HRM209

Change
Management
Lecture 1

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide1

Contact Details
Lecturer : Ahmed Shathir
ahmed.shathir@mnu.edu.mv
3345414
7578482

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide2

HRM209 Change
Management
The Subject Outline
On completion of this subject the students will
be able to:
1. Demonstrate a critical understanding of why
organizations need to have good change
management techniques and policies in
place.
2. Critically evaluate the difference between
21st century organization and historic
organization in the area of change
management.
3. Explain
the importance of indentifying, brining
HRM209 Change Management Semester 1/ 2016 MNU
Business
School
and
sustaining
important changes for the
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organization.

HRM209 Change
Management
4. Demonstrate a clear understanding of why
and how change management practices are
easier to implement in learning organization
comparatively.
5. Discuss the recent developments in the
change management area including
Emergent approach to change.
6. Describe basic approaches to strategy that
organizations can adopt.
7. Identify the implications for organizational
change of both quantitative and qualitative
tools and techniques.
HRM209 Change Management Semester 1/ 2016 MNU
Business School

2/24/16

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HRM209 Change
Management
Workload
Credit points: 15
Total Credit hours: 168
Classes are timetabled for 4 hours of class contact
per week for 14 weeks (14 x 4 = 56 hours).
You are expected to spend eight hours per week in
private reading, study, and coursework for this
subject (14 x 8 = 112 hours).

Mode of Delivery
Lecture (2 hours)
Tutorial (2 hours)
HRM209 Change Management Semester 1/ 2016 MNU
Business School

2/24/16

Slide 5

HRM209 Change
Management
Assessment Methods
Assessment Schedule
Assessment Event

Percentage

Due Dates

Assignment 1: Written Assignment

30%

Week 11

Assignment 2: Presentation

20%

Week 12 - 14

Final Examination

50%

During the
examination week

To obtain a pass in this subject, students

must:
Complete all assessment components; and
Obtain a minimum of 50% in the final examination.
HRM209 Change Management Semester 1/ 2016 MNU
Business School

2/24/16

Slide 6

HRM209 Change
Management
Policy on Late Assignments
Assignments are due at 2.00 pm on the date
specified and must be professionally presented
(i.e., word processed, stapled, spell-checked,
etc) and submitted in hard-copy form.
The penalty for late submission of items for
assessments is 5% of the maximum mark for
each day late.

Attendence
Minimum 80% required
Provide Medical Form
HRM209 Change Management Semester 1/ 2016
MNU Business School
2/24/16

Slide7

HRM209 Change
Management
Plagiarism

Copying out part(s) of any document or audiovisual material (including computer - based
materials)
Using or extracting another persons concepts,
experimental results or conclusions
Summarizing another persons work
In an assignment where there was
collaborative preparatory work, submitting
substantially the same final version as another
student whether in whole or in part.
HRM209 Change Management Semester 1/ 2016
MNU Business School
2/24/16

Slide8

HRM209 Change
Management
Referencing

Referencing is a standardised method of

acknowledging sources of information and
ideas that you have used in your assignment in
a way that uniquely identifies their source.
Use APA style referencing in your assignments

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide9

What Is Organizational
Change?
Organizational change involves
movement from the present state of the
organization to some future or target state
Future state can include a new strategy,
new technology, or changes in the
organizations culture

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide10

What Is Organizational
Change?
Changes in the external environment effect
changes in a companys strategy, which drives
technology, business processes, and organization
Addressing organizational change problems
involves the introduction of Organizational
Change Management (OCM)

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide11

What Is Organizational
Change?
Organizational change: moving from the
present state of the organization to some
future or target state.

Time

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide12

What Is Organizational
Change?
Many sources of pressure on managers to
change their organizations exist and will
continue in the future
Identify the pressures on organizations
and their managers to change
Want to know the probable effects on you
as a member of a changing system

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide13

What Is Organizational
Change?
Know how to deliberately change an
organization
Understand the sources of resistance to
change
Learn how to manage the change process
to reduce resistance
Who Moved My Cheese? (Spencer
Johnson)
HRM209 Change Management Semester 1/ 2016
MNU Business School
2/24/16

Slide14

Why do organizations
need to change?
challenges of growth, especially global
markets
economic downturns and tougher trading
conditions
changes in strategy
technological changes
competitive pressures, including mergers
and acquisitions
customer pressure, particularly shifting
markets
HRM209 Change Management Semester 1/ 2016
learning
new
MNU Business
School organisation behaviours and
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skills

Why is managing change

important?

