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Change management

In what way can any organization manage the resistant to change is an utmost important Job. A proper emphasis should be given to that factor that will deter the employee to resist the change.

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Change management

  1. 1. CHANGE MANAGEMENT Change is the law of nature or change is a natural rule. Change is the process by which future invades our life. Change has always been there in the society right from the good old days, but the rate of change has been faster than it was before. Change has become a significant feature of modern environment. Everything around us changes, even human being changes throughout his life and has continuously mould himself. Organisational change is a complex phenomenon and several people contribute to it. Organisational change goes through several phases. Several internal and external roles contribute to difficult phases of change. Organisational change means significant change in any one or more of the tasks, the techniques, the structure and the people of the organisation. Organisational change is one which ultimately affects the pattern of work and or relationships within an organisation. When you introduce a change to the organization, you are ultimately going to be impacting one or more of the following four parts of how the organization operates: • Processes • Systems • Organization structure • Job roles
  2. 2. Organizational change management (OCM) is a framework for managing the effect of new business processes, changes in organizational structure or cultural changes within an enterprise. Simply put, OCM addresses the people side of change management. Organizational change management (OCM) is a framework for managing the effect of new business processes, changes in organizational structure or cultural changes within an enterprise. Change management is a necessary component for any organizational performance improvement process to succeed, including programs like: Six Sigma, Business Process Reengineering, Total Quality Management, Organizational Development, Restructuring and continuous process improvement. Organizational change occurs when a company makes a transition from its current state to some desired future state. Managing organizational change is the process of planning and implementing change in organizations in such a way as to minimize employee resistance and cost to the organization while simultaneously maximizing the effectiveness of the change effort.
  3. 3. Causes of Change : Organisational changes which are related to the human aspect get affected because of the following causes : a) Change in business conditions : Timely change brings changes in business situations, such as changes in production methods and systems, changes in the kind of goods produced, changes in the marketing system, tax policies etc. All these changes take place in the organisational setup to coordinate it. b) Change in machines and tools : Technical and machinery changes bring change in the organisation. Eg – Planning of automatic machines. This change requires the appointment of workers of different skills, grades etc. c) Deficiencies in existing organisation : Any organisational setup cannot continue for all times. With the change in time, complex situation arise, such as extensions of the work of enterprise, updating of knowledge of the managers etc. d) Psychological reasons : To endure the changes by workers, organisation needs some change, so that the workers can face the new situations. Eg – Introduction of various training programmes for the workers.
  4. 4. Resistance To Change : Change is a continuous and natural process. Change is essential for the survival and growth of a business enterprise. The employees resist change. Change is a persistent phenomenon but people resist change in the context of their pattern of life or in the context of their situations in the organisation. Forces of Change : Organisations today operate in a dynamic and changing environment. Both external and internal forces in the environment act as stimulants for change. 1) External Forces 2) Internal Forces 1) External Forces of Change : External forces are dynamic. They require more changes. They are located outside the organisation. They are as follows
  5. 5. a) Economic Forces of Change : They are reflected by : • Economic health of country. • Inflation and exchange rate changes. • Income distribution. • Resource availability. • Regional economic groupings. • Economic shocks such as changes in world oil prices, Asian economic crisis etc. b) Market Forces of Change : They are reflected by : • Increasing competition resulting from globalisation. • Growth of E-commerce. Electronic commerce is growing fast. • Workforce diversity in terms of culture, gender, age, skills and professionalism etc
  6. 6. c) Technological Forces of Change : They are reflected by : • Changes in the level of technology and the rate of technological change, change in technological process and methods. • Sophisticated information technology, robotics, faster and cheaper computers. • Innovation and experimentation. d) Socio-Cultural Forces of Change : They are reflected by : • Social trends, such as delayed marriages,antismoking attitudes , etc. • Cross-cultural influences and their impact on value systems, etc e) Political Forces of Change : They are reflected by : • Changing world politics, such as collapse of Soviet union, re-unification of Germany , etc. • Increasing activities of pressure groups. • Changing role of government.
  7. 7. 2) Internal Forces of Change : They are located inside the organisation. They are reflected by : a) Goal Changes : The goals of employee change. Organisational goals also experience succession and displacement. b) Structure Changes : They affect role, status, relationships. c) Job technology changes : Manually performed jobs get automated and computerized. Jobs become obsolete. Work coordination changes are introduced. d) Organisational climate changes : It is change in quality of working environment reflected by changes in :
  8. 8. • Openness in communication. • Collaboration with each other. • Team Spirit. • Autonomy in decision making. • Proactivity in labour relations. Process of planned Change / Overcoming Resistance to Change : The process of planned change or resistance can be overcome by overcoming following components : a) Communication : Effective communication clears misunderstandings and provides logic for change. Resistance to change may subside when the need for change is properly understood. b) Participation : Employee involvement in planning and implementation of change removes resistance to change.
  9. 9. c) Facilitation and Support : Supportive efforts and facilitation through counseling, therapy, new skills training reduce resistance to change. d) Negotiation : Negotiations with powerful resisters of change through reward package can reduce resistance to change. e) Coercion : Force is applied to overcome resistance to change. Job loss, transfer, demotion are used.
  10. 10. Management in a Changing environment As we know that, management is the art of getting things done through and by the people, every organisation structures, technology and other forces changes from time to time. Managers are persons who are required to reach their goals through other people at the place where they work that is the organisation. In present day’s highly competitive and demanding work place they are required to display their good interpersonal skills by making decisions, allocate resources and lead and direct others’ activities to achieve and attain their goals. Managers also face numerous environment challenges. The environmental issues most relevant to the domain of organizational behaviour are competitive strategy, globalization, , quality and productivity, and manufacturing and service technology. • Competitive Strategy • Globalization • Quality and Productivity • Manufacturing and Service Technology