MANAGEMENT OF CHANGE
The term Change refers to any alternation which occurs in the overall work environment of an
oganisation. - Keith Davis
Organizational change occurs when an oganisation transforms its structure, strategies, methods, culture
and other elements to reorganize and restructure the organisation. It implies alternation of structural
relationship and role of people in an organization. In simple words organizational change takes place when
organisation makes a transition from its current position.
Change Management is the term that is used to refer to the change or transitioning people, groups,
companies and projects from one state to another. When this term is applied to businesses and projects, it
may refer to a process of transitioning the scope of the project in such a way that it can meet changing
requirements and objectives. What happens is that after a certain point in time some changes may need to
be introduced as far as functioning, operations, marketing, finance or the other aspects of a business are
concerned so as to improve its chances of reaching its goals. Change management involves the application
of structured methods and a pre-planned framework so as to steer business from its current state to a
desired state.
Features of change
• It results from outside and inside forces.
• A change in any one part of organisation effects the whole organization. For example any change
in production department will effect the finance department, marketing department, personal
department and other departments.
• It effects all the parts in the organisation but at varying degree of significance and at varying
speed.
• It may effects people, structure, technology, working process, work environment, organisation
policy and other elements of organisation.
• Change is inevitable.
• It is a continuous phenomenon. Oganisation has to manage it.
Forces that create need for change
• Technology
• Change in Managerial Personnel and workers
• Market conditions
• Change in existing structure
• Social changes
• Crises and emergency
• Opportunity and threat
• To meet performance gap between goals and achievements
• Political, economic, legal environment
• Globalization
Levels of Change
Individual Level Change: For example, change in job assignment, physical move to different location,
change in attitude and personality of person. Significant changes at individual level have its
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repercussions on the group to which individual belongs and further to the organisation.
Group -Level Change: For example, change in work flow, work design, communication pattern. Group
has powerful influence on Individual. Informal group and formal group may resist for change. Effective
implementation of change at the group level can overcome resistance at the individual level.
Organisation-Level Change: For example Change in goals and strategies, entry to new business, change
in management, Joint venture, merger. These big changes in the organisation are required to adapt to
environmental changes.
Types of Change
• Reactive or Proactive -Change may be reactive or proactive. When change is brought about due
to pressure of external forces it is called reactive change. Proactive change is initiated by the
management on its own to increase organizational effectiveness. For example if any technology
of production becomes obsolete and organisation shifts to newtechnology as a consequence, it is
r,eactive change but if organisation introduces new technology of production by its own to
improve efficiency, it is proactive change.
• Strategic Change – change in priorities, like shift from product to service.
• Structural Change- change in whole structure and in the pattern of relationship among various
positions.
• Process oriented or people oriented Change- If change in process it is process oriented change,
like introduce new method of digital accounting instead of paper form accounting methods. If
change in training, attitude, behaviour and other personal characteristics of people, it is people
oriented change.
TYPES OF RESISTANCE TO CHANGE IN ORGANIZATIONS
1. Logical and rational, 2. Psychological and emotional, and 3. Sociological resistance.
Logical and Rational Resistance
These resistances are the outcomes of disagreement with rational facts, rational reasoning, logic and
science. These arise from the actual time and effort required to adjust to change including new job duties
that must be learned. These are too costly which might be borne by the common employees and
managers. Even though change may be beneficial for the employees in the long run. But the short run costs
for change must be paid first. Logical resistance to change include the following: 1. Time required to adjust;
2. Extra efforts to relearn; 3. Possibility of less desirable condition; 4. Economic costs of change; 5.
Questionable technical feasibility of change
Psychological Resistance
These types of resistances are typically based on emotion and attitude. It is internally logical from the
perspective of the employee attitude and feelings about change. Employees may fear the unknown,
mistrust management, or feel that their security and ego needs are threatened. Even though management
may believe that there is no justification for these feelings they are very rational to employees, and as such
mangers must deal with them. Psychological or emotional resistance may take place in the following
manner: 1. Fear of unknown; 2. Low tolerance of change; 3. Dislike of management/change agent; 4. Lack
of trust in other; 5. Need for security; 6. Desire for status quo
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Sociological Resistance
Sociological resistance may sometimes be logical. This happens when it is seen as a product of challenge to
group interests, norms, and values. Since social values are powerful force in the environment, they must be
carefully considered. On a small group level, there is work friendship and relationships that may disrupt
buy change. Then resistance occurs. However, sociological resistance includes the following: 1. Political
coalitions; 2.Opposing group values; 3. Parochial/narrow outlook; 4. Vested interest; 5. Desire to retain
existing friendships
STRATEGIES FOR MANAGING RESISTANCE TO CHANGE
After you have identified the types of change resistance present in your organization, employ a mix of
strategies to counter the negative forces. Following are six classic strategies1 for dealing with change
resistance (in order from least to most extreme) – use them to develop action plans that address the
resistance within your organization.
