6.Change Management ISC class 11 Business Studies Syllabus for the year 2023-2024

Change Management'

CHAPTER OUTLINE

6.1 Change Management: Meaning and Concept

6.2 Types of Change

6.3 Process of Change Management

6.4 Need for Planned Change

6,5 Meaning and Causes of Response and Resistance to Change 6.6 Overcoming Resistance to Change

6.7 Management of Planned Change

Kurt Lewin's Force Field Analysis

6.8 ADKAR Model of Change

Summary

Exercises

Question Bank

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Change is inevitable and it affects all types of organisation. Therefore, managers need to be skilled in ways to respond to change to ensure the survival and success of their organisation. Organisations which fail to respond appropriately to environmental changes go out of existence.

6.1 CHANGE MANAGEMENT: MEANING AND CONCEPT

Meaning: Change involves alteration of the status quo or modification of the existing situation. Change can be of three types-evolutionary, revolutionary and planned. Evolutionary changes take place gradually or slowly. They are not visible and face no resistance. Revolutionary changes are sudden and may be violent. Therefore, such changes are often resisted. Planned change implies deliberate alteration in the existing organisational system to achieve some desired results, e.g., profitability, employee satisfaction, improvement in the image of the organisation, etc. The change may involve alteration in the structural relationships and in the role of people in the organisation. In other words, planned change can be both structural and behavioural. Planned change may be defined as a conscious and concerted attempt of management of an organisation to monitor the environment, to assess their impact on the organisation and to evolve appropriate alternatives so as to utilise the environmental forces to the advantage of the organisation. Planned change is thus the intentional attempt by an organisation to influence the status quo. Through change organisations try to grow,

Concept: Effective managers do not wait for future. They make the future by introducing and managing change. An organisation is an open system as it is in continuous interaction with its environment. Any change in its environment requires change in its internal system. Moreover, an organisation is composed of many subsystems which interact with each other. Any change in one subsystem may create need for changes in other subsystems.

Definitions

R. A. Sharm

"Change may be defined as any variation in the established way of life to which people

Change is the movement of an organisation away from its present state. desired future state to increase its effectiveness"

or functions with a view to respond to change to ensure survival of the organisation

wards some Jennifer M. George "Management of change is a conscious attempt to modify or change in certain operations

are accustomed in the organisation"

Syalgi

"Planned change is a systematic attempt to re-design is in dy that wa help it adapt to change in the external environment or to achieve new goals,"

-Stoner and Freeman

Thus, change management is regarded as a structured approach of moving an organisation from present to future for the purpose of attaining the business objectives. It refers to a process of adopting numerous business strategies and policies to cope with the changing business environment.

Features/Characteristics

The foregoing description reveals the following characteristics of planned change: (1) Planned change is a conscious and deliberate attempt to modify the existing organisational

system.

(ii) Planned change results from stimuli from both inside and outside the organisation. (ii) Change takes place in all organisations but at varying speeds and degrees of significance.

(iv) Change takes place in all parts of an organisation though the magnitude and nature of change may be different.

(v) An organisation can be changed in several ways. Its technology, its structure, its people and its other elements may be changed.

(vi) Planned change disturbs the existing equilibrium between an organisation and its

environment. It leads to a new equilibrium.

(vii) Planned change can be of two types, A change initiated by the organisation is called proactive change. On the other hand, a change implemented by an organisation due to pressure by external forces is known as reactive change. For example, when management introduces a new labour welfare scheme in order to improve employee motivation, it is proactive change. If such a scheme is introduced due to pressure from the trade union. it is a reactive change.

(viii) Planned change has certain objectives, e.g., to increase profitability, to meet competition. to employee satisfaction, to expand and diversify operations, etc.

(ix) People may respond to planned change in various ways depending on how they perceive and interpret the change. If people perceive the change is desirable and in their interest they are likely to accept and adopt the change. They may even anticipate change and plan for it. People tend to be indifferent to change when they feel that it has nothing to do with them or they can do nothing against the change. Change is likely to be resisted when people feel it will affect them unfavourably and they can eliminate the change. Thus, human response to change may be acceptance, indifference and resistance.

