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Change Management

®
Sikkim Manipal University
Directorate of Distance Education
Manipal
INSPIRED BY LIFE

Subject Code: MU0018 Book ID: B1807


Revised Edition: Spring 2010
Sikkim Manipal University
Directorate of Distance Education
Department of Management Studies
Board of Studies
Chairman Mr Pankaj Khanna
HOD, Department of Management Studies Director
SMU DDE HR, Fidelity Mutual Fund

Dean Mr Shankar Jaganathan


SMU DDE Former Group Treasurer
Wipro Technologies Limited
Additional Registrar Mr Abraham Mathew
SMU DDE Chief Financial Officer
Infosys BPO

Deputy Registrar Ms Sadhna Dash


Student Evaluation Examinations Branch Senior HR Consultant
SMU DDE Bangalore

Dr T.V. Narasimha Rao


Adjunct Faculty and Advisor
SMU DDE

Prof. K.V. Varambally


Director
Manipal Institute of Management, Manipal

Revised Edition: Spring 2010


Print:
Printed at Manipal Technologies Ltd
Published on behalf of Sikkim Manipal University, Gangtok, Sikkim by
Vikas® Publishing House Pvt Ltd

Author:
Dr Nidhi Mathur
Copyright © Reserved, 2013
All rights reserved. No part of this publication which is material protected by this copyright notice may
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Author’s Profile
Dr Nidhi Mathur is working as an Assistant Professor, Human Resources at Institute of
Management Technology Center for Distance Learning (IMT CDL), Ghaziabad, since
June 2007. She teaches subjects including Management Process and Organization,
Group Dynamics and Managing Change and Training and Development. She completed
her Ph.D. in Public Administration from the Jainarain Vyas University, Rajasthan. She
has published many papers and articles on various subjects pertaining to Public
Administration. She has also presented papers at various universities and at the prestigious
Indian Council for Social Science Research.

Reviewer’s Profile
K. Satyalakshmi holds post-graduate degrees in both science and management. She
obtained her MBA degree with HR specialization from Annamalai University, Tamil Nadu.
She has been associated with academics from 1992. She is presently working as a
faculty member in the ICFAI University. She has published book reviews and papers in
various fields like leadership, strategy and recruitment in both in-house and external
publications.

Peer Reviewer’s Profile


Ms Sadhna Dash is an alumnus of Xavier Institute of Management, Bhubaneswar and
brings over 23 plus years of core HR experience. She has worked with Steel Authority of
India, Microsoft, IDS Software, Aris Global and Spheris Software. In her role as Head HR
in the past 8 years of her corporate career, she has led HR teams to realign to the
business partner model and directly impact business goals. She possess niche skills in
competency-based Human Resources management functions focused around recruitment
solutions, Performance Management Systems, Training & Development Planning and
Competency Mapping.
She has been associated with Bangalore University, Manipal University, Sikkim
Manipal University, St. Joseph’s College of Business Administration, Canara Bank School
of Management, Manipal Institute of Media and Entertainment, and MLA College and
immersion courses at XIM, Bhubaneswar. She has co-authored a book on International
Human Resource Management (published by Tata McGraw Hill).

In House Content Review Team


Dr G.P. Sudhakar Vidya M.V.
HOD, Department of Management Studies Assistant Professor
SMU DDE Department of Management Studies
SMU DDE
Girish Gurjar
Assistant Professor
Department of Management Studies
SMU DDE
Contents
Unit 1
Organizational Change Management 1–23

Unit 2
Models of Organizational Change 25–48

Unit 3
Communicating Change 49–70

Unit 4
Process of Change Management 71–88

Unit 5
Resistance to Change 89–110

Unit 6
Implementing Change 111–133

Unit 7
Strategies for Implementing Change 135–155

Unit 8
Leading Change 157–176

Unit 9
Maintaining Organizational Effectiveness 177–193

Unit 10
Evaluating Organizational Change 195–216
Change Management Contents

Unit 11
Change Agents 217–237

Unit 12
Culture and Change 239–258

Unit 13
Individual Change 259–278

Unit 14
Organizational Learning and Learning Organization 279–302

Sikkim Manipal University Page No. (vi)


