Organizational Change Management Guide
Organizational Change Management Guide
1. What is Change?
Ans. Change is concerned with making things different.
a. Organizational Change- Organizational change is the process by which
organizations move from their present state desired state to increase their
effectiveness.
Characteristics/ Features
1. Resistance- All individuals are somewhat resistant to change. Even the most carefully
revised change management situations have to grow through the challenge as change
occurs in an organization some and blogs readily accept change while others resist.
2. Consistent Communication- An important factor in change management is the need to
address the people continuously. It is necessary to communicate with their employees on
a regular basis, and deliver messages which can be helpful to the employees to accept
change.
3. Training and goal setting hiking- The next step is the process of training. It is
responsibility of the manager to clarify how the changes would impact their day-to-day
work.
4. Dynamic process- Change is a continuous and dynamic process.
5. Recognition- Recognizing individual contribution publicly at meetings and other
company gatherings is instrumental in demonstrating the progress of change.
6. System Approach- Change always follows system approach. A change at one place
requires simultaneous changes in related aspects.
7. Change is constant universally- The process of change is not restricted to one country
or organization. It is all pervasive.
8. Varying rate of change- Change takes place in all parts of the organization but at
varying rates of speed.
9. Change is natural phenomenon- Change is a naturally occurring phenomenon as it may
be planned or unplanned response to pressures and forces.
Ans. Change of whatever form interfaces with three components which effectively constitute the
corporate culture.
Ans. Change is evitable and all the organizations, big or small must adapt to demands of their
environment and must accept the change. The importance of change can be understood as
follows:-
1. Understanding Environment- Change helps to understand the external environment in
better way. It is important for organizations to understand, assess and measure the
changes in its external forces like government, customers and society.
2. Technological Advancement Change- Change is important in coping emerging
technological advancement in society. Transforming the business in line with new
technologies to face competition effectively.
3. Crisis Management- Change becomes a necessity when an organization finds him in
crisis. It helps to rectify some of its processes or activities that may have become
ineffective. Bringing change to discard these process helps to the organization to its
stand the difficult times.
4. Globalization- Change helps the organization to cope with globalization. Globalization
has made it possible for companies to produce goods and services at lower costs.
5. Organizational Culture- Many companies bring change to improve their organization
culture. Changing the organizational culture, this could include values, beliefs, internal
and external relationships etc. Effective organizational culture helps to attract new
customers, increase the customer satisfaction and increases workers retention.
6. Customers Needs- As the world evolves, customer needs change and growth creating
new demand for new types of products and services and opening up new areas of
opportunity for companies to meet those needs.
7. Growth Opportunities- Change is important in organizations to allow employees to
learn new skills, explore new opportunities and exercise their creativity in ways that
ultimately benefit the organization through new ideas and increase commitment.
1. Emphasis on truth- Employees must be clear and forthright about what is exactly
happening in the organization. Secrecy can reduce trust and support needed to bring
about the change.
2. Continuous Communication- An important necessity to change is the need to
communicate with people continuously. While change initiatives are in progress, It is
necessary to communicate regular basis. It is also necessary to have a repetition of
messages.
3. Firm Behaviour- The firm behavior of the employees will maximize support and limit
resistance to change.
4. Consistency- Consistent behavior of the employees would also be an important aspect to
bring about the desired change.
5. Use of good language- Various forms of poor language can lead to irritation and
frustration. The employees must be communicated about the benefits of change process
clearly and in good language to ensure their acceptance.
6. Conduct Surveys- Surveys that measure and monitor awareness and understanding must
be conducted from time to time. Employees must be encouraged to give their suggestions
when a change process is to be initiated.
7. Make it interesting- If subject matter of change to be initiated is difficult or
complicated, then it can be made interesting by adding an element of humor in it.
Ans. The organizational culture has been defined as the philosophy, ideologies, values,
assumptions, beliefs, expectations, attitudes, and norms that knit an organization together and are
shared by its employees.
1. Individual Autonomy- This means the degree to which employees are free to manage
themselves or are not accountable to others.
