CHAPTER THREE

OVERVIEW OF CHANGE MANAGEMENT

3. Introduction
In this chapter, we shall learn about change and its impact on organizations. Perhaps the only
thing constant within organizations is now change. Traditionally, analysis of organizational
change has been built around the organism metaphor in which organizations are analyzed as if
they were living organisms operating in an environment to which they need to adapt to ensure
survival.
This is an era of globalization and the organizations need to cope up with the dynamic and
inevitable changes which take place very often. Because of this change, the competition among
firms is becoming intense and every organization should be flexible enough to implement the
changes whenever required for its survival.

3.1 The Nature of Change

Change has become the norm in most organizations. Plant closings, business failures, mergers
and acquisitions, and downsizing have become experiences common to companies.
Adaptiveness, flexibility, and responses are terms used to describe the organizations that will
succeed in meeting the competitive challenges that businesses face. In the past, organizations
could succeed by claiming excellence in one area-quality, reliability, or cost, for example-but
this is not the case today. The current environment demands excellence in all areas, and
organizations are taking steps to achieve this goal.
Organization must deal with ethical, environmental, and other social issues. Competition is
becoming fierce, and companies can no longer afford to rest on their success.
There are two basic forms of change in organizations: Planned and Unplanned Change.
Planned change is change resulting from a deliberate decision to alter the organization.
Companies that wish to move from a traditional hierarchical structure to one that facilitates self-
managed teams must use a proactive, carefully orchestrated approach. Not all change is planned,
however. Unplanned change is imposed on the organization and is often unforeseen. Changes in
government regulations and changes in the economy, for example, are often unplanned.
Responsiveness to unplanned change requires tremendous flexibility and adaptability on the part
of the organizations. Managers must be prepared to handle both planned and unplanned forms of
change in organizations.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 1

3.2 Forces for Change
Forces for change can come from many sources. Some of these are external, arising from outside
the company, whereas others are internal, arising from sources within the organization.
3.2.1. External Forces

Globalization, workforce diversity, technological change, and managing ethical behavior are
challenges that precipitate change in organizations.
Globalization
The power players in the global markets are the multinational and transnational organizations.
By joining with their European neighbors, companies in smaller countries will begin to make
major progress in world markets, thus increasing the fierce competition that already exists.
Workforce diversity
Related to globalization is the challenge of workforce diversity. Let us recap the demographic
trends contributing to workforce diversity. First, the workforce will see increased participation
from females, as the majority of new workers will be female. Second, the workforce will be
more culturally diverse than ever. Part of this is attributable to globalization, but in addition,
demographics are changing. Third, the workforce is aging. There will be fewer young workers,
and more middle-aged especially nowadays in the Westerners.
These trends point toward an increasingly diverse workforce in terms of age, gender, and culture.
Managing diversity effectively requires that organizations help employees view differences as
valuable assets. The Organizational Reality feature presents the company's story. Successfully
managing workforce diversity means enabling all workers, including physically and mentally
disabled employees, to reach their potential.
Technological Change
Rapid technological innovation is another force for change in organizations, and those who fail
to keep pace can quickly fall behind. The technological competition between the United States
and Japan is heated. There is a widely held perception that the United States is closing the quality
gap with Japan. However, Japanese manufacturers are said to have moved beyond quality to
flexibility as a new strategy.
Manufacturing innovations seem to pass through stages from quality (doing it right) to reliability
(always doing it right) to flexibility (adding variety and speed). At Toshiba, in Japan, flexibility
means making a greater variety of products with the same equipment and employees.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 2