There is evidence to suggest that most change

initiatives fail.

Less than 60% of re-organisations met their

stated objectives which are usually bottom line
improvement (CIPD, 2015).
Failure to introduce effective change can have a
high impact:
loss of market position,
removal of senior management,
loss of stakeholder credibility,
loss of key employees, and
HRM209 Change Management Semester 1/ 2016
reduction
in engagement.
MNU Business School
2/24/16

Slide16

Theoretical foundations
Three schools of thought that form the
central planks on which change
management theory stands:
the Individual Perspective school;
the Group Dynamics school;
the Open Systems school.

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide17

Theoretical foundations
1. The Individual Perspective school;
The Behaviourists
Human actions are conditioned by their expected
consequences.
Behaviour that is rewarded tends to be repeated, and
behaviour that is ignored tends not to be.
Therefore, in order to change behaviour, it is
necessary to change the conditions that cause it
A behaviour will stop eventually if it is not rewarded
behaviour modification involves the manipulation of
reinforcing stimuli so as to reward desired activity

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide18

Theoretical foundations
1. The Individual Perspective school;
The Gestalt-Field psychologists
learning is a process of gaining or changing insights,
outlooks, expectations or thought patterns
Therefore, from the Gestalt-Field perspective,
behaviour is not just a product of external stimuli;
rather it arises from how the individual uses reason to
interpret these stimuli.

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide19

Theoretical foundations
2. The Group Dynamics school
Originated with the work of Kurt Lewin.
Its emphasis is on bringing about organisational change
through teams or work groups, rather than individuals
(Bernstein, 1968).
Individual behaviour is a function of the group
environment or field. This field produces forces,
tensions, emanating from group pressures on each of its
members.
To bring about change, therefore, it is useless to
concentrate on changing the behaviour of individuals.
The
individual in isolation is constrained by group
HRM209 Change Management Semester 1/ 2016
pressures
toSchool
conform.
MNU Business
2/24/16

Slide20

Theoretical foundations
3. The Open Systems school
Sees organisations as composed of a number of
interconnected sub-systems.
It follows that any change to one part of the system will
have an impact on other parts of the system and, in
turn, on its overall performance.
The Open Systems schools approach to change is based
on a method of describing and evaluating these
subsystems, in order to determine how they need to be
changed so as to improve the overall functioning of the
organisation.

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide21

Theoretical foundations
The Planned approach to
organisational change
Change that was consciously embarked upon
and planned by an organization
1. Field theory (Kurt Lewin)
This is an approach to understanding group
behaviour by trying to map out the totality and
complexity of the field in which the behaviour takes
place (Back, 1992).
Lewin maintained that to understand any situation it
was necessary that: One should view the present
situation the status quo as being maintained by
certain
conditions
forces
HRM209
Change
Management or
Semester
1/ 2016
MNU Business School
2/24/16

Slide22

Theoretical foundations
Filed Theory

Lewins view was that if one could identify, plot and establish
the potency of these forces, then it would be possible not
only to understand why individuals, groups and
organisations act as they do, but also what forces would
HRM209 Change Management Semester 1/ 2016
need toMNU
beBusiness
diminished
or strengthened in order to bring
School
about change.
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Theoretical foundations
A Force Field
Present state of
the organization

Desired state of
the organization

Forces against
change

Forces for
change

A
Time

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide24

Forces For and Against

Change
External forces for change

Competitors and markets

Acquisition threats
International: global markets
Workforce diversity
Quality management

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide25

Change
Internal forces for change

(Cont.)
High dissatisfaction

Felt stress
Loss of control of processes
Dysfunctionally high conflict
Slow decision making
High turnover and absenteeism
Communication dysfunctions

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide26

Change
Forces against change

(Cont.)
Internal: resistance to change from individuals
and groups
External: special interest groups such as
consumer groups and unions

View the forces for and against change as

a force field working on the organization

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide27

Theoretical foundations
2. Three-Step model

Step 1: Unfreezing
The equilibrium needs to be destabilised (unfrozen)
before old behaviour can be discarded (unlearnt) and
new behaviour successfully adopted.

