D r.

G e m e c h i s
Desta

CHANGE Leadstar
Graduate
Department of

MANAGEMENT Leadership
Studies
Addis Ababa,
Ethiopia

12/09/2024 Copy right @ Leadstar, Dr. Gemechis Desta 1

 Part I

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 CHANGE MANAGEMENT

 Change is an alteration of organizational;

 Strategy/ plan, policy , approach, tactic,

scheme
 Culture/value, principles, beliefs
 Structure and
 Identity

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 CHANGE MANAGEMENT

 Mark of a good manager is having the

competence/ability to manage change within the
organization and change within the
organization’s environment.

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 THREE PILLARS IN
ORGANIZATIONAL CHANGE

1.Organizational
Structure
Coordina
Authority ting
Relations mechanis
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ms
Copy right @ Leadstar, Dr. Gemechis Desta 5
 THREE PILLARS IN
ORGANIZATIONAL CHANGE

Organizational Structure
Coordinating
Authority Relations
mechanisms

Technology
Work Process
Information and
communication
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 THREE PILLARS IN
ORGANIZATIONAL CHANGE

Organizational Structure
Authority Relations Coordinating mechanisms

Technology
Information and
Work Process
communication

People
Human capacity Human behavior

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 REASONS FOR CHANGE

Exter Intern
nal al
Factor Factor
s s
Factors
of
Change
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EXTERNAL FORCES FOR CHANGE

Technology

•Internationalization
•Access to information
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EXTERNAL FORCES FOR CHANGE

Technolog Governme
y nt
•Globaliz •Legal
Regulation
ation •Deregulatio
•Access n
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EXTERNAL FORCES FOR CHANGE

Technolog Governme
Economics
y nt
•Regula •Up and
•Global down
tion
ization •Dereg
effect
•Access •Global
ulation impact
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 INTERNAL FORCES FOR CHANGE

Strategy

Internal structure

Operational Methodology

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 INTERNAL FORCES FOR CHANGE

Strategy Work force

Internal structure Employee turnover

Operational
Capacity building
Methodology

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 ORIGINS OF CHANGE
MANAGEMENT

 There are two distinct ways of looking at change

management;

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 ORIGINS OF CHANGE
MANAGEMENT

Change management as a
result of changing
technologies

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 ORIGINS OF CHANGE
MANAGEMENT

Change management as a Change management based

result of changing on different management
technologies styles

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 ORIGINS OF CHANGE
MANAGEMENT

 Change management has its origins in the

1950s.
 In 1950s modern forms of management were
introduced;
 E.g.
 Team work
 Autonomous / independent groups

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 ORIGINS OF CHANGE
MANAGEMENT
 In 1950s war between top down and bottom up
management tension was began

Bottom
Top down
Up

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 TOP DOWN MANAGEMENT

 Top down organizations are characterized by

relatively low infl uence of subsystems
 With the exception of the top management employees
are placed in a given process pattern.
 The organization’s units are coordinated within a
system of regulations
 The organization’s development is steered from top
down

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 BOTTOM UP MANAGEMENT

 There is a relatively high infl uence of subsystems

 Involved and engaged employees are responsible for
the organization’s development
 Structural partial autonomies are conceded to the
single subsystem
 Regulations are found primarily in the form of general
behavioral instructions and on the basis of common
sense

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 TOP DOWN MANAGEMENT

Best
•Business Process
exampl
re-engineering
e of Top
(BPR)
down •Business re-
manage engineering
ment
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 BPR
 The concept of BPR is aimed at changes concerning
quality, service, cost and processing time
 The core idea is process orientation
 BPR takes two things into consideration;
 1. Strategy creation
 2. Process creation

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 BUSINESS RE-ENGINEERING

 BR aims at radical redesign of enterprise strategies or

essential enterprise processes.
 Implementation of this process requires strong
manager, who initiates the change and encourages
employees to mane the necessary changes.
 Therefore BR is based on order and control while
maintaining comprehensive knowledge of the
organization’s development and participative
system’s creation.

