Change Management

Change Management
Maranque Plants PLC MGMT
Meeting
Feb 17-18,2016
By Daniel Getachew

Contents
• What is organizational change?
• Process of change management
• People and change
• Principles of change
• Organizational development
• Conflict Resolution
• Fostering Innovation

What is Organizational Change?
• It is the alteration of organizational
environment, structure, culture, technology or
people
- A constant force
- An organizational reality
- An opportunity or threat
• If there is a need for change there should be
a change agent

What is org…..cont
•Change agent is a person who
initiates and assumes the
responsibility for managing a
change in an organization

Basic questions for change agent
• What are the forces acting upon me?
– What are the pressures I should take into
consideration as I decide what to change
and how I should change it?
• What should we change?
– Should the changes be strategic and
companywide or relatively limited?
• How should we change it?
– How should we actually implement the
change?

Force for change
External forces
• New technologies
• Business cycles
• Labor market shifts
• Competition Laws and
regulations
• Social change
Internal forces
• Strategy modifications
• New equipment
• New processes
• Workforce composition
• Job restructuring
• Labor surpluses and
shortages
• Employee attitude

Change can be classified in to
three
Organizational Culture
Structure Technology People

Changes can be…..con’t
Structure Technology People
•Authority
r/ship
•coordinating
mechanisms
•Job redesign
•Span of control
• work
process
• work
method
•Equipment
• Expectations
• Attitudes
• Perceptions
• Behavior

Model for Planned
Organizational ChangeSource : Adapted from Larry Short, “Planned Organizational Change,” MSU Business Topics, Autumn 1973,
pp. 53–61 ed. Theodore Herbert, Organizational Behavior: Readings and Cases (New York: McMillan, 1976), p. 351.

Two Views of the Change
Process
“Calm waters” Methaphor
• theories about organizations that
likens the organization to a large
ship making a predictable trip
across a calm sea and
experiencing an occasional storm
• Kurt Lewin’s Three-Step Process
- Unfreezing
• The driving forces, which direct
behavior away from the status
quo, can be increased
• The restraining forces, which
hinder movement from the
existing equilibrium, can be
decreased
• The two approaches can be
combine
- Implementation of change
- Refreezing
“White-water rapids”
• A description of the organization
as a small raft navigating a raging
river
• Change is constant in a dynamic
environment
• The only certainty is continuing
uncertainty
• Competitive advantages do not last
• Managers must quickly and properly
react to unexpected events
– Be alert to problems and
opportunities
– Become change agents in
stimulating, implementing and
supporting change in the
organization

Is a New Structure Really Required?
Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a Well-Designed Organization?” Harvard Business Review, March
2002, p. 124.
When you identify a problem with your
design, first look for ways to fix it
without substantially altering it. If that
doesn’t work, you’ll have to make
fundamental changes or even reject the
design. Here’s a step-by-step process for
resolving problems.

Is the new structure….cont’d

A Nine-step Process For Leading
Organizational Change
Steps 1-9
1. Create a
Sense of
Urgency
2. Decide
What to
Change
3. Create a
Guiding
Mobilize
Commitment
4.Communicate a
Shared Vision
5.
Empower
Employees
6.Generate
Short-Term
Wins
7.Consolidate
Gainsfor
MoreChange
8.FixNewWaysof
DoingThings8.Monitor
Progress,
Adjust
theVision
as
Required

Why People Resist Change?
Due to Fear of
the
Unknown
Belief of
change is
not good
Fear of
Loosing
something
Individual
Resistance

Barriers to Empowerment
Source: Reprinted by permission of Harvard Business School Press. From Leading Change by John P. Kotter. Boston, MA. 1996, p.
102. Copyright © 1996 by the President and Fellows of Harvard College, all rights reserved

Principles of leading change
1. Address the “human side” systematically
2. Start at the top
3. Involve every layer
4. Make the formal case
5. Create ownership
6. Communicate the message
7. Assess the cultural landscape
8. Address culture explicitly

Principles of leading..con’t
9. Prepare for the unexpected
10. Prepare for the unexpected

Organizational Development
• Organizational Development (OD)
– An approach to organizational change in
which the employees themselves formulate
the change that’s required and implement
it, usually with the aid of a trained
consultant.
• There are four types of OD intervention
these are:

Organizational Dev con’t….
1. Human Process Interventions
- Aimed at enabling employees to develop a better
understanding of their own and others’ behaviors for
the purpose of improving that behavior for the sake of
organization benefits.
2. Sensitivity Training
- Purpose is to increase participants’ insight into their
own behavior and that of others by encouraging an
open expression of feelings in a trainer-guided group.

Organizational Dev con’t….
3. Team Building
- The process of improving the effectiveness of
a team through action research or other
techniques.
4. Survey Research
- The process of collecting data from attitude
surveys filled out by employees of an
organization, then feeding the data back to
workgroups to provide a basis for problem
analysis and action planning

Strategic Applications of OD
• Strategic Intervention
- An OD application aimed at effecting a suitable fit
among a firm’s strategy, structure, culture, and
external environments.
• Integrated Strategic Management
- An OD program to create or change a company’s
strategy by:
• Analyzing the current strategy
• Choosing a desired strategy
• Designing a strategic change plan
• Implementing the new plan.

Conflict Handling Styles
Source: Source: Kenneth W. Thomas, “Organizational Conflict,” ed., Steven Kerr, Organizational Behavior (Columbus,
OH: Grid Publishing, 1979), in Andrew DuBrin, Applying Psychology (Upper Saddle River, NJ: Prentice Hall, 2000), p.
223

Stimulating Innovation
• Creativity
– The ability to combine ideas in a unique way or to
make unusual connections
• Innovation
– The process of taking a creative idea and turning it
into a useful product, service, or method of
operation
• Perception
• Incubation
• Inspiration
• Innovation

Discussion Points
• Is there any change we can make in our
company?
• Are we ready to manage change?
• What should we change?
• How should we plan the change?
• When should we change it?

Recommendatation
• Change management is a continuous
process since every thing is subjected
to change
• As managers and employees of the
company we need to look where we can
do better to bring valuable change for
our company
• Lets be a change agent!

Change Management

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