How do business organizations manage change, why is it usually resisted

How do business organizations manage

change?, Why is it usually resisted?

MBA Part-time special (Group 5 presentation)8th November, 2014

Bayero University Kano Master of Business

Administration, Business Organization and

Corporate Governance (BUS 8318 )

8th November, 2014

Names of group 5 members

1. Sirajo Y. Danhassan ( The group Presenter)2. Ezekiel A. Odeh 3. Bilkisu Mahamuh 4. Charity I. Nwosu 5. Nazifi U. Yerima

INTRODUCTION

‘Change is the law of nature’. Nothing is permanent except change.

“Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek.” –Barack Obama

1 http://www.slideshare.net/birubiru/change-management-7051135 (accessed on 2-11-2014)

http://www.slideshare.net/birubiru/change-management-7051135

INTRODUCTION

From time-to-time in business, you will go through stages where “things aren’t working like they used to” or “things are slowing down”. When that happens, change is needed.

2 http://www.slideshare.net/TheWorksRec/managing-change-8-steps-to-success (Accessed on 6-11-2014)

2http://www.slideshare.net/TheWorksRec/managing-change-8-steps-to-success (Accessed on 6-11-2014)

http://www.slideshare.net/TheWorksRec/managing-change-8-steps-to-success



INTRODUCTION

Research from professor and author Dr John Kotter has revealed that 70% of business change efforts fail because they are not implemented properly.

2http://www.slideshare.net/TheWorksRec/managing-change-8-steps-to-success (Accessed on 6-11-2014)


INTRODUCTION

Organization is a social system based on orderly interrelationship between the elements and environment- equilibrium

On the contrary, disturbance to this, naturally exercises pressure and calls for – acceptance /resistance.



FORCES NECESSITATING ORGANIZATIONAL CHANGE

(a) External Forces: – Macro environment (PEST factors), Micro Environment (consumer tastes and

preferences, competition, economic policies of the Government , Suppliers, Stakeholders) ,

Opportunities & Threats (SWOT).



FORCES NECESSITATING ORGANIZATIONAL CHANGE

(b) Internal Forces:– Internal Environment (Men, Money,

Machinery, Materials, Minutes), Strengths & Weaknesses (SWOT) Human resource problems and Prospects

– Managerial behavior/decisions.



LEVELS OF CHANGE

There are 3 organizational levels(a) Individual Level Change – Job assignment, physical move, Change in maturity of a person (Not

significant on organisation, but significant on group.)



LEVELS OF CHANGE

(b) Group Level Changes – Major effect because organizational activities are done in groups like departments or informal groups (these affect workflows, job design, social organisation, influence and status systems, and communication patterns). Managers must consider group factors.



LEVELS OF CHANGE

(c) Organization Level Changes involves major programs that affect both individuals and groups

Decisions regarding these changes are generally made by senior management and are seldom implemented by only a single manager.





TYPES OF CHANGE

a) Strategic Change – Change in the mission (when acquired i.e. Access Bank with Intercontinental Bank/UBA & Standard Trust )

b) Structural Change – Decentralization (opening up regional offices)

c) Process-oriented Change – In manufac turing operations

(ordinary salt Iodized salt) d) People-oriented Change (Capacity

building)

ORGANIZATIONAL CHANGE MANAGEMENT

DEFINITION:This is the application of the set of tools, processes, skills and principles by those who are in-charge of the destiny of the business undertaking or firm to keep a constant and intelligent watch over the behaviour of uncontrollable forces, to assess their impact and influence of the controllable forces, and to evolve appropriate strategies and action programmes to maintain a dynamic equilibrium between the controllable and uncontrollable forces.



STEPS IN MANAGING CHANGE

Need for change can be identified either through internal factors or through external forces that may be in place.

Once this need is identified, the following steps can be taken to implement such change:

STEPS IN MANAGING CHANGE

1) Develop new goals and objectives 2) Select an agent for change 3) Diagnose the problem 4) Select methodology 5) Develop a plan 6) Strategy for implementation of the plan7) Implementation of the plan 8) Receive and evaluate feedback1 http://www.slideshare.net/birubiru/change-management-7051135 (accessed on

2-11-2014)


Who are the change agents?

These are Persons who act as catalysts and assume the responsibility for managing change activities.

