Change Management

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“WILLINGNESS TO CHANGE IS A STRENGTH, EVEN IF IT MEANS PLUNGING PART OF THE

COMPANY INTO TOTAL CONFUSION FOR A WHILE”. - JACK WELCH

INTRODUCTION TO CHANGE:
Change is something many of us are not ready to welcome in our lives, be it professional or personal. We tend
to maintain status quo to a great extent. In the end, change wins. Even if you oppose it and do not give in, you
have learnt something new in the process.

Every organization goes through tremendous change as it grows. In fact, change is what keeps it going.
Adapting to change is a great asset to any organization. Take the case of Oracle which started as a database
company. Today, it has grown into an one stop shop for enterprise applications. With the economic downturn
that the US is facing today, it is one of the few organizations with the resilience to weather the recession.

DEFINITION OF CHANGE:
Change denotes the transition that occurs between one states to another.
“Change has a considerable psychological impact on the human mind. To the fearful it is threatening because it
means that things may get worse. To the hopeful it is encouraging because things may get better. To the
confident it is inspiring because the challenge exists to make things better”.

DEFINITION OF CHANGE MANAGEMENT:

1) Change management is a systematic approach to dealing with change, both from the perspective of an
organization and on the individual level. A somewhat ambiguous term, change management has at least three
different aspects, including: adapting to change, controlling change, and effecting change. A proactive approach
to dealing with change is at the core of all three aspects. For an organization, change management means
defining and implementing procedures and/or technologies to deal with changes in the business environment
and to profit from changing opportunities.
Successful adaptation to change is as crucial within an organization as it is in the natural world. Just like plants
and animals, organizations and the individuals in them inevitably encounter changing conditions that they are
powerless to control. The more effectively you deal with change, the more likely you are to thrive. Adaptation
might involve establishing a structured methodology for responding to changes in the business environment
(such as a fluctuation in the economy, or a threat from a competitor) or establishing coping mechanisms for
responding to changes in the workplace (such as new policies, or technologies).
Terry Paulson, the author of Paulson on Change, quotes an uncle's advice: "It's easiest to ride a horse in the
direction it is going." In other words, don't struggle against change; learn to use it to your advantage.

2) In a computer system environment, change management refers to a systematic approach to keeping track of
the details of the system (for example, what operating system release is running on each computer and which
fixes have been applied).

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TYPES OF ORGANIZATIONAL CHANGE:
1. Strategic changes
2. Technological changes
3. Structural changes
4. Changing the attitudes and behaviours of personnel

EXAMPLE OF CHANGE THAT ORGANISATIONS ARE FACING THESE DAYS:

As an organization matures, it has to increasingly find opportunities to enhance productivity. This does not
mean that it must implement software. Refining strategies and business processes is often at the heart of such
productivity improvements. Often times, small and medium organizations become enamoured by the lure of
Enterprise Resources Planning (ERP) applications. One is led to believe these days, that software is the panacea
for all problems plaguing the organization. And this is additionally fuelled by reports of organizations making
dramatic improvements in productivity or profitability. While such results are not impossible, they cannot be
used as yardsticks to determine your needs.
A detailed analysis of the organizations strengths and weaknesses is the first step to bring about change. While
every management consultant will swear by Strategy Maps, Balanced Scorecard or at least a SWOT (Strengths
Weaknesses Opportunities Threats) analysis, it might boil down to a simple process documentation to identify
the pain points. Every small business owner will agree that the biggest challenge facing them is, not
surprisingly, a lack of time. Senior Management's time is spent mainly on ensuring that the business is able to
keep up with the daily challenges. One has to take time out to moving from a reactive state to a proactive state.
Making small changes in the way you do business is going to make a world of difference to its profitability.
Let me explain using a simple illustration. A well known manufacturer of Pneumatic products in Tamil Nadu
has followed a no questions asked return policy since the inception of the organization two decades ago. The
company is now one of the most profitable in the region with very loyal customers. If a customer complains that
the product is defective, they just ship them a new one immediately. The customer has an option to send back
the defective one at the earliest available opportunity. Why do I think this example is relevant?
Typically, a manufacturer sends someone onsite to investigate the cause of the issue and then replaces it. What
this means is that there are additional support costs. Not that the cost of replacement goes away, either. The
customer will still insist on a replacement because he does not trust that unit anymore. If, on the other hand, you
do not have a field support staff at all you save considerable travel and support costs. The customer feels happy
that the replacement is sent immediately. The defective product can be added to the QA team that will then
dissect the product to identify the fault and eventually build a solution into the manufacturing process.
Another company that follows a similar principle is Intuit. They do not have a support staff at all. They offer
free support and the software developers themselves attend support calls. This enhances the feedback
mechanism and reduces overhead costs for the company that can be passed on to the customer.
Both these companies have proven without a doubt that, traditional ERP or CRM processes are not the only way
to realize profitability and productivity gains. It is unique to each organization and takes a time and effort to
change.

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RESISTANCE TO CHANGE:
Changes in the economy and the business environment have forced some organizations to change the way they
do business. Whether we like it or not, managers and supervisors are the ones who have to implement the
changes. In addition to the more traditional skills we possess as supervisors, it is critical that we understand our
role as leaders, or change agents, in these rapidly changing times.
Unfortunately, all employees do not respond to change with the attitude, “Fantastic… another organizational
change and I’m excited to be a part of it!” Given that change is here to stay, why do some people seem to dig in
their heels and resist it at all costs?

