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NAME: NEELAM ASWAL

ROLL NUMBER: 521131210

LEARNING CENTER: 02882

SEMESTER: 4th

SUBJECT NAME: Change Management

MODULE NO. : set -1

DATE OF SUBMISSION

AT THE LEARNING CENTRE: 10th dec 2012

FACULTY SIGNATURE:

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Master of Business Administration- MBA Semester 4

MU0018 Change Management(Book ID: B1339)

Assignment Set- 1

Q1. How do change managers recognize

resistance of employees to change?

Ans.

It is important to be able to spot the resistance to change when it occurs rather than getsurprised when the change mysteriously fails. Identifying the same will help you torespond appropriately to it. This is one of the biggest challenges faced by the changemanagers. If you can catch the resistance early, it will then give you a chance to respond toit before it takes hold, hence, effectively nipping it in the bud. Let us first look into some ofthe early signs of resistance.These can be in the form of:GossipWhen a change is announced, the tom-toms will start beating loudly and the grapevine willbear fruits of much and varied opinion. Keep your ear to the ground so as to know what isbeing said around the coffee points. Listen particularly for declarations of intent andattempts to organise resistance.Grumbling and complaints are natural ways of airing discomfort, so you should not tryto squash it as this will anyway lead you to failure. The biggest danger happens when itis allowed to ferment in an information vacuum.Respond to the gossip by opening it up, show that you are listening to the concerns andthat are taking them seriously. Providing lots of valid information will help to fill thevacuum.TestingJust as a high school class tests a teacher's ability to maintain discipline, so will somebrave souls test out what would happen when they resist the change. An example, theresisters may not turn up to a meeting or may openly challenge a decision.How you deal with such early resistance has a significant effect on what happens next.For example, you can shout at them and hurt their sentiments, or you can take an adultposition, describe what they have done and assertively question their motives.Resistance to change can occur in two ways, namely:

Individual actionIndividuals, may resist, however, this is generally limited to the extent of their personalpower. For those with a lower power, this may include passive refusals and covert action.For those with more power, the resistance may include open challenge and criticism.An individual action must be handled individually. It should be started with those whopossess a greater power and then the message gets automatically conveyed to those below.An example of dealing with an individual who is resisting change: Disciplining a seniorexecutive can send a strong signal to the other resistors.

Collective action

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People generally do not bother of organising unless and until they have serious issues withthe change. This gives rise to what is known as organised resistance. Organised resistanceis usually a sign of a serious problem. When these people find a common voice in theorganised resistance, then their words and actions could create a significant threat to thechange, even though they might be individually less powerful.

Care should be taken while managing the collectives. It should be done by negotiating with

their leaders rather than dealing with a myriad of smaller fires. You may be needed tomake some concessions, but you can see to it that at least at the end of the negotiation youshould be able to rescue some key elements of the change. You can also use the 'divide andconquer' approach, by striking deals with the individual key players; although this must bedone carefully as it can cause a serious backlash.An example of a collective action against resistance to change: Trade Union.Resistance need not always be out in the open, in most cases it often starts out in a moreunderhand, covert way. Thus, we can conclude that resistance to change is basicallyexpressed in two ways. These include:Covert resistanceCovert resistance is the deliberate form of resistance to change, but done in a manner suchthat it allows the perpetrators to seem as though they are not resisting.Covert resistance should be handled by showing that you know what is happening andinvestigations should be so designed so as to identify the people responsible.When the resistance is covert in nature, you may also be required to resort tocovert methods to identify the source and hence take appropriate action.An example of covert resistance being expressed can be through the sabotage of variouskinds.Overt resistanceOvert resistance does not try to hide, as it is the result of either of someone comfortablewith their power, or someone for whom covert acts are against their values, or

someone who may be desperate.Deal with the overt resistance by first seeking to respond openly and authentically. If theyare blindly resisting, then you will be left with no alternative but to defend, for example byisolating and disciplining the culprits.Although overt active resistance is potentially damaging, it is at least visible and there isthe option of using formal disciplinary actions.An example of overt resistance being expressed can be in the form of an open argumentsuch as refusal or attack.Another aspect of the overt resistance is that it does not necessarily need to takepositive action as in some cases it can be passive.Overt resistance can be expressed through two types of actions. They are:Passive resistancePassive resistance occurs when people do not take any specific action. Their main toolwill be to refuse to collaborate with the change. They may agree and then do nothing tofulfil their commitments. This could become very difficult to address, as the resisterswould have particularly not done anything wrong.One way to address this is by getting the public commitment to an action, and by followingit up publicly if required. This will ensure that they complete the action. This processshould be repeated until they are either bought in or they give in.For example, during meetings, they may sit quietly and appear to agree with the change.

