1. MBS538 Organisational Behaviour and Management
MODULE 6: Working with organisational behaviour
S11 – How do you manage change?
S12 – How do you manage stress?

2. How do you Manage Change?
Managing change is another key factor in organisational performance and even survival. Change is prevalent in organisations as they adjust to changing internal and external environments. Organisations that change appropriately can continue as viable businesses.  Those that do not make the right changes lose their ability to compete, cease to exist by going out of business, or get taken over by a more successful organisation. Organisational changes involve changes to an organisation’s strategy, structure, processes and people.

3. What did you feel about this change?
Change and Feelings
What did you feel about this change?
Did you like to be “forced” to change?

4. Learning Outcomes
Summarise the major external and internal forces for change in organisations and describe different types of change.
Explain models and approaches for organisational change.
Identify sources of resistance to change and describe tactics that organisations can use to manage resistance.
Assess approaches and techniques for organisational development and change interventions.

5. Change

6. What is…#
Change?

7. What is…#
Change Management?

8. Change Management Theories?
Why use…#
Change Management Theories?

9. Change in Organisations
Change resulting from a deliberate decision to alter the organisation
Planned change
Change imposed on the organisation and often unforeseen
Unplanned change

10. Forces Driving the Need for Major Organisational Change

11. External Internal Forces for Change Globalisation Workforce Diversity
Technological Change
Ethical Behaviour
Crisis
Changes in Employee Expectation
Changes in Work Climate

12. Activity
Consider a change that has occurred in an organisation you are familiar with (you may have experienced it, or know about it)
Share this with a small group.
What were the reasons for this change?
Do the environmental elements interact?

13. PEST Factors

14. PESTEL

15. Change Impact on Organisations

16. Organisational Change
What changes?
Structure
Processes
Strategy
People

17. The Scope of Change Incremental Strategic Transformational
Relatively small scope, such as making small improvements
Incremental
Larger scale, such as organisational restructuring
Strategic
Organisation moves to a radically different, and future state
Transformational

18. The Pace of Change

19. Calm waters metaphor
Incremental Change or Smooth – change in small steps …one equilibrium state to another …..takes time.

20. Choppy waters metaphor…
Choppy waters metaphor
Bumpy incremental change – periods of relative tranquillity punctuated by acceleration in the pace of change – periodic readjustments occur without cataclysmic effects …..takes time.

21. White-water rapids metaphor.
Discontinuous or radical change – ‘frame-breaking’ change , new ways of doing business, dynamic.

22. White-Water Rapids Lack of Stability Constant Change Virtual Chaos
Predictability
White-Water
Rapids

23. Discussion Identify Organisational changes that you have witnessed.
What was the origin of the change: political, economic, socio-cultural, technological, environmental, legislative?
Was the scope of the change incremental, strategic, transformational?
Was the pace of the change smooth, bumpy or discontinuous?
What were the factors that made it successful or caused it to fail?

24. Resistance to Change

25. Types of Change Type I – That which is done to us.
Very few people like this type of change!
It violates our sense of independence, freedom and control of our own destiny
Most likely to resist within the context of organisational change
Type II – That which we do to ourselves.
This type of change is very different
We're in control. We're deciding for ourselves that doing something different is necessary
Because it's our decision, we don't "resist" our decision to change
Type III – That which we do to others.
Change from the other side of the fence
If we're inflicting Type III Change, then it’s perceived by the receiver as Type I Change

26. Examples of Resistance
We tried that before.
It costs too much.
It’s too radical a change.
There’s not enough help.
We’ve never done it before.
There’s not enough time.
Let’s get back to reality.
That’s not our problem.
Why change it? It’s still working OK.
I don’t like that idea.
You’re right, but …
You’re two years ahead of your time
We’re not ready for that.
Sounds OK but impractical.
It’s too late to start.
It might not work.
Not that again!
We did all right without it.
It’s never been tried before.
Let’s shelve it for the time being.
What you are really saying is …
Maybe that would work in your area but not in mine.
It’s impossible.
You’re not here to think.
Can’t teach an old dog new tricks.
Let’s wait until the next generation.
It’s too early to think about it.
We’ve always done it this way.

