MANAGEMENT OF

CHANGE
Presentation by
Puleng Lesaoana
MTBE
2021
Introduction

• In today’s world, big companies, small businesses, universities and even

government entities are encouraged to be innovative. Because innovation is often
tied to an organization change efforts, in this presentation we will first describe
change and how managers manage change.

• What is change management?

• A structured approach of transitioning individuals, teams, & organizations from a
current state to a desired future state.
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GOALS OF CHANGE MANAGEMENT

• The goal of change management is to implement these business changes quickly

to:
 Minimize the impact on productivity
 Avoid unnecessary turnover or loss of valued employees
 Eliminate any adverse impact on customers
 Achieve the desired business outcomes as soon as possible

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WHY CHANGE MANAGEMENT?

As change is inevitable, it is the management ‘s duty to see that change is

managed properly. Change has a negative effect on those who do not want to let
go. Being flexible is the key
The two perspectives of change management can be referred to as:
 Organizational change management
 Individual change management

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 Definition of terms

• Organizational Change: Is any alteration of people ,structure, strategy and technology in

an organization.
• Change Agent: Someone who acts as a catalyst and assumes the responsibility for
managing the change process. Change agent can be within the organization’s internal
managers or non manager(outside consultants)

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COMPARISON
Roles played by internal managers or non managers as change agents within
the organization.

Internal Managers Outside Consultants

 They serve to be effective change agents since  Because they are outsiders, they provide an
they have good understanding of their organization objective perspective that insiders may lack.
history, culture, employees and customers.
 Likely to initiate drastic change than insiders
because they don’t have to live with consequences
 They maybe thoughtful but possibly overcautious
after the change have been implemented.
because they must live with consequences
resulting from change

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Factors that create forces for
change in an organization

External Factors:
1. Changing Consumer needs and wants
Customer needs will always change and vary and it is the organizations must
understand the importance of being responsive to its customers needs as to attract
new breed of customers and secure its future.
2. New governmental Laws
Government laws require changes in how managers must conduct business.
Categories of governmental laws include advertising, employment and labor fair
practices, environmental protection and safety and health.
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Cont…

3. Changing technology
Managers can also change the technology used to convert inputs into outputs. Most
early management studies dealt with changing technology. For instance, scientific
management. Techniques involved implementing changes that would increase
production efficiency.
4. Economic changes
Managers must respond to changes in economic forces such as the impact of an
economic recession. recessions are characterized by a general slowdown in
economic activity, a downturn in the business cycle, and a reduction in the amount
of goods and services produced and sold.
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Internal factors

1. New organizational strategy

Changing strategy signifies a change in how managers ensure
the success of the company. Failure to change strategy when circumstances dictate
could undermine a company’s success.
2. Change in composition of workforce
this encompasses challenges managers face when managing a workforce that is
diverse based on surface-level variables, including age and race, as well as deep-
level variables, including differences in values, personality, and work preferences. A
key challenge entails orchestrating these differences to maintain an inclusive culture
that focuses on productivity.
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Cont…

3. New Equipment
Technology have led to invention of new equipment which does change the
procedures during operations.

4. Changing employee attitudes

The attitudes of employees at organizations going through significant changes tend
to be less favorable than at more stable companies. Where change is happening, the
largest differences are in attitudes toward company leadership and company image.
But, not all employees in changing organizations have less favorable attitudes.
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Kurt Lewin’s Force-field Analysis
change model

• Kurt Lewin's force field analysis change model was designed to weigh the driving
and restraining forces that affect change in organizations.

• In an organization, change is a bit more complicated, but just like deciding where
to go for lunch, there are driving and resisting forces at work. Driving forces are
those seeking change. Resisting (restraining) forces are those seeking to maintain
the status quo. The goal for the driving force is to gain equilibrium, or a balance of
power. Resisting forces control the status quo, while driving forces seek change.

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Cont…

The force field analysis is a method to;

• The force field analysis is a method to:
• Investigate the balance of power
• Identify the key players involved in decision-making
• Identify who is for and who is against change
• Identify ways to influence those against change

It is therefore concluded that the force field analysis intergrates with Lewin’s three
step change process t be explained next...
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The Change Process

• There are 2 different metaphors used to describe the change process namely;
1. Calm Waters Metaphor
In this metaphor, organization is seen as a large ship crossing a calm sea and
experiencing an occasional storm. Hence change is seen as an occasional disruption
in the normal flow of events and is fairly descriptive of the situation managers
faced.
It is best described using Kurt Lewin’s three step change process described below.

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Kurt Lewin’s 3
stage theory of
change
According to Lewin ,successful
change can be planned and requires
UNFREEZING status
quo,CHANGING to a new state and
REFREEZING to make the change
permanent.
UNFREEZING: Is preparing for
needed change so that change can
be implemented
REFREEZING: Is mainly done to
stabilize the new situation by
reinforcing the new behaviors.