Active resistances

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Active resistance occurs when people take specific and deliberate action to resistthe change.It may be made overt, with public statements and acts of resistance, or it may bemade covert, such as organising others to create an underground resistancemovement. Thus, we have seen the different ways of recognising resistance.

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Q2-Explain any two Process

based change models.

Ans.

Process based change models focus on the actual steps as, how of organisational change

process. All the models in this category deal with the sequences of steps that are used to bring

about changes in an organisation and interventions related to it.Some of the process based models

are: oLewins Model of Change.

o Planning Model.

o Model of the Change ManagementProcess. o Integrative Model for PlannedChange.

o Scheins Model of Change.

o Action Research Model.a)

Lewins model of change

This is one of the early models of planned change. It states that organisational change moves

from one static state through a progressional shift to another static state. In this model,

change affects three levels-individual level, structure and systems level, organisational

climate. This model consists of the following three steps to provide a basis for change at all

the levels in the organisation:

1.Unfreeze: This step involves creating the right situation for the change to occur. By refusingchange, people connect to a sense of identity to their environment. In this step, the alternatives

though are beneficial, will initially cause discomfort. The challenge here is to move people from

this 'frozen' state to 'unfrozen' state.

2.Changing/transition: This transition is considered as a journey at this level and at thepsychological level it is considered a period of confusion. At this stage, people will be aware thatthe old ways will be challenged, but there wont be a clear understanding of the new ways which

will replace them. As roles change, a reduced state of efficiency is created, where goals are

significantly lowered. The final goal of this stage is to get people to the 'unfrozen' state and

keep them there.

3.Refreeze: The goal here is to achieve refreeze, re-establish stability and comfort level ofpeople. It takes people from low productivity in the transitional stage to a productive state.

UNFREEZE

REFREEZE TRANSITION /CHANGE

b) Planning model

This model was initially proposed by [5]Lippit et al. (1958) but later modified by Kolb and

Frohman (1970). This model proposes seven-steps for change. This plan states that there should

be free sharing of information between the organisation and the change agent. This information

must be further translated into action.

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This model goes through series of steps. In the first step, organisation and change agents

together explore the need for and the areas that require change. They enter into it. This will be

followed by diagnosing of specific goals towards improvement. Changes cannot be made

without handling resistance so reasons for resistance will be identified and worked out and

then planning will be done for specific improvement. This plan will be put into action which is

next step and followed by evaluation and termination of the system or to begin another.

Model of the change management process

Galpin (1996) proposed this model and states that a successful organisational change effort

should target two levels-the strategic level and the grassroots level. Strategic level refers to up-

front, initial effort involving executives, senior managers, few employees, and consultants who

provide an outside view. Grassroots level drives changes deeply and stresses on

implementation at the local levels.

This model involves nine stages:

1.Establishing the need for change.2.Developing a vision of change.3.Diagnosing the current situation.4.Generating change recommendations.5.Detailing recommendations.6.Testing of pilot.7.Preparing recommendations for roll out.8.Rolling out changes.9.Measuring, reinforcing, and refining changes.All these stages showcase creating and implementation of changes in the organisation.

Integrative model for planned change

Bullock and Batten (1985) proposed this model to describe both temporal states and change

processes involved in change. It is based on the principle that organisation exist in differentstates at different times. This model involves four

Exploration Phase

Planning Phase

Action Phase

Integration Phase

Scheins model of change

Schein (1987) extended Lewins basic model and included newer concepts. This model has

been explained next:

Unfreezing: According to Schein, unfreezing is a process for creating enthusiasm and readiness

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for change.

