CHANGE IS THE ONLY

THING THAT WILL

NEVER CHANGE. SO
BETTER ADAPT TO IT.

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Change
is
any
alteration
occurring
in
the
work
environment that affects the
ways in which employees must
act.
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Coping process of moving from a

unsatisfactory present state to a
desired state.
Individuals, teams and organizations
that recognize the inevitability of
change, learn to adapt to it, and
attempt to manage it, will be the most
successful.

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Change management is a set

of processes employed to
ensure that significant
changes are implemented in
a controlled and systematic
manner.
Achieving sustainable change begins
with a clear understanding of the
current state of the organization,
followed by the implementation of
appropriate and targeted strategies.
The focus of change management is
on the outcome the change will
produce the NEW arrangements
that must be understood.
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 Organizations tend to achieve an equilibrium

in their social structure. When change
comes along, it requires employees to make
new adjustments as the organization seeks a
new equilibrium.
Disequilibrium occurs when employees are
unable to make adequate adjustments.
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Is there any difference between

change and transition?
The difference between change and transition is like
the difference between external and
internal. Change is the external world around you.
Transition as the internal process through which you
come to terms with the change.

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All changes are likely to have some costs.

Because of costs, proposals for change
are not always desirable. Each change
requires a detailed cost-benefit analysis.
If changes doesnt provide benefits above
costs, there is no reason for the
changes.
These cost s are not merely economic;
they also are psychological and social. All
of these costs must be considered in
determination of benefits and costs.
The organizational goal always is benefits
greater than costs.
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Psychological costs also are

called Psychic costs because
they affect a persons inner
self, the Psyche.
Knowledge of individual
differences helps us predict
that people will react in widely
varying ways to change. Some
will perceive only the benefits,
while others see only what it
costs them.
In some cases the psychic costs
of change can be so severe
that they affect the
psychological and even physical
health of employees.
The reality of change is that
frequently there is no clear-cut
100 percent benefit for all
parties.

10

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11

Forces for Organizational

Change

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12

Cont

Technolo
gy

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13

Cont

Change in
Managerial
Personnel

To avoid
developing
inertia

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Deficiency
in Existing
organization
Nature
of the
work
force

14

External forces

1.TECHNOLOGY

Change that results from the adoption of new

technology is common in most organizations and while it
can be disruptive at first, ultimately the change tends
to increase productivity and service Technology also has
affected how we communicate.
Today's burgeoning communication technology
represents changes that allow organizations to learn
more, more quickly, than ever before.
When there is a change in technology in the
organizational environment and other organizations
adopt the new technology, the organizations under
focus become less cost effective and its competitive
position weakens.
Therefore, it has to adopt new technology, its work
structure is affected and a new equilibrium has to be
established.
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External forces

2.Customer Needs/ Market Needs

As the world evolves, customer needs change and grow, creating new demand for
new types of products and services -- and opening up new areas of opportunity for
companies to meet those needs.
Since every organization exports its outputs to the environment, an organization
has to face competition in the market.
There may be two types of forces which may affect the competitive position of an
organization other organizations supplying the same products and, buyers who are
not buying the product. Any changes in these forces may require suitable changes
in the in the organization.
For example, when Indian economy was liberalized, there were many foreign
organizations that entered the Indian market. This forced many Indian
organizations to realign themselves with the new situations. The result in that
there have been many cases of divesting the business and concentrating on the
core business, acquiring core business, and developing competitive competence to
face competitive threats.
Similarly, there may be changes in buyers in terms of their needs, liking disliking
and income disposal for a product. These changes from the organizations to bring
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16
those products which meet buyers requirement.

External forces

3. The Economy

The economy can impact organizations in both positive and negative ways and
both can be stressful.
A strong economy and increasing demand for products and services will mean
that companies must consider expansion that might involve the addition of
staff and new facilities.
These changes offer opportunities for staff, but also represent new
challenges.
A weak economy can create even more problems as companies find themselve
needing to make difficult decisions that can impact employees' salaries and
benefits and even threaten their jobs.
The ability to manage both ends of the spectrum are critical for
organizations that want to maintain a strong brand and strong relationships
with customers as well as employees.
Social changes reflect in terms of peoples aspirations, the needs, and their
ways of working. Social changes have taken place because of the several
forces like level of education, urbanization, feeling of autonomy, and
international impact due to new information sources.
These social changes affect the behavior of people in the organization.
There, it is required to make adjustment in its working so that it matches
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17
with people.