2. Position Structure- This is the extent of formalization, centralization and direct supervision.
3. Reward Orientation- This is the extent to which rewards are related to performance and the
required system of behavior in the organization.
4. Consideration- This is the extent to which people in the organization offer social emotional
support to each other and work as a team.
5. Direction- It reflects how well the employees are clear about the objectives and the
performance expectation.
6. Integration- Degree to which the different units in the organizations are expected to work in
the united manner.
7. Management Support- The degree to which the management provides clear
communication, assistant and support.
8. Conflict- The extent of differences present between individuals and departments and the way
in which they are resolved.
9. Growth and Development- This is the school for self- development and growth in the
organization.
10. Risk Taking- This includes the degree of freedom to experiment with new ideas, take risks
and correct mistakes without fear of being punished.
11. Control- This is the extent to which people are family controlled.
Ans. Leavitt’s Model proposes that every organizational system is made of four main
components i.e. People, task, structure and technology. It is the interaction between these four
components that determine the fate of the organization. He emphasized that any change in one of
these elements will have a direct effect on all the other elements, and thus they will also need to
be deviated from the original path to accommodate the change. The components of models are as
follows:-
1. People- The people are the employees of the organization. This component needs to be
modified with respect to the changes in the other three components as follows:-
a. Change in Task- If changes in task are planned people needed to be trained and
educated about the same.
b. Change in Structure- Changing structure implies changing job roles. Employees
need to be informed about their new job duties and responsibilities
c. Change in Technology- Shifting to a new technology requires extensive training,
so that the employees can handle new technology efficiently without causing any
damage to themselves or their technology.
2. Tasks- This component includes, firstly how things are done and secondly what task are
carried to achieve the goals. The qualitative aspect of the task and goals are to be
focused. This component will need to be modified with respect to changes in other three
components as follows:-
a. Change in People- Changes in the manpower must be made in such a way that
their skills are utilized to be optimum extent.
b. Change in Structure- When the basic organizational structure is changed it
would also call in for the changes in the task.
c. Change in Technology- Shifting to a newer technology would require making
changes in the task.
3. Structure- The structure includes the hierarchical relationships, but also the
communication patterns and coordination between different management levels,
department and employees. The structure needs to be changed when changes are made to
any other components like
a. Changes in People- Hiring of skill labor would acquired lesser amount of
supervision as compared to unskilled labor force.
b. Changes in Task- When an organization decides to become more customer-
centric, it will require new customer support department or more people out in the
field.
c. Changes in Technology- Automation often require change in the organizational
structure to benefit from the new technology. New job posts may be created and
old once closed down to make the best use of new technology.
4. Technology- Technology is that component of the organization which facilitates the
people to perform the task. Computers, equipment, landlines, barcode readers, software
applications etc other examples of advanced technology. Technology will need the
modifications as follows:-
a. Changes in People- With technological upgradations people in the organization
also need to be changed so as to take full advantage of changing technology.
b. Changes in Task- Changes in task may also compel for a technological change.
c. Changes in Structure- If the organization is planning to reduce the workforce
various processes will have to be automated to maintain the same level of
production.
Ans. The ultimate goal of change management is to engage employees, as a team, and encourage
them to adopt the changed process. Whether it is a process, system, organizational structure, etc
a project is successful only then tire team works towards it. Bringing about the team change is
particularly important on larger complex projects. It is also important for project covering
multiple functional areas. Teamwork helps to retain the best people. Effective teams do more
than just get the work done from the employees.
Teams consist of some high performing people who constantly motivate the others and together
they can achieve the objectives. It is usually seen that in case of teamwork the slow learners get
to learn from the high performing team members. In case of teamwork, it is also seen that there is
a sense of competition which prevails within the team between the team members to give their
best. Teamwork across the teams set up the whole organization to win. An organization is just a
bigger team often made of smaller teams.
Q12. What are the Behavioral Reactions to Change? (7 Marks)
1. People who want change- With their direct, results- oriented approach they accept with
decisions and changes. They are usually the ones that initiate the change.
