1. Unit 1.8 Change and the Management of Change Travis Liautaud P5 9/1/2014

2. Define Change management The processes and techniques applied to plan, implement and evaluate changes in a business's operations in order to reach a certain objective. The processes and techniques applied to plan, implement and evaluate changes in a business's operations in order to reach a certain objective. Types of changes: product development, change in organizational structure of a business, new policies, new targets, mergers and acquisitions, disposals, crisis management, relocations, and pay deals and so forth. Types of changes: product development, change in organizational structure of a business, new policies, new targets, mergers and acquisitions, disposals, crisis management, relocations, and pay deals and so forth.

3. Factors Causing Change Customers: A demand for a better product and better prices. Customers: A demand for a better product and better prices. Competitors: Always trying to out do other companies causing businesses to change their marketing strategies. Competitors: Always trying to out do other companies causing businesses to change their marketing strategies. Management: Must stay alert of market trends to ensure that the business remains competitive. Example: a fashion company taking notice that girls like to wear booty shorts. Management: Must stay alert of market trends to ensure that the business remains competitive. Example: a fashion company taking notice that girls like to wear booty shorts.

4. Factors Causing Change Technological Progress: Technology is continuously causing businesses to evolve prime example the internet social media. Technological Progress: Technology is continuously causing businesses to evolve prime example the internet social media. Government: Changes in legislation, such as changes in employment laws, or a dictator taking power. Government: Changes in legislation, such as changes in employment laws, or a dictator taking power. External Factors: Changes, such as the state of the economy and globalization, will create change in an organization, example embargo placed on a certain nation. External Factors: Changes, such as the state of the economy and globalization, will create change in an organization, example embargo placed on a certain nation.

5. Resistance to Change Self-Interest: People may be more interested in the implications of change for themselves rather than change for the organization. Example manager refuses to listen to employees because he is afraid of being replaced Self-Interest: People may be more interested in the implications of change for themselves rather than change for the organization. Example manager refuses to listen to employees because he is afraid of being replaced Misunderstandings: They occur because the “purpose” of change has not been communicated properly. Misunderstandings: They occur because the “purpose” of change has not been communicated properly. Different Assessments of the Situation: Occur when management and staff disagree on the advantages and disadvantages of change. Often leads to strikes. Different Assessments of the Situation: Occur when management and staff disagree on the advantages and disadvantages of change. Often leads to strikes. Low Tolerance of Change: A lack of insecurity is sensed when people are out of their norms. Low Tolerance of Change: A lack of insecurity is sensed when people are out of their norms.

6. The Six Change Approaches Six Change Approaches Education and Communication Explicit and Implicit Coercion Manipulation and Co-option Negotiation And Agreement Facilitation and Support Participation and Involvement

7. Education and Communication: Early communication and clarification can help stakeholders to see the rationale for change and establish trust. Education and Communication: Early communication and clarification can help stakeholders to see the rationale for change and establish trust. Participation and Involvement: Employee involvement in decision-making can motivate and improve morale within the business. Participation and Involvement: Employee involvement in decision-making can motivate and improve morale within the business. Facilitation and Support: Managers become supportive of employees during difficult times and averts resistance to change. Facilitation and Support: Managers become supportive of employees during difficult times and averts resistance to change.

8. Negotiation and Agreement: Managers use incentives to persuade employees to agree to a change. Negotiation and Agreement: Managers use incentives to persuade employees to agree to a change. Manipulation and Co-option: Bringing in opposer of change in on a peace of the pie to quite him down. Manipulation and Co-option: Bringing in opposer of change in on a peace of the pie to quite him down. Explicit and Implicit Coercion: Managers can use bullying tactics to force staff into accepting change. Usually makes the situation worse. Explicit and Implicit Coercion: Managers can use bullying tactics to force staff into accepting change. Usually makes the situation worse.

9. Lewin’s Force Field Analysis There are 4 stages in carrying out a force field analysis: There are 4 stages in carrying out a force field analysis: –List the encouraging forces for change and burdening forces against change. –Allocate a weight or value to each of these forces such as 1 for (weak) to 5 for (strong). –Nice and easy presentation of the forces in order to appeal to the masses, such as a diagram. –Show the relative effect of each force by a number next to it.

10. Disadvantages of Using the Force Field Analysis Weightings attached to the forces may come from a hunch rather then facts. Weightings attached to the forces may come from a hunch rather then facts. Not all relevant forces may be considered, probably to deliberately over-emphasize the need for change. Not all relevant forces may be considered, probably to deliberately over-emphasize the need for change.

11. Change Management Models Essentially there are 4 steps to any change management model: Essentially there are 4 steps to any change management model: –Identify the proposed change and the rationale for change. –Brainstorm the driving forces and the restraining forces of the change. –Develop and communicate an understanding of these issues to key stakeholders. –Implement actions to take advantage of the driving forces and to overcome the restraining forces.