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide28

Theoretical foundations
2. Three-Step model

Step 2: Moving
Groups and individuals to move from a less acceptable
to a more acceptable set of behaviours.

Step 3: Refreezing
Refreezing seeks to stabilise the group at a new quasistationary equilibrium in order to ensure that the new
behaviours are relatively safe from regression.
HRM209 Change Management Semester 1/ 2016
MNU Business School
2/24/16

Slide29

Theoretical foundations
2. Three-Step model

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide30

Planned Organizational
Change

Models of planned organizational change

Evolutionary model
Incremental change
Example: changing the organizations pay scale to
stay market competitive

Revolutionary model
Change many parts of an organization
Example: strategic shift

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide31

Planned Organizational
Change
Evolutionary model of organizational
change

Three phases with no distinct boundaries.

Each phase blends into the next phase
A manager or other change agent develops a need
for change among those affected
The change agent then tries to move the
organization or part of it toward the changed state
The change agent tries to stabilize the change and
make it a part of the organization

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide32

Planned Organizational
Change
Evolutionary model of organizational
change

Sees change happening in small bits that add

to a total amount of change
Unexpected events can occur along the way,
forcing a return to an earlier phase

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide33

Planned Organizational
Change
Revolutionary model of organizational
change

Organizational change unfolds over long

periods of stability followed by bursts of major
change activities
Uses three concepts
Equilibrium period: organization moves steadily
toward its mission and goals
Revolutionary period: a major change in the
strategic direction of the organization
Deep structures: enduring features of the
organization that let it succeed

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide34

Planned Organizational
Change
Revolutionary model of organizational
change (cont.)
Two events trigger a revolutionary period
Dissatisfaction with the organization's performance
Strong feelings among organization members that it
is time for change

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide35

Planned Organizational
Change
Revolutionary model of organizational
change (cont.)
Dissatisfaction with the organization's
performance
Misfit between the organizations deep structure and
its current environment
Follows a clear organizational failure or when many
believe failure is imminent

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide36

Planned Organizational
Change
Revolutionary model of organizational
change (cont.)

Strong feelings among organization members

that it is time for change
Organization members feel uneasy with the current
equilibrium period
Develop feelings of little forward movement
Characterizes organizations that must shift direction

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide37

Resistance to Change
No matter what the target, changes affect
the social system of an organization
People develop long-standing, familiar
patterns of social interaction
Strong resistance develops when
organizational change affects these social
networks

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide38

Resistance to Change
(Cont.)
Resistance can take many forms

Lack of cooperation with the change effort

Sabotage of the change effort
Dysfunctionally high conflict levels

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide39

Resistance to Change
(Cont.)
Reasons for resistance to change

Perceive the loss of something valued such as

social status
Misunderstand the goal of the change
Distrust the change agent
No common perception of the value of the
change
Low tolerance for change

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide40

Resistance to Change
(Cont.)

Managers orientation to resistance to

change
Problem to overcome
Forcefully reduce resistance
Can increase resistance

Signal to get more information

Affected targets may have valuable insights about
the changes effects
Change agent can involve the targets in diagnosing
the reasons for the resistance

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide41

Resistance to Change
(Cont.)

Managers orientation to resistance to

change (cont.)
Absence of resistance
Also a signal to get more information
Low commitment to the change can make the change
less effective
Resisters can focus the change agents on potentially
dysfunctional aspects of a proposed change

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide42

Resistance to Change
(Cont.)

Managing the change process to reduce

resistance
Use change agents with characteristics similar
to the change target
Use dramatic ceremonies and symbols to
signal disengagement from the past
Widely communicate information about the
change

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide43

Resistance to Change
(Cont.)

Managing the change process to reduce

resistance (cont.)
Involve those affected by the change
Commit enough resources
Negotiation may be necessary, when a
powerful person or group is a potential source
of resistance

HRM209 Change Management Semester 1/ 2016

MNU Business School
2/24/16

Slide44

Tutorial Microsoft
Case

1. Why do you think change initiated from

top to bottom usually fail?
2. State the reasons why Microsoft needed
to change?
3. Which factors contributed to the success
of Brummels change initiatives?
4. Use a theoretical model to explain the
change process of Microsoft.
HRM209 Change Management Semester 1/ 2016
MNU Business School
2/24/16

Slide45