2. People who are not bothered by change- They are the optimists, their enthusiasm and
creative solutions in handling the change process keeps them motivated during the
change process.
3. People who resists change and need time to prepare- They are study decision makers
and do not like to be rushed.
4. People were concerned with the effects of change- They are those employees who are
very cautious and careful. They seek to maintain their high standards of performance
regardless of the changes going on in an organization. They are very cautious and
concerned with the new things which will be brought about by the change process. Since
they are desirous of maintaining their high standards in performance they tend to resist
change.
1. Teams accomplish more than individuals- Individuals may not be able to get a lot of
work done by himself. It is quite unrealistic to expect a single person to know enough and
have enough time to get everything done. Teams can help get work done more quickly
and meet cross functional challenges.
2. Team work helps to retain the best people- Effective teams do more than just getting
the work done. The employees who work as a team are surrounded by some high
performing people from whom the help can be taken to get the job done; hence it is
possible to retain some of the best people in the organization who would have otherwise
left.
3. Teams contribute to the whole organizations success- A team can only be fully
understood in terms of its relation to the other parts of the organization. The
interrelatedness of teams is important because it contributes to the overall functioning of
the organization. Members have the opportunity to learn from each other. So the works
brings about a drastic improvement in the overall performance.
4. There is greater potential for work force flexibility with cross training- Team
members are provided with opportunities for combinations of ideas and abilities.
5. New approaches to task may be discovered and adopted- Communication increases
and there is more co-operation as there is greater acceptance and understanding of team
decisions.
i. Be in line with trend- Change can help a business stay in line with industry trends,
which can make it more attractive to potential customers as well as help maintain current
customers for e.g. if a competitor develops and markets a successful new product, a
business should ensure that even they introduce a different type of a product.
ii. New opportunities- The ability to accept change can help employees in a business by
creating new opportunities. A worker who is enthusiastic can also train other employees
who are hesitant, by assuming this leadership role, the employee may position himself as
a capable person for future promotions.
iii. Encouraging Innovation- Businesses that are capable for accepting change can bring
and involvement that encourages innovation. Employees who feel that their ideas will be
considered by the management will be more willing to think creatively, which can help a
business grow.
iv. Increased Efficiency- Change can increase the efficiency of work process which can
satisfy the customer as well employees.
v. Improved Attitudes- A personal change in an organization can have a positive effect on
employee attitudes and morale. A change in human resources philosophy that allows for a
more relaxed work environment, such as implementing a casual dress code, may be
welcomed by the employees.
Negative Impact
i. Mental Stress- Change can create stress among the employees. There may be many
causes for increased stress level such as unfairness, lack of timely communication by
management or fear of future changers.
ii. Loss of Loyalty- Employees may lose their company Loyalty and may even become
angry if the change is not acceptable to them.
iii. Increased time away from work- When organizational changes are announced,
particularly the employees start taking long lunch hours , coming in late and leaving
earlier or simply not coming into the office etc.
iv. Changes in personal life- Some organizational changes require major restructuring
resulting in great changes in the lives of number of employees. Typical changes that
negatively impact a portion of the employees are salary cuts, loss of benefits or relocation
to another city state or country can have negative impact. On the life of the employees.
1. Habit- To cope with the complexity of life a person relies on his regular habits. But
when faced with change, this tendency to respond for that task in a new way becomes a
source of resistance.
2. Security- People with a high need for security are likely to resists change because it
threatens the feeling of safety for example:- Introduction of computers created lot of
resistance from the employees as they had fear of losing the jobs.
3. Economic Factors- Changes in job task can cause economic fears if people are
concerned that they won’t be able to perform the new tasks.
4. Fear of the unknown- Introduction of something new and unknown is also likely to be
resisted by the individuals in the organizations.
5. Selective information processing- Individuals shape their word through their
perceptions. Once they have created their own perceptions they start resisting change.
They ignore information that forces a challenge to them.