Flexibility gives organizations a competitive edge through the ability to read the market quickly
and respond faster than competitors. Technological innovations bring about profound change
because they are not just changes in the way work is performed. Instead, the innovation process
promotes associated changes in work relationships and organizational structures. The team
approach adopted by many organizations, leads to flatter structures, decentralized decision
making, and more open communication between leaders and team members
Managing Ethical Behavior
Recent ethical scandals have brought ethical behavior in organizations to the forefront of public
consciousness. Ethical issues, however, are not always public and monumental. Employees face
ethical dilemmas in their daily work lives. The need to manage ethical behavior has brought
about several changes in organizations. Most center around the idea that an organization must
create a culture that encourages ethical behavior.
3.2.2. Internal Forces
Pressures for change that originate inside the organization are generally recognizable in the form
of signals indicating that something needs to be altered. Declining effectiveness is a pressure to
change. A company that experiences its third quarterly loss within a fiscal year is undoubtedly
motivated to do something about it. Some companies react by instituting layoffs and massive
cost cutting programs, whereas others look at the bigger picture, view the loss as symptomatic of
an underlying problem, and seek out the cause of the problem also may stimulate change in an
organization. Strikes or walkouts may lead management to change the wage structure. The
resignation of a key decision maker is one crisis that causes the company to rethink the
composition of its management team and its role in the organization. Changes in employee
expectations also can trigger change in organizations. A company that hires a group of young
newcomers may be met with a set of expectations very different from those expressed by older
workers. The work force is more educated than ever before. Although this has its advantages,
workers with more education demand more of employers. Today's workforce is also concerned
with career and family balance issues, such as dependent care. The many sources of workforce
diversity hold potential for a host of differing execrations among employees. Changes in the
work climate at an organization can also stimulate change. A workforce that seems lethargic,
unmotivated, and dissatisfied is a symptom that must be addressed. This symptom is common in
organizations that have experienced layoffs. Workers who have escaped a layoff may grieve for
those who have lost their jobs and may find it hard to continue to be productive. They may fear
that they will be laid off as well, and many feel insecure in their jobs.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 3

3.3 The Scope of Change
We have seen that organizations face substantial pressures to change from both external and
internal sources. Change in organizations is inevitable, but change is a process that can be
managed. The scope of change can vary from small to quantum.
Change can be of a relatively small scope, such as a modification in a work procedure (an
incremental change). Such changes, in essence, are a fine-tuning of relatively small scope/ the
organization, or the making of small improvements. Change also can be of a larger scale, such as
the restructuring of an organization (a strategic change). In strategic change, the organization
moves from an old state to a known new state during a controlled period of time. Strategic
changes usually involve a series of transition steps.
The most massive scope or change is transformational change, in which the organization moves
to a radically different, and sometimes unknown, future state. In transformational change, the
organization's mission, culture, goals, moves to a radically different, and structure, and
leadership may all change dramatically. Many organizations undertake transformational change
in order to meet the competitive challenge of globalization.
3.4 The Process of Change in Organizations
Once an organization has made the decision to change, careful planning and analysis must take
place. Part of the planning involves the recognition that individuals, when faced with change,
often resist. Some individuals are more open to change, in general, than others.
The challenge of managing the change process involves harnessing the energy of diverse
individuals who hold a variety of views of change. It is important to recognize that most
changes will be met with varying degrees of resistance and to understand the basis of resistance
to change.
3.4.1. Resistance to Change
People often resist change in a rational response based on self-interest. However, there are
countless other reasons people resist change. Many of these center around the notion of
reactance—that is, a negative reaction that occurs when individuals feel that their personal
freedom is threatened. Some of the major reasons for resisting change follow.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 4

 Fear of the Unknown

Change often brings with it substantial uncertainty. Employees facing a technological change,
such as the introduction of a new computer system, may resist the change simply because it
introduces ambiguity into what was once a comfortable situation for them. This is especially a
problem when there has been a lack of communication about the change.

Fear of Loss

When a change is impending, some employees may fear losing their jobs, particularly when an
advanced technology like robotics is introduced. Employees also may fear losing their status
because of a change. Computer systems experts, for example, may feel threatened when they
feel their expertise is eroded by the installation of a more user friendly networked information
system. Another common fear is that changes may diminish the positive qualities the individual
enjoys in the job. Computerizing the customer service positions at Southwestern Bell, for
example, threatened the autonomy that representatives previously enjoyed.

Fear of Failure

Some employees fear changes because they fear their own failure. Introducing computers into
the workplace often arouses individuals' self-doubts about their ability to interact with the
computer. Resistance can also stem from a fear that the change itself will not really take place.
In one large library that was undergoing a major automation effort, employees had their doubts
as to whether the vendor could really deliver the state-of-the-art system that was promised. In
this case, the implementation never became a reality the employees' fears were well founded.

