Changes Management 2024 Lecture Notes Student Version
Changes Management 2024 Lecture Notes Student Version
CHANGE MANAGEMENT
Code: EBCM1139
No of credit: 03
Dept.: General Management
NEU Business School 2024
1
Instructor(s)
vPhone: 0933023323
vEmail: bdtuan@bsneu.edu.vn;
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Lessons plan
Of wich
Total no of
No Content teaching Discussion,
hours Lecture exercise, group
works, etc
Total 45 27 18
3
Course will help students to:
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Main contents
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Learning methods
§ Lectures
§ Discussions
§ Group works
§ Case study
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Course Assessment
§ Participation: 10%
§ Examinations: 60%
• Midterm: 10%
• Final: 50%
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Group assignment
vGroup formation
vLearning by case
§ Choose a real case
§ Step by step studying
§ Discussion
§ Report & Presentation
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References
§ Other material.
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Quotes
Heraclitus
Greek philosopher
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“Quotes”
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INTRODUCTION TO CHANGE MANAGEMENT
v The context
• Why to change
• The causes
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About organization
vOrganized activity
§ 2 or more people
§ Common goals/objectives
§ Responsibility and Coordination
vCharacteristics
§ Division of work;
§ Leading and coordinating
§ Formal structure
vEnvironment of organization
§ External
§ Internal
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Why doing change?
§ Real figures
§ 80% enterprise “died” after 10 years
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The ones that failed to understand
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The ones that went for it
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Why changes?
§ Adapt to:
üSurvive
üThrive from opportunity
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Sources of change…PEST factors
v Political factors: include
§ new legislation in areas such as environmental management,
consumer protection and employment;
§ regulation of markets in areas such as banking,
telecommunications and broadcasting;
§ fiscal policies and so on.
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Internal sources of change
v Strategy:
§ Changes in strategic directions…lead to changes in
functional areas;
v People:
§ People changes, mostly at top management…lead to
changes in organizational arrangements;
v Business:
§ Changes in businesses…lead to changes in structure,
technology, etc;
v Organizational Culture:
§ Changes in business culture…lead to changes in code
of conduct…
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Change Management: definition
Managing
transition &
changes
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Implementing Change is difficult…
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Types of change
v Happened Change
§ This kind of change is unpredictable in nature and is usually
takes place due to the impact of the external factors.
v Reactive Change
§ Changes which take place in response to an event or a chain of
various events
v Anticipatory Change
§ If a change is implemented with prior anticipation of the
happening of an event or a chain of events,
v 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.
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Types of change (cont’)
v Incremental Change
§ Change which is implemented at the micro level, units or subunits
can be regarded as incremental change.
v 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.
v Strategic Change
§ usually implemented at the organizational level, which may affect
the various components of an organization and also the
organizational strategy.
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Types of change (cont’)
v Directional Change
§ may become a necessity due to the increasing competitive
pressures or due to rapid changes in the governmental control or
policies, etc.
§ 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.
v Fundamental Change
§ essentially involves the redefinition of organizational vision/mission.
v 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.
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Change Management: theories
v Teleological theories:
§ assume that organizations are purposeful and adaptive, and present
change as an unfolding cycle of goal formulation, implementation,
evaluation and learning.
v Dialectical theories:
§ focus on conflicting goals between different interest groups and explain
stability and change in terms of confrontation and the balance of power
between the opposing entities.
v Life cycle theories:
§ assume that change is a process that progresses through a necessary
sequence of stages that are cumulative, in the sense that each stage
contributes a piece to the final outcome, and related – each stage is a
necessary precursor for the next.
v Evolutionary theories:
§ posit that change proceeds through a continuous cycle of variation,
selection and retention.
