MANAGEMENT OF STRATEGIC CHANGE SM II_HANDOUT 02

MANAGEMENT OF CHANGE
Change Management is the term that is used to refer to the change or transitioning people, groups,
companies and projects from one state to another. When this term is applied to businesses and projects, it
may refer to a process of transitioning the scope of the project in such a way that it can meet changing
requirements and objectives. What happens is that after a certain point in time some changes may need to
be introduced as far as functioning, operations, marketing, finance or the other aspects of a business are
concerned so as to improve its chances of reaching its goals. Change management involves the application
of structured methods and a pre-planned framework so as to steer business from its current state to a
desired state.

TYPES OF RESISTANCE TO CHANGE IN ORGANIZATIONS

1. Logical and rational, 2. Psychological and emotional, and 3. Sociological resistance.

Logical and Rational Resistance

These resistances are the outcomes of disagreement with rational facts, rational reasoning, logic and science. These
arise from the actual time and effort required to adjust to change including new job duties that must be learned.
These are too costly which might be borne by the common employees and managers. Even though change may be
beneficial for the employees in the long run. But the short run costs for change must be paid first. Logical resistance
to change include the following: 1. Time required to adjust; 2. Extra efforts to relearn; 3. Possibility of less desirable
condition; 4. Economic costs of change; 5. Questionable technical feasibility of change

Psychological Resistance
These types of resistances are typically based on emotion and attitude. It is internally logical from the perspective of
the employee attitude and feelings about change. Employees may fear the unknown, mistrust management, or feel
that their security and ego needs are threatened. Even though management may believe that there is no justification
for these feelings they are very rational to employees, and as such mangers must deal with them. Psychological or
emotional resistance may take place in the following manner: 1. Fear of unknown; 2. Low tolerance of change; 3.
Dislike of management/change agent; 4. Lack of trust in other; 5. Need for security; 6. Desire for status quo

Sociological Resistance
Sociological resistance may sometimes be logical. This happens when it is seen as a product of challenge to group
interests, norms, and values. Since social values are powerful force in the environment, they must be carefully
considered. On a small group level, there is work friendship and relationships that may disrupt buy change. Then
resistance occurs. However, sociological resistance includes the following: 1. Political coalitions; 2.Opposing group
values; 3. Parochial/narrow outlook; 4. Vested interest; 5. Desire to retain existing friendships

STRATEGIES FOR MANAGING RESISTANCE TO CHANGE

After you have identified the types of change resistance present in your organization, employ a mix of strategies to
counter the negative forces. Following are six classic strategies 1 for dealing with change resistance (in order from
least to most extreme) – use them to develop action plans that address the resistance within your organization.
 Education & Communication: One of the best ways to overcome resistance to change is to educate people
about the change effort beforehand. Up-front communication and education helps employees see the logic in
the change effort. This reduces unfounded and incorrect rumors concerning the effects of change in the
organization.
 Participation & Involvement: When employees are involved in the change effort they are more likely to buy into
change rather than resist it. This approach is likely to lower resistance more so than merely hoping people will
acquiesce to change.
 Facilitation & Support: Managers can head-off potential resistance by being supportive of employees during
difficult times. Managerial support helps employees deal with fear and anxiety during a transition period. This
approach is concerned with provision of special training, counseling, time off work.
 Negotiation and Agreement: Managers can combat resistance by offering incentives to employees not to resist
change. This can be done by allowing change resistors to veto elements of change that are threatening, or

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change resistors can be offered incentives to go elsewhere in the company in order to avoid having to
experience the change effort. This approach will be appropriate where those resisting change are in a position of
power.
 Manipulation and Cooptation: “Cooptation” (no it’s not misspelled) involves the patronizing gesture of bringing
a person into a change management planning group for the sake of appearances rather than their substantive
contribution. This often involves selecting leaders of the resisters to participate in the change effort. These
leaders can be given a symbolic role in decision making without threatening the change effort.
 Explicit and Implicit Coercion: Managers can explicitly or implicitly force employees into accepting change by
making clear that resisting change can lead to losing jobs, firing, or not promoting employees.