Cognitive restructuring/ redefinition: It is a process by which an enthusiastic learner can

learn something new that is related to his thought processes, feelings, values, and

attitudes. Defensive identification with a role model: When a learner is motivated to

change, that person

realises that a concept may be interpreted in different ways than ones own. So one can adopt

new perspective that facilitates change. A very good example for this is brainwashing.

Action research model

This model is proposed by [9]Cummings and Huse (1989). It is assumed that planned change

is a cyclical process. This model proposes that organisations need to undertake research

initially to have adequate information that guides in their future action.

This model involves eight steps and they are as follows:

1.Identifying the problem.2.Consulting an expert.3.Gathering data and diagnosing at preliminary level.4.Collecting feedback.5.Diagnosing the problem jointly.6.Planning of action jointly.7.Action.8.Gathering of data after action.Scheins model of change

Schein (1987) extended Lewins basic model and included newer concepts. This model hasbeen explained next:

Unfreezing: According to Schein, unfreezing is a process for creating enthusiasm and readiness

for change.

Cognitive restructuring/ redefinition: It is a process by which an enthusiastic learner can

learn something new that is related to his thought processes, feelings, values, and

attitudes. Defensive identification with a role model: When a learner is motivated to

change, that person

realises that a concept may be interpreted in different ways than ones own. So one can adopt

new perspective that facilitates change. A very good example for this is brainwashing.

Action research model

This model is proposed by [9]Cummings and Huse (1989). It is assumed that planned change

is a cyclical process. This model proposes that organisations need to undertake research

initially to have adequate information that guides in their future action.

This model involves eight steps and they are as follows:

1 Identifying the problem.2 Consulting an expert.

3 Gathering data and diagnosing at preliminary level.

4 Collecting feedback.

5 Diagnosing the problem jointly.

6 Planning of action jointly.

7 Action.

8 Gathering of data after action.

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Q3. Describe in detail transformation through mcKinseys plan.

Ans.

The McKinseys Plan gives the ten ways of transformation for an organisation.

Organise mainly the processes notthe task.

Minimise the subdivision ofprocesses.

Give in charge of the change processto the senior persons.

Link the objectives to the customersatisfaction.

Focus mainly on the teams ratherthan the individuals.

Focus on combining both themanagerial and non managerial

activities as much as possible.

Focus more on the development ofcompetencies among all the

individuals.

Inform and train the people withoutthe delay.

Increase the supplier and customercontact with all the individuals in the

organisation.

Reward the skill development andteam performance rather than the

individual performance alone.

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Q4-What are the challenges that managers face in

implementing successful change?

Ans

There are many challenges that have to be addressed for implementing the change. It is humantendency to resist the changes since the change require learning new skills when we are very

much comfortable with the old rules.There are many challenges that have to be faced by the organisation that have to beimplemented by the organisation. They are:There is more competition from other countries in the market of today. In this situation we have tolook with our organisation whether the organisation is able to cope with the market afterimplementing the change.There will be some socio, economic problems like the resource allocations and the impact of theresource allocation like depletion of resources on the environment.There are some changes may effect the life style of the people. There may be extra effort that isneeded in the case of change process.There is a need to learn about the learning of new skills in the case of implementation of changethat has to be carried out.There are many theories that explain why the people resist the change even when there is anecessity for the change. The resistance to change is the major challenge that is faced in all theorganisations of todays world,Resistance to change can be averted via some factors. They are:Commitment: From the top level authorities in the organisation to the low level authorities, eachemployee has to commit for the plan. This begins at the top so that it shows the good leadership.Achange mandate: it is necessary to tell the employee in a very convincing way that the change is necessary and it is not a choice.Input: Any employee who is going to undergo the change must be given an opportunity to raisetheir queries in the respected way.

Accountability: Every individual those who are involved in the change process are responsible for implementing their own individual change activity. If they do not meet that responsibility thenthey may have to face some consequences.Rewards and celebrations: The successful implementation in the organisation should be wellacknowledged. The organisation as a whole should honour the successful implementation.Evaluation: The Examination of the implementation is carried at the regular intervals for the

success of the organisation.