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2. White Water Rapids Metaphor

• In this metaphor, organization is seen as a small raft navigating a raging river with
uninterrupted white-water rapids, thus change is an ongoing process and managing
it is a continual process and managers never get out of the rapids.

N:B Organizations can either take reactive or a proactive approach while dealing
with change process.

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Four Areas of
Change
STRATEGY
It signifies a change in how managers ensure
the success of the company.
STRUCTURE
It involves any changes in structural
components or structural design.
TECHNOLOGY
It involves introducing new equipment, tools, or
methods; automation; or computerization
PEOPLE
It involves changing attitudes, expectations,
perceptions, and behaviors. Organizational
development is the term used to describe
change methods that focus on people and the
nature and quality of interpersonal
relationships.

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MODEL FOR MANAGING CHANGE

• John Kotter explained in his books “Leading change”(1995) and “The Heart of
Change”(2002) describe a helpful model for understanding and managing change.

• Kotter’s 8 step change model explains people’s response, and their approach to
change, that is how they see, feel and then change.
• The model can be summarized in the following;

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Cont…

1. Increase urgency: The best way to approach change, the organization has to
inspire people to move, make objectives real and relevant.

2. Building the guiding team: It refers to getting the right people in place with
right emotional commitment ,and the right mix of skills and levels.

3. Get the vision right: Get the team to establish a simple vision and strategy focus
on emotional and creative aspects necessary to drive service and efficiency.

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Cont…

4. Communicate for buy-in: Involve as many people, communicate the

essentials simply, to appeal and respond to people’s needs. Straighten
communicaton;make technology work for you rather than against.

5. Empowerment actions: Remove obstacles, enable constructive feedback and lots

of support from leaders- reward and reconcile progress and achievements

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Cont…

6. Create short-term wins : Set aims that are easy to achieve .Insist in a
manageable numbers of initiatives, finish current stages before starting new ones.

7. Don’t let up: Foster and encourage determination and persistence. There should
be ongoing progress reporting -highlight achieved and future milestones.

8. Make change last: Reinforce the value of successful change via recruitment,
promotion and new change leaders. Weave change into culture.

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How to Manage Change

Reasons for resisting change

Uncertainty
Habits
Concern over personal loss
Believe that change is not in organization best interest

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 Techniques for Reducing
Resistance to Change
Technique When Used Advantage Disadvantage
Education and When resistance Clear up May not work when
communication is due to misunderstandings mutual trust and
misinformation credibility are lacking

Participation When resisters have Increase Time-consuming; has

the expertise to make involvement and potential for a poor
a contribution acceptance solution

Facilitation and When resisters are Can facilitate Expensive; no

support fearful and anxiety needed guarantee of success
ridden adjustments

Negotiation When resistance Can “buy” Potentially high cost;

comes from a commitment opens doors for others
powerful group to apply pressure too

Manipulation When a powerful Inexpensive, Can backfire, causing

and co-optation group’s endorsement easy way to gain change agent to lose
is needed support credibility 22
Contemporary issues in managing
change

Set the tone through management behavior, top managers particularly need to be
positive role models
Create new stories, symbols to replace those currently in use
Select, promote and support employees who adopt the new values
Shake up current subcultures through job transfers and job rotation
Work to get consensus through employee participation and creating a climate with
a high level of trust.
Redesign socialization process to align with new values

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Creativity VS Innovation

Creativity
Is the ability to combine ideas in a unique way or to make unusual associations
between ideas.

Innovation
Is turning the outcomes of the creative process into useful products or work
methods.

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Three variables that stimulates
innovation

Structural variables that impact innovation

• include an organic-type structure
• abundant resources
• frequent communication between organizational units
• minimal time pressure and support.
Human resource variables
• include high commitment to training and development
• high job security, and encouraging individuals to be idea champions
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Cont…

Cultural variables
• accepting ambiguity
• tolerating the impractical
• keeping external controls minimal
• tolerating risk and tolerating conflict,
• focusing on ends not means, using an open-system focus
• providing positive feedback, and being an empowering leader.

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Disruptive innovation
• It describes innovation in products, services or processes that radically change an
industry’s rules of the game.
• Disruptive innovation exists when a smaller company with fewer resources is able to
successfully challenge established incumbent businesses.
Examples
• Compact disc Apple iTunes
• Carbon paper Xerox copy machine
• Weekly news magazines CNN

Companies can become a victim of disruptive innovation when they choose to

conduct business as usual.
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Conclusion

• Generally change management is difficult but doable.

• In most cases, people are used to their environment and their work place and they
are emotionally unwilling to change, so in such cases, it is highly recommended
that the change process should be guided by external consultants or at least
executive managers.

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REFERENCES

• Prof. Dr.Olaf Passenheim and bookboon.com, Change Management,1st

edition,2010.
• Stephen P Robbins, and Mary Coulter, Management, Pearson, 2003.Fernando
Business Ethics, Pearson Education.
• Lewin,K.1948.Resolving Social conflicts,p.46-47.

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THANK YOU!!!

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