(x) Planned change requires change agents, Le, the persons who will initiate and sustain change in the organisation. Change agent can be both internal and external. Chief executive and other top executives can serve as internal change agents. External change agents refer to consultant or expert appointed to serve as an advisor in the change process.

6.2 TYPES OF CHANGE

There are three major types of change: Developmental, Transitional, Transformational. 1. Developmental Change: Developmental changes improves current business procedures. Businesses experience these types of changes as incremental improvements in response to a desire to improve efficiencies, or focus on a detected deficiency, or build upon prior success. These changes have a lower level of resistance within an organisation due to their incremental and non-disruptive nature.

2. Transitional Change: The period when the old process is being dismantled and the new process is being implemented is called the transitional phase. Transitional changes are those that are made to replace existing processes with new processes. This happens when the need to implement a completely new course of action is recognised. These changes may include mergers and acquisitions or replacing and introducing major new systems and processes. Transitional change are more challenging to implement and can increase employees' discomfort.

3. Transformational Change: This change occurs after the transition period. Transformational change may involve both developmental and transitional change. Transformational changes are those which are made to completely reshape the business strategy and processes, often resulting in a shift in work culture. These changes may be a response to extreme or unexpected market changes. This kind of changes brought about when businesses pursue entirely different products or markets, experience radical changes in technology, or new leadership ushers in overhauls to the structure and company culture. Transformational change can produce fear, doubt and insecurity in staff, and needs to be very well managed.

6.3 PROCESS OF CHANGE MANAGEMENT

Change is a common thread that runs through all businesses regardless of size, industry and

age. One of the cornerstone models for understanding organisational change was developed by Kurt back the 1940s, and still holds true today. His model is known as Unfreeze Change Refreeze, which refers to the three-stage process of change that he describes. The model represents a very simple and practical model for understanding the change process.

1. Unfreeze Creating a sense a change is needed

2. Change Moving towards a new and desired behavior 3. Refreeze Setting this behavior as the new normal

Lewin's theory of change used blocks of ice as a metaphor. He used the analogy of how an block changes its shape to transform into a cone of ice through the process of unfreezing Let's say you have 'cube' of ice but you'd like a 'cone' of ice. To transform the cube shape you must:

1. "unfreeze" or melt the ice

2. "change" the mould to a cone shape and 3. "refreeze" the water into the new, desired shape

1. Kurt Lewin, "Frontiers in Group Dynamics: Concept, Methods and Reality," Human Relations, June 1947.

pp. 5-41.

According to Kurt Lowm, the process of planned change consists of the following stages.

Fig. 6.1: Kurt Lewin's Change Management Model

1. Unfreezing: It implies breaking down the existing ways of doing things so that the

people are ready to accept new alternatives It involves discarding the conventional methods and orthodox behaviour palteris and introducing new methods and behaviour that is most appropriate to the current situation. Members of the organisation are made to realise that the present beliefs, processes and behaviour are no longer appropriate for the changing demands of the present situation. Unfreezing requires loosening the emotional and intellectual forces li involves the following steps

(0) the Driving Forces: The first step towards organisational change involves reorganising major changes in the environment and problem within the organisation In order to recognise the pressures to change, managers need to develop a keen sensitivity towards the external and internal environment

(i) Increasing the Driving Forces: Once the need for change is identified, it needs to be communicated to the people concemed. If members know why the change is needed, they are more likely to adopt it. () Managing the Resisting Forces: People resist change because they perceive it to

be harmful to them. It is, therefore, essential that they are made aware of its benefits.

Rewards may be linked to willingness to change and resistance to change may be

punished

Unfreezing may be effected by encouraging the driving forces which take the behaviour away from the stahs quo Alternatively steps may be taken to overcome the restraining forces which tend to perpetuate the stuns que Several techniques are available for unfreezing, eg, education communication, participation in decision-making, negotiation through the exchange of rewards, manipulation, coercion or punishment, etc.

2. Changing or Moving: Once the people become receptive to change, the proposed

change is introduced in a systematic manner. New learning takes place during this phase Members of the organisation are provided with new alternatives, and learn to behave in new ways. This moving phase consists of the following elements: rewards

(D) Compliance or force occurs when individuals are forced to change either by or by punishment

(1) Internalisation takes place when individuals are forced to encounter a situation that calls for new behaviour () Identification occurs when individuals recognise one among various models in the

that is most suitable to their personality Several unexpected problems may crop up during implementation of change. These problem must be tackled effectively. It is a time of trial and error involving ambiguity and tentativeness.