Disruption of Interpersonal Relationships

Employees may resist change that threatens to limit meaningful interpersonal relationships on
the job. Librarians facing the automation effort described-previously feared that once the
computerized system was implemented, they would not be able to interact as they did when they
had to go to another floor of the library to get help finding a resource. In the new system, with
the touch of a few buttons on the computer, they would get their information without consulting
another librarian.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 5

Personality Conflicts
When the change agent's personality engenders negative reactions, employees may resist the
change. A change agent who appears insensitive to employee concerns and feelings may meet
considerable resistance, because employees perceive that their needs are not being taken into
consideration.
Politics
Organizational change may also shift the existing balance of power organization. Individuals or
groups who hold power under the current arrangement may be threatened with losing these
political advantages in the
Cultural Assumptions and Values
Sometimes cultural assumptions and values can be impediments to change, particularly if the
assumptions underlying the change are alien to employees. This form of resistance can be very
difficult to overcome, because some cultural assumptions are unconscious. In Mexican and
Greek cultures, for example, change that creates a great deal of uncertainty may be met with
great resistance. Some individuals are more tolerant of ambiguity

We have described several sources of resistance to change. The reasons for resistance are as
diverse as the workforce itself and vary with individuals and organizations. The challenge for
managers is introducing change in a positive manner and managing employee resistance.
3.4.2. Managing Resistance to Change
The traditional view of resistance to change treated it as something to be overcome, and many
organizational attempts to reduce the resistance have only served to intensify it. The
contemporary view holds that resistance is simply a form of feedback and that this feedback can
be used very productively to manage the change process. One key to managing resistance is to
plan for it and to be ready with a variety of strategies for using the resistance as feedback and
helping employees negotiate the transition. Three key strategies for managing resistance to
change are communication, participation, and empathy and support.
i. Communication about impending change is essential if employees are to adjust
effectively the details of the change should be provided, but equally important is the
rationale behind the change-Employees want to know why change is needed. If there is
no good reason for it, why should they favor the change?

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 6

 Providing accurate and timely information about the change can help prevent unfounded
fears and potentially damaging rumors from developing. It is also beneficial to inform
people about the potential consequences of the change.
ii. Educating employees on new work procedures is often helpful. Studies on the
introduction of computers in the workplace indicate that providing employees with
opportunities for hands-on practice helps alleviate fears about the new technology.
Employees who have experience with computers display more positive attitudes and
greater efficacy—a sense that they can master their new tasks.
iii. There is substantial research support underscoring the importance of participation in the
change process. In a classic study workers in a garment factory were introduced to
change in three different ways. One group was simply told about the new procedure, one
group was introduced to the change by a trained worker, and one group was allowed to
help plan the implementation of the new production. The results were dramatic. The third
group, who participated in the change, adopted the new method more quickly, was more
productive, and experienced no turnover. Participation helps employees become involved
in the change and establish a feeling of ownership in the process. When employees are
allowed to participate, they are more committed to the change. Another strategy for
managing resistance is providing empathy and support to employees who have trouble
dealing with the change. Active listening is an excellent tool for identifying the reasons
behind resistance and for uncovering fears. An expression of concerns about the change
can provide important feedback that managers can use to improve the change process.
Emotional support and encouragement can help an employee deal with the anxiety that is
a natural response to change. Employees who experience severe reactions to change can
benefit from talking with a counselor. Some companies provide counseling through their
employee assistance plans. Communication, participation, and emotional support can go
a long way toward managing resistance to change. Managers must realize that some
resistance is inevitable, however, and should plan ways to deal with resistance early, in
the change process. Managing resistance to change is a long and often arduous process.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 7

3.5 Lewin's Change Model
Kurt Lewin developed a model of the change process that has stood the test of time and
continues to influence the way organizations manage planned change. Lewin's model is based on
the idea of force field analysis. Figure 3.1 shows a force field analysis of a decision to engage in
exercise behavior. This model contends that a person's behavior is the product of two opposing
forces; one force pushes toward preserving the status quo, and another force pushes for change.
When the two opposing forces are approximately equal, current behavior is maintained. For
behavioral change to occur, the forces maintaining status quo must be overcome. This can be
accomplished by increasing the forces for change, by weakening the forces for status quo, or by a
combination of these actions.
Lewin's change model is a three-step process, as shown in Figure 3.1. The process begins with
unfreezing, which is a crucial first hurdle in the change process. Unfreezing involves
encouraging individuals to discard old behaviors by shaking up the equilibrium state that
maintains the status quo. Organizations often accomplish unfreezing by eliminating the rewards
for current behavior and showing that current behavior is not valued. Unfreezing on the part of
the individuals is an acceptance that needs change to occur. In essence, individuals surrender by
allowing the boundaries of their status quo to be opened in preparation for change.
The second step in the change process is moving. In the moving stage, new attitudes, values,
and behaviors are substituted for old ones. Organizations accomplish moving by initiating new
options and explaining the rationale for change and as well as by providing training to help
employees develop the new skills they need. Employees should be given the overarching vision
for the change so that they can establish their roles within the new organizational structure and
processes.
Refreezing is the final step in the change process. In this step, new attitudes, values, and
behaviors are established as the new status quo. The new ways of operating are cemented in and
reinforced. Managers should ensure that the new organizational culture and formal reward
systems encourage the new behaviors and avoid rewarding the old ways of operating. Changes in
the reward structure may be needed to ensure that the organization is not rewarding the old
behaviors and merely hoping for the new behaviors.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 8