12. Iceberg Model Wilfred Kruger’s Iceberg Model of change argues that there are two levels of change but that managers often only concentrate their efforts on the top level of the iceberg and as we all know the biggest and most dangerous part of an iceberg is what’s beneath the surface: Wilfred Kruger’s Iceberg Model of change argues that there are two levels of change but that managers often only concentrate their efforts on the top level of the iceberg and as we all know the biggest and most dangerous part of an iceberg is what’s beneath the surface: –Top Level: Cost, Quality, and Time –Bottom Level: Peoples Attitudes, beliefs, perceptions, acceptance, and behavior of stakeholders (which can be negative or positive)

13. Storey’s Change Model Total Imposed Package: Delivering a package of change to employees as an executive decision by management without any process of negotiation or consultation, usualy gives reasurance to the employees that they know what they are doing and lets employees know that they wont change there minds. Total Imposed Package: Delivering a package of change to employees as an executive decision by management without any process of negotiation or consultation, usualy gives reasurance to the employees that they know what they are doing and lets employees know that they wont change there minds. Imposed Piecemeal Initiative: Similar to the “Total imposed package” except change is imposed on the employees in stages rather than all at once, because changes are more subtle employees may not notice or pay attention to it until it’s to late. Imposed Piecemeal Initiative: Similar to the “Total imposed package” except change is imposed on the employees in stages rather than all at once, because changes are more subtle employees may not notice or pay attention to it until it’s to late. Negotiated Total Packages: The aim is to seek a package of change via negotiations with the staff. Employees are more likely to push for change. Negotiated Total Packages: The aim is to seek a package of change via negotiations with the staff. Employees are more likely to push for change. Negotiated Piecemeal Packages: A gradual implementation of change through a series of negotiations with the workforce. Negotiated Piecemeal Packages: A gradual implementation of change through a series of negotiations with the workforce.

14. Change Management and Business Strategy Change management is a vital part of today’s fast-paced global environment. Change management is a vital part of today’s fast-paced global environment. It is important to remember that one change always leads to another. It is important to remember that one change always leads to another. Change management cannot be made in isolation. It is important for the business to experiment and make use of things such as the internet and e-commerce. Also the globalization of markets allows for changes within businesses to occur. Change management cannot be made in isolation. It is important for the business to experiment and make use of things such as the internet and e-commerce. Also the globalization of markets allows for changes within businesses to occur. Changes are always to be made with care in order to be successful. Changes are always to be made with care in order to be successful.

15. Review Questions 1.8 What is meant by “change management”? What is meant by “change management”? List four factors that cause change within a business organization. List four factors that cause change within a business organization. List four reasons for resistance to change within an organization. List four reasons for resistance to change within an organization. Distinguish between “driving” and “restraining” forces. Distinguish between “driving” and “restraining” forces.

16. Review Questions 1.8 What are the advantages of Lewin’s force field analysis in assessing the management of change? What are the advantages of Lewin’s force field analysis in assessing the management of change? What are the limitations of Lewin’s force field analysis? What are the limitations of Lewin’s force field analysis? Outline the management of change theories of Kruger, Kotter, Kanter and Storey. Outline the management of change theories of Kruger, Kotter, Kanter and Storey. What is the “stakeholder analysis” and when might it be useful to management? What is the “stakeholder analysis” and when might it be useful to management?

17. Unit 1.8 Key Terms Change Management: is the management process of planning, forecasting, controlling, and steering change within an organization. Change management considers the human and financial resources and their implications that are involved in any change process. Change Management: is the management process of planning, forecasting, controlling, and steering change within an organization. Change management considers the human and financial resources and their implications that are involved in any change process. Change Masters: are skilled managers in the art of change management. They are able to deal with change by adapting and reacting quickly to different scenarios. Change Masters: are skilled managers in the art of change management. They are able to deal with change by adapting and reacting quickly to different scenarios. Driving Forces: are the forces acting for change. These usually refer to benefits to the organization, such as reduced costs or improved productivity following the implementation of change. Driving Forces: are the forces acting for change. These usually refer to benefits to the organization, such as reduced costs or improved productivity following the implementation of change.

18. Unit 1.8 Key Terms Force Field Analysis: is Kurt Lewin’s model of change management that deals with the forces for and against change. Force Field Analysis: is Kurt Lewin’s model of change management that deals with the forces for and against change. Resistance to Change: refers to the pressures from staff against change being introduced. Resistance to Change: refers to the pressures from staff against change being introduced. Restraining Forces: are the causes of resistance to change Restraining Forces: are the causes of resistance to change