While changing various components of the organisation, careful guidance should be provided to organisational members. 3. Refreezing: During this phase, change is made a permanent part of organisation's life. Members of the organisation internalise the new beliefs, attitudes and behaviour learnt during the changing phase. The manager as the change agent has to see that the new behaviour is effectively blended with the other behavioural patterns. Without internalisation, individuals may revert back to the old system after some time. In order to continuously reinforce the acquired behaviour, the organisation has to maintain a fit (dynamic equilibrium) among various components that are supportive of such behaviour.

New practices are accepted and change is stabilised only when enough reinforcements

are provided through positive results.

Lewin's model provides a useful framework to understand the change process in

organisations.

Change Management Model

Unfreezing

Change or Moving

Refreezing

(1. Identify the need for change

2. Increase the driving

forces

1. Individual components

2. Group components

3. Task components

3. Reduce the resisting forces

4. Structural components

1. Reinforce the new behaviour

2. Find 'fits' between

organisational components 3. Maintain 'fits' between the components

Fig. 6.2: The Change Process

6.4 NEED FOR PLANNED CHANGE

Pressures for change arise from both within and outside the organisation.

1. External Forces: Every organisation exists and operates in an environment Changes occur frequently in the environment, e.g., economic, social, political changes. An organisation must change in order to adapt itself to the new environment. Some of the external pressures are given here.

(i) Market Situation: Modern business enterprises operate in a highly competitive

market place. Competitors introduce new products, better services, improved

advertising, etc. The needs and habits of consumers also change. Organisations must

change to survive and grow in such markets.

(ii) Technology: Rapid technological changes shorten the life of many products and services. Existing plants and machines become obsolete. Computerisation and automation is a major example. Organisation can ignore technological developments at the cost of survival.

(iii) Population Dynamics: Changing age distribution of population may cause shortage of skilled people and may accentuate different life styles. Geographic movement of people may require changes in marketing strategies. The drive for social equality, erosion of the joint family system, rise of working women are other major social changes.

(iv) Political and Legal System: Relations between business and government are improving Legal provisions concerning the corporate sector are being changed vapally Transnational corporations and other international developments are forcing organisations to modify their structures and plans

2. Internal Forces: Pressures for changes also originate within an organisation: These are as follows

Deficiencies in the Existing System: Changes are necessary when the present

structure or processes are not capable of achieving organisational objectives. Unmanageable span of control, narrow, specialisation, too much centralisation of

authority, multiplication of committees, line-staff conflict, etc. are main loopholes

in an organisation.

(ii) Other Changes: Need for improving productivity and quality of working life, scarcity of certain resources, e.g., power, need to avoid inertia, etc. are other internal sources of change. Another internal force is the domino effect which means one change triggers off a sequence of supporting changes. For example, the creation of a new department may lead to introduction of new managerial positions and reallocation of tasks, etc.

The effect of change can be analysed with the help of Fig. 6.3.

Structure Factors

Relation of parts

Number of levels Degree of formalisation

Task Factors Variety

Autonomy

Significance

Feedback

Technology Factors

• Methods Techniques

Processes

People Factors

Perception

• Attitudes

• Values

Motivation

Fig. 6.3: Work Environment Factors in Organisational Change

Task, people, technology and structure are the four main factors involved in organisational change. These factors are interrelated and interdependent so that a change in one produces changes in other factors. Task implies the job which can vary in terms of variety, autonomy, task identity, feedback and significance. People refer to individuals who fill and perform various jobs in the organisation. Individuals differ in their attitudes, motivations and which influence their perception and evaluation of change. This can make change difficult. Technology includes the methods, techniques and processes used to convert inputs into outputs. Structure is reflected in the number of hierarchical levels, span of control, and the way in which parts are organised and related to one another. Communication, decision and power systems are significantly influenced by these structural arrangements.