 Forces for status quo
Forces for change
Lack of time
Weight gain No exercise facility at work
For
Minimally passing treadmill
test Spouse/partner hates to
Feel lethargic having no energy exercise
Equilibrium No interest in physical
Family history of activity or sports
cardiovascular disease Made a grade of D in a
New, physically demanding job physical education class

Figure 3.1. Lewin’s Force Field Analysis of a Decision to Engage in Exercise

Lewin's model proposes that for change efforts to be successful, the three stage process must be
completed. Failures in efforts to change can be traced back to one of the three stages. Successful
change thus requires that old behaviors be discarded, new behaviors be introduced, and these
new behaviors be institutionalized and rewarded.
3.6 TYPES OF CHANGE MANAGEMENT
3.6.1 Introduction
The business landscape of the 21st century is characterized by rapid change brought about due to
technological, economic, political and social changes. It is no longer the case that the managers
and employees of firms in this decade can look forward to more of the same every year. In fact,
the pace of change is so rapid and the degree of obsolescence if organizations resist change is so
brutal that the only way out for many firms is to change or perish. In this context, it becomes
critical that organizations develop the capabilities to adapt and steer change in their advantage.
The role of senior managers becomes crucial in driving through change and ensuring that firms
are well placed with respect to their competitors. However, it is the case that in many
organizations, senior managers actively resist change and in fact thwart change initiatives due to
a variety of reasons which would be explored in subsequent sections. This essay examines the
barriers to change by senior managers and discusses approaches to mitigate such resistance. The
essay begins with a discussion n the role of senior managers as barriers to change and then
outlines some approaches on how to get the senior managers on board for change.
It goes without saying that “he who rejects change is the architect of decay and the only
human institution that rejects progress is the cemetery.” With this axiom in mind, it is critical
to understand that unless change is actively embraced, organizations in the 21st century risk
obsolescence.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 9

To resist change is as basic as human nature and hence the change managers must adopt an
inclusive approach that considers the personality clashes and the ego tussles. It is often the case
that in large organizations, there tend to be power centres and hence the issue of organizational
change must address the group dynamics as well as the individual behavioural characteristics.
Only by an understanding of the means by which managers can be brought on board can there be
a foundation for suitable approaches. The approaches include a combination of pressure tactics
and coordination instead of competition and cooption as well as cooperation.
Change agents must realize that wherever possible, they must deal with consensual decision
making and if that is not possible, they must walk the talk and be firm in their approach.
Managers at all levels have a tendency to resist change and in the high stakes game of change
management, it is the ones that can articulate and communicate the change in a clear and
coherent manner who succeed.
In conclusion, change is the only constant in business and the landscape of the 21st century is
littered with companies that have not adapted to the changing times. Hence, organizations must
and should embrace change and the approaches discussed in this chapter are part of the solution.
3.6.2 Approaches in Change Management
3.6.2.1 Top-Down versus Bottom-Up Change
It is often the case that companies are faced with a dilemma about whether the change initiatives
must be driven from the top or they should be organic from the bottom up. This is especially the
case with organizations that are growing in size where the increase employee base or the
skyrocketing sales and revenues mean that the top management’s scope of control is more and
hence driving change from the top alone might not just work. And for those organizations that
initiate change from the top, they might find themselves in a situation where the middle and
bottom layers of the organizational hierarchy may not be responsive or energized in the way the
top managements wants them to be. So, the existential questions as to whether there ought to a
spontaneous involvement from all the levels, or whether the top management must induce the
change, are very real and need to be answered for change initiatives to succeed.
The answer as to which option is preferable depends on a number of factors. First, any change
initiative would succeed only if it is communicated appropriately and to all levels. Honest,
transparency and feedback loops must be the elements of the change initiative. Next, the
employees ought to have a voice in the way the change initiative is managed.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 10

For a change initiative to be successful the top management has to communicate and the
employees have to respond. A mix of having the top management initiate the change and letting
the employees take over from them works best for larger organizations where micro management
by the top management might not work.