27. Resistance to change?
Why do people usually resist change?

28. Resistance Leaving comfortable policies, systems, processes, etc.
Impact to credibility or reputation
Concern about career or financial advancement
Heightened / expanded performance requirements
The need to “prove yourself” again in a new context
Impact to job role
NOTE: 20/60/20 rule
20% will get on board immediately
60% will be on the fence and look to the leaders for when and whether to follow – they will get on board eventually
20% will never get on board
AMBIGUITY
ANXIETY
RESISTANCE

29. Price Waterhouse Cooper 2013
People in Change
“ 75% of all change programs that don’t deliver, ignore the importance of human aspects”
Price Waterhouse Cooper 2013

30. Dealing with Resistance to Change
Communication -Details and rationale of the change should be provided to employees
Participation -Establishes a feeling of ownership
Empathy and support -Identify reasons behind resistance
Provide counselling through employee assistance plans

31. How to Deal with Resistance
Acknowledge:
Tell the person your perception of resistance
Be clear, specific, and honest
Be empathetic
Investigate:
Identify main source of resistance
Encourage person to talk about feelings
Listen
Isolate and work individual issues
Reinforce:
Reinforce the positive aspects of change
Explain reasons for change
Use clear arguments
Gain acceptance
Don’t take resistance personally…!

32. Change Forces

33. Force Field Analysis New ideal position Desired State Restraining
The gap between the current and the ideal state creates the sense of urgency
Restraining
Forces
Status
Quo
Driving Forces
Time

35. Forces for Change

36. Lewin’s Change Model Unfreezing Moving Refreezing
Unfreezing: the organisation eliminates rewards for current behaviour
Moving: the organisation initiates new options and explains their rationale
Refreezing: organisational culture and formal reward systems encourage the new behaviours
Unfreezing
Moving
Refreezing

37. Changing Refreezing Lewin’s Change Model Unfreezing
Creates the motivation to change
Benchmarking Data (who do we call/ Cust Satisf?)
Financial data, emerging trends .
Changing
Provides new information, new behavioural models, or new ways of looking at things (eg., leadership programs)
Refreezing
Helps employees integrate the changed behavior or attitude into their normal way of doing things (reward)

38. Change Management Model
John Kotter´s
Change Management Model

39. Consolidating Gains and Producing
Step 1
Establishing a Sense of Urgency
Step 2
Creating a Guiding Coalition
Step 3
Developing the Vision and the Strategy
Step 4
Communicating the Change Vision
Step 5
Empowering People to Effect Change
Step 6
Generating Short-Term Wins
8 Step Process for Managing Organisational Change
Consolidating Gains and Producing
More Change
Step 7
Sustaining New Approaches in the Culture
Step 8

40. Kotter’s Eight Steps for Leading Organisational Change
Description
Unfreeze the organization by creating a compelling reason for why change is needed
Establish a sense of urgency
Create a cross-functional, cross-level group of people with enough power to lead the change
Create the guiding coalition
Create a vision and strategic plan to guide the change process
Develop a vision and strategy
Create and implement a communication strategy that consistently communicates the new vision and strategic plan
Communicate the change-vision

41. Kotter’s Eight Steps for Leading Organisational Change
Description
Eliminate barriers to change, use target elements of change to transform the organization
Empower broad-based action
Plan for and create short-term “wins” or improvements SMALL WINS
Generate short-term wins
The guiding coalition uses credibility from short-terms wins to create change. Additional people are brought into the change process as change cascades throughout the organization
Consolidate gains and produce more change
Reinforce the changes by highlighting connections between new behaviors and processes and organizational success
Anchor new approaches in the culture

42. The Heart of Change

43. Activity
Where does the company you work for (or a firm that you know well) need improvement? Why?
1. Establish a sense of urgency
2. Create the guiding coalition
3. Develop a vision and strategy
4. Communicate the change-vision
5. Empower broad-based action
6. Generate short-term wins
7. Consolidate gains and produce more change
8. Anchor new approaches in the culture

44. Summary
External forces for change are globalisation, workforce diversity, technological change, and managing ethical behavior
Internal forces for change are crisis, changes in employee expectation, and changes in work climate
Changes can be incremental, strategic, or transformational
Resistance can be managed by communicating, participating, and being empathetic and supportive
Lewin’s change model comprises unfreezing, moving, and refreezing
Kotter’s change model comprises eight steps.