Whenever a change takes place in an organisation, the personal compact, that is, the relationshipbetween the employers and employees gets affected.The personal compacts are of three types. They are:The formal compact: This involves the formal basic tasks and performance requirements asdefined by the documents of the company like job descriptions, employment contracts andperformance agreements.The psychological compact: This involves the trust between the employee and the employer.

Thisis needed for the better achievement of the individual as well as the company's objectives.

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The social compact: This involves the employee's opinion about the culture of an organisation andthe success of that organisation.Change usually destabilises the relationship between the employee and the employer, since theywill not be comfortable with these changes. These will cause the resistance to change. It is notsimply the new idea that causes the resistance to change.As soon as the change is announced in the organisation, many employees will adapt some tactics toprotect themselves.The position of the employees in the organisation will be:

Argumentative: There are some employees who aggressively challenge against the change which isnecessary. This is the time waster and it opposes the critical objectives that have to be met. Theemployee must agree that every idea is worth of consideration. We need to ask some suggestionsfrom the employees those who challenge the change.

Avoidance: Some managers and the members of the leadership team will simply avoid the changewithout refusing the change process. This is done by showing some kind of avoidance like notattending the meetings, denying the resources, or withholding the feedback. Leading the change isdifficult in this as it requires the time and money for the change process management.Distraction: Many employees in the organisation show this type of attitude by showing somediversions during the change process that definitely reduce the effort. A distracted individual showsthis by not involving physically as well as mentally in the change process.Once the resistances are identified, then we can use several strategies that are used to overcomethe resistance to changes. All the employees must be given the same respect, since every individualwill have their own opinion for the change. It is advisable to seek the agreement in all the stages ofchange process. When there are many on the board in the organisation then it is good to ask andaddress the few holdouts which are helpful to drive the goal. Finally the resistance is overcome by

making sure that the change is communicated in the proper way that is in the multi dimensionalformat.Adult learning theory supports the need to propagate the messages that are seen, heard and felt.

Q5- What are the requirements for making

organisational change?

Cummings and Worley (Organization Development and Change, 1995) describe a comprehensive,five-phase, general process for managing change, including: motivating change, creating vision, developing political support, managing the transition and sustaining momentum.That process seems suitable for organizing and describing general guidelines about managing change.

Whatever model you choose to use when guiding organizational change, that model should include the

priorities and areas of emphasis described in the following five phases of change. The collaborative

consulting model described integrates highlights from all of the five phases.Motivating ChangeThis phase includes creating a readiness for change in your client organization and developing

approaches to overcome resistance to change. General guidelines for managing this phase includeenlightening members of the organization about the need for change, expressing the current status

of the organization and where it needs to be in the future, and developing realistic approaches about

how change might be accomplished. Next, organization leaders need to recognize that people in the

organization are likely to resist making major changes for a variety of reasons, including fear of the

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unknown, inadequacy to deal with the change and whether the change will result in an adverse

effect on their jobs. People need to feel that their concerns are being heard. Leaders must widelycommunicate the need for the change and how the change can be accomplished successfully.

Leaders must listen to the employees people need to feel that the approach to change will includetheir strong input and ongoing involvement.Creating VisionLeaders in the organization must articulate a clear vision that describes what the change effort isstriving to accomplish. Ideally, people in the organization have strong input to the creation of the

vision and how it can be achieved. The vision should clearly depict how the achievement of thevision will improve the organization. It is critically important that people believe that the vision is

relevant and realistic. Research indicates that cynicism is increasing in organizations in regard to

change efforts. People do not want to hear the need for the latest silver bullet that will completelyturn the organization around and make things better for everyone all the time. They want to feel

respected enough by leaders to be involved and to work toward a vision that is realistic, yet

promising in the long run.Often the vision is described in terms of overall outcomes (or changes) to be achieved by all or parts of

the organization, including associated goals and objectives to achieve the outcomes. Sometimes, an

overall purpose, or mission, is associated with the effort to achieve the vision, as well.Developing Political SupportThis phase of change management is often overlooked, yet it is the phase that often stops successful

change from occurring. Politics in organizations is about power. Power is important amongmembers of the organization when striving for the resources and influence necessary tosuccessfully carry out their jobs. Power is also important when striving to maintain jobs and jobsecurity. Power usually comes from credibility, whether from strong expertise or integrity. Poweralso comes from the authority of ones position in the organization.Some people have a strong negative reaction when talking about power because power often isassociated with negative applications, for example, manipulation, abuse or harassment. However,

