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Managing Strategic Change

This document discusses managing strategic change in organizations. It covers the following key points: 1. Organizational change is a continuous process that can be planned or unplanned. Planned change attempts to change an organization's structure, technology, tasks, and people. 2. Resistance to change comes from individual factors like fear of the unknown, and group factors like threatening existing social interactions or vested interests. 3. The process of planned change involves identifying the need for change, determining what needs to change, planning the change, assessing resistance forces, implementing the change through unfreezing, changing, and refreezing behaviors, and providing feedback. Overcoming resistance requires addressing individual, group, and organizational

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76 views

Managing Strategic Change

This document discusses managing strategic change in organizations. It covers the following key points: 1. Organizational change is a continuous process that can be planned or unplanned. Planned change attempts to change an organization's structure, technology, tasks, and people. 2. Resistance to change comes from individual factors like fear of the unknown, and group factors like threatening existing social interactions or vested interests. 3. The process of planned change involves identifying the need for change, determining what needs to change, planning the change, assessing resistance forces, implementing the change through unfreezing, changing, and refreezing behaviors, and providing feedback. Overcoming resistance requires addressing individual, group, and organizational

Uploaded by

Pragati Bahl
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Managing strategic change

Presented byKanchan,

Piyush chaudhary,
Arpit Mittal, Vinay dahiya, Arpil.

NATURE OF ORGANIZATION CHANGE


When change occurs in any part on the organization, it disturbs the old equilibrium necessitating the development of a new equilibrium. The type of new equilibrium depends on the degree of change and its impact on the organization. Any change may affect the whole organization; some parts of the organization may be effected more, others less; some parts are affected directly, others indirectly. Organizational change is a continuous process. However, Some changes which are of minor type, may be absorbed by the existing equilibrium; others which are major ones, may require special change efforts.

-Planned change attempts at all aspects of the org. which are closely interrelated:

sturctu re

Tech .

Org .
peopl e

task

Technology related changes:


It includes inventions and techniques which affect the way of doing things, that is designing, producing and distributing products. It may include1. Changing problem procedures. solving and decision making

2. Introduction of automated data processing devices like computers. 3. Change in methods of production like conversion of unit production to mass production.

Task related changes:


Technology related changes determine the type of task that may be required to complete an operation. A job consisting of several task may be designed in a number of ways ranging from job simplification to job enrichment. Task related changes must focus on: 1. High internal work motivation

2. High quality work performance

structure-related changes
Structural changes redefine nature of relationship among various organizational positions and include:

1. Changing the number of hierarchical levels.


2. Changing one form of organization to another form. 3. Changing span of management 4. Changing line-staff and functional authority.

People related changes


Change in any type as pointed out above require change in people in an organization. These changes may be of two types: skills and behavior. The magnitude of these changes depends on the type of changes.

Steps in a planned change

Identifying need for change


The first basic step in planned change is to identify when change in the organization required.

The process of change can be viewed as a part of control function, specially the corrective-action requirement.
Some of the features of the organization may indicate the need for change like cost of production, declining profit, employee turnover, role conflict, need for expansion and growth, etc. Identification of need for change depends on gap analysis, that is the gap between what the organization achieved and what it should achieve.

element to be changed
What elements of the organization should be changed will largely be decided by need and objective.

Process of organization change will provide clue why change should take place, this stage take the analysis further by diagnosing the problem caused because of which the change is necessary. Usually change is required in three major elements of the organization:
1. Organizational structure 2. Technology 3. People

Planning for change


Managers should plan about how the change can be brought.

Planning for change includes:


1. Who will bring change 2. When to bring change 3. How to bring change Normally, change, expending over a long period of time, requires continuous process of putting change effort in one aspect, measuring its impact and correcting dysfunctional aspects resulting from change, putting change in another aspect, etc. this process goes on over the period of time.

assessing change force


The planned change is not automatic, rather there are many forces which resist such changes. Unless the cooperation of people is not ensured, any change process will not succeed. For this purpose, the management has to create an environment in which change will be accepted by the people. This problem is referred to the problem of overcoming resistance to change and will be taken later. Management may face three type of situation based on the operation of force field: 1. If driving forces far outweigh the restraining forces. 2. If the restraining forces are stronger than the driving forces. 3. If driving and restraining forces are fairly equal.

contd.
The management has to push driving forces and/ or converting or immobilizing restraining forces so that people accept the change. If the driving forces exist or managements efforts have brought the equilibrium of driving and restraining forces at a desired level, it can go for the change; it can take necessary actions for change.

change actions
Action for change comprising three stages: 1. Unfreezing 2. Changing 3. Refreezing

Unfreezing: is a process in which a person casts

aside his old behavior which might be inappropriate, irrelevant, or inadequate to the changing demands of the situation. So the manager helps employees clear their minds of old roles and purposes.

Changing: this is the stage where individuals being


changed learn new behavior- method of working, new thinking, perception of new roles.

contd
Refreezing: it means that what had been learnt is
integrated into actual practice. At this stage, the individuals internalize the new beliefs, feelings, and behaviors learned during the changing phase. In the absence of suitable reinforcement, often, there is tendency that individuals revert back gradually to their old behaviors, which they were displaying before the change. Therefore, reinforcement is necessary for the internalization of new behavior. Management of change requires feedback and follow-up actions to ensure that change program is right direction without producing and dysfunctional effects. Problem created by change should be tackled immediately so that it gives better results to the organization.

Feedback:

Factors in resistance to change

Individual factors:
Economic factors:
1. Skill obsolescence 2. Fear of economic loss 3. Reduced opportunity for incentives.

Psychological factors:

1. Ego defensiveness 2. Status quo 3. Low tolerance for change 4. Lack of trust in change agent 5. Fear of unknown..

contd
Social factors:
1. Desire to existing social interaction 2. Feeling of outside interfaerence

Group factors
Nature of group dynamics: group dynamics refers
to the forces which operate in a group determining behavior of its members. These forces determine how effective a group would be in accepting or rejecting a change.

1. If both change agent and people who are target for change belong to the same group, the role of group is more effective. 2. The degree of group attractiveness to its members affects how effective the group is in change response.

3. Group can exert more pressure on those factors of the members which are responsible for group being attractive to the members like attitude, values and behavior.

Contd
Vested interests:
In a group, some members become more influential than others. These persons may be group leader appointed formally or informally. Thus these vested interests try to influence group behavior in the form of a uniform response to a change. This phenomenon is more common in the case of labor unions.

organizational resistance to change


Counting past successes Stability of systems Resources limitations Sunk cost Interorganizational agreements

overcoming resistance to change

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