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Change Management: models
vKotter model
vLewin’s model
vMcKinsey 7s model
vADKAR model
vBurke-Litwin model
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Change Management: perspectives
VS
LEADING MANAGING
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Management and leadership
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MANAGING CHANGE: process perspective
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Managing change: key steps
Learning
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RECOGNIZING THE NEED FOR CHANGE & STARTING THE CHANGE
Conceptual framework
v Patterns of change
§ incremental vs transformational
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Organization and its environment
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Patterns of change
vIncremental change:
§ occurs during the relatively long periods of equilibrium
and is associated with the extrapolation of past trends,
doing things better, and securing efficiencies.
vTransformational change:
§ occurs during periods of disequilibrium when the
organization, because of the effect of inertia and a
failure to recognize the need for change, becomes so
misaligned with its external environment that it cannot
continue as before.
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Typology of change
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Typology of change
v Tuning:
§ change that occurs when there is no immediate
requirement to change.
v Adaptation:
§ an incremental and adaptive response to a pressing
external demand for change
v Reorientation:
§ involves a redefinition of the enterprise. It is initiated in
anticipation of future opportunities or problems.
v Re-creation:
§ involves transforming the organization through the fast
and simultaneous change of all its basic elements
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Incremental change for internal alignment
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Transformational change for external alignment
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Recognizing a need or opportunity for
change
v External sources of change
§ Political factors
§ Economic factors
§ Sociocultural factors
§ Technological factors
v Internal sources of change
§ Growth through creativity leading to a crisis of leadership
§ Growth through direction leading to a crisis of autonomy
§ Growth through delegation leading to a crisis of control:
§ Growth through coordination leading to a crisis of ‘red tape’:
§ Growth through collaboration
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Cycle of competitive behaviour
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Internal factors that can trigger
discontinuous change
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The trap of success
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Starting the change
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Establishing a change relationship
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Establishing a change relationship
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DIAGNOSING WHAT NEEDS TO BE CHANGED
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Diagnosis: 4 steps
vStep 1:
• Assess the current state of your organization
vStep 2:
• Identify the information you used to make this
assessment
vStep 3:
• Developing categories for organizing your diagnostic
information
vStep 4:
• Specifying relationships between categories/elements
(causal map)
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A causal map of a diagnostic model
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Models to aid diagnosis
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CEO’s model of causal relationships
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Kotter’s integrative model
Employees and
other tangible assets
People, plant, money
Formal
Social system organizational
Culture and social arrangements
structure Structure and
operating systems
Key organizational
processes:
• Transportation/conversion of
energy/matter
• Information gathering,
communication, decision making
Dominant
Technology coalition
Personal
Methods and
External characteristics,
techniques environment goals, strategies
Task environment,
wider environment
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Burke-Litwin causal model
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The transformational factors
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Revising your personal model
of organizational functioning
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Gathering and interpreting information
3. Information gathering
4. Analysis
5. Interpretation.
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Information gathering
vInterviews
vQuestionnaires
vProjective methods
vObservations
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Analysis
vQualitative
techniques
§ Content analysis
§ Force-field analysis
vQuantitative
techniques
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Interpretation
can be used to point to those areas where internal misalignment may be a problem
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Using diagnostic information
SWOT analysis provide useful frameworks for using diagnostic information to identify
what needs to be changed
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Using SWOT to develop action plans
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PLANNING AND PREPARING FOR CHANGE
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Shaping implementation strategies (1)
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A three-dimensional model to aid choice
of change strategy
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Incremental change strategies
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Transformational change strategies
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Developing a change plan
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Identify what needs to be done
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Identify what needs to be done
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Schedule activities
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Types of intervention
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Action research
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Appreciative inquiry
The process:
1. Defining the focus of the inquiry
2. Discovering examples of excellence and achievement
3. Dreaming about what might be
4. Designing: co-constructing the future to deliver the dream
5. Delivering the dream
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Training and development
1. Commitment strategies
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Commitment strategies
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Diagnosing the alignment of
people management
v Reviewing the organization’s strategy
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Assessing the alignment of each people
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Business process re-engineering
1. Process mapping
2. Identifying processes for re-engineering
3. Understanding the selected process
4. Defining key performance objectives
5. Designing new processes
6. Testing
7. Implementation
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Culture profiling
vOrganizational identity and negative effects
vAcculturation
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Acculturation
v Integration:
§ involves some degree of change for both units but allows both to maintain many
of the basic assumptions, beliefs, work practices and systems that are important
to them and make them feel distinctive.
