Management of Change: The Process of Change

The world within which organisations have to survive is today, more than at any other time, characterised by change. Technology is advancing, customer needs are changing, pressures from government, trade unions and competitors are increasing. Within organisations themselves, the needs and goals of employees are also on the move. No longer can organisations rely on the methods, products and structures of yesterday. the constant need for change, and the effective management of such change poses probably the greatest challenge to organisations that they will ever have to face.

Organisational change, by implication, involves change at group and individual level too. Ultimately, an organisation will not be able to adapt itself successfully to a new situation, unless it can influence the behaviour of its members. Wherever the need for change is recognised within an organisation, and wherever the precise nature of such change is formulated, eventually it will be up to the people-managers' to create the right environment for organisational change. This means that they have a key role to play in the management of change in organisations of the future. All this mean that managers will need to be able to introduce and to manage change and gain the commitment of their teams. They must become `Change masters, helping and guiding the organisation, its management and all who work in it to manage and, indeed, to exploit and triumph over change.'

Change is inevitable. How, therefore, managers should prepare for it and how should you manage it as it happens? To answer these questions, you need:

A clear understanding of the change processes and the factors and forces that produce change

Anticipate the consequences of bringing about planned change and assessment of its impact on the individuals and the organisation.

Consider the difficulties of having change accepted; the resistance shown to new ways.

Ability to manage (plan, implement and maintain) change

The Process of Change

Change occurs in an organisation because of internal and external factors. Changes in the environment which affect the enterprise are often unpredictable. You can try to predict their size and impact and prepare plans to meet them, but, for example, no model of the economy has yet been made that can reliably forecast the rate of inflation for more than 12 months ahead.

Internally, changes may take place in the company's product or service, the technology it uses, the people it employs, and its structure, which includes ownership as well as organisation.

Internal and external factors interact in a complex manner. Corporate planners make lots of noise about analysing external threats and opportunities and internal strengths and weaknesses. But it all boils down to crystal ball gazing in the end. A wise man constantly expects the unexpected.

Organisations and the people in them would like to remain in equilibrium but cannot. Forces acting on them regularly create imbalances which disturb the pattern. This creates a demand for opposing forces to restore equilibrium.

Projects are the very vehicle of change and they are brought about as a part of deliberate planned programmes for development. Projects, during and after implementation disturb the status quo and thus require careful consideration and management. Since people are involved in project cycles of activities and are also affected by their impact, attention should be paid to their role as initiators, implementors, maintainers and resisters to change.

Planned Change

A development programme, a project or even an improvement in the ways things have been carried out in the work organisation involves a three phase process of behaviour modifications.

Unfreezing - disturbing the present position, reducing forces which maintain behaviour in its present form, recognising the need for change so that change can take place (identification, preparation and initiation of change processes).

Movement - Developing new behaviour, attitudes and implementing change (implementation).

Refreezing - Stabilising change at the new level, reinforcement, support and making sure the changed behaviour and attitudes remain.

The Consequences of Change

If not properly managed, change can lower morale, motivation and commitment, and create conditions of conflict within an organisation.

Change can create instability and ambiguity, and replace order and predictability with disharmony and surprise. The corporate culture, can produce solidarity and meaning, and can inspire commitment and productivity. But the culture can actively and forcefully work against an organisation when change becomes necessary.

Some people welcome change as a challenge and because it brings variety to their lives. But most people resist it to a greater or lesser degree, and therefore we must explore why this resistance exists before we can discuss what can be done about it.

Resistance to Change

Change is often resisted despite the potential for positive outcome both at the individual and organisational levels. Resistance to change appears to be a common phenomenon. People are naturally worried about change. Toffler in his book Future Shock observes,

Among many there is an uneasy mood - a suspicion that change is out of control (1970, 27)

Preference for stability

Human beings generally seek stability. The first reaction of most people affected by change is to try and regain their equilibrium.

Habit

People respond to situations in an established and predetermined manner. Habits may serve as a means of comfort and security, and as a guide for easy decision making. In short, once habit has been formed, it often provides comfort, satisfaction and predictability of order and control.

Conformity

Most people like to conform to the customary and expected ways of behaving; they are able to work together because each knows what to expect from the other. If anything diverging from the accepted norm is introduced into the environment it will be disruptive.

Threat to economic interests or prestige

This is perhaps the most obvious source of resistance. People tend to view the change as a threat to their economic interest as well as their status in their organisations. In developing economies, people are vary of change and its consequences. Often, the financial and economic aspects related to change creates insecurity and a threat to ones survival.

