groupsininthe
the
organization.
organization.

1815

Life
Life cycle
cycle of
of change
change

Phase 1:Few people,critisized ridiculed

Phase 2:Movement for change for and against
Phase 3:Direct conflict (Life and death of change)
Phase 4(If supporters are more ,wisdom is necessary
Phase 5 :Last Stage

1816

Leading
Leading Change
Change

Advocate change :Person(CEO)

Degree of change :Sales form or product
Time frame:Lengt
Impact on culture:

1817

Resistance
Resistance to
to Change
Change
Forms of Resistance to Change
Overt and immediate
Voicing complaints

Implicit and deferred

Loss of employee loyalty and motivation, increased
errors or mistakes, increased absenteeism

1818

Sources
Sources of
of Organizational
Organizational Resistance
Resistance to
to
Change
Change

1819

Some
Some External
External Forces
Forces for
for Change
Change
Information
Technology

Globalization
& Competition
Courtesy National Board of Antiquities, Finland

Demography

Reactions
Reactions of
of Change
Change
Anger
Denial
Acceptance

1821

1822

Overcoming
Overcoming Resistance
Resistance to
to Change
Change
Education
Educationand
andcommunication
communication
Create
Createaavision
vision(F
(Fortune
ortunesurvey
surveythat
that98
98
%%
))
Participation(CEO
Participation(CEOof
ofPP&G)
&G)
Facilitation
Facilitationand
andsupport
support
Negotiation
Negotiation
Leadership
Leadership
Reward
RewardSystem
System((ESOP
ESOP))
Coercion
Coercion
1823

Technology
Technology in
in the
the Workplace
Workplace
Continuous Improvement Processes
Good isnt good enough.
Focus is on constantly reducing the variability in
the organizational processes to produce more
uniform products and services.
Lowers costs and raises quality.
Increases customer satisfaction.

Organizational impact
Additional stress on employees to constantly excel.
Requires constant change in organization.

1824

External Environment
This includes such factors as markets, legislation, competition
and the economy. All of these will have consequences for
organisations, and, as a change manager, it is vital that you
continually scan the environment for issues that will affect you
and your team.
For example, in the world of accountancy, International Accounting
Standards and International Financial Reporting Standards will
have a significant impact on the way companies manage their
accounts and report their results. In the public sector, legislative
changes across health, local government and other services have
a direct impact on the work organisations are required to carry
out.

1825

Technology
Technology in
in the
the Workplace
Workplace
Process Reengineering
Starting all over
Rethinking and redesigning organizational
processes to produce more uniform products
and services.
Identifying the organizations distinctive competencies
what it does best.
Assessing core processes that add value to the
organizations distinctive competencies.

1826

Warner
Warner Burke
Burke Litwin
Litwin

1827

Lewins
Lewins Three-Step
Three-Step Change
Change Model
Model

1828

Lewins
Lewins Three-Step
Three-Step Change
Change Model
Model
Unfreezing

Refreezing

Change efforts to
overcome the pressures of
both individual resistance
and group conformity.

Stabilizing a change
intervention by balancing
driving and restraining
forces.

Driving Forces

Restraining Forces

Forces that direct

behavior away from the
status quo.

Forces that hinder

movement from the
existing equilibrium.

1829

Models
Models Burke
Burke litwin
litwin model
model

1830

Unfreezing
Unfreezing the
the Status
Status Quo
Quo

1831

1832

1833

1834

Contemporary
Contemporary Change
Change Issues
Issues for
for Todays
Todays
Managers:
Managers: Stimulating
Stimulating Innovation
Innovation (contd)
(contd)
Idea Champions
Individuals who take an innovation and actively and
enthusiastically promote the idea, build support,
overcome resistance, and ensure that the idea is
implemented.

1835

1836

Scenario
Scenario #1:
#1: Greener
Greener Telco
Telco
Scenario #1 refers to
Bell Canadas Zero
Waste program, which
successfully changed
wasteful employee
behaviours by altering
the causes of those
behaviours.

Courtesy of Bell Canada

Scenario
Scenario #2:
#2: Go
Go Forward
Forward Airline
Airline
Scenario #2 refers to
Continental Airlines Go
Forward
change
strategy,
which
catapulted the company
from worst to first
within a couple of years.
Courtesy of Continental Airlines

1839

1840

1841

Contemporary
Contemporary Change
Change Issues
Issues for
for Todays
Todays
Managers:
Managers: Stimulating
Stimulating Innovation
Innovation
Innovation
A new idea
applied to
initiating or
improving a
product,
process, or
service.

Sources
Sourcesof
ofInnovation:
Innovation:
Structural
Structuralvariables
variables
Organic
Organicstructures
structures
Long-tenured
Long-tenuredmanagement
management
Interunit
Interunitcommunication
communication
Organizations
Organizationsculture
culture
Human
Humanresources
resources

1842