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 BOTTOM UP MANAGEMENT

Best
example •Kaizen
of •Lean
Bottom
Up managemen
manage t
ment
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 KAIZEN

 Kaizen is a Japanese word meaning improvement

or change for the better
 Kaizen focuses on continuous improvement of
operational processes of organization to
maximize productivity
 Kaizen believes that there is no actual status
that is good enough to be kept.

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 KAIZEN

 Kaizen refers to a continuous improvement of

all functions and involves all employees from
the executive board to the assembly line
workers.
 Kaizen was fi rst implemented in Japanese
businesses after the second world war
infl uenced by American business and quality
management teachers who visited the country

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 PR INCIPL E S O F L E AN MANAG E M E NT

1. Gradual approach

2. Group Orientation

3. Own responsibility

4. Constant feedback on lower level

5. Long term orientation

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 COMPARING TOP - DOWN AND
BOTTOM - UP

• Possibility of adapting to the evolutionary/

Bottom up
progress and participatory change

• Straight forward attempt of comprehensive,

Top down
change by focusing on the central process

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MODERN CHANGE MANAGEMENT

 Modern change management is a mixture of top

down and bottom up.

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 CHANGE MANAGEMENT IS

Understanding organizations that are ready for change

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 CHANGE MANAGEMENT IS

Understanding
Understanding people
organizations that are
who are ready for change
ready for change

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 CHANGE MANAGEMENT IS

Understanding Understanding
Understanding
organizations comprehensive
people who are
that are ready dynamics of
ready for change
for change change

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 ADHOCRACY-MORE DEMOCRACY
AND LESS BUREAUCRACY

Simple
organiz
• Will reach a simple
ational dynamic environment

structur
e
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 ADHOCRACY-MORE DEMOCRACY
AND LESS BUREAUCRACY

Simple
•Will reach a simple
organization dynamic environment
al structure

Complex •Needs a simple structure

dynamic •For a complex dynamic environment
adhocracy will be needed
environment
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 CORE FACTORS OF EVERY
CHANGE

1. People – they form the organization

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 CORE FACTORS OF EVERY CHANGE

1. The People – they form the

organization

2. The Culture – way of working,

attitude and norms

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 Part II

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 CONCEPTS OF CHANGE
MANAGEMENT
These concepts are available to
facilitate one’s understanding of
transitioning of individuals
through various phases of change
management
These concepts are there to
strengthen organizational
development initiatives in both
government and corporate sectors

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 CONCEPTS OF CHANGE
MANAGEMENT

Lewin’s Chin & Bennie’s

“effecting
change changes in
Theory human system”

Bullock and Beck hard and

Batten’s Phases
of Planned
Harris Change
Change Formula
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 LEWIN’S CHANGE THEORY

Change
Unfreezing Freezing

Three
stage
model

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 CHIN AND BENNE’S “EFFECTING
CHANGES IN HUMAN SYSTEM”

 There are three distinct models in this concept

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 CHIN AND BENNE’S “EFFECTING
CHANGES IN HUMAN SYSTEM”

Empiri •Change is created by

cal- dissemination of knowledge

gained from research
•The underlying assumption is
ration that individuals are rational
and will follow their rational
al self interest
•If good change is suggested
approa people of good intentions will
adopt the change

ch
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 CHIN AND BENNE’S “EFFECTING
CHANGES IN HUMAN SYSTEM”

Power •Influencing individuals and

– systems change through

legislation and external
leverage, where power is the
coerciv dominant factor
•This approach uses three means

e for change 1. Protest and

demonstration 2. Government

approa
policies and legislation 3.
Electing people into political
office
ch
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 CHIN AND BENNE’S “EFFECTING
CHANGES IN HUMAN SYSTEM”