Change can be driven solely from the top. However, for continued success, change has to come
from within each employee and this can only happen in organizations that have an organizational
culture that encourages each employee to contribute to the initiatives.

Change can thrive where there is an institutional catalyst and hence the key takeaway is that
the organizational structures have to be built in such a way that no one individual can either
make or mar the chances of success.
3.6.2.2 Fundamental Issues with the Top down Approach in Change Management
Several change management experts have argued that Bottom up Strategy for Change
Management yields effective results comparatively over Top down Strategy of Change
Management.
The Top Down approach necessarily involves an element of compulsion, and the decisions are
forced on the employees without taking any inputs from them. Top Down approach involves
forceful implementation of change and in the entire process opportunities for gathering
information regarding employee expectations, asking their feedback and suggestions are entirely
disregarded or not given any priority at all. This gives rise to employee dissatisfaction due to a
feeling of being ignored or undervalued, and equally good ideas of the employees are never
aired.
A successful change management program must involve the participation and involvement of
all the key stakeholders in the overall process, and the objectives should be made clear, the
reasons for the need for implementing a change program must be well communicated along with
its implications on the individuals, departments and also the organization as a whole. Without the
support and involvement of the stakeholders, the program may be subjected to heavy resistance
or opposition, a sharp decline in the motivation level and also the overall performance of the
employees.
Communication Issues in Top-Down Approach to Change Management: In the case of Top-
Down Approach, the business leaders are concerned about three elements only related with
communication:
 Communicating about what they want people to stop doing.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 11

  Communicating with the people about what they want the people to start doing.
 Communicating about what they want the people to continue doing.
In the case of top-down approach, the management is simply concerned about the above
mentioned three key elements, without addressing the issue of why or the purpose behind the
implementation of change. Explaining the purpose or the objectives to the employees is the
central requirement in any change management program for obtaining the desired support from
the employees and making the overall program a success.
However, top-down approach to change management under certain circumstances become a
necessity especially during crisis situations when the management is expected to implement
quick decisions and deliver fast results by implementing a rapid change.
In the recent years, since the businesses are undergoing rapid transformation and operating
globally, there has been a shift in managing change management assignments by focusing more
on strategic programs for propelling organizational growth and tapping new markets for
improved business opportunities. Top down approach to change management has been criticized
for being too paternalistic, and it ignores the value which an employee can add towards a change
program.
Bottom Up approach can be useful for organizations which aim for steady growth, want to be
innovative and wish to implement a program involving the support of all the key stakeholders.
Bottom-up approach will essentially enhance a sense of responsibility and accountability and
may be beneficial in terms of improving the people’s motivation in making the change program a
success. However, Bottom-Up Strategies take a lot of time and can never happen overnight. The
process of change management requires careful planning, gathering information and feedback,
conceptualizing a program and ensuring its successful implementation by receiving the desired
support from all the key stakeholder.
Hence, it can be concluded that a balance may be required while implementing a change
management program by assessing the existing organizational requirements and the objectives
which are required to be fulfilled. For implementing quicker decisions and during a crisis
situation, top-down approach may be best suitable, whereas, for the collective decision-making
process and involving all the key stakeholders in the program implementation bottom up
approach may be effective.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 12