• Education & Communication: One of the best ways to overcome resistance to change is to
educate people about the change effort beforehand. Up-front communication and education helps
employees see the logic inthe change effort. This reduces unfounded and incorrect rumors concerning
the effects of change in the organization.
• Participation & Involvement: When employees are involved in the change effort they are more likely
to buy into change rather than resist it. This approach is likely to lower resistance more so than merely
hoping people will acquiesce to change.
• Facilitation & Support: Managers can head-off potential resistance by being supportive of employees
during difficult times. Managerial support helps employees deal with fear and anxiety during a
transition period. This approach is concerned with provision of special training, counseling, time off
work.
• Negotiation and Agreement: Managers can combat resistance by offering incentives to employees not
to resist change. This can be done by allowing change resistors to veto elements of change that
are threatening, or change resistors can be offered incentives to go elsewhere in the company in order
to avoid having to experience the change effort. This approach will be appropriate where those
resisting change are in a position of power.
• Manipulation and Cooptation: “Cooptation” (no it’s not misspelled) involves the patronizing gesture
of bringing a person into a change management planning group for the sake of appearances rather than
their substantive contribution. This often involves selecting leaders of the resisters to participate in the
change effort. These leaders can be given a symbolic role in decision making without threatening the
change effort.
• Explicit and Implicit Coercion: Managers can explicitly or implicitly force employees into accepting
change by making clear that resisting change can lead to losing jobs, firing, or not promoting
employees.
MODELS OF CHANGE
A. KURT LEWIN’S MODEL
Any successful change process starts by understanding why the change must take place. As Lewin put it,
"Motivation for change must be generated before change can occur. One must be helped to re-examine
many cherished assumptions about oneself and one's relations to others." This is the unfreezing stage from
which change begins.
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Unfreeze
This first stage of change involves preparing the organization to accept that change is necessary, which
involves break down the existing status quo before you can build up a new way of operating. Key to this is
developing a compelling message showing why the existing way of doing things cannot continue. This is
easiest to frame when you can point to declining sales figures, poor financial results, worrying customer
satisfaction surveys, or suchlike: These show that things have to change in a way that everyone can
understand. To prepare the organization successfully, you need to start at its core – you need to challenge
the beliefs, values, attitudes, and behaviors that currently define it. Using the analogy of a building, you
must examine and be prepared to change the existing foundations as they might not support add-on
storeys; unless this is done, the whole building may risk collapse. This first part of the change process is
usually the most difficult and stressful. When you start cutting down the "way things are done", you put
everyone and everything off balance. You may evoke strong reactions in people, and that's exactly what
needs to done. By forcing the organization to re-examine its core, you effectively create a (controlled)
crisis, which in turn can build a strong motivation to seek out a new equilibrium. Without this motivation,
you won't get the buy-in and participation necessary to effect any meaningful change.
Change
After the uncertainty created in the unfreeze stage, the change stage is where people begin to resolve
their uncertainty and look for new ways to do things. People start to believe and act in ways that support
the new direction. The transition from unfreeze to change does not happen overnight: People take time to
embrace the new direction and participate proactively in the change. A related change model, the Change
Curve , focuses on the specific issue of personal transitions in a changing environment and is useful for
understanding this specific aspect in more detail. In order to accept the change and contribute to making
the change successful, people need to understand how the changes will benefit them. Not everyone will
fall in line just because the change is necessary and will benefit the company. This is a common
assumption and pitfall that should be avoided. Unfortunately, some people will genuinely be harmed by
change, particularly those who benefit strongly from the status quo. Others may take a long time to
recognize the benefits that change brings. You need to foresee and manage these situations. Time and
communication are the two keys to success for the changes to occur. People need time to understand the
changes and they also need to feel highly connected to the organization throughout the transition period.
When you are managing change, this can require a great deal of time and effort and hands-on
management is usually the best approach.