Normat •The overarching principle of

ive – re- this model is that the

individual must take part in

educati his/her own change if it is to

occur.
•This model includes direct
ve intervention by change
approa agents, who focus on the
client system to solve
ch problem

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BULLOCK AND BAT TEN’S PHASES OF PLANNED
CHANGE – DRIVEN FROM PROJECT
MANAGEMENT CONCEPT

Planning
Action
Exploratio Integratio
n n

Phases of
Planned
change

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 BECKHARD AND HARRIS
CHANGE FORMULA

 This is a mathematical representation of the change

process.
 The basic notion for change to occur is;

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 BECKHARD AND HARRIS
CHANGE FORMULA
The
desirability The
Dissatisfacti of
on withthe proposed
the practicality
change
status quo of Change

The cost of
Change must
be out
weighed by;

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 CHANGE WILL BE RESISTED IF;

• are not dissatisfied and if

People
the cost is too high

• are not seen as improvement

Changes and if change can not be done
in a feasible way

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 BECKHARD AND HARRIS
CHANGE FORMULA
 The formula for change in conceptualized as; D x V x
F > R
 D, dissatisfaction
 V, vision
 F, fi rst steps
 R, Resistance to change
 In order to over come resistance to change all three
have to be there.

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 7-S-MODEL

 The 7-S Model is a framework to analyze

organizations and their eff ectiveness. It looks
at seven elements that makes organizations
successful;

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 7-S MODEL

mSstyleSkillsst S
r
sete aff h
Sty
u v a ar
u c lu ed
es
gy
r
St
te
ra
St

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 7-S MODEL

This model is a tool for managerial

analysis and action that provides a
structure to consider a company as a
whole to diagnose the organizations
problems and develop practical
strategy to implement change
7-S model also illustrates the
multiplicity and interconnectedness
of elements that defi ne an
organization’s ability to change
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 Part III

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 THE CHANGE PROCESS

Bottom Up Change Top Down Change

Initiatin
g

Initiatin
g

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 INITIATING A TOP DOWN
CHANGE
1. Structural and strategic audit is a
cornerstone for a common image about
the general and strategic position of
the enterprise
2. The second step is process analysis.
After this participative reconstruction of
the processes and the visualization of
the expectations, strengths and
weaknesses for the initialization of a
lasting change is required
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 INITIATING A TOP DOWN
CHANGE

 Process analysis is done

 1st for the elimination of all non value –
increasing activities
 2nd for the optimization of all remaining
activities.

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 INITIATING BOTTOM UP CHANGE

 For a successful bottom up change management the

following principles have to be carefully applied;

1. Thoughtful planning
2. Sensitive implementation
3. Consultation and involvement of people aff ected
by those changes

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 INITIATING BOTTOM UP CHANGE

 Before starting organizational change, the

question of strategic change has to answered;
1. What do we want to achieve with this
change
2. Why do we change
3. How will we know if that change is achieved
4. Who is affected by this change
5. How will they react to it
6. How much of these change can we achieve
7. What part the change do we need help with

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 INITIATING BOTTOM
UP CHANGE
Involving

Imposing

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 RESPONSIBILITY OF MANAGING
CHANGE
 Responsibility of managing change lies with
management and executives of the organization and
not employees.
 The employee does not have a responsibility to
manage change other than to do their best.
 The manager has the responsibility to facilitate and
enable change by understanding the situation from
an objective point of view.

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 RESPONSIBILITY OF MANAGING
CHANGE – MANAGERS ROLE

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 RESPONSIBILITY OF MANAGING
CHANGE – MANAGERS ROLE

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 RESPONSIBILITY OF MANAGING
CHANGE – MANAGERS ROLE

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 CHANGE MANAGEMENT PROCESS

 Change management process is the sequence of

steps or activities that a change management team
or project leader would follow to apply a change
management to a project or change.

