Documente Academic
Documente Profesional
Documente Cultură
Manageme
nt
Change
Management
Report
Preface
With the name of ALLAH, the most merciful. As
we know that the companies have today involved in
globalization, the environment affecting the
companies is huge. For certain purposes the
uncertainty has increased, thus causing different
situations for the companies to deal with. The need
for change comes here.
From a local shop to a multi-billion revenue
generator company, the change is equally welcome.
The report that we have made can show some of the
ways, how to manage the change. The change
management is all about managing the change in a
way so as not to offend the parties involved.
The report we made shows what types of
changes are there, some problems that arise during
the course of changing, the best ways of changing &
how to cope with the resistances. This report can
surely help you getting the idea of change and
change management in a better way.
Acknowledgements
It was a gratifying experience for all of us,
the group members. We have been working on
this report over the period of a month, from the
collection of data, to verification of data, to
study it together, to get the extractions etc.
Among our group members we thank
Rizwan for providing the data & Zulfiqar for
shaping it in report form.
Also specially thanks to Sir Qazi Waheed for
giving us the guidelines whenever we needed.
“There is at least one point in the history of
any company when you have to change
dramatically to rise to the next performance
level. Miss the moment and you start to
decline.”
Andy Grove
CEO Intel
Table of contents
Overview
How each of these activities is handled depends upon the organization and
managers’ styles.
Forces For Change
Forces for organizational change exist both in the external environment and
within the organization.
Environmental Forces
External forces originate in all environmental sectors, including customers, competitors,
technology, economic forces, and the international arena.
Internal Forces
Internal forces for change arise from internal activities and decisions. If top managers
select a goal of rapid company growth, internal actions will have to be changed to meet
that growth.
Initiating change
After the need for change is perceived, the next part of the change process is
initiating change, a truly critical aspect of change management. This is where the ideas
are developed.
Search
Search is the process of learning about current developments inside or outside the
organization that can be used to meet the perceived need for change. Search typically
uncovers existing knowledge that can be applied or adopted within the organization.
Managers talk to friends and colleagues, read professional reports, or hire consultants to
learn about ideas used elsewhere.
Creativity
Creativity is the development of novel solutions to the perceived problems.
Creative individuals develop idea that can be adopted by the organization.
Each of us has the capacity to be creative. Creative people are often known for
originality, open-mindedness, curiosity, a focused approach to problem solving,
persistence, a relaxed and playful attitude, and receptive to new ideas.
Creativity can be designed into organizations. Companies or departments within
companies can be organized to be creative and initiate changes.
Implementing Change
Creative culture, idea champions and new-venture teams are ways to facilitate the
initiation of new ideas. The other step to be managed in the change process is
implementation. A new, idea will not benefit the organization until it is in place and being
fully utilized.
One frustration for managers is that employees often seem to resist change for no
apparent reason. To effectively manage the implementation process, managers should be
aware of the reason for employee resistance and be prepared to use. Techniques for
obtaining employee cooperation are:
Resistance To Change
Idea champion often discover that other employees are unenthusiastic about their
new idea. Members of a new-venture group may be surprised when managers in the
regular organization do not support or approve their innovations. Several reasons for
employee resistance are:
Self-Interest. Employees typically resist a change they believe will take away
something of value. A proposed change in job design, structure, or technology may lead
to a perceived loss of power, prestige, pay, or many company benefits. The fear of
personal loss is perhaps the biggest obstacle to organizational change.
Lack Of Understanding And Trust. Employees often do not understand the intended
purpose of a change or distrust the intentions behind it. If the previous working
relationships with an idea champion have been negative, resistance may occur.
Different Assessment And Goals. Another reason for resistance to change is that
people who will be affected by innovation may asses the situation differently from an
idea champion or new-venture group. Managers in different departments pursue different
goals and an innovation may detract from performance and goal achievement for some
departments.