Refreeze
When the changes are taking shape and people have embraced the new ways of working, the
organization is ready to refreeze. The outward signs of the refreeze are a stable organization chart,
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consistent job descriptions, and so on. The refreeze stage also needs to help people and the organization
internalize or institutionalize the changes. This means making sure that the changes are used all the time;
and that they are incorporated into everyday business. With a new sense of stability, employees feel
confident and comfortable with the new ways of working. The rationale for creating a new sense of
stability in our every changing world is often questioned. Even though change is a constant in many
organizations, this refreezing stage is still important. Without it, employees get caught in a transition trap
where they aren't sure how things should be done, so nothing ever gets done to full capacity. In the
absence of a new frozen state, it is very difficult to tackle the next change initiative effectively. How do you
go about convincing people that something needs changing if you haven't allowed the most recent changes
to sink in? Change will be perceived as change for change's sake, and the motivation required to
implement new changes simply won't be there. As part of the Refreezing process, make sure that you
celebrate the success of the change – this helps people to find closure, thanks them for enduring a painful
time, and helps them believe that future change will be successful.
Force Field Analysis
It is an important tool of planning change in organisation. According to force-Field analysis any behaviour
is the result of equilibrium between Driving and Restraining forces. The driving force pushes for changes
whereas restraining forces resist any change. While planning the change, manager should identify what
forces are likely to push the changes and what forces are likely to restrain. If the driving forces are
stronger than the restraining force, changes will be accepted by the people but if restarting force are
stronger than change will not be easily accepted by the people.
Practical Steps for Using the Framework
Unfreeze
1. Determine what needs to change.
• Survey the organization to understand the current state; Understand why change has to take place.
2. Ensure there is strong support from upper management.
• Use Stakeholder Analysis and Stakeholder Management to identify and win the support of key
people within the organization; Frame the issue as one of organization-wide importance.
3. Create the need for change.
• Create a compelling message as to why change has to occur.; Use your vision and strategy as
supportingevidence.; Communicate the vision in terms of the change required.; Emphasize the
"why".
4. Manage and understand the doubts and concerns.
• Remain open to employee concerns and address in terms of the need to change.
Change
1. Communicate often.
• Do so throughout the planning and implementation of the changes.; Describe the benefits.;
Explain exactlythe how the changes will effect everyone.; Prepare everyone for what is coming.
2. Dispel rumors.
• Answer questions openly and honestly.; Deal with problems immediately.; Relate the need for
change back to operational necessities.
3. Empower action.
• Provide lots of opportunity for employee involvement.; Have line managers provide day-to-day
direction.
4. Involve people in the process.
• Generate short-term wins to reinforce the change.; Negotiate with external stakeholders as
necessary (suchas employee organizations).
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Refreeze
1. Anchor the changes into the culture.
• Identity what supports the change.; Identify barriers to sustaining change.
2. Develop ways to sustain the change.
• Ensure leadership support.; Create a reward system.; Establish feedback systems.; Adapt the
organizationalstructure as necessary.
3. Provide support and training.
• Keep everyone informed and supported.
4. Celebrate success!
BEHAVIOURAL REACTIONS TO CHANGE
The four behavioral reactions to change are disengagement, disidentification, disenchantment and
disorientation.
• Disengagement - this is a psychological withdrawal from change. Signs of this behavioral change will be
evident in employees as they may appear to lose initiative and interest in the job. Disengaged employees
are often present physically but not mentally and may hope for the best but take on the approach of doing
nothing. There will be a lack of commitment and drive and they may use phrases such as "It doesn't
affect me". Managers should try to confront disengaged employees about their reactions and identify
their concerns. The employees should be made aware of their behavioral changes and be treated with
open communication.
Dealing with it: The basic managerial strategy for dealing with disengaged individuals is to confront them
with their reaction and draw them out so that they can identify the concerns that need to be addressed.
Disengaged employees may not be aware of the change in their behaviour, and they need to be assured of
your intentions. Drawing them out and helping them air their feelings can lead to productive discussions.
Disengaged people seldom become cheerleaders for the change, but they can be brought closer to
accepting and working with a change by open communication with an emphatic manager who is willing to
listen.
• Disidentification - employees who are suffering with disidentification behavioral changes may be
extremely vulnerable. They may feel as though their identity is being threatened by the change. Rather
than focus on the changed procedures, they may try to cling onto a past procedure in order to make
themselves feel secure. Managers can try active listening to try and engage employees in the change and
show that they are fully supportive of the employee's concerns.
Dealing with it: Individuals reacting in this way feel that their identity has been threatened by the change,
and they feel very vulnerable. Many times they cling to a past procedure because they had a sense of
mastery over it, and it gave them a sense of security. “My job is completely changed” and “I used to . . . . “
are verbal indications of disidentification. 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. Emotional support and encouragement can help an employee deal
with the anxiety that is a natural response to change.