MU0018
Change Management

Course Description

The management of an organization is vast in scope and a complex task. It


becomes additionally so when some changes need to be implemented. The
changes required may be in policies, processes or infrastructure. The first
decision the senior management needs to take is to decide the one who will
lead the change. Will it be the managers, or a change consultant from another
organization, or a change agent identified from within the organization?
Human beings are naturally averse to being brought out of comfort zones,
and any kind of change is looked upon as an upheaval and one which employees
largely wish to avoid. The chief responsibility of a change agent is to present the
vision of change in such a manner that employees agree to cooperate in bringing
about the change of their own accord, rather than having to be coerced to do so.
It becomes a primary responsibility of the senior managers and the change agent
to ensure that the change is brought about smoothly and in a non-threatening
manner for the employees, so that they are able to see the benefits of the change.
There are many aspects of change management that must be taken into
consideration for successful change implementation. This book will touch upon
the most important aspects in detail. Some concepts covered in the book are
models of organizational change, communicating change and the process of
change management. There is also in-depth content, along with examples, on
implementation of change and the kinds of resistance the change process may
encounter while maintaining organizational effectiveness during change.
There is a dedicated unit on strategies for implementing change. In this book,
change management has also been looked at from an individual’s perspective,
the relationship between culture and change and the role of change agents. The
last unit addresses an important aspect of change—the learning that can be
derived from the change, and how an organization that is focused on the positive
will be able to flourish and grow as a result of change.
This course is beneficial for those who have a bent towards a career in
Change Management, as there is a huge demand in the area of HR professionals
for addressing all aspects of change implementation including planning the
change process, diagnosing problems with the implementation, articulating
solutions to the problems and reassuring employees in case they have doubts
and queries.
Course Objectives

The objectives of this course are to equip you with thorough knowledge of how
change is implemented in an organization, including the process, possible
obstacles, role of a change agent, effect on organization’s culture and
manifestation of change at an individual level. You will also learn about other
aspects of change management, such as models of change management,
strategies for implementation and the best practices organizations can commit
to, to take away benefits in the form of learning, from the change process.
After studying this course, you should be able to:
• implement the process of organizational transformation
• analyse the factors leading to organizational change
• compare various change models
• select appropriate method for communicating change
• develop a communication plan
• resolve the issue of resistance to change
• create an implementation plan for change
• choose appropriate strategies for implementing change
• demonstrate visionary leadership in change management
• demonstrate organizational effectiveness
• evaluate organizational change
• use change agents to guide and advice the change process
• identify the types of organizational culture
• analyse different approaches to individual change
• create a learning organization
The Self Learning Material (SLM) for this course is divided into 14 units. A brief
description of all the 14 units is given below:
Unit 1: Organizational Change Management
This unit describes how an effective change management strategy gives desired
outcomes, leads to a sense of ownership among employees, enables sustained
and measurable improvement, and prepares everyone for possible future
changes.

Sikkim Manipal University Page No. (ix)


Change Management Course Objectives

Unit 2: Models of Organizational Change


This unit is an account of the different models of change developed over the
years. The two approaches to organizational change include the process based
change models and the content based models which have been discussed in
detail.
Unit 3: Communicating Change
This unit explores the role of communication in change management. It also
discusses the factors and strategies of communicating change and the role of
the top management in an organization in the communication process.
Unit 4: Process of Change Management
This unit explains the various phases of the change management process, and
the change management process controls that must be in place to ensure the
effective acceptance of change.
Unit 5: Resistance to Change
This unit discusses the basics of resistance to change and how various strategies
are used to overcome resistance.
Unit 6: Implementing Change
This unit is a study of how effectively change strategies can be implemented.
Unit 7: Strategies for Implementing Change
This unit focuses on strategies for implementing change. In organizations,
change strategies are adopted on the basic premise that people will volunteer
to engage themselves in the change process.
Unit 8: Leading Change
This unit touches upon the study of the role of visionary leadership, the broad
framework of leadership; it also helps understand how shared vision is created.
Unit 9: Maintaining Organizational Effectiveness
This unit discusses the concept of Organizational Effectiveness. Organizations
are social units with a purpose. Organizational Effectiveness (OE) refers to
how well the purposes of an organization are achieved.
Unit 10: Evaluating Organizational Change
In this unit, the focus shifts entirely to evaluating the change that has taken place
and the different techniques that will help companies conduct a fair evaluation.

Sikkim Manipal University Page No. (x)


Change Management Course Objectives

Unit 11: Change Agents


This unit evaluates the concept, role and competencies of change agents and
discuss why they are integral to the change process.
Unit 12: Culture and Change
This unit focuses on organizational culture in its various dimensions, and its
role in managing change.
Unit 13: Individual Change
This unit explains the need for an individual’s change. It explores the relationship
between personality and change.
Unit 14: Organizational Learning and Learning Organization
The last unit focuses on organizational learning and explains how learning
organizations to understand the various disciplines, concepts, techniques and
skill sets that are required to maintain the learning curve.

Sikkim Manipal University Page No. (xi)

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