3.6.3 Different Types of Change
Change is a universal condition of every human. Organizations experience different types of
change management – which you can view if you would like to discover what the different types
of organizational change are.
1. Happened Change
This kind of change is unpredictable in nature and is usually takes place due to the impact of the
external factors. Happened change is profound and can be traumatic as its consequences are
unknown and out of direct control. This kind of a change happens when an organization reaches
the plateau stage in its life cycle and gets victimized by the environmental pressures or demands.
For example, currency devaluation may adversely affect the business of those organizations who
have to depend upon importing of raw materials largely. In certain cases, some political, as well
as social changes are unpredictable and uncontrollable.
2. Reactive Change
Changes which take place in response to an event or a chain of various events can be termed as
Reactive Change. Most of the organizations indulge in reactive change. This kind of change
usually occurs when there is an increase or decrease in the demand for company’s products or
services. It can also be a response to a problematic situation or a crisis which an organization
may be faced with. For example, due to the advancements in technology or growing
technological changes, an organization may be forced to invest more in technology to stay ahead
to face the stiff competition. Recreation can also be regarded as a reactive change, which
involves the entire organization and occurs during the stage when an organization is undergoing
a serious crisis.
3. Anticipatory Change
If a change is implemented with prior anticipation of the happening of an event or a chain of
events, it is called as anticipatory change. Organizations may either tune in or reorient
themselves as an anticipatory measure to face the environmental pressures. Tuning in essentially
involves implementing incremental changes which mean dealing with the subsystems
individually or just with the part of a system. Reorientation essentially involves changing the
organization from the existing state to a desired futuristic state as an anticipatory measure and
then dealing with the entire process of transition.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 13

4. Planned Change
Planned change is also regarded as the developmental change which is implemented with the
objective of improving the present ways of operation and to achieve the pre-defined goals.
Planned change is calculated and is not threatening as in this the future state is being chosen
consciously. The introduction of employee welfare measures, changes in the incentive system,
introduction of new products and technologies, organizational restructuring, team building,
enhancing employee communication as well as technical expertise fall under the category of
Planned Change.
5. Incremental Change (Evolutionary change)
Change which is implemented at the micro level, units or subunits can be regarded as
incremental change. Incremental changes are introduced or implemented gradually and are
adaptive in nature. It is based on the assumption that these small changes will ultimately result in
a large change and establish the basis for forming a much healthier and a robust system. It even
offers an opportunity to an organization to learn from its very own experiences and create the
adaptive mechanisms for meeting the ultimate organizational vision. The extent of damage due
to a failed incremental change effort is expected to be much lesser than the change which is
implemented on a large scale or introduced universally. It is called evolutionary change,
because it arises through the process of natural selection; it is inevitable when small variations in
performance, tiny adjustments or shifts in response by people and groups occur in a changing
environment.
6. Operational Change
This kind of change becomes a requirement or the need when an organization is faced with
competitive pressures as a result of which the focus is laid more on quality improvement or
improvement in the delivery of services for an edge over the competitors. Similarly, changes in
the customer’s buying patterns or demands or the internal dynamics of an organization equally
necessitate the implementation of operational change. Operational change as the name implies
means introducing changes in the existing operations for realizing the intended goals. This may
include bringing in changes in the current technology, improving/re-engineering the existing
work processes, improving the distribution framework or the product delivery, better quality
management and improving the coordination at an inter-departmental level.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 14

7. Strategic Change
Strategic Change is usually implemented at the organizational level, which may affect the
various components of an organization and also the organizational strategy. A change in the
management style in an organization could be considered as an example of strategic change. A
multinational organization like Toyota has taken a step ahead in bringing in a change in the
overall organizational philosophy for availing the advantages of being a leaner organization
structurally, flexibility, decentralized decision making and functioning of organizations and
equally allows a greater extent of freedom or autonomy in implementing proactive decisions.
This kind of change is expected to have a cascading effect on the entire organization and
accordingly would be having an influence on the overall performance.
8. Directional Change
Directional change may become a necessity due to the increasing competitive pressures or due to
rapid changes in the governmental control or policies, which may include changes in the
import/export policies, pricing structure and taxation policies, etc. Directional change can also
become imperative when an organization lacks the capability of implementing/executing the
current strategy effectively or during the circumstances when a strategic change is required. It is
called ‘directed’, ‘planned’, or ‘managed’ change because it is designed to achieve a specific
purpose. Making this type of change happen involves moving the management and work force
and the organizational culture into alignment with the strategies, structure, processes and systems
to achieve the desired state (vision).
Within directed change there are three different types of change management: developmental,
transitional, and transformational. It is important to recognize this as the different kinds of
change require different strategies and plans to gain engagement, reduce resistance, and ease
acceptance.
9. Fundamental Change (Revolutionary change)
Fundamental Change essentially involves the redefinition of organizational vision/mission. This
may be required during extremely volatile circumstances like volatility in the business
environment, failure of the leadership, a decline in productivity as well as the overall turnover or
problems with the morale of the employee. This type of change is typically accompanied by
large power shifts, and on occasion the impact may be catastrophic.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 15