MODELS OF CHANGE
A. KURT LEWIN’S MODEL
Any successful change process starts by understanding why the change must take place. As Lewin put it, "Motivation
for change must be generated before change can occur. One must be helped to re-examine many cherished
assumptions about oneself and one's relations to others." This is the unfreezing stage from which change begins.
Unfreeze
This first stage of change involves preparing the organization to accept that change is necessary, which involves
break down the existing status quo before you can build up a new way of operating. Key to this is developing a
compelling message showing why the existing way of doing things cannot continue. This is easiest to frame when
you can point to declining sales figures, poor financial results, worrying customer satisfaction surveys, or suchlike:
These show that things have to change in a way that everyone can understand. To prepare the organization
successfully, you need to start at its core – you need to challenge the beliefs, values, attitudes, and behaviors that
currently define it. Using the analogy of a building, you must examine and be prepared to change the existing
foundations as they might not support add-on storeys; unless this is done, the whole building may risk collapse. This
first part of the change process is usually the most difficult and stressful. When you start cutting down the "way
things are done", you put everyone and everything off balance. You may evoke strong reactions in people, and that's
exactly what needs to done. By forcing the organization to re-examine its core, you effectively create a (controlled)
crisis, which in turn can build a strong motivation to seek out a new equilibrium. Without this motivation, you won't
get the buy-in and participation necessary to effect any meaningful change.
Change
After the uncertainty created in the unfreeze stage, the change stage is where people begin to resolve their
uncertainty and look for new ways to do things. People start to believe and act in ways that support the new
direction. The transition from unfreeze to change does not happen overnight: People take time to embrace the new
direction and participate proactively in the change. A related change model, the Change Curve , focuses on the
specific issue of personal transitions in a changing environment and is useful for understanding this specific aspect in
more detail. In order to accept the change and contribute to making the change successful, people need to
understand how the changes will benefit them. Not everyone will fall in line just because the change is necessary
and will benefit the company. This is a common assumption and pitfall that should be avoided. Unfortunately, some
people will genuinely be harmed by change, particularly those who benefit strongly from the status quo. Others may
take a long time to recognize the benefits that change brings. You need to foresee and manage these situations.
Time and communication are the two keys to success for the changes to occur. People need time to understand the
changes and they also need to feel highly connected to the organization throughout the transition period. When you
are managing change, this can require a great deal of time and effort and hands-on management is usually the best
approach.
Refreeze
When the changes are taking shape and people have embraced the new ways of working, the organization is ready
to refreeze. The outward signs of the refreeze are a stable organization chart, consistent job descriptions, and so on.
The refreeze stage also needs to help people and the organization internalize or institutionalize the changes. This
means making sure that the changes are used all the time; and that they are incorporated into everyday business.
With a new sense of stability, employees feel confident and comfortable with the new ways of working. The
rationale for creating a new sense of stability in our every changing world is often questioned. Even though change is
a constant in many organizations, this refreezing stage is still important. Without it, employees get caught in a
transition trap where they aren't sure how things should be done, so nothing ever gets done to full capacity. In the

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absence of a new frozen state, it is very difficult to tackle the next change initiative effectively. How do you go about
convincing people that something needs changing if you haven't allowed the most recent changes to sink in? Change
will be perceived as change for change's sake, and the motivation required to implement new changes simply won't
be there. As part of the Refreezing process, make sure that you celebrate the success of the change – this helps
people to find closure, thanks them for enduring a painful time, and helps them believe that future change will be
successful.

Practical Steps for Using the Framework

Unfreeze
1. Determine what needs to change.
 Survey the organization to understand the current state; Understand why change has to take place.
2. Ensure there is strong support from upper management.
 Use Stakeholder Analysis and Stakeholder Management to identify and win the support of key people
within the organization; Frame the issue as one of organization-wide importance.
3. Create the need for change.
 Create a compelling message as to why change has to occur.; Use your vision and strategy as supporting
evidence.; Communicate the vision in terms of the change required.; Emphasize the "why".
4. Manage and understand the doubts and concerns.
 Remain open to employee concerns and address in terms of the need to change.
Change
1. Communicate often.
 Do so throughout the planning and implementation of the changes.; Describe the benefits.; Explain exactly
the how the changes will effect everyone.; Prepare everyone for what is coming.
2. Dispel rumors.
 Answer questions openly and honestly.; Deal with problems immediately.; Relate the need for change back
to operational necessities.
3. Empower action.
 Provide lots of opportunity for employee involvement.; Have line managers provide day-to-day direction.
4. Involve people in the process.
 Generate short-term wins to reinforce the change.; Negotiate with external stakeholders as necessary (such
as employee organizations).
Refreeze
1. Anchor the changes into the culture.
 Identity what supports the change.; Identify barriers to sustaining change.
2. Develop ways to sustain the change.
 Ensure leadership support.; Create a reward system.; Establish feedback systems.; Adapt the organizational
structure as necessary.
3. Provide support and training.
 Keep everyone informed and supported.
4. Celebrate success!

