Chapter # 1
Change Management
End-Term JAN 2023
Production & Operations Management
Syeda Hadia Kiran
Concept of Change
Change refers to the temporary or permanent alternation in the task, decision, or any activity
which can affect the organizational structure.
According to Kotter, “Change management refer to the utilization of basic structure
and tools to control any organizational change effort.”
While incorporating the change in any organization it requires a careful planning and analysis
of all internal and external factors responsible for the change.
Internal factors include: Management policies, product innovation, employee attitudes.
External factors include: Political, social, technological, and economic.
Change can be predictable or unpredictable.
Change in production and operations refers to the intention of maximizing the efficiency of
the existing production and operations environment.
Change Management is an approach to shift an organization, employees, or team from the
present state to the desired state in a systematic manner.
3cs of Change
Cost
Complexity
Certainty
Cost refers to the investment required in order to bring the change.
Complexity refers to the amount of difficulty faced while implementing the change.
Certainty refers to the predictability of the outcome.
Change can be of any nature. Change can be only predicted by analysis done by the change
manger of organizational executives.
In-depth analysis of how the world trends are moving and what change is necessarily
required in the organization is the responsibility of the managers of the organization.
Factors Responsible for Change in
Production Environment
External Factors: refers to the factors
that are beyond the control of an
organization.
Those factors are:
• Government Policies
• Competition
• Cost of raw material
• Technology Push
• Scarcity of Labor
• Legal Requirements
Internal Factors: refers to the factors
that exist within an organization.
Those factors are:
• Change in Leadership
• Decline in Profitability
• Union Actions
• Implementation of New
Technology
• Employee Turnover
Types of Change
Individual Level
Group Level
Organizational Level
Changes are minimum at individual level and major at organizational level.
Individual Level: refers to the change in employees at the individual level. Such as, job
assignment, change in the qualification or profile.
Group Level: refers to the activities in organizations are organized on formal or informal
group basis. Such as, implementation plan etc. anything which can affect the organization.
Organizational Level: refers to the changes involving major programs that affect both
individual and groups. The decisions regarding such changes are made by the senior
management of the organization.
Different Types of Changes
Planned Change
Emergent Change
Refers to a conscious change that is the result of a logic.
These changes are within the hands of change
implementers.
Episodic Change
Refers to the change which is arising due to the
environment factors. These changes are not in the hands
of change implementers.
Continuous Change
Refers to the change the which doesn’t happens on the Refers to the change that occurs daily or regular basis.
daily basis. Or happens for a particular amount of time. It is also called as first order change.
This change is also called second order change.
Remedial Change
Developmental Change
Refers to the change that calls for transformation in a
Refers to the change that is taken up for the purpose of
particular situation, task, procedure, or policy. This type improvement in any task, operation, or situation.
of change is focused on the corrective measures.
Subsystem Change
Organization-wide Change
Refers to the change that doesn’t affect overall
functioning of the organization. It only includes the
transformation within a department ,team, or group.
Refers to the change which is triggered by the macrolevel external factors. This change affects the entire
organization.
Organizational Challenges
Individual Challenges
Challenges in Change Management
Fear of unknown
New Learning
Friendship among
old employees
Distrust on
management
Threat to power
Resource
Sunk Costs
Concept of Process Re-Engineering
BPR began as a private sector technique to help organizations rethink how they do their
work in order to improve customer service, cut operational costs, and become world-class
competitors.
Business process re-engineering (BPR) is an approach to redesigning and optimizing
organizational processes to improve efficiency, effectiveness, and adaptability.
This method of organizational transformation is implemented by analyzing and restructuring
various aspects of a business, such as workflow, communication, and decision-making
processes, with the goal of achieving significant improvements in performance, such as
increased productivity, reduced costs, and improved customer satisfaction.
Business Process Re-Engineering in Change Management
Identifying the need for performing the reengineering Process
Identifying weaknesses in the existing
processes and defining the improved processes
Implementing the improved processes and
managing change
Integrating the improved processes with other
business processes
Providing feedback and controlling the
improved processes
Principles of Re-Engineering
Hammer and Champy (1994) has given seven principles of Business Process
Re-Engineering
1- Organize around results and outcomes, not tasks.
2- Have those who use the output of the process and perform the process.
3- Subsume information-processing work into the real work that produces information.
4- Treat geographically dispersed resources as though they were centralized.
5- Link parallel activities instead of integrating their results.
6- Put the decision point where the work is performed, and build control into the process.
7- Capture information once and at the source.
Implementation of BPR Project
Analysis
Project
Development
Implementation
Design