Change and the Management of
change
Ing. Pablo San Andrés
Introduction
• Globalization and e commerce, for example,
have meant that multinationals have had to
adapt in order to survive.
• One of the most difficult tasks for any manager
is to manage the change process
• Change Management refers to processes and
techniques used to plan, implement and evaluate
changes in business operations in order to
achieve a required objective.
Introduction
Change may include:
• New product development
• A change in organizational structure
• New policies
• New targets
• New mergers and acquisitions
• Relocations
• Pay deals
Introduction
Change may cause problems because people can be
resistant to change
For example:
Motor vehicle manufacturers, for example, have been
forced into being conscious of environmental
challenges. Toyota’s Earth Charter, for instance, was
set up back in 1992. It launched the Toyota Prius,
the world’s first mass produced gas-electric
hybrid, in Japan back in 1997.
http://www.youtube.com/watch?v=EqNVEG-dIvM
Factors causing change
There are six main factors that will influence
change:
Customers
• They demand better quality products at
competitive prices.
• This presents challenges for any business.
• Customers may also change their habits and
tastes.
Factors causing change
Competitors
• They will try to provide better services and
products, perhaps through new product
development and other marketing strategies.
• Growth of rivals firms through mergers and
acquisitions will also present threats to a
business.
Factors causing change
Management
It will need to stay abreast of market trends to
ensure that the business remains competitive.
Factors causing change
Technological progress
Such
as
the
microchip
revolution,
communications technology, the internet and ecommerce have forced firms to change the way
they conduct their business.
Factors causing change
Government
Changes in legislation can have a profound impact on
businesses.
Ex: Partygames, the world’s largest online gaming
businesses, was baldly affected by new legislation in
the USA in late 2006 when the government made
online gaming illegal.
Ex: In Ecuador, casinos were closed by the
Government of Rafael Correa.
http://www.youtube.com/watch?v=YYMGJtYnLWk
Factors causing change
External factors
• Changes in fashion
• The state of the economy (such as a recession)
• Globalization will create change in an
organization.
• Terrorist attacks
Resistance to change
One of the major barriers to effective change
management is the resistance to change from the
workforce.
1) Self-interest: Some people feel that any
change involves extra effort
Resistance to change
2) Misunderstanting
Staff often feel that change is not necessary as
things are going well
Resistance to change
Different assessments of the situation
It occurs when management and staff disagree on the
advantages and disadvantages of change. For
example: Managers may feel that restructuring of the
workforce is necessary, but workers may think is a
waste of time (They are the experts in the roles that
they fulfil)
Resistance to change
Low tolerance of change
• People
prefer
familiarity
rather than
disruptions and uncertainties.
• They are scared of being made redundant
Six Change Approaches
Kotter proposed six change approaches model to
deal with resistance to change.
1.- Education and Communication
This approach aims to inform and educate
staff (and other stakeholders) about the
change beforehand in other to establish a
degree of trust (It avoids rumours)
Six Change Approaches
2.- Participation and Involvement
This approach links with several motivational
theorists who argue that employee involvement in
decision-making can motivate and improve morale
amongst the workforce.
Six Change Approaches
3.- Facilitation and Support
Managerial support can be in numerous forms,
such as counselling employees to deal with their
fears and apprehensions or the retraining of staff
to enable to accommodate the new changes.
Six Change Approaches
4.- Negotiation and Agreement
Managers use incentives to remove or limit any
resistance to change. For example: Accept
amendments in their employment contracts to
accommodate the new changes.
Six Change Approaches
5.- Manipulation and Co-option
This approach involves bringing a representative of
those resisting change into the change process. In
that way, he can communicate the advantages to
others.
Six Change Approaches
6.- Explicit and Implicit Coercion
Managers can use coercion (bullying tactics) to
force staff into accepting change, by threating
disciplinary action, dismissals, job losses,
redeployment (transferring employees to other
jobs), or not promoting employees.
Don’t forget
Make employees love their job
https://www.youtube.com/watch?v=DiNO85sanm4
Planning change
Change could only be pursued if there is a clear set
of goals.
There are 2 types of forces:
1) Driving forces.- Push for change
2) Restraining force.- Act against proposal
change
Planning change
Planning change
Planning change
Before instigating any organizational change,
managers musk ask themselves
1) Why is change needed?
2) What do we hope to achieve with such change?
3) Who is affected by this change and how are
they likely to react to the change?
4) How will we know that the change has been
successfully achieved?
Planning change
One method to aid managers facing change is
Force Field analysis. It is useful for managers
because in that way, they can then plan to
strengthen the forces supporting a decision
change, and reduce the impacts of
opposition to it.