10. Total Change
A Total Change involves change in the organizational vision and striking a harmonious
alignment with the organizational strategy, employee morale and commitment as well as with the
business performance. Total Change becomes a requirement during those circumstances when an
organization is faced with many criticalities such as long-term business failure, incongruence
between the employee and organizational values, failure of leaders/management in anticipating
the realities of business environment or the growing competitive pressures and concentration of
power in the hands of few. A new organizational vision along with major strategic changes as
well as complete organizational surgery can be the only solution at this point of time.
3.6.4 Importance of Communication in Change Management
For implementing a change program successfully, communication is the key and one of the most
complex parameters as it involves an exchange of ideas and feelings with people in an
organization through various mediums. It is one of the toughest issues which an organization is
faced with during the entire process of implementation of change. Effective communication must
involve the following components:
 The message which is being sent by the individual must be clear and vividly presented.
The message must radiate authenticity.
 The recipient of the message must listen attentively, ask questions for clarifications and
share feedback on the interpretation of the message.
 The method of delivery of the message must be compatible with the circumstances of
both the sender of the message as well as the recipient.
 The message content must be able to connect well with the beliefs and thoughts of the
recipient for being able to be acceptable.
In any change management program, it is the people who are fundamentally being affected by
the change initiatives and it is the people who extend their cooperation and support to make the
change happen. Without the involvement and motivation of the key stakeholders, it is impossible
to expect success from any change program, as it is them whose interests are either positively or
negatively affected due to the change initiatives.
The stakeholders’ involvement, commitment, and acceptance in the entire change process is very
important for achieving successful results from the change management program.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 16

For this, the stakeholders must be made well informed about the purpose or the objectives of
change, and they should be provided an opportunity to share their own ideas in the process of
implementation of a change program. Research has proven that if a change is implemented in a
consultative and an open manner it results in much effective outcomes in the overall process.
1. The Purpose of Change Communication
Research has proven that in the absence of a proper communication plan, the entire change
process may turn into a fiasco. Over communication or no communication are both undesirable
as due to this the whole effort of change can be derailed. In the absence of sufficient two-way
conversation or effective communication across all the levels, the change effort may fail to meet
its objectives. If a communication plan is designed efficiently and clearly, it helps in building
awareness and in getting the subsequent support in the entire program.
The communication continuum presented below shows how effective communication influences
the stakeholders in building commitment towards the change.

The communication plan must be an integral part of the change plan addressing the questions of
how, what, when and why of change from the people’s perspective. Like the other documents of
planning, the communication plan should also be documented and be subjected to periodic
reviews.
2. Fundamentals involved in Change Communication
The following factors participate in communicating change approaches successfully:
Communicating the Change Vision Clearly and Doing it early: This is the most important
stage as it involves communicating the vision of change and what the organization will achieve
at the end of the change effort. The vision should be described in simple form, must be clear and
must be able to influence people strongly in implementing decisions.
The earlier the vision for the change is communicated, the easier it will be for the people to be
able to adapt and understand the nuances of change.
Highlighting the Benefits and the Impacts of Change: Effective communication plan during a
change process helps in controlling the inertia or fears due to a change by explaining how the
change will affect the people associated with it and why it is being implemented.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 17

Ensuring that the Leaders of the Organization actively communicate in the entire process
of change: The leaders of the organization must convey how important the change is and must
reflect their personal and visible commitment towards the entire process of change, as this will
be sending a powerful message to the key stakeholders about how seriously an organization is
committed towards the implementation of change.
Using various channels or mediums for communicating the message of change: Care should
be taken in understanding how people learn about change from different mediums of
communication. For visual learners, documented materials may best appeal and help them in
understanding the change vision and for effective listeners, importance should be given to the
presentation style and selection of words for impressing such category of stakeholders.
Providing Opportunities for Exchange of Dialogue or Conversation: Providing opportunities
for discussion and facilitating a two-way communication with the stakeholders creates a sense of
ownership and fosters a sense of responsibility among the stakeholders.
Repeating the Messages of Change Periodically: Regular communication of the change
message facilitates a greater understanding of the objective of the change and there will be a
much greater probability that people will act in accordance with the requirements of the changing
situation and extend their cooperation accordingly.

ASTU, SoHSS, SSU, LCM (SOS372) Lecture notes, Chapter - 3 Page 18