External forces

4. Political and legal changes

Political and legal factors broadly

define the activities which an
organization can undertake and the
methods which will be followed by it
in accomplishing those activities.
Any changes in these political and
legal factors may affect the
organization operation.

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External forces

5. Growth Opportunities
Change is important in organizations to allow employees to learn
new skills, explore new opportunities and exercise their creativity
in ways that ultimately benefit the organization through new ideas
and increased commitment.
Preparing employees to deal with these changes involves an
analysis of the tools and training required to help them learn new
skills.
Training can be provided through traditional classroom settings or,
increasingly, through online learning opportunities. Importantly,
organizations need to do a good job of evaluating employees'
capabilities and then taking steps to fill the gaps between current
skills and the skills required to respond to growth.
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Internal forces

1.Changes in the managerial personnel

Besides environmental changes there is a change
in managerial personnel. Old managers are
replaced by new mangers, which necessitated
because of retirement, promotion, transfer or
dismissal.
Each new manager brings his own ideas and way
of working in the organization.
The relationships, more particularly informal
ones, changes because of changes in managerial
personnel.
Moreover, attitude of the personnel change
even though there is no changes in them. The
result in that an organization has to change
accordingly.
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Internal forces

2.Deficiency in Existing organization

Sometimes, changes are necessary because of deficiency in the present

organizational arrangement ad process.
These deficiencies may be in the form of unmanageable span of
management, large number of managerial levels, lack in co-ordination
between various departments, obstacles in communication, multiplicity of
committees, lack of uniformity in policy decisions, lack of cooperation
between the line and staff, and so on.
Beside these internal factors, there are two more internal factors that give
rise to organizational changes.

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Internal forces

3.Nature of the work force

The nature of work force has changed

over a passage of time. Different work
values have been expressed by different
generations.
The profile of the workforce is also
changing fast.
The behavior has also become very
complex and leading them towards
organizational goals is a challenge for the
managers.
The employee turnover is also very high
which again put strain on the
management.

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Internal forces

4.To avoid developing inertia

In many cases, organizational changes take place

just to avoid developing inertia or inflexibility.
Conscious manager take into account this view of
organization that organization should be dynamic
because any single method is not the best tool of
management every time.
Thus, changes are incorporated so that the
personnel develop liking for change and there is
no unnecessary resistance when major change in
the organization are brought about.

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(C)
Types of organizational
changes

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24

1. Individual Level
2.Group Level
3.Organisational Level

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1. Individual Level Change

Individual level changes may take place due to
changes in job assignment, transfer of an
employee to a different location or the
changes in the maturity level of a person which
occurs over a passage of time.
The general opinion is that change at the
individual will not have the significant
implications for the organization. But this is
not correct because individual level changes
will have impact on the group which in turn will
influence the whole organization.
Therefore, a manager should never treat the
employees in isolation but he must understand
that the individual level change will have
repercussions beyond the individual.

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2.Group Level Change

Management must consider group factors while
implementing any change, because most of the
organizational changes have their major effects at
the group level.
The groups in the organization can be formal groups
or informal groups. Formal groups can always resist
change for example; the trade unions can very
strongly resist the changes proposed by the
management. Informal groups can pose a major
barrier to change because of the inherent strength
they contain.
Changes at the group level can affect the work
flows, job design, social organization, influence and
status systems and communication patterns.
The groups, particularly the informal groups have a
lot of influence on the individual members of the
group. As such by effective implementing change at
the group level, resistance at the individual level
can be frequently overcome.
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3.Organizational Level Change

The organizational change involves major programmes which
affect both the individuals and the groups.
Decisions regarding such changes are made by the senior
management. These changes occur over long periods of time
and require considerable planning for implementation.
A few different types of organization level changes are:

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1.Strategic change.
Strategic change is the change in
the very basic objectives or
mission of the organization. A
simple objective may have to be
changed to multiple objectives.
For example, a lot of Indian
companies are being modified to
accommodate various aspects of
global culture brought in by the
multinational
or
transnational
corporations.

