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

2. 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.

3. 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.

4. 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

5. 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.

6. 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.

7. 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

8. 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.

9. 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.

10. 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