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CHANGE MANAGEMENT PROCESS
THREE PHASES

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CHANGE MANAGEMENT PROCESS
THREE PHASES

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CHANGE MANAGEMENT PROCESS
THREE PHASES

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 DEALING WITH CHANGE

 When dealing with change habits are counter

productive. Change is seen as a negative thing that
creates instability and insecurity
 Normal change process evolves through a number of
mental phases

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 DEALING WITH CHANGE
4
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 DEALING WITH CHANGE
6
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 Conflict
Resolution

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 CONFLICT AND CONFLICT
RESOLUTION

 W h a t i s c o n fl i c t ?
 Va n d e V l i e r t ( 1 9 8 4 ) ke y e l e m e n t s i n d e fi n i n g o r g a n i z a t i o n a l c o n fl i c t
 1. Confl ict occurs when at least one party in the confl ict episode/period experiences
frustration
 2. Recognition that frustration can be both aff ective and cognitive
 3. Frustration is subjective and does not necessarily refl ect objective reality
 4. Confl ict and individuals reaction to feeling frustration are independent events.
Such a list implies interaction and dependence between confl icting parties the
blockage of at least one party’s concerns
or interests: the perception of incompatibility of individual concerns or interests , and
the ability to manage confl it by applying appropriate confl ict handling behavior.
Organizational confl ict is a disagreement between two or more organization members
or groups arising from the fact that they must engage in independence work
activities and/or from the fact that they have diff erent status, goals, values,
perception.
Confl ict is an overt /obvious behavior that results when an individual or group of
individuals thinks a perceived need or needs of the individual or group of individuals
has been frustrated/ unfulfi lled or is about or to be frustrated
Confl ict is a process that begins when one party perceives that another party has
negatively aff ected, or is about to negatively aff ect, something that the fi rst party
cares about.

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 WHAT IS CONFLICT

 L i t t e re r ( 1 9 6 9 , p . 3 8 2 )
 C o n fl i c t i s a t y p e o f b e h a v i o r w h i c h o c c u r s w h e n t w o o r m o re p a r t i e s a re i n
o p p o s i t i o n a s a re s u l t o f a p e rc e i v e d re l a t i v e d e p r i v a t i o n / d e n i a l f ro m a c t i v i t i e s
of or interacting with another
Type of confl ict can be 6 in number on the other hand it can
be closely 3
a . I n t r a p e r s o n a l c o n fl i c t
b . I n t e r p e r s o n a l c o n fl i c t
c . I n t e r g ro u p c o n fl i c t
 T h e re a re a l s o s p e c i fi c a l l y 3 t y p e s o f c o n fl i c t , a n o t h e r a p p ro a c h o f c l a s s i fy i n g
c o n fl i c t
1 . Ta s k c o n fl i c t re l a t e s t h e c o n t e n t a n d g o a l s o f t h e w o r k .
2 . re l a t i o n s h i p c o n fl i c t f o c u s e s i n t e r p e r s o n a l re l a t i o n s h i p . I t i s a l m o s t
d y s f u n c t i o n a l . T h i s i s b e c a u s e t h e f r i c t i o n a n d i n t e r p e r s o n a l h o s t i l i t i e s i n h e re n t
i n re l a t i o n s h i p c o n fl i c t i n c re a s e p e r s o n a l i t y c l a s h e s a n d d e c re a s e m u t u a l
u n d e r s t a n d i n g w h i c h h i n d e r s t h e c o m p l e t i o n o f o rg a n i z a t i o n t a s k s . O n t h e o t h e r
h a n d l o w l e v e l s o f p ro c e s s c o n fl i c t a n d l o w t o m o d e r a t e l e v e l o f t a s k c o n fl i c t
a re f u n c t i o n a l
3 . . p ro c e s s t y p e o f c o n fl i c t re l a t e s t o h o w t h e w o r k g e t s d o n e . .