Adapted from Field Guide to Consulting and Organizational Development power, like conflict,exists in all human interactions and is not always bad. It is how power andconflict are used and managed that determine how power and conflict should be perceived.Matters of power and politics are critically important to recognize and manage duringorganizational change activities. Change often means shifts in power across management levels,functions and groups. To be successful, the change effort must recruit the support of all key powerplayers, for example, senior management, subject matter experts and others who are recognizedas having strong expertise and integrity.A strong mechanism for ensuring alignment of power with the change effort is to develop a networkof power-players who interact and count on each other to support and guide the change effort.Means to manage power can include ensuring that all power-players are involved in recognizing theneed for change, developing the vision and methods to achieve the vision, and organization-widecommunication about the status of change. Any recommendations or concerns expressed by those inpower must be promptly recognized and worked through.Managing Transition

This phase occurs when the organization works to make the actual transition from the current stateto the future state. In consultations, this phase usually is called implementation of the action plans.The plans can include a wide variety of interventions, or activities designed to make a change inthe organization, for example, creating and/or modifying major structures and processes in theorganization. These changes might require ongoing coaching, training and enforcement of newpolicies and procedures. In addition, means of effective change management must continue,including strong, clear, ongoing communication about the need for the change, status of the change,

and solicitation of organization members continuing input to the change effort.Ideally, the various actions are integrated into one overall Change Management Plan that includesspecific objectives, or milestones, that must be accomplished by various deadlines, along withresponsibilities for achieving each objective. Rarely are these plans implemented exactly as planned.

Thus, as important as developing the plan, is making the many ongoing adjustments to the plan with

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key members of the organization, while keeping other members up-to-date about the changes andthe reasons for them.

Sustaining MomentumOften, the most difficult phase in managing change is this phase when leaders work to sustain themomentum of the implementation and adjustment of plans. Change efforts can encounter a wide

variety of obstacles, for example, strong resistance from members of the organization, sudden

departure of a key leader in the organization, or a dramatic reduction in sales. Strong, visible,ongoing support from top leadership is critically important to show overall credibility and

accountabilities in the change effort. Those participating in the change effort often require ongoing

support, often in the form of provision of resources, along with training and coaching. The role of

support cannot be minimized despite its importance during organizational change, the role ofsupport is often forgotten. At this point in a consulting project, it may be wise for you to ensure you

have ongoing support (often from other consultants) that can provide you ongoing objectivity,

affirmation, provision of resources and other forms of support. Employee performance management

systems play a critical role in this phase of organizational change, including in setting goals, sharingfeedback about accomplishment of goals, rewarding behaviors that successfully achieve goals and

accomplish change, and addressing performance issues.

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Q6. Explain the Greiner's Growth Model of

organizational growth in detail. ?

Ans.

Greiner's Growth Model describes various phases that organisations go through asthey grow. All kinds of organisations from design shops to manufacturers, construction

companies to professional service firms experience these phases. Each growth phase is

made up of a period of stable growth that is followed by a "crisis" when there is a need

for major organisational change if the company wants to continue growing.

Crisis here means positive turning point or transition. Originally, Larry E. Greiner

proposed this model in 1972 with five phases of growth. Later on he added a sixth

phase [12](Harvard Business Review, May 1998). All the six growth phases are

described below:

Phase 1: Growth through creativity

This phase is characterised by the

following: Technically or

entrepreneurially oriented founders.Frequent and informal communication.

Long hours and modest

salaries. Reactive to

marketplace feedback.

Here, the entrepreneurs who have founded the firm will be busy in creating products

and opening up markets. There wont be many staff, so informal communication is

allowed. Rewards for long hours are through profit share or stock options. However,

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as more staffs join, production expands and capital is provided then there will be a

need for formal communication.