The reasons for resistance are legitimate in the eyes of employees affected by the
changes. The best procedure for managers is not to ignore resistance but to diagnose the
reasons and design strategies to gain acceptance by users.
The strategies for overcoming resistance to change typically involve two
approaches: the analysis of resistance through the force field technique and the use of
selective implementation tactics to overcome resistance.
Force Field Analysis
It’s the process of determining which forces drive and which resist a proposed
change. To implement a change, management should analyze the change forces. By
selectively removing forces that restrain change, the driving forces will be strong enough
to enable implementation. As restraining forces are reduced or removed, behavior will
shift to incorporate the desired changes.
Implementation Tactics
Communication and Education. Communication and education are used when solid
information about the change is needed by users and others who may resist
implementation. Education is especially important when the change involves new
technical knowledge or users are unfamiliar with the idea.
Coercion. Coercion means that managers use formal power to force employees to
change. Resisters are told to accept the change or lose rewards or even their jobs.
Coercion is necessary in crisis situation when a rapid response is urgent.
Top Management Support. The visible support of top management also helps
overcome resistance to change. Top management support symbolizes to all employees
that the change is important for the organization.
Now that we have explored how the initiation and implementation of change can
be carried out, let us look at the different types of change that take place in organizations.
The types of organization changes are strategy, technology, products, structure,
and culture/ people. Organizations may innovate in one or more areas, depending on
internal and external forces or change. In the rapidly changing toy industry, a
manufacturer has to introduce new products frequently. In a mature, competitive industry,
production technology changes are adopted to improve efficiency.
Structure
Technolog
y Strategy Products
Culture/
People
In the diagram, the arrows connecting the types of change show that a change in
one part may affect other parts of the organization: a new product may require changes in
technology, and a new technology may require new people skills or a new structure.
Technology Changes
A technology change is related to the organization’s production process—how
the organization does its work. Technology changes are designed to make the production
of a product or service more efficient.
How can managers encourage technology change?
The general rule is that technology change is bottom up. The bottom-up approach
means that ideas initiated at lower organization levels and channeled upward for
approval. Lower level technical experts act as idea champions—they invent and
champion technological changes. Employees at lower levels understand the technology
and have the expertise needed to propose changes.
Managers can facilitate the bottom-up approach by designing creative departments. A
loose, flexible, decentralized structure provides employees with the freedom and
opportunity to initiate continuous improvements. A rigid, centralized, standardized
structure stifles technology innovation. Anything managers do to involve the grass roots
of the organization—the people who are experts in their parts of the production process—
will increase technology change.
New-Product Changes
A product change is a change in the organization’s product or service output.
New-product innovations have major implications for an organization, because they often
are an outcome of a new strategy and may define a new market.
The introduction of a new product is difficult, because it not only involves a new
technology but also must meet customers’ needs. Companies that develop new products
usually have the following characteristics:
These findings mean that the ideas for new products typically originate at the
lower levels of the organization just as they do for technology changes.
One approach to new product innovation is called the horizontal linkage model.
In this model people from research, manufacturing and marketing departments meet
frequently in teams and task forces to share ideas and solve problems. Research people
inform marketing of new technical developments to learn whether they will be good to
customers. Marketing people pass customer complaints to research to use in the design of
new products. Manufacturing informs other departments whether a product idea can be
manufactured within costs limits.
This teamwork required for the horizontal linkage model is a major component of
using rapid innovation to beat the competition with speed.
Structural Changes
A structural change is a change in the way in which the organization is designed
and managed. Structural changes involve the hierarchy of authority, goals, structural
characteristics, administrative procedures, and management systems. Almost any change
in how the organization is managed falls under the category of structural change.
Successful structural change is accomplished through a top-down approach,
which is distinct from technology change (bottom up) and new products (horizontal).