Example include: Managers or non-

managers Current employees

of the organizations Outside consultants Newly hired

employees

4 http://www.slideshare.net/manchekar.ganesh/organisational-change (Accessesd on 2-11-2014)

http://www.slideshare.net/manchekar.ganesh/organisational-change

Who are the change agents?

https://www.google.com.ng/search?q=images+for+the+agents+of+change (accessed on 7-11-2014)

https://www.google.com.ng/search?q=images+for+the+agents+of+change

IMPLEMENTING CHANGE SUCCESSFULLY

o This requires knowledge about the change process.

Examples of change processes (Models), propounded by:

Kurt Lewin, consists of 3 stages John Kotter’s 8-Step Change models:


Lewin’s three-step Change model.https://www.google.com.ng/search (Accessed on 6-11-2014)


kotter’s 8-step change model. https://www.google.com.ng/search (accessed on 7-11-2014)

https://www.google.com.ng/search%20%20kotter's

https://www.google.com.ng/search

Kurt Lewin’s 3-step change model. (1) Unfreezing

the goal is to create an awareness of how the status quo, or current level of acceptability, is hindering the organization in some way.

Old behaviors, ways of thinking, processes, people and organizational structures must all be carefully examined to show employees how necessary a change is for the organization to create or maintain a competitive advantage in the marketplace.

7 http://education-portal.com/academy/lesson/lewins-3-stage-model-of-change-unfreezing-changing-refreezing.html. (Accessed on 2-11-2014)

http://education-portal.com/academy/lesson/lewins-3-stage-model-of-change-unfreezing-changing-refreezing.html


Kurt Lewin’s 3-step change model. (2) Changing

People begin to learn the new behaviors, processes and ways of thinking.

Education, communication, support and time are critical for employees as they become familiar with the change.

Throughout this process, employees should be reminded of the reasons for the change and how it will benefit them once fully implemented.




Kurt Lewin’s 3-step change model. (3) Refreezing/Freezing

The changes made to organizational processes, goals, structure, offerings or people are accepted and refrozen as the new norm or status quo.

Positive rewards and acknowledgment of individualized efforts are often used to reinforce the new state because it is believed that positively reinforced behavior will likely be repeated.




APPLICATION OF LEWIN'S THREE STEPS FOR MANAGING CHANGE

To better understand Lewin's change model, let's take a look at the following example.

Aminu Kano Teaching Hospital (AKTH) has decided to switch from using hand-written medical records to electronic ones.

All of the staff at AKTH have always relied on hand-written medical records when performing their jobs and have expressed concerns about switching to the new electronic format.




APPLICATION OF LEWIN'S THREE STEPS FOR MANAGING

CHANGE However, AKTH management believes

that making the switch to electronic records will increase efficiency and reduce the amount of time and cost that it takes to record, store and retrieve patients’ information.





1) Unfreezing: The old work pattern requires the head of Records department to create the awareness that there is a need for improvement in the ways records are processed, stored and retrieved.





2) Changing: this requires the introduction of training sessions and seminars on how to use the computer and electronic storage media to achieve the new departmental goals.





3) Refreezing: this entails providing all required logistics to ensure successful take-off, regular supervision to ensure compliance and rewards to encourage positive attitude. That’s why the head of department has to make sure he keeps communicating the change vision, celebrating any small successes and keeping that sense of urgency alive.




RESISTANCE TO CHANGE

All changes are not resisted; some are actually wanted by the workers. However, resistance to change is caused by individual’s attitudes which are influenced by: – 1) Economic Factors: Workers apprehend

technological unemployment. 2) Psychological Factors: include Fear of

psychological needs affected (sense of pride, achievement, and self-fulfilment).

3) Social Factors: social needs like friendship, belongingness (informal groups).



RESISTANCE TO CHANGE

Failure to understand this characteristic of resistance can cause many managers to attempt to run through changes rather than try to understand the sources of the resistance.



SOURCES OF RESISTANCE TO CHANGE

Effective strategies for coping with resistance can be achieved by understanding and dealing with the sources of resistance.

a) Individual Sources of Resistance b) Organizational Sources of

Resistance.