v Assimilation:
§ a unilateral process in which one group willingly adopts the identity and culture
of the other.
v Separation:
§ involves members of the acquired unit seeking to preserve their own culture and
practices by remaining separate and independent of the dominant unit
(department or organization).
v Deculturation:
§ involves unit members rejecting cultural contact with both their and the other
unit. It occurs when members of an acquired unit do not value their own culture
(maybe because they feel that their work group, department or organization has
failed) and do not want to be assimilated into the acquiring unit.
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Acculturation: for the acquired unit
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Acculturation: for the acquiring unit
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Culture profiling and the management of
cultural differences
vPower cultures
vRole cultures
vTask/achievement cultures
vPerson/support cultures
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Culture profiling and the management of
cultural differences
vPower cultures
§ centralized power
§ unequal access to resources and a strong leader who can satisfy or frustrate
others by giving or withholding rewards and sanctions
§ behavior influenced by precedent and the anticipation of the wishes of the
central power source
§ few rules, little bureaucracy, decisions made by individuals not committees
vRole culture
§ limited communication between employees working in different functional
silos, coordination concentrated at the top
§ Hierarchical
§ roles/job descriptions are more important that the individuals who fill them
§ methods rather than results predominate.
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Culture profiling and the management of
cultural differences
vTask/achievement cultures
§ job or project orientation
§ resources and people are brought together as required to get the job done
§ influence based more on expert power than on position or personal power
§ unity of effort towards mutually valued goals
§ adaptable – groups and project teams are formed and disbanded as required
§ individuals and groups have a high degree of control over their work
§ top management retains control via allocation of projects, people and resources,
§ but finds it difficult to exercise day-to-day control over methods of working
vPerson/support cultures
§ mutual trust between individuals and the organization
§ members believe they are valued as human beings, not just cogs in a machine
§ members help each other beyond the formal demands of the job
§ members know the organization will go beyond the requirements of the employment
contract to look after them if they need support
§ structure is the minimum required to help individuals do their job
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The degree of constraint different
culture types place on individuals
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Selecting interventions
ü Individual level
§ Human process issues ü Intragroup level
§ Technostructural issues ü Intergroup level
§ Human resource issues ü Organizational level
§ Strategic issues ü Transorganizational level
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Diagnosed issue
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Selecting interventions
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Selecting interventions
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Selecting interventions
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Selecting interventions
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Selecting interventions
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IMPLEMENTING CHANGE AND REVIEWING PROGRESS
Implementation
vImplementing change
vReviewing and
keeping the change
on track
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LEADING CHANGE: people perspective
Lead the whole process
v Communicating change
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People perspective
99
Change is about people: 6 needs
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Change is about people: Leading the change
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The role of leadership in change management
vLeadership styles
102
The role of leadership
103
Key leadership tasks
104
Power, politics and stakeholder management
ü Managing stakeholders
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Communicating change
vDirectionality
vCommunication strategies
106
Motivating others to change
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Supporting others through change
108
Kotter’s 8-step model
Effective Leaders
help Others to
understand the
necessity of change
and to accept
common vision of the
desired outcomes
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Kotter’s 8-step model
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Kotter’s 8-step model
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Kotter’s 8-step model: step 1
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Kotter’s 8-step model: step 2
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Kotter’s 8-step model: step 3
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Kotter’s 8-step model: step 4
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Kotter’s 8-step model: step 5
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Kotter’s 8-step model: step 6
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Kotter’s 8-step model: step 7
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Kotter’s 8-step model: step 8
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Implementing change
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SUSTAINING CHANGE
v Spreading change
§ Attributes of the innovation
§ Attributes of the organization
§ The values of potential users
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Q&A
123