BEHAVIOURAL REACTIONS TO CHANGE

The four behavioral reactions to change are disengagement, disidentification, disenchantment and disorientation.

• Disengagement - this is a psychological withdrawal from change. Signs of this behavioral change will be evident in
employees as they may appear to lose initiative and interest in the job. Disengaged employees are often present
physically but not mentally and may hope for the best but take on the approach of doing nothing. There will be a
lack of commitment and drive and they may use phrases such as "It doesn't affect me". Managers should try to
confront disengaged employees about their reactions and identify their concerns. The employees should be made
aware of their behavioral changes and be treated with open communication.
Dealing with it: The basic managerial strategy for dealing with disengaged individuals is to confront them with their
reaction and draw them out so that they can identify the concerns that need to be addressed. Disengaged
employees may not be aware of the change in their behaviour, and they need to be assured of your intentions.

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Drawing them out and helping them air their feelings can lead to productive discussions. Disengaged people seldom
become cheerleaders for the change, but they can be brought closer to accepting and working with a change by
open communication with an emphatic manager who is willing to listen.

• Disidentification - employees who are suffering with disidentification behavioral changes may be extremely
vulnerable. They may feel as though their identity is being threatened by the change. Rather than focus on the
changed procedures, they may try to cling onto a past procedure in order to make themselves feel secure. Managers
can try active listening to try and engage employees in the change and show that they are fully supportive of the
employee's concerns. 
Dealing with it: Individuals reacting in this way feel that their identity has been threatened by the change, and they
feel very vulnerable. Many times they cling to a past procedure because they had a sense of mastery over it, and it
gave them a sense of security. “My job is completely changed” and “I used to . . . . “ are verbal indications of
disidentification. Become involved in the change and establish a feeling of ownership in the process. When
employees are allowed to participate, they are more committed to the change. Another strategy for managing
resistance is providing empathy and support to employees who have trouble dealing with the change. Emotional
support and encouragement can help an employee deal with the anxiety that is a natural response to change.

• Disenchantment - disenchanted employees often express their reactions in the form of anger or negativity. They
are angry about the fact that their past has gone and they may try to group together other colleagues to fight against
it.  Anger is typically aimed at the organization as a whole. Managers should attempt to bring employees from
a negative state to a neutral one. They should be allowed to let off steam and managers should make it known that
any expressed anger is not being held against them. 
Dealing with it: It is often difficult to reason with disenchanted employees. Thus, the first step in managing this
reaction is to bring these employees from their highly negative, emotionally charged state to a more neutral state.
To neutralise the reaction does not mean to dismiss it; rather, it means to allow the individuals to let off the
necessary steam so that they can come to terms with their anger. The second part of the strategy for dealing with
disenchanted employees is to acknowledge that their anger is normal and that you do not hold it against them.
Sometimes disenchantment is a mask for one of the other three reactions, and it must be worked through to get to
the core of the employee’s reaction. Employees may become cynical about change. They may lose faith in the
leaders of change.

• Disorientation - employees who are used to clear goals and directions may become disorientated by change. They
may appear lost, confused and unsure of their feelings. Rather than focusing on how to do things they will focus on
what to do. The manager should try to explain the change in a way that minimizes  ambiguity and give the employee
clear steps about what is going to happen during the change.
Dealing with it: Disorientation is a common reaction among people who are used to clear goals and unambiguous
directions. When change is introduced, it creates uncertainty and a lack of clarity. The managerial strategy for
dealing with this reaction is to explain the change in a way that minimizes the ambiguity that is present. The
information about the change needs to be put into a framework or an overall vision so that the disoriented
individual can see where he or she fits into the grand scheme of things. Once the disoriented employee sees the
broader context of the change, one can plan a series of steps to help this employee adjust. The employee needs a
sense of priorities to work on.