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 WHAT IS CONFLICT
1
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12/09/2024 Copy right @ Leadstar, Dr. Gemechis Desta 74

 THE NATURE OF CONFLICT

Traditi •Negative view of

conflict
onal •Violent, irrational,
harmful and
View avoidable

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 THE NATURE OF CONFLICT

Traditio •Negative view of conflict

•Violent, irrational, harmful

nal View and avoidable

Human •Conflict is inevitable thus should be

Relations accepted
•Conflict may even benefit group
performance
View
12/09/2024 Copy right @ Leadstar, Dr. Gemechis Desta 76
 THE NATURE OF CONFLICT

Traditional • Negative view of conflict, Violent, irrational,

distractive, harmful and avoidable
View
Human •Conflict is inevitable thus should be accepted
•Conflict may even benefit group performance
Relations View

Inter-actionist •Conflict is a positive force and absolutely necessary for a group

to perform effectively
•Harmonious groups become static, apathetic and non –

View responsive to change

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 SOURCES OF CONFLICT

 1. Goal Segmentation – each functional unit of an

organization has d/t functional goals. These can case
clashes between diff erent segments of an organization
and may seem personality clashes
 2. Mutual Department Dependence – Two
interdependent departments for goal accomplishment
getting in confl ict
3 Unequal Department Dependence
4. Functional unit and the environment- it perform d/t tasks
and cope/ deal with d/t parts of the organization
5. Role dissatisfaction – professionals who receives less
recognition and limited opportunity for promotion will
produce structural confl ict
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 SOURCES OF CONFLICT

 6 . R o l e A m b i g u i t y – a m b i g u i t y i n t h e d e s c ri p t i o n of a p a rt i c u l a r j o b
c a n l e a d t o s t r u c t u r a l c on fl i c t
 7 . C o m m o n R e s o u r c e D e pe n d e n c e – w h e n t w o org a n i z a t i o n a l
u n i t s a re d e p e n d e n t o n c o m m o n b u t s c a re s re s ou rc e s , p ot e n t i a l f o r
c o n fl i c t ex i s t s
 8 . C o m m u n i c a t i o n B a r r i e r s – S e m a n t i c d i ff e re n c e s c a n c a u s e
c o n fl i c t

Or the following can be source of

confl ict
Pe rs on a l Fa c t o r s C om m u n i c a t i o n Fa c t o rs
Va l u e _ semantic
Beliefs _ l a c k o f i n f o rm a t i o n
Pe rc e p t i o n / a w a re n e s s _ I n f o rm a t i o n o v e rl o a d
Pe rs on a l i t i e s / b e h a v i o r _Channels of communication
I n t e re s t
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 STAGES OF CONFLICT PROCESS

1. Latent conflict –neither party sense the conflict, but it is the

presence condition that create opportunities for conflict to rise . The
situation could be individual or group differences or Organizational
structure sense of conflict waiting for conditions the conflict .

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 STAGES OF CONFLICT PROCESS
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12/09/2024 Copy right @ Leadstar, Dr. Gemechis Desta 81

 STAGES OF CONFLICT PROCESS
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e
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Copy right @ Leadstar, Dr. Gemechis Desta 83
t
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 CONSEQUENCES/EFFECTS OR
OUTCOMES /OF
ORGANIZATIONAL CONFLICT
Functional Outcome

Better understanding of the

issues

Improved quality decision

making
Increased creativity and innovation in
solving and resolving future problems and
a positive approach to self evaluation

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 CONFLICT MANAGEMENT
STRATEGIES

 There are two aspects of confl ict management

strategies;
1. Confl ict Resolution
2. Confl ict Stimulation/ motivation

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 CONFLICT MANAGEMENT
STRATEGIES

Conflict Resolution

Conflict – disruptive
/upsetting to organization

Conflict – excesses time and

effort/ resource wasted
Conflict – advancing the goals of groups
and sub units rather that the
organization

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 CONFLICT MANAGEMENT
TECHNIQUES

 Managers can use a number of diff erent approaches

to resolve or reduce confl ict.

