Change

Management
Lecture 1
Lecturer Hira Aslam
1

Lecture Outline
Introduction
Change Forces
Factors/drivers for Change
Change and Its Types
Organizations in Change.
2

INTRODUCTION
Managing change has become an

increasingly important task for all managers

Todays organizations need to continuously

adapt to new situations if they are to

survive and prosper
Pressure to change comes from:
External, environmental pressures
Internal, organizational pressures
3

Change management
Change Management is a systematic
activity to prepare an organization for
and implement ongoing environmental
changes in a business operation.

Organizational Change
The adoption of a new idea of behavior

by an organization (Daft, 2008).

Any alterations in the people, structure,

or technology of an organization
(Robbins & Coulter, 2007)

A product change is a change in the

organizations product or service

outputs.

A technology change is a change in the

organizations production process how

5
the organization does
its work.

CHANGE FORCES
External
External forces
forces
Market
Market

Government
Technology
Government Technology

Labour
Labour

Economy
Economy

Internal
Internal forces
forces
Strategy
Strategy

New
New
equipment
equipment

Work
Work force
force

Employee
Employee
attitudes
attitudes

Why Organizations Change?

Change

is a constant feature of
organizational life and the ability to
manage it is seen as a core competence
of successful organizations (Burnes,
2004).

DRIVERS OF
CHANGE
Strong support from CEO

RESISTORS OF
CHANGE
Mistrust amongst

mgrs. & employees

Incentive program
Help from vendors

Worn out by

constant change

Customer demands
Pressure from

Staff reluctance to

Porters Competitive

Union resistance

Competitors

Forces Threat of new

entry, Intensity of
rivalry, Substitute
products, Bargaining
powers of buyers and
suppliers

use new technology

Poor communication

channels

Low resources

External Drivers for Change

PESTLE Analysis
Political
Economic
Social
Technological
Legal
Environmental
9

Internal Drivers for Change

Owners & shareholders
Employees oriented.
Customers
Suppliers
The local community
Job design & skill requirement
Product design
Technology
10

Force Field analysis : Driving

forces
Driving Forces are forces that push in a

direction that causes change to occur.

They cause a shift in the equilibrium towards

change.

11

Force Field analysis: restraining

forces
Restraining forces are forces that counter

driving forces. They oppose change.

Restraining

forces cause a shift

equilibrium which opposes change

12

in

the

13

Kurt Lewins Change

Theory
Consists of three distinct and
vital stages:
1. Unfreezing
2. Moving to a new level or
Changing
3. Refreezing

Unfreezing

This starts by challenging many of the beliefs,

attitudes, and behavior of people within the
organization.

Motivation for change should be generated before

change can occur.

During this everyone feels that things are becoming

off balance as new system will make their job difficult.

We need to sell the benefits of the change to everyone

involved i. e. benefits of replacing type-writers with
computers

Also address any doubts or concerns.

15

Change/Moving

Once the organization has gone through the unfreeze

stage, effective change can begin within the organization.

Time and frequent communication are two key factors for

the change to occur.

People need to understand the changes as they occur

and feel that they are part of the change.

Some take a long time to learn the computers.

This can lead to fear and rumors that need to be handled

quickly which should be taken care of.

16

Refreezing

It is the process to integrate the new behavior into the

persons thinking and attitude.

Once the changes have taken effect, we need to make

them believe that their productivity and knowledge will go
up as the start learning computer.

One should make sure that people get comfortable in

using the computers.

Also to provide clear communications, support and

training.

And to celebrate the successful completion of changes.

17

Three Categories of Change

18

Source: Robbins, S.P. and Coulter, M. (2007). Management, 9th Edition. Prentice-Hall, USA.

ORGANIZATIONS IN CHANGE

Strategies to Facilitate
Empirical-Rational
Change people are rational and will follow
their interest once revealed

Normative-Reeducative Adhere to cultural norms and

value
Power-coercive basically compliant and do what is

told to be done authority

Environmental Adaptive adapt readily to new

circumstances
19

ORGANIZATIONS IN CHANGE

Quality Circles employee participation method

Total Quality Management

Business Reengineering

Customer oriented and radical improvement

Delayering

The learning organization

Customer focus

Empowerment

20