CHANGE MANAGEMENT Flashcards
CHANGE MANAGEMENT
Pros:
* tackling difficult business challenges that require unconventional choices can be an effective way to bring about change
* heavy workforce restructuring may be necessary to address a company’s poor potential and financials,
* questioning business models that are no longer useful or important can help to create new opportunities.
Cons
* shifting the culture of an entire firm can be challenging, especially when compared to establishing the culture from the
outset (as with a startup founded by a single person).
* “hard-core” management style assumes that people will align on the mission and choose the environment, which may
not always be the case.
* high labour turnover and lawsuits over working conditions can pose risks.
Example
Musk’s “hardcore” management style, which involves pushing his employees to work long hours and meet aggressive goals, has
been effective in driving innovation and achieving ambitious objectives. However, the article also acknowledges that this
approach can be challenging for employees and may contribute to high turnover rates.
Musk’s aggressive leadership has created problems for employees, including high stress levels, burnout, and safety concerns.
The article also argues that Musk’s approach to leadership may not be sustainable in the long term, and that more sustainable
leadership models should be prioritized.
ORGANISATIONAL CHANGE: HR INVOLVEMENT
On the one hand, HR professionals play a critical role in facilitating changes in the workplace that are necessary to achieve
organizational objectives
HR must also balance the need for change with the need to maintain the commitment of people within the organization and
ensure business continuity.
* HRM running the system: views HR as primarily responsible for day-to-day activities and processes, assuming stability
and predictability in the organization.
* Enabler of change sees HR as actively shaping employee behaviour and building commitment to achieve organizational
change.
Several drivers of organizational change:
* growth opportunities
* economic downturns
* technological developments
* competitive pressures, changes in legislation
* extreme disruptive events such as COVID-19.
EXTENT AND SCOPE OF ORGANISATIONAL CHANGE
- Developmental change: involves enhancing or correcting an existing condition through incremental adjustments. This
type of change seeks to improve practices that “do not measure up” to expectations and typically have an incremental
nature. - transitional change: seeks to achieve a different but known and desired condition through an episodic process of
planning and managing an interim transition period. This type of change often involves implementing reorganizations,
new products or services, or technologies. - transformational change: involves a previously unknown state emerging out of the remains of the old state. This type of
change is radical in nature and may involve shifts in behaviours, strategy, assumptions, and more. Transformational
change often results in a higher level of functioning or the organization going out of business.
Understanding these different types of change can help organizations and their leaders to better plan and manage change
initiatives and to adapt to changing environments.
ATTITUDES TOWARDS CHANGE
Attitudes towards change play a crucial role in the success or failure of organisational change efforts.
Employees’ attitudes towards change can be categorised into three categories
1. Readiness for/openness to change refers to employees’ evaluative belief about the likelihood of successful change,
including their trust in leadership and confidence in individual competences.
2. Commitment to change refers to employees’ intent to behave in ways that support/comply with change initiatives, and
this can be fostered through developmental and material rewards and employee resilience.
3. Cynicism about change refers to pessimism about change’s chances of success, which may be blamed on management
lacking integrity or employees’ unmet expectations.
Organisation-wide change can occur if a critical mass of the organisation shares a common understanding of dissatisfaction with
the present situation, the vision of what is possible, and first steps towards reaching the vision. This is referred to as the
“Gleicher’s change formula.” However, these factors must not be zero or near zero, and their product must be greater than
resistance to change
IMPROVEMENT IN ATTITUDE TOWARDS CHANGE
The attitudes towards change can significantly impact the success or failure of organizational change efforts. To improve
attitudes towards change, it is important to understand how change impacts people at work and shape their responses
accordingly.
It is important to note that the less prepared people are for change, the more undesirable it may seem to them, and denial is a
common response that may lead to resistance. However, it can also provide an opportunity to reflect on the transition and make
adjustments accordingly.
Steps towards affecting change attitudes:
* providing employees with opportunities to participate in the change process and decision-making
* encouraging them to develop confidence in their abilities through training
* communicating change information clearly and timely in an open and sharing environment.
Dealing with change involves several stages
1. awareness of the change
2. denial,
3. helplessness,
4. letting go of old behaviour,
5. testing,
6. consolidation of successful behaviours
7. internalization of new behaviour and norms.
