Chapter 19 & 20 : Change Management and Changing Environment
Types of change:
Changes in environment (Cause)
Changes in organization (Effect)
Changes in products/services
Changes in technology and working conditions
Changes in management and working relations
Changes in organizational structure and size
Change is small and gradual whereas Transformation is crucial and significant.
Factors forcing change:
Changes may occur due to
- Threat of new entrants
Environmental factors: - Bargaining power of suppliers
SLEPT - Bargaining power of customers
Porter’s 5 competitive forces - Threat of substitutes
Changes in Technology: - Rivalry between competitors
Change in Working conditions: Nature of strategic change:
New offices Incremental
Varied work times Change may be
Emphasis on health
Govt. regulations Reactive
Change in Management: Management may
New style of leadership
Participation in decision making Be Pro-active
Collaboration between management staff & unions
Change in Personal policies: Types of Planned change
Change in rules and procedures (e.g. smoking) Changes
Promotion, transfer, training , development Emergent change
Change in structure and size:
Due to Takeovers
Delegation of authority
Model for change:
Determine need/desire for change in a particular area.
Prepare tentative plan (via Brainstorming)
Analyze probable reactions to change.
Make a final decision (Coercive or Adaptive)
Establish time table for change. Speed of implementation will depend on:
Type of change (Coercive, Adaptive or Managed resistance change)
Reaction of people (Acceptance, Indifference, Passive resistance, Active resistance)
Driving and Restraining forces (Force Field Analysis)
Communicate the plan for change
Implement, review and modify change.
Review the change
Approaches to change: Resistance to change
i) Unfreeze – Move /Shake– Refreeze
ii) Adaptive change approach Active resistance passive resistance
iii) Coercive change approach iv) Using Change agent
v) Integrative VS segmentalist
vi) Theory E & Theory O
Force Field Analysis: (Lewin)
It is an interplay of restraining and driving forces that keeps things in equilibrium.
3 factors to consider to minimize resistance.
Pace of change:
Adapt strategy according to time available.
Manner of change:
Resistance should be welcomed.
Reasons and results of change should be circulated.
Change must be sold to people concerned.
Individuals must be helped to learn.
Scope of change:
Small or Transformation.
Change process: (by Lewin/Schein)
Unfreeze existing behavior:
Most difficult and neglected stage.