• Disenchantment - disenchanted employees often express their reactions in the form of anger or
negativity. They are angry about the fact that their past has gone and they may try to group together other
colleagues to fight against it. Anger is typically aimed at the organization as a whole. Managers should
attempt to bring employees from a negative state to a neutral one. They should be allowed to let off
steam and managers should make it known that any expressed anger is not being held against them.
Dealing with it: It is often difficult to reason with disenchanted employees. Thus, the first step in managing
this reaction is to bring these employees from their highly negative, emotionally charged state to a more
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neutral state. To neutralise the reaction does not mean to dismiss it; rather, it means to allow the
individuals to let off the necessary steam so that they can come to terms with their anger. The second part
of the strategy for dealing with disenchanted employees is to acknowledge that their anger is normal and
that you do not hold it against them. Sometimes disenchantment is a mask for one of the other three
reactions, and it must be worked through to get to the core of the employee’s reaction. Employees may
become cynical about change. They may lose faith in the leaders of change.
• Disorientation - employees who are used to clear goals and directions may become disorientated by
change. They may appear lost, confused and unsure of their feelings. Rather than focusing on how to do
things they will focus on what to do. The manager should try to explain the change in a way that minimizes
ambiguity and give the employee clear steps about what is going to happen during the change.
Dealing with it: Disorientation is a common reaction among people who are used to clear goals and
unambiguous directions. When change is introduced, it creates uncertainty and a lack of clarity. The
managerial strategy for dealing with this reaction is to explain the change in a way that minimizes the
ambiguity that is present. The information about the change needs to be put into a framework or an
overall vision so that the disoriented individual can see where he or she fits into the grand scheme of
things. Once the disoriented employee sees the broader context of the change, one can plan a series of
steps to help this employee adjust. The employee needs a sense of priorities to work on.
Change Agent:
Though change is a continuous process involving managers at all levels, who should initiate change and
how has to be deliberately decided in planned change. Planned change can be introduced through change
agents. Change agent is the person who initiates change in the organisation to increase organisational
effectiveness.
Planned change may be change in people, structure or technology. Any resistance in introducing change is
overcome by the change agent who motivates the employees to accept the change. Internal management
takes help of external consultants in introducing planned change.
Change Agents :
1. External Change Agents and
2. Internal Change Agents.
1. External change agents:
They are generally the behavioural scientists who specialise in human behaviour. They work as consultants
for the company and devise its change strategy.
2. Internal change agents:
They are continuously involved in the change process. They belong to the organisation only and depending
on the need where the change is required, they are selected from different levels and departments.
Internal change agents are usually the managers who are trained by the consultants (external change
agents) to implement change as on ongoing process.
They introduce change within the broad framework of change strategy devised by the external change
agents.
They also lead the members to implement the change process. Internal change agents may also be change
advisors appointed from specific departments for specific periods. After the change programme is
completed, they go to their original departments.
They convince organisational members to accept and implement the change. What they learn from the
consultants, they communicate to the managers and promote behavioural skills to smoothen the change
process.
Change advisors should have the following qualities for making change programme successful:
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1. Diagnostic skills.
2. Behavioural skill.
3. Attitudes of acceptance.
4. Personal qualities to provide emotional support and reassurance. — Watton
External Change Agents:
1. They take total view of the organization as a system.
2. They are not much affected by norms of the organization.
3. They do not view change as an on-going process as they are appointed by the organization for specific
tasks.
4. They use diagnostic skills to diagnose the problem and plan the overall strategy for change.
5. Their role is comprehensive in nature.
Role of a Change Agent:
Though role of a change agent varies with the nature of organisation, problem and management, change
agent usually performs the following tasks:
1. He announces the need for change in the organisation. Members usually want to maintain status quo
which is resistant to change. Change agents help to overcome this resistance.
2. He diagnoses the present situation in the organisation, foresees changes in the environment and helps
the client company in adapting to the changing environment.
3. He helps in smoothly carrying out the change process. People accept change naturally without feeling
that they are forced to accept it.
4. He formulates strategies for change. These are known as change interventions or OD (organisation
Development) interventions.
5. He trains the internal change agents to implement the change process and introduce it further in the
organisation. Change, thus, becomes an on-going process in the light of ever-changing dynamic external
environment.
6. He uses behavioural skills to deal with emotional and social problems of employees in accepting and
implementing change.
Change Agent Acts as
1. Facilitator:
He facilitates change by developing awareness about the importance of change.
2. Consultant:
He draws major plan for change based on his diagnostic skills.
3. Counselor:
He studies the attitudes, personality, perception, beliefs and expectations of organisational members to
the change process and motivates them to accept change and continue in the changed environment till a
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change is introduced again.