Structural change is top down because the expertise for administrative improvements
originates at the middle and upper levels of the organization. The champions for
structural change are middle and top managers. Lower-level technical specialists have
little interest or expertise in administrative procedures. If organization structure causes
negative consequences for lower-level employees, complaints and dissatisfaction alert
managers to a problem. Employee dissatisfaction is an internal force for change. The
need for change is perceived by higher managers, who then take the initiative to propose
and implement it.
The top-down process does not mean that coercion is the best implementation
tactic. Implementation tactics include education, participation, and negotiation with
employees.
Top-down change means that initiation of the idea occurs at upper levels and is
implemented downward. It does not mean that lower-level employees are not educated
about the change or allowed to participate in it.
Culture/People Changes
A culture/people change refers to a change in employees’ values, norms,
attitudes, beliefs, and behavior. Changes in culture and people pertain to how employees
think; these are changes are in mindset rather than technology, structure, or products.
People change pertains to just a few employees, such as when a handful of middle
managers is sent to a training course to improve their leadership skills. Training is the
most frequently used tool for changing the organization’s mindset. A company may offer
training programs to large blocks of employees on subjects such as teamwork, listening
skills, quality circles, and participative management.
Another major approach to changing people and culture is organizational
development.
Organizational Development
Organizational development (OD) is the application of behavioral science
knowledge to improve an organization’s health and effectiveness through its ability to
cope with environmental changes, improve internal relationships, and increase problem-
solving capabilities. Organizational development improves working relationships among
employees.
The following are three types of current problems that OD can help managers
address.
Conflict Management. Conflict can occur at any time and place within a healthy
organization. Organizational development efforts can help solve these kinds of conflicts.
Intergroup Activities. These activities include retreats and workshops to improve the
effectiveness of groups or departments that must work together.
Symbolic Leadership Activities. This approach helps managers to use the techniques for
cultural change, including public statements, ceremonies, and slogans.
OD steps. The theory underlying organizational development proposes three
distinct steps for achieving behavioral and attitudinal change: (1) unfreezing, (2)
changing, and (3) refreezing.
Pakistan
Telecommunication
Company
Limited
Pakistan Telecommunication Company
Limited
As recently as in July 2006, privatization process took
place in Pakistan’s largest telecommunication company
PTCL. The company still is the largest but the growth that
this company has shown is by far larger than in some years
before.
PTCL has partially been privatized, 26% of the PTCL
shares are now with a Dubai based company Etisalat.
Etisalat though not has as significant shares yet it is
controlling the management of the PTCL. Under its
management, PTCL is going efficient and well enough to
remain at the top.
Executive teams that work well together are best positioned for
success. They are aligned and committed to the direction of change,
understand the culture and behaviors the changes intend to introduce,
and can model those changes themselves.
4. Make the formal case. Individuals are inherently rational and will
question to what extent change is needed, whether the company is
headed in the right direction, and whether they want to commit
personally to making change happen. They will look to the leadership
for answers. The articulation of a formal case for change and the
creation of a written vision statement are invaluable opportunities to
create or compel leadership-team alignment.
Above are some of the points that PTCL might not had taken into
consideration otherwise the level of resistance would be surely low.
The communication factor was found in less magnitude, between the
employees and the administration. The incentives given to the
employees were not enough to make them feel heard. The job cuts
were far beyond the limits and still the employees are in fear of losing
the jobs. But the brighter side shows that more customers and
subscribers are heading towards the company, thus making it
profitable.
Executive Summary
References
1
Baekdal, Thomas, (2006). Change Management
Handbook.
2. Technology and immediacy of information (on-line)
available http://www.wikipedia.com
3. Becta (2003) Available
http://www.becta.org.uk/tsas.
4. Daft, Richard L, (1997). Management. Florida:
Dryden Press.
5. Jones, John & Aguirre, DeAnne. (2004). 10
Principles of Change Management: Tools and
techniques to help companies transform quickly.
6. Daft, Richard L, (1997). Management. Florida:
Dryden Press.