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2.Structural change.
Organizational structure is the pattern of relationships among various
positions and among various position holders. Structural change involves
changing the internal structure of the organization. This change may be in
the whole set of relationships, work assignments and authority structure.
Change in organization structure is required because old relationships and
interactions no longer remain valid and useful in the changed
circumstances.

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3.Process oriented change.

These changes relate to the recent technological

developments,
information
processing
and
automation. This will involve replacing or retraining
personnel, heavy capital equipment investment and
operational changes. All this will affect the
organizational culture and as a result the behavior
pattern of the individuals.

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4.People oriented change.

People oriented changes are directed towards
performance improvement, group cohesion,
dedication, and loyalty to the organizations as
well as developing a sense of self-actualization
among members. This can be made possible by
closer interaction with employees and by special
behavioral training and modification sessions.

To conclude, we can say

that changes at any level
affect the other levels. The
strength of the effect will
depend on the level or
source of change

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Models Of Organizational Change

Lewins Model of Change

System Model of Change

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(D) Resistance to Change

..the only constant is change ;

change is inevitable
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Resistance to change consists of any employee

behaviors designed to discredit, delay, or
prevent the implementation of a work change.
Employees resist change because it threatens
their needs for :

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Security
Social Interaction
Status
Competence
Self-Esteem

41

Nature and Effects

Despite of the nature of the change, some
employee try to protect themselves from its
effect. Their action may range from complaints,
foot-dragging, and passive resistance to
absenteeism, sabotage, and work slowdowns.
All employees tend to resist it because of the
psychic costs that accompany it and also
managers resist it too.
Although people tend to resist change, this
tendency is offset by their desire for new
experiences and for the rewards that come with
changes.

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One lesson for management is that a change is likely to be

either a success or problem, depending on how skillfully it is
managed to minimize resistance.
Insecurity and change are conditions that illustrate how a
chain-reaction effect may develop in organizational behavior.

A chain-reaction effect is a situation in which a change ,or

other condition, that directly one person or a few persons
may lead to a direct or indirect reaction from many people
because of their mutual interest in it.

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Reasons for Resistance

Employees may resist changes for three broad reasons:

They may not feel comfortable with the nature of the change it self.
It may violate their belief system, they may believe the decision is
technically incorrect, or they my simply be reluctant exchange comfort
of certainty and familiarity for uncertainty.

The method by which change is introduced. People may resent having

been ill-informed, or they may reject an insensitive and authoritarian
approach that did not involve them in the change process.

The inequity experienced when people perceive themselves being

changed while someone else appear to gain the benefits of the change.

Their resistance will be even more intense if all three reasons exist.

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Type of Resistance
There are three different types of resistance to change.
Logical Resistance.( or Rational Resistance) This is based on
disagreement with facts, rational reasoning, logic, and science. It
occurs because of the time and efforts which is needed to adjust to
change.

Psychological Resistance.( or Emotional Resistance ) This is typically

based on emotions, sentiments, and attitudes. It is internally logical
from the perspective of the employees attitudes and feelings about
change because they may fear the unknown, mistrust the managements
leadership, or feel that their security and self-esteem are threatened.
Sociological Resistance.( or Social Resistance) Sociological resistance
also is logical, when it is seen as a product of a challenge to group
interests, norms, and values.

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Implications of Resistance

All three types of resistance must

be anticipated and treated
effectively if employees are to
accept change cooperatively. If
administrators work with only one of
them they will fail to made change.

In a typical operating situation full

support cant be gained for every
change that is made. What manager
seeks is climate in which people
trust managers, have a positive
feeling toward most changes, and
feel secure enough to tolerate other
changes.

If management cant win support, it

may need to use authority.
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Possible Benefits of Resistance

Resistance is not all bad. It can bring some benefits as follows:

Encourage management to reexamine its
change proposals.
Help to Identify specific problem areas
where a change is likely to cause
difficulties.
Management may be encouraged to do a
better job of communicating the change.
Gives managers information about the
intensity of employee emotions on an
issue.