MANAGING THE CHANGE PROCESS: MODELS
Lewin’s 3-stage model of change
1. “unfreezing” the current state, making the changes needed
2. move towards the desired future state,
3. “refreezing” the new state to ensure it becomes the norm.
This model has been criticized for being too simplistic and linear, and for not accounting for the ongoing nature of change.
Kotter’s 8 steps to successful change
* emphasizes the importance of building a sense of urgency
* creating a guiding coalition of change agents
* developing a clear vision for change.
* importance of communicating the vision
* empowering people to take action
* generating short-term wins to build momentum
* embedding the change into the organization’s culture.
This model has been widely used and has been found to be effective in many organizations
MANAGING THE CHANGE PROCESS: RESISTANCE
Resistance to change is a common phenomenon in organizations and can significantly impact the success or failure of change
initiatives. Factors such as employee motivation and engagement are critical in mediating how change affects organizational
performance. Although change is necessary for growth and development, many employees find it uncomfortable and may resist
the process.
Driving forces for change:
* competition,
* new technology,
* incentives,
* managerial pressure,
* new people.
However, focusing solely on driving forces can lead to tension, and employees may refuse to engage in the change process.
restraining forces:
* skills deficit,
* job insecurity,
* complacency,
* established work patterns
Therefore, it’s essential to reduce restraining forces to initiate and sustain change. One way to address resistance to change is by
using Lewin’s three-stage model of change: unfreeze, move, and refreeze.
Resistance to change is a common occurrence in organizational change initiatives. This is because employees may perceive
change as a threat to their interests such as job quality, status, security, and promotion.
* Organizational changes can affect the content and structure of employment, including employees’ discretion, power,
autonomy, and terms and conditions of employment such as pay and security.
* divergent assessments of the change initiative. Change agents may emphasize the positive effects of change, while
those affected by the change may see it differently
* pre-existing tensions: due to a lack of trust between them and the change agent or an opportunity to voice grievances
in other areas.
* low tolerance for change due to concerns about the development of new skills or their ability to cope with change,
which can be influenced by their personality traits.
* Self -interest: fears about job security and financial prospects, as well as the perception that the cost of change
outweighs its benefits, can contribute to resistance to change..
MANGING THE CHANGE PROCESS: STRATEGIES
When implementing organizational change, it is important to have strategies in place to reduce resistance and increase
effectiveness.
* education and communication, which involves helping people understand the reasons behind the change and building
trust by sharing information up-front.
* participation and involvement, which can lower resistance by encouraging feedback from those affected and ensuring
that potential obstacles are addressed beforehand.
* Facilitation and support is another strategy, which involves providing training in new skills and helping employees deal
with challenging times, such as through counselling.
* Negotiation and agreement can also be used to reduce resistance, by offering incentives to those who are likely to
resist change and onboarding those in positions of power who are hostile to the change.
* Manipulation and co-option involve selectively sharing information with leaders of change resistors and consciously
structuring events to ensure that change occurs.
* explicit or implicit coercion may be used to force people into accepting change, such as through threats related to
promotion prospects or dismissal.
It is important to note that the first three strategies assume alignment between individuals and the organization’s aims, while
the last three assume no need for alignment or the ability of people to assimilate the type of change deemed appropriate by the
organization.
In summary, there are different approaches to managing organizational change,
Is Change Planned?
* linear or step models view it as predictable and manageable
* emergent approaches: inherently messy
* a balanced approach acknowledges the importance of flexibility and continuous adaptation to the environment.
How HR practices contribute to change:
* fostering a culture that encourages innovation and flexibility
* providing continuous training, facilitating communication and collaboration
* increasing employee participation
* measuring and coordinating performance.
Ultimately, change can have a significant impact on people and work, and HR practices can help improve employees’
perceptions and commitment to change
WHY MANAGERS FAIL TO DELIVER CHANGE
These are some of the reasons why managers fail to deliver change.
* Ineffective communication skills/practices can lead to misunderstandings and resistance to change.
* Poor work relationships/interpersonal skills can create conflicts and hinder collaboration.
* Person-job mismatch can result in a lack of skills or motivation to implement change.
* Failing to clarify direction/performance expectations can lead to confusion and misaligned efforts.
* Failing to adapt and break old habits quickly can result in clinging to familiar practices and resisting change.
