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UNDERSTANDING CHANGE MANAGEMENT
UNIT 02
v Definition of changev Types of changev Forces for changev Planned vs. unplanned changev Why change fail?
TOP TEN MOST USED TOOLS
WHAT IS CHANGE?v Change is any planned or unplanned alternation
to existing situation.
WHAT IS CHANGE?v Organizational change² The process by which organizations move from their present state
to some desired future state to increase their effectiveness.² Any alternations in people, structure or/and technology² Goal is to find improved ways of using resources and capabilities in
order to increase an organization�s ability to create value
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WHAT IS CHANGE? v Targets of change include improving
effectiveness at four different levels² Human resources² Functional resources² Technological capabilities² Organizational capabilities
TYPES OF CHANGE
Structure
Technology
People
Changing structure includes anyalternation in:
v authority relations,
v coordination mechanism,v degree of centralisation,
v job redesign, or
v similar structural variables.
TYPES OF CHANGE
Structure
Technology
People
Changing Technology encompasses modifications in: the way work is performed or methods and equipment that are used.
v Introduction of new equipment, tools or work methods
v Automation
v Computerisation
TYPES OF CHANGE
Structure
Technology
People
Changing People includes anyalternation in:
v Attitudesv Expectationsv Perceptions, andv Behaviour
DISCUSSION
Why do business organizations change?
Or What are forces for change in
business organizations?
EXTERNAL FORCES FOR CHANGE
Industrial Revolution 4.0
Globalization& Competition
Demography
v IR4.0: IoT, Robotics, AI, Autonomous Vehicles, Blockchain, 3D Printing
Impact:v Easier information transfer
v Facilitates global structures
v Requires new competencies and expectations
v Facilitates telecommuting; new employment relationships
v More emphasis on knowledge management
Others
EXTERNAL FORCES FOR CHANGE
Industrial Revolution 4.0
Globalization& Competition
Demography
v Global competition
v Technology makes it easier to compete quickly
v Results in restructuring, outsourcing, mergers ²produces many employment changes
Others
EXTERNAL FORCES FOR CHANGE
Industrial Revolution 4.0
Globalization& Competition
Demography
v More educated workforce²want involvement; interesting work
v Younger generation²less intimidated by status²want a more balanced work life
v Cultural changes²more individualism in traditionally
collectivist countriesOthers
EXTERNAL FORCES FOR CHANGE
Industrial Revolution 4.0
Globalization& Competition
Demography v Governments laws and regulations
v Economic changesOthers
INTERNAL FORCES FOR CHANGE
Strategy
Workforce change
New equipment& Technology
EmployeeAttitudes
v Changes in: field of business, customer segment, goals, competitive advantages
v Results in the changes in:²Structure²Technology²HRM policies²Business processes
INTERNAL FORCES FOR CHANGE
Strategy
Workforce change
New equipment& Technology
EmployeeAttitudes
v Downsizingv Motivationv Diversity
INTERNAL FORCES FOR CHANGE
Strategy
Workforce change
New equipment& Technology
EmployeeAttitudes
v Introduction of new equipment, tools or work methods
v Automationv Computerisation
PLANNED VS. UNPLANNED CHANGE
Change
Planned Unplanned
To achieve a specifiedfuture scenario
Reaction to changes inthe organization's
operating environment
Total QualityManagement
StatisticalProcessControl
BusinessProcess Re-engineering
DISCUSSION
Why change fail?
WHY CHANGE FAIL?v Too much complacencyv Failing to create a sufficiently powerful guiding
coalitionv Underestimating the power of visionv Under-communicating the visionv Permitting obstacles to block the new visionv Failing to create short-term winsv Declaring victory too soonv Neglecting to anchor changes firmly in the
corporate culture.
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