When we talk about resistance to change we tend to imply that this is an irrational behavioural tendency. There is a general assumption that management is always rational in changing its direction or modifying its objectives to achieve its goals better, and that operators are stupid, emotional or irrational in not responding in the way they should. But if an individual is going to be worse off explicitly or implicitly in any way when the proposed changes have been made, any resistance is entirely rational in terms of his own best interest. The interests of the organisation and the individual do not always coincide.

Misunderstanding

People may not understand the implications of change (see the case study) and believe that it will cost them much more than they will gain. Such situations often occur when there is a lack of trust between the person initiating the change and the employees.

Different perceptions

Resistance to change also takes place when the expected goals, norms and values of management are in conflict with those of employees. The change is then perceived as a threat to familiar patterns of behaviour. If it is also perceived as a threat to the security, income, status, authority or personal circumstances of an individual it can be regarded with suspicion, fear or even open hostility. These reactions may well occur if people feel in any way that they are going to be worse off, even if their fears are without foundation.

People may assess the situation differently from their managers or those initiating the change and see more costs than benefits resulting from the change, not only for themselves but for their company as well.

Fear of the unknown

Change often happens in conditions of uncertainty and can itself create feelings of uncertainty. Fear of the unknown is likely to happen when the situation creates ambiguities in:

Goals - people not being clear about what they are supposed to achieve

Data - information about the situation and its likely effects is absent, unclear, changing or confused

Roles - lack of clarity about authority and responsibility and how the individual fits into the new set-up

Methods - lack of clarity about the means required to achieve the ends

Criteria - no means of judging whether or not the change has been introduced successfully and the objectives of the change programme have been achieved.

What management in general and individual managers in particular should always remember is that resistance to change is a natural, not an unnatural, process. Change is a threat to familiar patterns of behaviour as well as to security, status and financial rewards.

Managing change

Change management is one of the biggest challenges that executives have to face.

Nowadays successful management of change is the responsibility of managers. New ideas and innovations should not be perceived as threats by members of the organisation. The effort made by management to maintain the balance of the socio-technical system will influence peoples attitude, behaviour of the individuals and groups and the level of organisational performance and effectiveness.

Managers must consider forces for and against change to achieve a healthy field of change forces (see diagram).

To manage change you need to:

Understand the basic mechanisms of change

Develop the change programme

Analyse the forces affecting change

Take steps to overcome resistance to change

Gain commitment to change

Accelerate the pace of change.

Programming change

A change programme should incorporate the following processes:

Setting goals and defining the future state or organisational conditions desired after the change.

Diagnosing the present condition in relation to these goals.

Defining the transition state activities and commitments required to meet the future state.

Developing strategies and action plans for managing this transition in the light of an analysis of the factors likely to affect the introduction of change.

Analysing the forces affecting change

Those wanting change should be constant about the ends but they may have to be flexible about the means. This requires them to understand the forces likely to resist change as well as those creating the need for change.

This can be done by analysing the `helps' and `hindrances' to change and then exploiting the former and overcoming the latter.

This process is sometimes called field force analysis, and it involves:

Analysing the restraining or driving forces which will affect the transition to the future state. These restraining forces will include the reactions of those who see change as unnecessary or constituting a threat.

Assessing which of the driving or restraining forces are critical.

Taking steps both to increase the critical driving forces and to decrease the critical restraining forces.

When analysing the potential impact of change in one part of the organisation, it is necessary to consider not only how it directly affects the people in that area but also to take a helicopter view of how the proposed changes will affect the organisation as a whole.

In making this analysis the individual introducing the change, who is often called the `change agent', should recognise that new ideas are likely to be misunderstood and make ample provision for the discussion of reactions to proposals to ensure complete understanding of them. It is also necessary to try to gain an understanding of the feelings and fears of those affected so that unnecessary worries can be relieved and, so far as possible, ambiguities can be resolved.

Overcoming resistance to change

While people often take an antagonistic or negative attitude to change, it is also true that the desire for new experience underlies much of human behaviour. This fact will help you to overcome resistance to change.

People come to accept change in three ways:

Compliance, or `do it because I say so'. The individual accepts the change because he has to. He does not necessarily believe in what he has to do.

Identification, or `do it because I do it'. The individual defines his own beliefs and actions in terms of what someone else is or does. Identification is like compliance in that the individual does not agree to change because it is satisfying. It differs from compliance, however, in that the individual actually believes in the opinions and actions he adopts.

Intrinsic satisfaction, or `do it because it is worth doing'. The individual accepts change because the new situation is intrinsically satisfying or because it is in accordance with his own set of values. He may be influenced by others in forming this view, but ultimately he accepts the change because he likes it rather than because someone else likes it.