 Such eff orts are aimed at minimizing the disruptive/

upsetting impact of confl ict

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 CONFLICT RESOLUTION
/MANAGEMENT TECHNIQUES
1 . C h a n g i n g s i t u a t i o n a l f a c t o r s – C h a n g e t h e f a c t o r s i n t h e s i t u a t i o n t h a t a r e c a u s i n g t h e c o n fl i c t .
e.g. the manager can increase resource available, redesign reward system or take steps to improve
communication systems unfortunately these solution are not always feasible or may be extremely
expensive.

2 . A p p e a l t o s u p e r- o r d i n a t e G o a l s – I f t h e s i t u a t i o n s c a u s i n g e x c e s s i v e c o n fl i c t a r e d i ffi c u l t t o
c h a n g e , m a n g e r s s o m e t i m e a r e a b l e r e f o c u s t h e c o n fl i c t i n g i n d i v i d u a l , g r o u p , p a r t i e s o n s u p e r-
ordinate goals , major common goals that require the support of all parties. This takes wisely
choosing that super ordinate goal.
3 . I n t e r p e r s o n a l c o n fl i c t h a n d l i n g m o d e – t h e r e a r e fi v e m o d e s t o b e u s e d ;
 Av o i d a n c e / e v a d i n g i g n o r i n g o r s u p p r e s s i n g a c o n fl i c t i n t h e h o p e t h a t i t w i l l e i t h e r g o a w a y o r
not become too disruptive /troublesome
 A c c o m m o d a t i o n - f o c u s o n s o l v i n g c o n fl i c t b y a l l o w i n g t h e d e s i r e s o f t h e o t h e r p a r t y t o p r e v a i l
/ c o n q u e r. E s s e n t i a l l y t h e m a n a g e r v o l u n t a r i l y l e t s t h e o t h e r p a r t y h a v e h i s o r h e r w a y o t h e r t h a n
c o n t i n u e t h e c o n fl i c t ( u s e w h e n y o u fi n d y o u ' r e w r o n g .
 C o m p e t i t i o n / r i v a l r y - A t t e m p t i n g t o w i n t h e c o n fl i c t a t t h e o t h e r p a r t y e x p e n s e s i n o t h e r w o r d s
one party win the other loss. Note that the extreme case of competition is authoritarianism
( forcing or dominance) a party that feels it must win at any cost using aggregation.( use it when
quick divisive action is vital and e.g. emergency, cost cutting, discipline and when you're right)
 C o m p r o m i s e / g i v e a n d t a k e - I t o f t e n b a r g a i n i n g / n e g o t i a t i n g b y c o n fl i c t i n g p a r t i e s a t l e a s t i n n o
w o r s e p o s i t i o n a f t e r t h e c o n fl i c t r e s o l v e d . w i t h c o m p r o m i s e e a c h p e r s o n w i n s s o m e m a j o r i s s u e s
and losses others. (use it when goals are important)
 C o l l a b o r a t i o n / g r o u p e ff o r t - s t r i v e s t o r e s o l v e c o n fl i c t s b y d e v i s i n g s o l u t i o n t h a t a l l o w b o t h
parties to achieve their desired outcomes. Both parties win at least their major issues .
Collaboration involves considerable creativity in developing solution that suit the need of both
p a r t i e s i n t h e c o n fl i c t . T h e t e c h n i q u e i s s o m e t i m e c a l l e d p r o b l e m s o l v i n g . I t i s a n a d v a n t a g e o u s
w a y t o h a n d l e c o n fl i c t b / c b o t h p a r t i e s a r e l i k e l y t o b e s a t i s fi e d t h e r e f r e q u e n t l y a r e r e a s o n s t o
use the other opportunity as well ( use when you want learn and seek integrated solution).

12/09/2024 Copy right @ Leadstar, Dr. Gemechis Desta 88