Encourage employees to think and talk

more about a change.
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Implementing Change Successfully

Some changes originate within the
organization, but many come from
the external environment. For
example Government passes laws,
new development in technology
arise, competitors introduce new
services
and
etc.
then
the
organization should respond to
them.
Although stable environment mean
less change, dynamic environments
are now the norm, and they require
more change.
Transformational
Leadership
and Change
Management has key role in
initiating and implementing change
successfully.
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51

Cont.
Not only do managers sometimes overlook
simple but important details, but they
may fail to develop a master strategy for
planned change. An overall plan should
address Behavioral issues, such as
employees difficulty in letting go of old
methods and the general need to create
an organization to welcomes change.

Transformational Leaders are

instrumental in this process. They are
managers who initiate bold strategic
changes to position the organization for
its future.

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There are three important elements of transformational leadership :

Creating Vision, Communicating charisma, and stimulating learning.
Creating Vision. Transformational leaders
create and communicate a vision for the
organization. A vision crystallized long-range
image or idea of what can and should be
accomplished. A vision may also integrate the
shared beliefs and values that serve as a
basis for changing an organizations culture.
Stimulating Learning. The critical Task
for transformational leaders is to
develop peoples capacity to learn from
the experience of change. This
process is called double-loop learning
which means that the way a change is
handled should not only reflect current
information gathered but also prepare
the participations to manage future
changes even more effectively. This
process is in sharp contrast to singleloop learning which is just focus on
current problems.
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Communicating Charisma. Leaders

should persuade employees that the
vision is urgent and motivate them to
achieve it. Charisma is a leadership
characteristic that can help influence
employees to take early and sustained
action. Charismatic leaders are
dynamic risk takers, they can be warm
mentors who treats employees
individually and guide them to take
action, and also they need to
recognize the emotional vulnerability
that employees experience.
53

(E)Building Support for Change

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1. Use of Group Forces:

Effective
change
focuses
on
both
individuals and groups.
Any changes in group forces will
encourage changes in individual behavior.
The more attractive the group is to each
member, the greater its influence on a
group member can be. If a member with
high status support the change the
influence will increase.
If the change disrupt the groups social
system more than necessary, the group
will tend to meet resistance.

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2.Providing
Change.

Rationale

Capable leadership reinforces

psychological support for change.
to

for

climate

provide

of

It is generally better
reasons for the change.

objective

Ordinary requests of change should be in accord

with the objectives and vision of the organization.

Managerial and employee expectations of change

may be as important as the technology of change,
but expectations are not enough alone.

By believing that the change will work, the

manager acts so as to fulfill that belief. This
belief is transferred to employees, who buy into
probability of success and change their behavior
accordingly.
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3. Participation.
A fundamental way to build support for
change is through participation.

Participation encourage commitment

rather than mere compliance with
change.
As participation increases, resistance
to change tend to decrease.

Employees want to involved and

participate from the beginning to
protect themselves from changes
surprises.

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4.Shared rewards.
Another way to
support for the
sure that there
for them in the

build employee
change is to make
are enough rewards
change situation.

Rewards give employees a sense

that progress accompanies a change
and also tell them that we care
about you and wants you as well as
us benefit from this change.
Also it is desirable for a change to
pay off as directly and as soon as
possible.
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5. Employee security.
Along with shared rewards, existing employee
benefits need to be protected and thats why
security during a change is very important.
For this reason many employers guarantee
workers protection from reduced earnings when
new technology and methods are introduced, or
some offer retraining and delay installation of
labor-saving equipment.
Grievance systems give employees a feeling of
security that benefits will be protected and
differences about them fairly resolved.

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6.Communication and Education.

Communication is essential in gaining support for change.
When a change occur all of a group members should
informed even it affects only a few of them.
Since the flow of information may be weakest at the
time it is needed most, special effort is required to
maintain it in times of change.

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7.Stimulating Employee Readiness.

Change is more likely to be accepted if the people
affected by it recognize a need for it before it occurs.
This awareness can happen both naturally or it can be
induced by management.
One of the more powerful way is when Workers discover
for themselves that a situation requires improvement.

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8. Working with the Total System.

Resistance to change can be reduced by a broader
understanding of employee attitudes and natural reactions
to change.
It is essential for the managers to take a broader,
system-oriented perspective on change to identify the
complex relationship involved.
Organization development can be a useful method for
achieving this objective.

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