Handout 9: Managing change PowerPoint presentation Unit 320 (B&A 59): Principles of business Handout 9: Managing change

How change affects people Change can cause concern and anxiety to those it affects. Many people are resistant to it. Individuals will respond differently depending on their personalities.

Those affected may experience: shock and/or denial stress and/or discomfort distrust regret anger acceptance guilt hope depression excitement and/or expectation anxiety and/or fear.

Change must be openly communicated. Communication Change must be openly communicated. It isn’t the change that creates the anxiety, so much as anxiety about the change. We all need financial security, particularly when we have responsibilities and obligations to meet, and news of an impending change is likely to provoke some feeling of anxiety. In this respect, most important of all, is that all change must be openly communicated. Many fears and anxieties can be allayed in this way. One of the main reasons for change being difficult can be because the reason for the change and its implications are not communicated to those involved. If the reasons for the change are fully communicated to the employees and they feel that they are getting all the information they need with nothing hidden, they are more likely to go along with it

Concerns associated with change Job security Re-grading Prestige, eg existing skills no longer required Social ties – new team Anxiety about new requirements of work These may all impact on colleagues’ behaviour.

Key motivating factors provide: a sense of achievement personal growth Motivation Key motivating factors provide: a sense of achievement personal growth a chance to take responsibility recognition for the work done a chance to use initiative interesting work. Team members may become demotivated if they feel they may lose their jobs and may need the personal support of their colleagues, and the recognition of achievements to date from management in order to stay motivated. Motivation theorists Maslow and Herzberg say that basic environmental needs must first be addressed ie provide adequate pay, working conditions, security. Only then can the ‘feel good’ motivating factors that relate to individuals and their personal response to work be addressed.

Support for employees when introducing innovation Involvement/consultation on ways of implementing changes, new systems Training/re-training on new systems, technologies Financial, eg relocation costs Support for employees when introducing innovation

Work with colleagues and employers The benefits of working with others: Mutual support Feedback of problems Consistency of service Chance to contribute During a period of change, employees should work with others, both colleagues and employers, and not become isolated. Team members should be encouraged to respond positively to changes by contributing ideas, communicating problems and requesting support where necessary, and in this way reducing the workplace stress they are likely to experience.

The positive aspects of change Change brings opportunities to gain new experience/promotion Change can provide the opportunity to learn new skills Resistance to change is normal Change increases motivation Change can provide a new challenge, which builds confidence and personal growth Change allows the organisation to keep up with a changing business environment and remain competitive Although it is natural to feel some resistance to change, it should be remembered that there are positive aspects as well as perceived negative ones.

Management skills required Good communication skills Versatility Patience Knowledge of the change – when, why and how it is to be implemented How to diffuse difficult situations How to evaluate the impact of the change How to be proactive in managing the change Most important of all is that all change must be openly communicated. For managers to be effective at managing change they require to have certain skills. Change management should be pro-active and requires careful control and openness where possible in order that the team will understand the reasons for change, allaying their fears about it and increasing/maintaining their motivation. Ineffective communication may increase resistance to change