6. Poor Communication- Changes within an organization start with the management. It is
up to them to pass along the details to team members and ensure that all questions and
doubts are handled before any change is affected. Poor communication can therefore
cause resistance to change.
7. Self Interest- Ego often interferes with ability to adapt to change some want to maintain
the status for to better advance their own personal agenda’s while others have different
motivations.
8. Feeling excluded- If the employees hear of a sudden change and they had no idea of it,
then they will feel excluded from the decision making process and will be offended.
9. Skills dearth (Lack of Skill)- When change requires mastering new skills, then
resistance is likely.
10. Misunderstanding about the need for change- If the employees do not understand the
need for change may start resisting.
1. Introduce on time- the change process must be introduced at the appropriate time in the
organization the change must be done only at that kind when it is actually required.
2. Communication- The employees must be communicated about the need for change in a
proper manner.
3. Past contributions-The past contributions of the employees who have held the
organizations to succeed must be appreciated by the management.
4. Support- The employees must be assured of all kinds of support which would help them
in easy acceptance of change.
5. Gradual- The change must be gradual and be divided into small faces and not big
trenches.
6. Involvement- All the employees in the organization must be duly involved in the change
process. The employees must feel that the change process which is being initiated in the
organization is not only the management work but it also involves their contribution.
7. Training program- Appropriate training program must ne introduce to bring about the
change any change which is introduced in the organization bring something new and
hence full training and development programs become a necessity. If the employees are
fully trained for doing the new things, they will not resist.
8. No force or compulsion- There must not be any force or compulsion on the part of the
staff to accept the change. In fact the change must be accepted voluntarily by the
employees.
Ans. The factors that cause resistance to change may be classified broadly under 3 heads
1. Economic Factors- Some of the Economic factors causing resistance to change are
a. Workers Apprehends, technological unemployment.
b. Workers fear that they will be ideal for a major portion of their time due to higher
efficiency of new technology.
c. Workers are afraid of demotion as they do not have the new skills required for the
performance of new job.
2. Psychological Factors- The psychological factors of resistance are as follows
a. It is human psychology to maintain status quo. Human being resists change by
nature.
b. Workers may be lazy and are reluctant (not ready) to learn new things.
c. Workers may apprehend boredom in new jobs because of increased automation.
d. Workers may not have complete knowledge of change and they start making their
own illogical assumptions.
3. Social Factors- Workers may resists change because of the following social reasons
a. Workers may feel that, with the introduction of new technology their status will
go down.
b. Workers may not like the new social adjustments.
c. Workers as a group oppose change as they are unfamiliar with the change.
d. Workers resists change is especially if they are brought about without consulting
them.
1. Education and Communication- One of the simplest technique and best ways to
overcome resistance to change is to educate people about the change beforehand.
People can be made aware with the nature and process of change. Counseling and
training can be used to change the attitudes of people.
2. Participation and Involvement- When employees are involved in the change
process they are more likely to accept change rather than resists it. The management
should discuss the change with the subordinates.
3. Education and Training- In order to successfully implement the change,
subordinates may be thought new skills, leave the information they need understand
where they fit into the picture and how they will be expected to operate under the new
setup.
4. Facilitation and Support- Managers can remove potential resistance by being
supportive of employees during difficult times. Managerial support helps employees
deal with fear and anxiety during the change process. Emotional support is provided
to the employees thereby showing personal concerns.
5. Negotiation and Agreement- Managers can remove resistance by offering incentives
to employees. Negotiation with resistance and offering them incentives may be a
useful technique for overcoming resistance. This approach will be appropriate where
those resisting change are in a position of power.
6. Manipulation and Co-operation- Cooperation involves the gesture of bringing
someone into the change management planning route for the sake of appearances
rather than their contribution. This often involves selecting leaders of the registers on
the change effect.
Ans. The Six Box Model is a frame work developed by the American analyst Marvin weisbord
to assess. It is intended for use across a wide variety of organizations. It is based mainly on the
techniques and assumptions of the field of organizational development. It gives attention to
issues such as planning incentives and rewards, the role of support functions, internal
competitions, standards to be set for remuneration, delegation of authority, organizational
control, responsibility and performance assessment.