Organisational change can be introduced through the alteration of any one of these four variables or combination of these factors 6.5 MEANING AND CAUSES OF RESPONSE AND RESISTANCE

TO CHANGE

Response to Change Meaning and Types Whenever any change is implemented, the managers as well as workers both have certain

responses or reactions to it. Such reactions are based on the impact of change on their Need. Satisfaction. If they feel that the change is likely to affect them favourably, they would accept the change, if the changes do not pose any impact on them they would remain indifferent towards it and if they have a feeling that the change is likely to affect them unfavourably then they would insist the change. Thus, human response to the organisational change can be of three types:

1. Acceptance: People accept the change if they feel that it would have a positive impact on them.

2. Indifferent: Sometimes people do not react to a change, ie., neither they accept nor the change. This, happens either because they are unable to estimate the impact of change on their need-satisfaction or they feel that the change has nothing to do with them. Sometimes they remain indifferent due to the lack of capacity to resist.

3. Resistance: People resist the change when they feel that such change would affect them unfavourably. Such resistance becomes more forceful when they feel that they can stop the changes with their resistance to it. Meaning and Reasons

Resistance to Change-

Well-documented findings from studies of individual and organisational behaviour have revealed that organisations and their members resist change. And this resistance can be overt, implicit, immediate or deferred. As for example, while threat to go on strike is an overt expression resistance to change, increased errors or mistakes is an implicit resistance to change. Likewise, resistance to change may be an immediate response or it may be deferred and stockpiled. While resistance to change is not always dysfunctional, rather at times it can contribute to better decision-making and can be a source of functional conflict, it often obstructs beneficial changes. Hence, management needs to identify the sources of individual and organisational resistance to change.

The main individual and organisational reasons for resistance to change are given below.

1. Reasons for Individual Resistance: Following are some of the reasons of an individual resistance to accept change:

(i) Habits and Conventions: If people in an organisation are asked to do things in a new way, they may resist. As it is difficult to abandon old ways habits acquired overtime. Thus, people will resist to drop their old conventions and habits.

(ii) Fear of Economic Loss: People resist change when they perceive that they will lose

some economic benefits. Some examples of economic loss are as follows: (a) Fear of technological unemployment,

(b) Fear of reduced work hours and consequently reduced monetary benefits, (c) Fear of demotion and consequently less pay, and

(d) Fear of speed up through higher job standards and reduced incentive wages. People resist automation due to the fear of loss of job. The greater the expected loss, the greater the resistance.

(iii) Obsolescence of Skills/Redundancy of Skills: Change may render the existing knowledge and skills obsolete. Old skills and techniques may become useless. For example, an experienced accountant may resist the introduction of a computer due to the fear that his experience will become useless and it might affect his pay and position in the organisation. This phenomenon is commonly found in people who possess no real marketable skills and whose knowledge is outdated

Zero Tolerance to Change (Status Quo): People attach great importance to the status quo. Change may disturb their convenience and comforts. Individuals also resist change due to habit or custom. Change requires some adjustments on the part of employees Adjustments are often inconvenient and create uncertainty. There is, therefore, a natural tendency among people to oppose change.

Fear of Unknown: Change causes uncertainty and risk during the transition period. The

unkown poses a constant threat to people because the impact of change is unknown. For instance, an employee may resist transfer to a remote branch because of the anxiety of

an unfamiliar place. Ego Defensiveness: Sometimes people resist change because it hurts their ego. For instance, an ego/defensive branch manager may resist even a good suggestion from the salesman because the branch manager feels that his ego may be deflated if he accepts The suggestion.

i) Peer Pressure: People may resist change because the group to which they belong

opposes the change. Every group has its own norms and puts pressure on its members

to resist change which violates the group norms. For example, a factory worker may

feel that the proposed change in the techniques of production is desirable. But he may

resist the because his trade union is opposed to it.

Table 6.1: Causes of Resistance to Change

Individual Resistance

Economic Reasons Habits and Conventions

Fear of economic loss Obsolescence of skills

Personal Reasons

Zero tolerance to change (Status quo)

Fear of unknown

Ego defensiveness Social Reasons

Peer pressure

2. Reasons Organisational Resistance: Following are the reasons behind organisational resistance to accept change.

Organisational Resistance

Emotional resistance to change in Social

groups/social displacement

Organisational structure

Resource constraints Management - Lack of faith in change

Cost Involved Sunk costs

the

(i) Emotional Resistance to Change in Social Groups/Social Displacement: Introduction of change often causes social displacement of people by breaking informal groups and relationships. When the friendship with fellow-members is interrupted, employees may feel psychologically let down. Therefore, they dislike new adjustment, breaking up of present social relationships, reduced social satisfaction and feeling of outside interference in the form of change. It is very difficult to overcome the emotional resistance to change.