4 http://www.slideshare.net/manchekar.ganesh/organisational-change (Accessesd on 2-11-2014)


SOURCES OF RESISTANCE TO CHANGE

A) INDIVIDUAL SOURCES

B) ORGANIZATIONAL SOURCES 1) Fear of the unknown 2) Fear for loss of

security 3) Economic Factors 4) No reason to

change 5) Selective

Information Processing 6) Lack of good

information

1) Structural Inertia 2) Limited Focus to

Change 3) Group Inertia 4) Threat to

Expertise 5) Threat to

Established Power Relationships

6) Threat to Established Resource Allocations

3 Httpwww.slideshare.netartistramakrishna01-organisational-changerelated. (Accessesd on 2-11-2014)

https://www.google.com.ng/search?q=images+of+overcome+organizational+resistance. accessed on 8-11-2014

https://www.google.com.ng/search?q=images+of+overcome+organizational+resistance

https://www.google.com.ng/search?q=images+of+overcome+organizational+resistance

Individual Sources

https://www.google.com.ng/search?q=images+for+individual+resistance+to+organizational+chang accessed on 8-11-2014

https://www.google.com.ng/search?q=images+for+individual+resistance+to+organizational+chang

https://www.google.com.ng/search?q=images+for+individual+resistance+to+organizational+chang

SYMPTOMS OF RESISTANCE

Hostility or aggression is the immediate reaction.

Apathy towards to work

Absenteeism and tardiness

Anxiety and tension

SIGNS OF RESISTANCE Strike action Restriction of

output



OVERCOMING RESISTANCE TO CHANGE

Effective strategies for coping with resistance can be achieved by understanding and dealing with the sources of resistance.

1) Education and Communication Advantage: Creates willingness to help

with the change.o Disadvantage: can be time consuming.




2) Participation and Involvement Advantage: Adds

information to change.

o Disadvantage: Can be very time consuming.

3) Facilitation and Support Advantage:

Directly satisfies specific resource or adjustment needs.

o Disadvantage: can be time consuming; can be expensive.3 Httpwww.slideshare.netartistramakrishna01-organisational-changerelated. (Accessesd

on 2-11-2014)


4) Negotiation Advantage: Helps

avoid major resistance.

o Disadvantage: Can be expensive; can cause others to seek similar deals.

5) Manipulation and cooptation Advantage: Quick

and inexpensive.o Disadvantage:

Can create future problems if people sense manipulation.




6) Coercion Advantage: Will make employees more

willing to accept change as a reward is expected.

o Disadvantage: Can be expensive, creates over-reliance on rewards rather than self-achievement.




BENEFITS OF RESISTANCE

Sometimes resistance plays a positive role in warning the organization of possible consequences.

Contrary to popular opinion, resistance to change is not always bad, it can bring some benefits:

1) Encourage the management to re-examine its change proposals. 2) Identify specific problem areas where change is likely to cause difficulties. 3) Encouraged to do a better job of communicating the change. 4) Resistance also gives management information about the intensity of employee emotions on an issue. 5) Encourage employee to think and talk more about a change


CONCLUSION

Change is indispensable. The way the transition from status quo to the desired state is achieved depends largely on the “approach” adopted by the change agents’ and the internal and external culture within which the organization operates.

REFERENCES

1 http://www.slideshare.net/birubiru/change-management-7051135 (accessed on 2-11-2014)2 http://www.slideshare.net/TheWorksRec/managing-change-8-steps-to-success (Accessed on 6-11-2014)3 Httpwww.slideshare.netartistramakrishna01-organisational-changerelated. (Accessesd on 2-11-2014) 4 http://www.slideshare.net/manchekar.ganesh/organisational-change (Accessesd on 2-11-2014) 5 http://www.slideshare.net/sonips/change-management-strategy-ppt-17189524 . (Accessesd on 2-11-2014 ) 6 http://www.slideshare.net/sonips/change-management-strategy-ppt-17189524 . (Accessesd on 2-11-2014 ) 7 http://education-portal.com/academy/lesson/lewins-3-stage-model-of-change-unfreezing-changing-refreezing.html. (Accessed on 2-11-2014)




http://www.slideshare.net/sonips/change-management-strategy-ppt-17189524

http://www.slideshare.net/sonips/change-management-strategy-ppt-17189524



RECOMMENDATION

Since change is constant, managers of organizations

should be objective in implementing their

desired change. This if well handled would prevent resistance.

THANKSFOR YOUR

ATTENTION

How do business organizations manage change, why is it usually resisted

Business

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