Resistance to change will be less if:

Those affected by change feel that they can accept the project as their own, not one imposed upon them by outsiders

The change has the wholehearted support of management

The change accords with well-established values

The change is seen as reducing rather than increasing present burdens

The change offers the kind of new experience which interests participants

Participants feel that their autonomy and security are not threatened

Participants have jointly diagnosed the problems

The change has been agreed by group decisions

Those advocating change understand the feelings and fears of those affected and take steps to relieve unnecessary fears

It is recognised that new ideas are likely to be misinterpreted and ample provision is made for discussion of reactions to proposals to ensure complete understanding of them.

Gaining commitment to change

`People support what they help create.' Commitment to change will be greater if those affected by change are allowed to participate as fully as possible in planning and implementing it. The aim should be to get them to `own' the change as something they want and will be glad to live with.

Getting involvement in the introduction of change will only be effective in gaining commitment when management is prepared to listen and to change its plans if there is a clear message that they are unworkable, or if the plans could be made more acceptable without prejudicing the achievement of the objectives of the change programme.

Accelerating the pace of change

The steps outlined above to gain commitment to change are an essential part of a change management programme. If they are carried out properly the further actions required to accelerate the pace of change are as follows:

Agree firm objectives, that is an `agenda for change'.

Determine success criteria and define methods of measuring performance and progress towards achieving the objectives, both short- and long-term.

Provide an environment of support in which recognition of achievements to date will reinforce confidence to do more.

Deliver visionary leadership which encourages people to be bold and innovative and harnesses the ideas and talents of employees in the search for better ways of doing things.

Ensure the full collaboration and partnership of all resources in the business.

Generate a widespread attitude among all employees that encourages commitment to innovation and change by:

conducting personal briefings on the proposed changes cascading down through each level in the organisation to cover all employees. This is better than simply issuing pieces of paper which may only generate a `so what' reaction;

conducting workshops in which groups get together to discuss, analyse and interpret the proposed changes. These should be treated as opportunities for employees to become involved in planning change as well as implementing it;

introducing educational and training programmes which allow plenty of time to get the various messages across and to discuss their meaning and application fully.

Exercise: You and your organisation.

Read the statements 1 - 7 carefully and rate your organisations responses on the scale provided. Then, consider statements marked A - G and this time rate your own responses on the scales provided.

Now compare the final responses of your organisation and yours. If your organisation response to change is rated higher than yours, there is potential for change in your organisation and you will be supported if you wish to bring about change and improvement. However, if your score is higher than your organisations, you feel frustrated because you recognise the need for change but your organisation does not. Can you convince your colleagues, peers and superiors that change is necessary?

Exercise:

Assessing the situation for implementation of a change

This activity provides a framework for you to explore the issues which were raised earlier, especially, What would be the requirement for bringing about change in your organisation?

Think of a situation which requires a change, then answer the following questions as honestly as you can. You may consult with others after completion of the exercise and explore their views.

a)        What needs to be done in order to ensure change is taking place? Be as specific as possible.

b)      Who needs to do what? This includes you and your staff

Again, be as specific as possible.

c)        For each of the above actions identified in (a) establish a realistic deadline for their completion. Calculate the overall time scale for introducing the change itself.

d)       Finally identify ways in which you will be able to assess the degree that is satisfactory for implementing the particular change in question

Important From your answers in section a) and b) can you identify the degree of resistance to change in question? If yes, how would you intend to deal with them?

Case study

Change Process

Restructuring is becoming increasingly a familiar theme of our time. But why is it needed and how to bring it about seems not to be so clear all times. It applies to both industry and to public administration alike.

Ion and Maria are working in the same ministry and they also live in the same neighbourhood. One day, going back home they were arguing about the most recent news that their ministry will be restructured too.

Nobody formally informed about the change. The rumour was a powerful one and was supported by the concerned attitude which was shown by their directors.

Ion is a very experienced civil servant working for a long time in this ministry. He has never enjoyed abrupt changes. That is why he was so concerned about his future. Maria is much younger and she has just graduated from a training programme - management skills for public servants. She is always seeking new perspectives and new opportunities. There is a potential for her to be promoted as a result of the proposed changes.

None of the two knew what ministry restructuring could be like but all they knew was that some redundancies were expected. Ion was always considered as one of the best experts in his field of activity and he was therefore not particularly worried about loosing his job. He always felt comfortable and satisfied in his position. Maria was satisfied with her current work as well and the opportunity to develop new projects in the ministry was a challenging job. As she heard from some colleagues, new departments are going to be set up and new middle management positions will appear. Such an early promotion would be seen as the recognition of her professional expertise and continuous efforts to satisfy her bosses.