THE POSSIBLE FACTORS THAT ARE RESPONSIBLE FOR RESISTING CHANGE:

The following 10 reasons best describe why some people have a tough time changing their mindsets and
behaviour:

 Fear of failure
Resistance to change may be rooted in fear. During periods of change, some employees may feel the need to
cling to the past because it was a more secure, predictable time. If what they did in the past worked well for
them, they may resist changing their behaviour out of fear that they will not achieve as much in the future.

 Creatures of habit
Doing things in the same routine, predictable manner is comfortable. Asking people to change the way they
operate or think is asking them to move outside their comfort zone.

 No obvious need
Some employees may see a change only from the perspective of the impact it has on them and their particular
jobs. Not seeing the big picture, they may fail to recognize the positive impact of the change on the organization
as a whole. Thus, they may find the change disruptive and totally unnecessary.

 Loss of control
Familiar routines help employees develop a sense of control over their work environment. Being asked to
change the way they operate may make employees feel powerless and confused.

 Concern about support system

Employees operating within predictable routines know their support system will back them up during
challenging times. Changing the organizational structures may shake their confidence in their support system.
They may worry about working for a new supervisor, with new employees or on unfamiliar projects because
they fear that if they try and fail, there will be no one there to support them.

 Closed minded
Some employees seem to have the attitude, “Please don’t confuse me with any facts or supporting
documentation about this change–I’ve already made up my mind!” Employees with this attitude approach the
change process with their minds firmly made up, muttering, “No way!” during discussions and explanations of
the future.

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 Unwillingness to learn
Some employees, hesitant to try new routines, express an unwillingness to learn anything new. They may say,
“I already know all that I need to know.” Like resistant employees who have already made up their minds that
the change won’t be productive, employees reluctant to learn something new impede the organization’s growth
and adaptation to change. They also hinder their own personal growth and development.

 Fear that the new way may not be better

If things have been going well, some employees may resist change because they fear that the change will not
result in improvement. Focusing only on their part of the operation, they fail to realize that change is needed in
order for the organization to stay competitive. They may resist forward movement because they are satisfied
with the way things are going. Their current status is quite sufficient, and they wish to maintain business as
usual.

 Fear of the unknown

Employees may resist change simply because it is something unfamiliar. Not knowing much about the specifics
of the change, they may imagine a worst case scenario, which can be very scary. They let fear of the unknown
become their rationale for not giving the change a chance. These employees may acknowledge that a problem
exists and agree that a change might improve it. However, they worry that the proposed change might actually
make things worse! Their fear causes them to place roadblocks in the movement toward change.

 Fear of personal impact

Viewing change from a personal standpoint, some employees may respond by asking how the change will
benefit them directly. Will it make their job easier? Will they have to work harder? Will the change put their job
security in jeopardy? Will the change force them to work with different people or learn a new job?

These are all initial responses you may experience when you announce an organizational change to employees.
Once you understand why some employees resist change and realize that their reactions are perfectly normal,
you will be better able to change their attitudes and turn their resistance into cooperation.

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ORGANIZATIONAL CHANGE IS DEPENDENT ON INDIVIDUAL CHANGE:

Change is inevitable, but many companies don't handle it well. How organizations treat workers during a
change initiative determines how successful the change--and the organization--will be, according to
management experts Connie Hritz, senior vice president of research and development for Omega Performance
Corp., and Nancy Moore, senior consultant. During a Society for Human Resource Management webcast
presented in August, the two discussed why some change management practices are unsuccessful and how top
leaders can make sure managers are prepared to guide employees to accept change and put new practices into
action. When we consider changing our organisations, we are really talking about changing the behaviour and
mind-sets of people, and changing the people-related and people-perpetuated systems that are involved in our
work. In other words, without significant personal change there is no organisational change.

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Carroll, Olian and Giannantonio, (1986), define many change methods are directed at individuals. Of course, if
enough individuals change, a unit and the organization itself could change. If the individuals targeted for change
are important in the organization, then only a few may need to be changed to improve an entire unit of
organization.
Employee motivation at workplace is extremely important for managers to implement changes in organization.
To be with sustaining development, business enterprises are kept on changing. Rao (2005) has stated that
motivation scheme has positive effect on firm performance in manufacturing enterprises. Employees’
motivation and their commitment are crucial for organizational change. Moreover, employees’ motivation
depends upon many factors such as organizational culture, managerial leadership style, structure of
organization, HR policies and practices, job design as well as employees’ skills, knowledge and attitudes
(Raymond, 2002). Those organizational and personal attributes help employees work better (Karatepe &
Uludag, 2006).

THE STEPS IN THE PERSONAL CHANGE PROCESS:

The implication of the steps below is that individual change tends to happen over an extended period of time, as
people adapt and assimilate change. That means that those involved in facilitating or leading organizational
change must expect there will be extended periods of adjustment in the organization. In other words, the
watchword is patience.

1 .PREPARATION STAGE:
 Contact Stage: The earliest encounter a person has with the fact that change may take place or has
already taken place.
 Awareness Stage: The person knows that a change is being contemplated.

2. ACCEPTANCE PHASE:
 Understanding Stage: The person demonstrates some degree of comprehension of the nature and intent
of the change.
 Positive Perception: The person develops a positive view toward the change.

3. COMMITMENT PHASE:
 Installation Stage: The change is implemented and becomes operational.
 Adoption Stage: The change has been used long enough to demonstrate worth, and a visible positive
impact.
 Institutionalization: The change has a long history of worth, durability and continuity and has been
formally incorporated into the routine operating procedures of the organization.
 Internalization: Persons are highly committed to change because it is congruent with their personal
interests, goals or value systems.