Management in Practice
Cyrusxx
Week1Lecture-MIP2021-SIM.pptxDr Carol Bond
Singapore
BUSM4547 – Management in Practice Change Management – Topic One
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Instructions
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Drivers of Change
Globalization
Technology
Innovation
Economy
Operating Environment
Social Factors
(New) leadership
Government Policy
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Organisations
People
Project
Globalisation
Globalisation:
The worldwide interdependence of:
resource flows
product markets
business competition.
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Globalisation.
The national boundaries of world business have largely disappeared. More and more products are designed in one country, their component parts are made in others and the assembly of the final product takes place in still another country.
Globalisation is the worldwide interdependence of resource flows, product markets and business competition that characterises our new economy.
Countries and peoples are increasingly interconnected through the news, in travel and lifestyles, in labour markets and employment patterns, and in business dealings.
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Technology
Computers allow organisations of all types and sizes, locally and internationally, to speed transactions and improve decision-making.
In ‘virtual space’ people in remote locations can hold meetings, access common databases, share information/files, make plans and solve problems together, without having to meet face to face.
Computer literacy must be mastered and continuously developed as a foundation for career success.
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Technology.
We now live in a technology-driven world increasingly dominated by barcodes, automatic tellers, computerised telemarketing campaigns, email, internet resources electronic commerce and more.
Computers allow organisations of all types and sizes, locally and internationally, to speed transactions and improve decision-making.
Technology is an indispensable part of everyday operations — checking inventory, sales transactions, ordering supplies, analysing customer preferences.
In ‘virtual space’ people in remote locations can hold meetings, access common databases, share information and files, make plans and solve problems together, all without having to meet face to face.
The demand for knowledge workers with the skills to use technology to full advantage is increasing. The shift to an information-based economy is dramatically changing employment. Computer literacy must be mastered and continuously developed as a foundation for career success.
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Ethics
Ethical and social responsibility issues involve all aspects of organisations, the behaviour of their members and their impact on society.
Expectations now include:
sustainable development, environmental protection
product safety and fair practices
protection of human rights
in the workplace: equal employment opportunities, equity of compensation, privacy, job security, health and safety, and freedom from sexual harassment.
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Ethics:
Society is becoming strict in its expectation that social institutions conduct their affairs according to high moral standards. Organisations and their managers are under pressure to undertake ethically and socially responsible conduct. Expectations include; sustainable development and protection of the natural environment, protection of consumers through product safety and fair practices, and the protection of human rights. Workplace concerns include equal employment opportunities, equity of compensation and benefits, privacy, job security, occupational health and safety and freedom from sexual harassment.
Ethical and social responsibility issued involve all aspects of organisations, the behaviour of their members and their impact on society.
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Forces and targets for change
Forces of organisational change include the global economy and market competition, local economic conditions, government laws and regulations, technological developments, market trends and social forces.
The many targets for planned change include tasks, people, culture, technology and structure.
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Forces and targets for change
The impetus for organisational change can arise from a variety of external forces. These include the global economy and market competition, local economic conditions, government laws and regulations, technological developments, market trends and social forces, among others.
The many targets for planned change — tasks, people, culture, technology and structure — are highly interrelated.
• Tasks — the nature of work as represented by organisational mission, objectives and strategy, and the job designs for individuals and groups
• People — the attitudes and competencies of the employees and the human resource systems that support them
• Culture — the value system for the organisation as a whole and the norms guiding individual and group behaviour
• Technology — the operations and information technology used to support job designs, arrange workflows and integrate people and machines in systems
• Structure — the configuration of the organisation as a complex system, including its design features and lines of authority and communications.
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Planned and unplanned change
A performance gap is a discrepancy between the desired and actual state of affairs.
Planned change is a direct response to a person’s perception of a performance gap.
Unplanned changes occur spontaneously without the benefit of a change agent’s attention; examples of unplanned changes could include a strike, plant closure or interpersonal conflict.
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Planned change is a direct response to a person’s perception of a performance gap, or a discrepancy between the desired and actual state of affairs.
Performance gaps may represent problems to be resolved or opportunities to be explored. In each case, managers as change agents should be ever alert to performance gaps and take action to initiate planned changes to deal with them.