The six box model is comprised of the following boxes which are as follows:-
1. Purposes- What ‘Business’ are we into.
2. Structure- How is work being divided into organization and which are the different
levels?
3. Relationships- What type of relationship exist between the employees at different levels
and how is the conflict managed?
4. Rewards- Is there an incentive system existing in the organization and does it motivate
the employees?
5. Leaderships- For mangers to act effectively, leadership style needs to fit the
organization.
6. Helpful Mechanism- Mechanisms are helpful when they assist in the coordination or
integration of work.
1. Broad knowledge- one must not only have a broad knowledge but a broad range of
multi-disciplinary knowledge.
2. Operational and Relational Knowledge- the change agent must be able to listen trust
and firms relationships for effective implementation of change process.
3. Sensitivity and Maturity- He must be sensitive and mature enough to be aware of his
own motivations.
4. Authenticity- The change agent must be authentic i.e. he must act in accordance with the
values of the organization.
5. Homophility- It is a degree of closeness and similarity between the change agent and the
client. The closer the relationship the more successful is the change process.
6. Empathy- It involves an understanding of feelings and emotions of others.
7. Linkage - It refers to the degree of collaboration between the change agent and the client.
8. Proximity - The change agent and the client should have easy access to each other.
9. Openness - Openness refers to the environment which is conducive to the development
of respect and understanding for each other’s ideas and feelings.
10. Rewards - All members expect that the change must bring potential benefits. These
rewards should be both in the short run as well as long run.
11. Energy - Energy refers to the amount of efforts put into the change process.
1. The Detective - As a detective the change agent must be observant and possess analytic
skill.
2. The Counselor - As a counselor the change agent must listen and encourage good things.
3. The Advocate - As an Advocate the change agent must be persistent.
4. The Facilitator- As a facilitator the change agent must be helpful.
5. The Mediator- As a mediator the change agent is a peacemaker.
6. The Expert - As an expert the change agent must be confident and knowledgeable.
Q24. What are the 3 stages of implementation?
1. Communication behind the need for change- The first stage of introducing any
change, is to explain the employees why it is important to bring the change and benefit of
change.
2. Implement the changes in phase- Most change can be broken down into phase and can
be successfully implemented.
3. Evaluate review and report of change- Careful monitoring of entire change process is
essential in order to be able to measure its impact and evaluate its success.
1. Environmental (Customer)- While going through change, the organization must focus
on the needs and wants of customers. If customers need and wants change then it must be
compulsory for the organization to change its product and its strategies.
2. Structure- Structure of the organization must be in line with the strategies of the
organization. Any flaw in strategy structure relationships will become hurdle in the
change process.
3. Management Orientation- Management support for the change is also accurate factor to
bring about change successfully.
1. Analyzing and planning the change- In this phase there are 3 objectives
a. The first objective should be to anticipate the effects of change.
b. The second objective should be to work out solutions.
2. The third objective should be to develop the action plan.
3. Communicating about the change- The second phase of any change is the period of
communication during which the management discusses about the effects of change.
4. Gaining acceptance of the required changes in Behaviour- Managers can secure
agreement to a particular method of change by applying persuasion and offering rewards.
5. Making the initial transition- In this phase there is an initial transition from the existing
to the new situation.
6. Consolidation and Follow up- In this phase there is consolidation of the new conditions
and continuous follow up.
1. Inclusive Plan- Meetings must be planned with the client so that it results in a more
efficient and stress free change process.
2. Be clear and honest about the expectations- At the start of a new contract both the
parties must be clear of each other’s expectations.
3. Clear, regular and timely communication- It is a good idea to agree on the process
from the very start till the end both the parties must have proper timely
communications.
4. Discuss reporting requirements at an early stage- To ensure that the clients are
happy with the reports it is best to agree on a structure well in advance.
5. Be considerate- The consultant must show the gratitude for being awarded the work.