The leadership crisis

As the company grows, new systems will be in demand such as manufacturing,

accounting, personnel, etc. The founders usually are not experts who manage this new

set of systems and cant motivate new employees. This is called Leadership Crisis andphase one ends with this crisis. At this

time the company might bring the management that can manage in this new

environment or may struggle as founders and try to maintain the old guard.

Phase 2: Growth through direction

This phase is characterised by the

following: Functional organisation

structure. Accounting systems.

Formal and impersonal

communication. Concentrate on

directing the new, top managers.Growth continues in an environment that has formal communications, budgets and

that focus on separate activities like marketing and production. As a financial reward,

incentive schemes replace stock.

However, the situation arises where the products and processes become abundant

and there wont be enough hours in the day for one person to manage them all. It is

not possible for that one person to know much about all these products or services as

that of people in the lower hierarchy.

Autonomy crisis

As the company grows further, centralised management becomes inappropriate.

Lower level managers gain better knowledge of the marketplace but wont be able to

react quickly. The second revolution comes from a demand for greater independence.

By this, the solution to the first phase becomes the crisis for the second phase. The

solution to this crisis is to push decision-making responsibility to lower levels.

Managers who fail to do this will see their companies being passed by quicker

organisations.

Phase 3: Growth through delegation

This phase is characterised by the following:

More responsibility in the place and field marketing

managers Use of profit sharing and bonuses for

incentivesManaging of exclusion by top

managers Activating management

through acquisitions Infrequent

communication from the top

With middle-level managers given freedom to react fast to opportunities for new

products in markets, the organisation continues to grow. The top level management

just monitors and deals with the big issues like looking at merger or acquisition

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opportunities. Many businesses struggle at this stage because the managers whose

directive approach solved the problems at the end of Phase one finds it difficult to give

the responsibility for middle managers. Even then the middle-level managers struggle

with their new roles as leaders.

Control crisis

Field operations will be broadened and inefficiencies come into the system. Topmanagement loses power over planning, money, technology, and manpower. Narrow-

mindedness in field operations symbolise this new revolution. Management must

solve it by adopting and implementing special coordination techniques.

Phase 4: Growth through coordination and monitoring

This phase is characterised by the following:

Merging of decentralised units into product groups.

Establishing and reviewing formal planning procedures.

Hiring staff at headquarters to initiate company-wide programs.

Reviewing and distributing capital expenditures across the organisation.

Measuring field operations through the criteria of Return-

on-Capital. Centralising technical functions such as data

processing.

Using stock options and profit sharing to encourage identity with the firm.

Growth continues with the previously isolated business units re-organised into

product groups or service practices. Investment finance is owed centrally and

managed according to Return on Investment (ROI) and not just profits.

Red tape crisis

A lack of confidence starts between the line and the staff, and between theheadquarters and the field. Systems begin to survive their usefulness and field

managers begin to dislike formalised control by staff managers who do not

understand the local markets. Staff personnel dislike the uncooperative line

managers. The organisation becomes unmanageable and everyone starts disliking

the bureaucratic system that has evolved. A new crisis will come into being.

Phase 5: Growth through collaboration

This phase is characterised by the

following: Focusing on solving problems

through team action. Forming teams for

various departments.Reducing and reassigning headquarters staff to teams that

consult field units. Developing a matrix organisation structure.

Simplifying and combining formal

systems. Holding conferences for key

managers frequently. Utilising

educational programs to train

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managers.

Using real-time information systems in

decision making. Equipping with economic

rewards for team performance. Encouraging

experiments in new practices.

Growth crisisHere, Greiner guesses about the solution to this new crisis that comes from

employees who turn saturated emotionally. They become exhausted both

emotionally and physically by the intensity of teamwork and the heavy pressure for

innovative solutions. He illustrates this with a European company that created a

structure that allowed employees to include a reflective period in their daily activities.

Phase 6: Growth through extra-organisational solutions

Greiner's added this sixth phase recently and it suggests that growth may continue

through merger, outsourcing, networks and other solutions involving other companies.

Growth rates vary between and even within phases. The duration of each phase

depends totally on the rate of growth of the market in which the organisation

operates. The longer a phase lasts, the harder it will be to implement a transition.

This is one of the useful models but not all businesses go through these crises in this order.