But unplanned changes are important too. They occur spontaneously or randomly and without the benefit of a change agent’s attention. Unplanned changes may be disruptive, such as a strike that results in a plant closure, or beneficial, such as an interpersonal conflict that results in a new procedure on interdepartmental relations.
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What is change management?
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Change management
Change management - Change management is the process, tools and techniques to manage the people side of change to achieve the required business outcome.
Change management incorporates the organizational tools that can be utilized to help individuals make successful personal transitions resulting in the adoption and realization of change.
Change management focuses on the people
impacted by the change.
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Project management
Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.
Project management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring and controlling, and closing.
Project management focuses on the tasks to achieve project requirements.
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Project Management
Change Management
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Project management and change management support moving an organization from a current state (how things are done today), through a transition state to a desired future state (the new processes, systems, organization structures or job roles defined by the change)
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Current
Transition
Future
Lewin’s Change Model
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Phases of planned change:
Kurt Lewin, a noted psychologist, recommends that any planned-change effort be viewed as a three-phase process.
Lewin’s three phases of planned change are:
unfreezing — preparing a system for change
changing — making actual changes in the system
refreezing — stabilising the system after change.
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Phases of planned change
Unfreezing phase: a situation is prepared for change, and felt needs for change are developed.
Changing phase: change is implemented. Managers initiate changes in tasks, people, culture, technology and structure.
Refreezing phase: change is stabilised and conditions for its long-term continuity are created.
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Unfreezing
Planned change has little chance for long-term success unless people are open to doing things differently. Unfreezing is the stage in which a situation is prepared for change, and felt needs for change are developed. It can be facilitated in several ways: through environmental pressures for change, declining performance, the recognition that problems or opportunities exist, and through the observation of behavioural models that display alternative approaches.
Conflict can be an important unfreezing force in organisations. It often helps people break old habits and recognise alternative ways of thinking about or doing things.
Changing
In the changing phase, something new takes place in a system, and change is actually implemented. This is the point at which managers initiate changes in such organisational targets as tasks, people, culture, technology and structure. Ideally, all change is done in response to a good diagnosis of a problem and a careful examination of alternatives.
Refreezing
The final stage in the planned-change process is refreezing. Here, the manager is concerned about stabilising the change and creating the conditions for its long-term continuity. Refreezing is accomplished by appropriate rewards for performance, positive reinforcement and necessary resource support. It is also important to evaluate results carefully, provide feedback to the people involved, and make any required modifications in the original change. When refreezing is done poorly, changes are too easily forgotten or abandoned with the passage of time. When it is done well, change can be more long-lasting.
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Kotter’s Eight Steps of Change
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The eight steps in the model include:
1. Create a sense of urgency.
2. Create a core coalition.
3. Develop and form a strategic
vision.
4. Communicate and share vision
plans.
5. Empowering employees to act
on the vision.
6. Generate short-term wins.
7. Consolidate gains and produce
more change.
8. Initiate and set new changes.
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Kotter emphasises personal connection
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Change Management Framework
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The Prosci® ADKAR® model
The Prosci® ADKAR® model, based on research of more than 2600 companies over 14 years, has five stages that represent the five milestones an individual must achieve in order to change successfully:
awareness of the need for change
desire to support the change
knowledge of how to change
ability to demonstrate new skills and behaviours
reinforcement to make the change stick.
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Critical considerations For each of the five Prosci® ADKAR® model stages
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Prosci-ADKAR model of implementation (adapted from Steyn, And Van der, 2013) https://www.researchgate.net/figure/Prosci-ADKAR-model-of-implementation-adapted-from-Steyn-And-Van-der-2013_fig1_286048486
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The ADKAR model’s advantage is the relatively increased focus of employee and project team member acceptance of change. The process starts and ends with them as the forefront of change, so this characteristic is extremely important in choosing a CM model. The disadvantage of using this model is that since it focuses primarily on the people side of the change, it is better suited for project teams and environments, as opposed to largescale organizations with complex processes.
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Final Thoughts
Change will only be successful if communicated and accepted by employees or project team members.
It is also critical that an organization or project team should be able to manage CM effectively with appropriate support,
Next time … we will undertake an organisational analysis of our Partner – Future Fuels CRC.
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References
Galli, J (2018). Change Management Models: A Comparative Analysis and Concerns, IEEE Engineering Management Review, 6(3): 124- 132.
Project Management Institute (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 6e. (ISBN-13: 978- 1628251845)
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