1. Copyright © 2002 by Harcourt, Inc. All rights reserved. Topic 26 : The Management of Change By Zhu Wenzhong

2. Copyright © 2002 by Harcourt, Inc. All rights reserved. Explain the importance of managing change for businesses Explain the importance of managing change for businesses State the 4 general reasons for resistance to change State the 4 general reasons for resistance to change State the 3 specific reasons for resistance to change State the 3 specific reasons for resistance to change Explain the 3 basic stages of managing resistance to change Explain the 3 basic stages of managing resistance to change State the specific approaches to managing resistance to change State the specific approaches to managing resistance to change LEARNING GOALS

3. Copyright © 2002 by Harcourt, Inc. All rights reserved. The importance of managing change for today’s businesses Businesses are now operating in a rapidly changing markets and conditions. Businesses are now operating in a rapidly changing markets and conditions. Pressure from competitors and various external changes is forcing businesses to respond to change and make changes to their existing operations. Pressure from competitors and various external changes is forcing businesses to respond to change and make changes to their existing operations. © PhotoDisc

4. Copyright © 2002 by Harcourt, Inc. All rights reserved. Resistance to change in the business Figure: Reasons for resistance to change © PhotoDisc Inertia, timing, surprise, peer pressure Resistance to change Self-interest, misunderstanding,different assessment General resistance Specific resistance

5. Copyright © 2002 by Harcourt, Inc. All rights reserved. General reasons to resistance to change The tendency to remain unchanged. The old way of doing things are comfortable and easy, so people do not want to change or try something new. The tendency to remain unchanged. The old way of doing things are comfortable and easy, so people do not want to change or try something new. Inertia

6. Copyright © 2002 by Harcourt, Inc. All rights reserved. General reasons to resistance to change Poor timing may cause resistance. When employees and managers are in bad relations, the time to introduce change is not fit. Poor timing may cause resistance. When employees and managers are in bad relations, the time to introduce change is not fit. Inertia Timing

7. Copyright © 2002 by Harcourt, Inc. All rights reserved. Resistance may occur when the change is unexpected or sudden for employees.. Inertia Timing Surprise © PhotoDisc General reasons to resistance to change

8. Copyright © 2002 by Harcourt, Inc. All rights reserved. Individuals may resist a change when the team resists, even if the individual does not strongly oppose the change. Inertia Timing Surprise Peer pressure © PhotoDisc General reasons to resistance to change

9. Copyright © 2002 by Harcourt, Inc. All rights reserved. Specific reasons for resistance to change Individuals may resist a change if they feel it will cause them to lose something. Individuals may resist a change if they feel it will cause them to lose something. Self-interest

10. Copyright © 2002 by Harcourt, Inc. All rights reserved. Specific reasons for resistance to change Employees may resist a change because they do not fully understand its purpose or benefits even if it will benefit them. Employees may resist a change because they do not fully understand its purpose or benefits even if it will benefit them. Self-interest Misunderstanding

11. Copyright © 2002 by Harcourt, Inc. All rights reserved. Employees and management may see the change and its advantages in a different way. Management may the change as increased efficiency while employees may see only the costs of it. Self-interest Misunderstanding Different assessment © PhotoDisc Specific reasons to resistance to change

12. Copyright © 2002 by Harcourt, Inc. All rights reserved. Managing resistance to change Basic stages of implementing change Basic stages of implementing change Specific approaches to managing resistance to change Specific approaches to managing resistance to change © PhotoDisc

13. Copyright © 2002 by Harcourt, Inc. All rights reserved. Basic stages of implementing change Figure: Figure: UnfreezingMoving Refreezing Stage oneStage twoStage three

14. Copyright © 2002 by Harcourt, Inc. All rights reserved. Basic stages of implementing change Unfreezing stage 解冻 Unfreezing stage 解冻 Breaking from the old ways of doing things, unfreezing the old organizational culture by communication Breaking from the old ways of doing things, unfreezing the old organizational culture by communication Moving stage 变动 Moving stage 变动 Instituting or establishing the change, establishing a vision for change direction, and directing people to the change Instituting or establishing the change, establishing a vision for change direction, and directing people to the change Refreezing stage 再冻结 Refreezing stage 再冻结 Reinforcing and supporting the new ways, strengthening and supporting the change by providing new control and rewarding systems Reinforcing and supporting the new ways, strengthening and supporting the change by providing new control and rewarding systems © PhotoDisc

15. Copyright © 2002 by Harcourt, Inc. All rights reserved. Specific approaches to managing resistance to change Education and communication Education and communication Participation and involvement Participation and involvement Facilitation and support Facilitation and support Negotiation and rewards Negotiation and rewards Forcing 强迫 and coercion 强制， Forcing 强迫 and coercion 强制， 威压 © PhotoDisc

16. Copyright © 2002 by Harcourt, Inc. All rights reserved. Question for critical thinking What are the advantages and disadvantages of each of the specific approaches for managing resistance to change? What are the advantages and disadvantages of each of the specific approaches for managing resistance to change? © PhotoDisc