Their argument was not fruitful at all and therefore no agreement could be seen in sight. Maria was trying to convince Ion that nothing wrong could come out from the proposed restructuring process and both of them could be promoted as heads of the new departments.

On the other hand, Ion heard nothing about new departments and promotions and - according to his previous experiences - restructuring was always followed by redundancy due to more restricted budget. Marias desire to be promoted was too strong, so she was could not understand the concerns of Ion who was far more experienced than her.

Ions fear was that his specific expertise could be no more needed. Marias private fear was that Ion could be right and no promotions will follow as a result.

In fact, the actual restructuring programme was about harmonisation of the Romanian Ministries and their organisational structure with those in the Western European countries in order to expedite the European integration process. Neither the formations of the new departments nor redundancy were particularly sought.

Problem:

What do you expect to be Ion and Marias attitudes when recieving more details about the change?

Will they resist to the change process? Please expand on your opinion.

What is the most appropriate approach to get their commitment and co-operation to their new tasks?

Solution and Guide Lines:

Read carefully the case study and try to identify what theoretical concepts presented in the Change Chapter which could be applied to the above situatuin. Assume that both characters - Ion and Maria will resist to change when finding out the real objective of proposed restructuring programe;

Try to identify the potential source of their individual resistance usually misfit of individual expectations with organisational goals;

Try to understand that in this case as well as in others, resistance to change could be overcome if:

change objectives and their benefits are well communicated;

people understand that change risks are minimised by a proper change management;

people in the ministry (or any other organisation) will share the same values.

Action Plan: A Managerial Tool

What is an action plan?

Action planning is an essential element in the process of learning or accomplishing.

With small tasks or problems it is often an automatic process. There is often no need to verbalise or make conscious this process and with bigger problems or tasks. Automatic systems are rarely adequate. Sometimes, encouraged by their success with small, perhaps mechanical tasks, people will jump into action before they have planned sufficiently. This may lead to them to neglect big issues in the course of solving many small ones. Another mistake is to think and plan rigorously, but never be quite ready to get down to action.

These problems occur when one is personally faced with a large task. In joint endeavours with other people, action planning is usually a formal requirement built into minutes or agreements. This is a form of contract between the people involved, the minutes or record being negotiated agreement to do specific things at specific times.

Where an action plan doesn't exist in written form, joint endeavours only flourish where the action plan is recognised and members take personal responsibility for implementing it.

The essential elements of an Action Plan consists of:

a) setting targets or objectives to accomplish some action or actions

b) establishing standards of quality or time which act as deadlines and

c) taking or allocating personal responsibility for these actions

When you write an action plan you voluntarily commit yourself to a course of action which you will achieve to a certain standard or by a certain date. It is the commitment which is the important aspect of an action plan. Planning is useless without commitment.

There are five stages:

Setting goals

Establishing sub-goals

Target dates

Resources/methods

Standards

Step 1

Use the chart provided at the end of the section and place your detailed action plan. It has five vertical columns and looks something like

Step 2

Choose a problem, or a change situation or task which you are working on or, preferably, about to start working on.

Write your task(s) in the left-hand column of the Action Plan Chart.

Step 3

Large tasks have a way of looking impossible, which is why most of us use every opportunity to avoid them. Setting sub-goals involves breaking up the main tasks into manageable proportions. They are often also the means by which the major goal is achieved. Fill in these sub-goals in the second column of the Action Plan Chart.

Step 4

Setting target dates is straight forward. Set them for your sub-goals first and then estimate the likely date for your overall goal. You may have a deadline already, in which case you will have to plan sub-goal deadlines to help you reach this.

Fill in target completion dates on your Action Plan Chart. Remember these are your deadlines - failure to achieve them requires explanation - to yourself or to others.

Step 5

The resources and methods column answers the question:

`How am I going to tackle this problem?'

`What alternative courses of action are open to me?'

`What assistance do I need and what can I get?'

Fill in resources and methods on your Action Plan Chart. In trying to complete this column you may discover you don't have sufficient resources and that you need to get these before proceeding. If so, obtaining these resources then becomes a sub-goal which precedes the others.

Step 6

When you have completed the Action Plan Chart, subject it to critical appraisal.

Do this yourself or, perhaps better, get someone who knows about you and the task, to do it for you. Examples of the searching questions to ask are:

`Is this goal really important for your department?'

`Will these sub-goals lead to achievement of the main goal?'

`Can that time target be shortened?'

' Will those performance standards tell you how well you're doing?'

You can draw up an Action Plan Chart for any number of tasks or goals. It will give you a clear picture of what is involved in the completion of any complex task and also supply the discipline and commitment necessary for the completion of that task.