(ii) Organisational Structure: Some organisational structures have an in-built mechanism for resisting change. Consider, for instance, a typically bureaucratic structure wherein jobs are narrowly defined, lines of authority are clearly spelt out. and the flow of information is stressed from top to bottom. In such an organisation structure, new ideas rarely travel down the hierarchy because these are screened out. Innovations are not suitable for such an organisation (in) Resource Constraints: Some organisations resist change due to scarcity of resources. Greater is the scarcity of resources, greater is likely to be the resistance to change. An

organisation may not like to incorporate change it requires huge investment. (iv) Management's Lack of Faith in Change: This may occur due to various reasons. Threat to power and influence is one of the reason. When people at the top consider change as a potential threat to their position and influence, they resist. Change may disrupt the power relationships and produce a new power equilibrium. This new equilibrium may reduce the power and prestige of some top executives. Therefore, they oppose the change.

(v) Costs Involved/Sunk Costs: An organisation may also resist change because it has invested in fixed assets and human resources. These costs cannot be recovered unless the assets and resources are put to productive use. When change is introduced, many of these costs become useless. For example, existing machines may not be replaced with change in technology. Similarly, some executives may be retained despite their outdated skills and experience. Their pay and other benefits represent sunk costs.

To Conclude, we can say that changes at any level affect the other levels. The strength of

the effect will depend on the level or source of change.

6.6 OVERCOMING RESISTANCE TO CHANGE

It is natural for human beings to resist change. The main problem in introducing and implementing change is to overcome resistance to change. Efforts for overcoming resistance to change can be made both at the individual level and the group level. The main techniques that can be used to overcome resistance to change are given below,

1. Education and Communication: One of the simplest techniques to overcome resistance to change is to educate people, counsel them, train them to adopt change. People can be educated to become familiar with the nature and process of change. Counselling and training can be used to change the basic values and attitudes of people. They can be taught new skills and helped to develop new relationships. Communication is very useful because many people resist change due to lack of

information or misunderstanding. While communicating change, a manager should explain:

(1) What the change is?

(ii) When it is to be introduced? (iii) How will it be implemented?

(iv) Why is the change needed?

(v) What is the basic objective of change? and (vi) How will the change be beneficial to all?

This will help people to visualise the need for and logic of change They will appreciate the change much better and will accept it easily. The main advantage of this method is that once convinced, people themselves will help in the implementation of change. However, it is a very time-consuming method and requires continuous effort.

2. Participation and Involvement: In this method, the change agent involves the resistors in the design and implementation of changes so as to overcome resistance. A continuous dialogue with people is arranged to discuss and explain the proposed change. It allows the individuals to express their views and opinions. Such involvement and participation clears

misunderstanding, reduces resistance and increases acceptance of change. Participation

not only generates compliance but commitment too. Commitment implies an agreement between the change agent and the change resistors to take active part in the actual mechanics of the change. 3. Facilitation and Support: Physical and emotional support may be provided to with potential resistance. This includes compassionate listening, giving employees time off and helping them to adjust to the new situation. Managers may use this technique

when fear and anxiety are the causes of resistance or when people are resistive due to

adjustment problems. However, it is a time-consuming and expensive exercise. 4. Manipulation and Cooptation: Manipulation involves conscious structuring of events and the very selective use of information. Cooptation implies giving people a desirable role in the design and implementation of change. Managers may resort to manipulation when all other tactics fail to overcome resistance. It can be quick and economical method. However, serious problems may arise if people feel they are manipulated.

5. Negotiation and Agreement: Offering incentives to resistors is another fruitful way of overcoming resistance to change. Negotiation and agreement are helpful when some persons in a group incur loss due to change and the group has considerable power to resist. It becomes relatively easy to avoid resistance through negotiation. However, it can be expensive if it alerts others to negotiate for compliance.

6. Coercion: In this method, managers force people to accept change by explicit or implict threats, e.g., termination, demotion, stopping pay increments, transfers, etc. This method is used when immediate change is required and the change agent possesses considerable power. The main merit of this technique is speed but it can be a very risky approach.

