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

‘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

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

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


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


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



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.

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

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(a) External Forces: –

Macro environment (PEST factors),

Micro Environment (consumer tastes and preferences, competition, economic policies of the Government , Suppliers, Stakeholders) ,

Opportunities & Threats (SWOT).


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(b) Internal Forces:–

Internal Environment (Men, Money, Machinery, Materials, Minutes),

Strengths & Weaknesses (SWOT)

Human resource problems and Prospects –Managerial behavior/decisions.


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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.)




(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.




(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.

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

6-11-2014)

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



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)

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.



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:

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 feedback


2-11-2014)


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

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

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 kotter's

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

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

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.




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.




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.




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.




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).



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.


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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)


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+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

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

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

2014)


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

on 6-11-2014)


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.


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.


on 6-11-2014)


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.


on 2-11-2014)


on 6-11-2014)


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


on 2-11-2014)

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.

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


Since change is constant, managers of organizations

should be objective in implementing their desired

change. This if well handled would prevent resistance.

THANKS

FOR YOUR

ATTENTION

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

Business

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