PIM/PGDM/GROUP NO-08,HRM/CHANGE MGMT

Definition
Change management is a systematic approach
to dealing with change, both from the perspective of an organization and on the individual level. change management has at least three different aspects, Adapting to change, Controlling change and affecting change

PIM/PGDM/GROUP NO-08,HRM/CHANGE MGMT

Introduction
Change Management is a set of processes, tools and techniques for managing the people side of change to move a person or group from a current state to a desired future state to achieve the specific objectives of an identified change.

Individual change management tools designed one-to one interactions while, organizational change management tools are one-to-many.

PIM/PGDM/GROUP NO-08,HRM/CHANGE MGMT

TYPES OF CHANGE
1:-Operational changes 2:-Strategic changes 3:-Cultural changes 4:-Political changes
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Types of PlAnNed change

Planned change can be introduced in the organization with regards to its mission or objective, its structure, its process and the technology being used in the organization These are ----1.- Structural/Procedural Changes 2.- Technological Changes 3.- People Oriented Changes 4.- Techno structural and Socio technical Changes
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TYPES OF MODEL CHANGE

THE LIGHT MODEL THE MEDIUM-SIZED MODEL THE COMPLEX MODEL THE QUICK MODEL DAY BY DAY MODEL
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Forces for change

Today no company is in particularly stable environment.

Company that occupy a dominant market share in their

industries must change, sometimes radically.

PIM/PGDM/GROUP NO-08,HRM/CHANGE MGMT

Workforce World Politics

Social Trends

forces for change

Competition

Technology

Economic Shocks

PIM/PGDM/GROUP NO-08,HRM/CHANGE MGMT

Forces for change

Nature of the workforce:

Demographic change, immigration and outsourcing.

Technology :

Implementation of new idea & method.

Economic shocks:

The change in economy of a company due to rise and fall of the price of the product is called economic shock.

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Forces for change

Competition:

(cont)

Today market is being wide. We have to face more powerful competitor from across the world.
Social trends:

Its only depend on behavior of society, income desire & hobby.

World politics:

Because of globalization its very important.

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RESISTANCE TO CHANGE IN THE WORK PLACE: MAIN REASONS

Fear of the unknown. Fear of failure. Disagreement with the need for change. Losing something of value. Leaving a comfort zone. False beliefs. Misunderstanding and lack of trust.

Inertia.
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HRs ROLE IN CHANGE MANAGEMENT

People management and development professionals have significant role to play in any change management process. Arising from CIPD research, HRs involvement in certain areas was identified as sometimes being the difference between successful and less successful projects: Involvement at the initial stage in the project team. Advising project leaders in skills available within the organizationIdentifying any skills gaps, training needs, new posts, new working practices etc. Balancing out the narrow/short-term goals with broader strategic needs. Assessing the impact of change in one area/department/site on another part of the organization. Being used to negotiating and engaging across various stakeholders.

Understanding stakeholder concerns to anticipate problems.

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Organizational Barriers to Change

Structural inertia Existing power structures Resistance from work groups Failure of previous change initiatives

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OVERCOMING RESISTENCE TO CHANGE

1.- Education and Communication 2.- Participation and Involvement 3.- Building Support and Commitment 4.- Provide Emotional Support 5.-Provide Incentive 6.- Selecting People who accept change 7.- Leadership 8.- Negotiation and Agreement 9.- Manipulation & Cooptation Cont.
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OVERCOMING RESISTENCE TO CHANGE

10.- Timing of Change Group 11.- Use of Group Pressure 12.- Use of Power By Change agent or Initiative.

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Individual Barriers to Change

Loyalty to existing relationships Failure to accept the need for change Insecurity Preference for the existing arrangements Break up of work groups

Different person ambitions

Fear of:

Loss of power Loss of skills

Loss of income
Inability to perform as well in the new situation
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Inappropriate Change Management

Change is often resisted because of failures in

the way it is introduced Failure to explain the need for change Failure to provide information Failure to consult, negotiate and offer support and training Lack of involvement in the process Failure to build trust and sense of security Poor employee relations
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Why change should be welcomed

Change can produce positive benefits for the

individual: Opportunities for personal change and development Provides a new challenge Reduces the boredom of work Opportunity to participate and shape the outcome

PIM/PGDM/GROUP NO-08,HRM/CHANGE MGMT

Lewins Three-Step Change Model

Unfreezing
Change efforts to overcome the pressures of both individual resistance and group conformity.

Refreezing
Stabilizing a change intervention by balancing driving and restraining forces.

Driving Forces
Forces that direct behavior away from the status quo.

Restraining Forces
Forces that hinder movement from the existing equilibrium.

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Lewins Three-Step Change Model

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Unfreezing the Status Quo

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Kotters Eight-Step Plan for Implementing Change

1. Establish a sense of urgency by creating a compelling reason for why change is needed. Form a coalition with enough power to lead the change. Create a new vision to direct the change and strategies for achieving the vision. Communicate the vision throughout the organization. Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving. Plan for, create, and reward short-term wins that move the organization toward the new vision. Consolidate improvements, reassess changes, and make necessary adjustments in the new programs. Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

2. 3.
4. 5. 6. 7. 8.

Source: Based on J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996).

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Action Research
Action Research
A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicates.
Process Steps:
1. 2. 3. 4. 5. Diagnosis Analysis Feedback Action Evaluation

Action research benefits: Problem-focused rather than solution-centered. Heavy employee involvement reduces resistance to change.

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Organizational Development
Organizational Development (OD) A collection of planned interventions, built on humanisticdemocratic values, that seeks to improve organizational effectiveness and employee well-being. OD Values:
1. Respect for people 2. Trust and support 3. Power equalization 4. Confrontation 5. Participation

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Creating Culture for Change: Stimulating Culture

DEFINATION OF INNOVATION A new idea applied to initiating or improving a product, process, or service.

SOURCES OF INNOVATION

- Structured variables - Organizations culture - Human resources

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Stimulating a culture of innovation (cont) Idea champions

Individuals who take an innovation actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the innovation is implemented.

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MANAGEMENT OF CHANGE
1.- To Identify need for Change 2.- To Develop New Objectives and Goals 3.- To Determine Types of Change 4.- To Prepare Detailed Plan for Change 5.- To Implement the Change 6.- Review and Feedback

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CHANGE OR DIE
You can not step into the same river twice because river continuously flows and changes then you have to change
By Greek Philosher

Most people hate any change that doesnt jingle in their pockets.
Anonymous
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