7. Leadership: A manager cannot always use his formal authority to get support for the

change. Therefore, he should use his personal qualities to get consent and willing support

from people. A manager with strong leadership qualities can create a climate where

people not only accept change but are willing to propose changes.

8. Group Dynamics: Forces operating within groups can be used to overcome resistance to change. A group can be effective in changing the attitudes and behaviour of its members particularly when it is attractive to the members and they have a strong sense of belonging to the group.

6.7 MANAGEMENT OF PLANNED CHANGE

Management of organisational change is a complex process: Change in organisation does not occur instantaneously. It requires considerable planning and efforts on the part of management. Main steps in the process of managing change are described below.

1. Identifying Need for Change: First of all, the need for change in the organisation is recognised. Change for the sake of change is useless. Management should, therefore, analyse the internal and external forces demanding change. Then the unnecessary or minor forces may be isolated. Information for identifying the need for change comes mainly from the organisation's feedback and control system. Corrective action stage of the control process may indicate the need for change.

In order to identify the need for change, the gap between the desired situation and the existing situation needs to be analysed. This gap analysis should be viewed on progression basis because the desired state of affairs is not a fixed concept. Thus, the objectives of change should be defined in the first stage to provide clues why change should take place.

2. Define the Elements to be Changed: What is to be changed depends largely on the need and objectives of change. At this stage, the problem requiring change is diagnosed For example, declining market share may require change. Therefore, it becomes necessary to diagnose the factors responsible for declining market share. Several techniques may be used for diagnosis, eg, questionnaires, interviews, observations, etc

Usually change is required in three major elements of the organisation technology and people. Structural changes may include job redesign, departmentation. structure, span of control, power structure, coordination mechanism, etc. Technological changes consist of production methods, plant and machinery, engineering processes, etc. Changes in people comprise changes in their attitudes, behaviour, interaction patterns,

informal grouping, skills, etc.

1. Planning the Change: This is perhaps the most crucial phase in the management of change It involves finding answers to questions like when to bring change, how to bring change and who will bring change. In other words, the time, pace and quantum of change should be decided and the mode of implementing the be determined. While dealing with the time dimension of change, it is necessary to consider likely reactions to change, required to persuade people to accept the change, counselling and training people to make them competent for the new situation, time required to make resources available for change, etc. For deciding the method and procedure of change, a logical sequence of steps may be created, e.g., putting change, measuring its impact and correcting any dysfunctions, etc. Who will bring change means selecting the change agent. Though every manager is a change agent, specific individuals may be designated for bringing a major change.

4. Assessing Change Forces: Before executing the plan for change, it is necessary to address the forces which restrict or stimulate change. The planned change is not automatic. There are many forces in the individuals, groups and organisations which may support or resist the change. In order to implement the change successfully, managers must ensure that the major forces resisting change accept it.

Kurt Lewin's Force Field Analysis

Kurt developed the of force field analysis which is a scientific approach for analysing change. According to Lewin, the forces affecting change are of types: (1) Driving forces which favour change, and (2) Restraining forces which oppose change. Change is a dynamic balance among these forces working in opposite directions. When these forces are equal in strength, there will be no change in the status quo. In such a situation, a quasi-static equilibrium is reached. This equilibrium may continue for some time and when there is any change, a new equilibrium is reached. Change occurs only when the two types of forces are not equal in strength.

The driving forces may dominate or overpower the restraining forces or vice versa.

Management may take one of the following actions in a change situation.

(1) the driving forces far-outweigh the restraining forces, management may push the driving forces and overpower restraining forces to implement the change. (ii) When the restraining forces dominate the driving forces, management may postpone or abandon the change programme.

(iii) When the driving and restraining forces are equal in strength, management may push the driving forces and/or immobilise the restraining forces to implement the change. Force-Field Analysis suggests that before a manager embarks on a change strategy, he should properly identify and evaluate the forces favouring change (driving forces) and

those opposing change (restraining forces). Such a study will help the manager to remove.

5. Implementing the Change: The implementation of change programme involves the application of various interventions suitable for the change. For example, a training programme may held to change the attitudes and behaviour of people. While implementing change, several problems might have to be faced. First, resistance to change has to be overcome.

