1. MANA 3319 A PANDEY Managing Change September 17, 2007

2. A Metamorphosis 1865- Fredrik Idestam( a mining engineer by trade ) built a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland. 1865- Fredrik Idestam( a mining engineer by trade ) built a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland. 1902 – The company added electricity generation to its business activities 1902 – The company added electricity generation to its business activities 1912- founded Finnish Cable Works 1912- founded Finnish Cable Works 1968- began to manufacture mobile phones 1968- began to manufacture mobile phones Today- has just sold its billionth mobile phone Today- has just sold its billionth mobile phone

3. Types of Change Planned Change-change that is anticipated and allows for advanced preparation Planned Change-change that is anticipated and allows for advanced preparation Dynamic Change-change that is ongoing or happens so quickly that the impact on the organization cannot be anticipated and specific preparations cannot be made Dynamic Change-change that is ongoing or happens so quickly that the impact on the organization cannot be anticipated and specific preparations cannot be made

4. Forces for Change: Environmental Forces Environmental forces include: Environmental forces include:  Technology  Market forces  Political and regulatory agencies and laws  Social trends  Put pressure on a firm’s relationships with customers, suppliers, and employees.

5. Forces for Change: Internal Forces Events within the company. Events within the company. May originate with top executives and managers and travel top-down May originate with top executives and managers and travel top-down May originate with front-line employees or labor unions and travel bottom-up. May originate with front-line employees or labor unions and travel bottom-up.

6. Why Don’t we like change? 1. Lack of Trust and Understanding 2. Self Interest 3. Uncertainty 4. Different Perspectives and Goals 5. Cultures that Value Tradition

7. Lawler’s Star Model Type: Evolutionary or Transformational Structure: decisions and people Reward System: Team or Individual Processes: Information communication and behavior control People: skills and capabilities. Within or outside organization

8. 1. Unfreezing: melting away resistance 3. Refreezing: change becomes routine Present State Desired state Time Lewin’s Three Step Model 2. Change: departure from the status quo

9. Restraining forces Driving forces Status quo Desired state Time Force-field Analysis Model of Change 1.Decrease Restraining Forces 2.Increase Driving Forces 3.Both

10. Implementing Organizational Change Top-down Change: initiated by executives Change Agents: people who act as catalysts to change Bottom-up Change: originates with employees.

11. How to introduce Change: Communication and Education Employee involvement Negotiation Coercion Top Management Support