Lewin’s Force Field Analysis
1. List the encouraging forces for change and the
burdening forces against change.
2. Allocate a weight to each of these forces, from 1
(weak) to 5 (strong).
3. Draw a diagram showing the forces for and
against change.
4. Show the relative effect of each force by a
number next to it.
Lewin’s Force Field Analysis
Lewin’s Force Field Analysis
Advantages
• If a manager has already decided on this option,
force field analysis can help to work out to
improve a project’s changes of success.
• Managers can investigate how the driving forces
can be strengthened and how the restraining
forces can be reduced or eliminated.
• Small adjustment to the forces can result in
many small changes and improvements
Lewin’s Force Field Analysis
Disadvantages
• Weightings attached to the forces may be
subjective rather than referring to facts or
evidence.
• Not all relevant forces may be considered (Overemphasize the need for change)
Lewin’s Force Field Analysis
Force Field Analysis is a useful technique of
weighting advantages and disadvantages to help
decide whether any proposed change is worth
implementing.
Change management and models and
frameworks
There are four steps to any management model
1) Identify the proposed change and the rationale for
change.
2) Brainstorm the driving forces and the restraining
forces of the change
3) Develop and communicate an understanding of
these issues to key stakeholders
4) Implement actions to take advantage of driving
forces and to overcome the restraining forces
In addition Lewin’s force analysis and Kotter’s Six
change Approaches models, there are other change
management models
Change Management Models and
Frameworks
Iceberg Model
Wilfried Kruger’s Iceberg model of change argues
that there are two levels of change but that
managers often only concentrate their efforts on
the top level of the iceberg
Top level: Cost, Quality and Time.
Bottom level: People: Attitudes, beliefs,
perceptions, acceptance and behaviour of
stakeholders (which can be negative of positive)
Change Management Models and
Frameworks
Change Management Models and
Framework
Kruger suggests that there are several groups of people who
may hinder or enhance the change process.
Opponents: Have a negative attitude towards change
Promoters: Have a positive attitude towards change. They
therefore support the change as they feel that they will
personally benefit from it.
Hidden opponents: Negative attitude towards change,
but seem to accept change in a superficial way, perhaps to
avoid conflict or getting into trouble.
Potential promoters: Positive attitude towards change,
but they are not yet fully convinced about the particular
change in questions
Change Management Models and
Framework
What is the solution?
Incentives or coercion for the opponents and
consultation with the hidden opponents
Change Management Models and
Framework
Change Phases model
Proffesor J.P. Kotter’s Change Phases model
(1990) suggests that there are eight reasons
why change management might fail. His
reasons are because manager:
• Allow too much complexity
• Fail to win support from staff
• Do not have a clear vision
• Fail to communicate the vision to stakeholders
• Allow obstructions to the vision
Change Management Models and
Framework
• Do not focus on small continuous changes (to
win support).
• Declare success too soon.
• Ignore corporate culture when implementing
change.
Ex: A company decides to implement a curse of
meditation for employees, but some of them
can’t be there because of religion. If the boss
doesn’t respect that, it means that respect value
is not paying attention.
Change Management Models and
Framework
Change must be specific, measurable, achievable,
realistic.
Ex: To increase the sales by 10% the following year.
Change masters
• Successful managers must be able to react
quickly to changes in the external environment.
• To control any change effectively, managers
need certain qualities or skills.
_ To provide a clear vision statement
_ Communication skills
_ Tolerance
_ Managers should encourage team spirit
_Listening and inquiry skills
_Financial resources to be able to implement
the change
Storey´s Change model
There are 4 approaches to manage the change
process in an organization
1) Total imposed package: This appoach entails
delevering a package of change to employees as an
executive decision by managment without any
process of negotiation or consultation.
Storey´s Change model
2) Imposed piecemeal initiative: It is not as
extreme as the total imposed package but change is
still imposed on the employees; only in stages rather
than all in one go.
• It allows workers more time to adapt to change
• Examples of such an approach include offering
financial and non-financial incentives for
the successful implementation of change.
Storey´s Change model
3) Negotiated total packages: This approach is
the opposite of method 1, as the aim is to seek a
package of change via negotiation with the staff.
Advantage: Employees are more likely to push for
change and resistance to change is minimized
Storey’s Change model
4) Negotiated piecemeal packages: This
approach sees a gradual implementation of change
through a series of negotiations with the workforce.
Stakeholder analysis
It is used to identify which stakeholders need to be
involved in the change process by looking at their
level of influence and their reaction to change.