Secondly, change may disrupt and undermine the existing control system. Thirdly, change might upset the balance of power in the organisation. It becomes, therefore, necessary to motivate change, to manage the transition and to shape the political dynamism.

6. Follow up and Feedback: Management of change requires feedback and follow. up actions to ensure that change programme is progressing in right direction without producing any functional effect. Since changed programme is likely to solve some problems and produce other problems, though in minor magnitude, it is desirable that management has constant watch as the change programme progresses.

6.8 ADKAR MODEL OF CHANGE

Jeff Hiatt developed the ADKAR Model of change in the 1990s. The ADKAR model is one of the most important models in ensuring the change process occurs efficiently the model focuses on the 'people' element of change, specifically how to ensure the employees involved support and believe in the change. Once this has been done, the model moves to look at the business dimension, as once the people are behind it the processes must then be focused on.

The ADKAR change model includes the following building blocks: A: Awareness. Make employees aware of the change,

D: Desire. a desire to change.

K: Knowledge. Teach employees how to make the change. A: Ability. Transform knowledge into the ability to make the change.

R: Reinforcement. Make the change permanent by reinforcing new methods. Now let's study these in detail for better understanding of how to implement the ADKAR model and facilitate individual and organizational change.

1. Employees need to be aware of exactly what change is occurring and why it is necessary. Without a full understanding of why the change is necessary employees will lose motivation and direction within the strategy. This makes the change less likely to ncceed. The manager has a crucial role to ensuring employees are fully aware of every element of the change proces

2. Desire: Just because employees understand why a change should be made doesn't mean that they want that change. In order for them to adopt the change, they must desire it. Support for the change strategy should come naturally from the employees. Rather than forcing the change upon your employees, including them in developing the project, and vision will ensure their support for the final outcome.

3. Knowledge: The more knowledge and training you can give, the more employees will understand the change and see the benefits of making the change. And the easier it will be to transfer that knowledge during the next step in the ADKAR change management process. Change will likely bring a change in routine and skills for your employees, as well as the overall organisation change. For this reason, employees should be fully supported in their acquisition and development of these skills. There are many ways to impart this knowledge-through formal education and training, coaching and mentoring

workshops.

4. Ability: To translate knowledge to ability, there is a need to have some practice runs and analyse what goes well and what doesn't. The individual needs to be supported during the actual performance. This may include providing a safe environment or by continuing to provide coaching and mentoring

5. Reinforcement: This final step is necessary to sustain the change. This ensures employees resist the temptation of slipping back into old habits. Many methods are there to ensure that individuals don't revert to previous ways of working or thinking such as taking corrective actions quickly, positive reinforcement, taking feedbacks giving rewards and recognition, celebrations.etc.

The ADKAR Management Model is an outcome-oriented change management method

that aims to limit resistance to organizational change. The ADKAR model is based on the

fact that the main determining factor in whether a change is successful in people. The model

emphasises that successful change occurs only when each individual member of the team is

able to change

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SUMMARY

Meaning and Concept of Change: Change means alteration of the status quo in a systematic

Types of Change: Developmental, Transitional and Transformational.

manner.

Change Management Process or Process of Change Management: Unfreezing, moving, refreezing

Need for Change: External forces (market situation, technology, population, political and legal system) and

internal forces (defects, others). Response to Change: (1) Acceptance, (2) Indifferent and (3) Resistance Resistance to Change: Habits and conventions, fear of unknown, zero tolerance, (status quo), fear of economic loss, redundancy of skills, egoistic attitude, peer pressure, emotional resistance to change in social groups,

organisational structure, resource constraints, management's lack of faith in change, cost involved.

Strategies: Education and communication, participation and involvement, facilitation and support, leadership.

negotiation and agreement, manipulation and cooptation, coercion, group dynamics. Managing: Identifying need for change, define the elements to be changed, planning the change, assessing change forces (force field analysis), implementing the change. follow-up and feeback.

ADKAR Model: Awareness (A). Desire (D), Knowledge (K), Ability (A), Reinforcement (R).

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EXERCISES

1. Multiple Choice Questions (Select the best afternative)

1. Change is:

(a) Necessary

(b) Wastage of Time

(c) Wastage of Resources

(d) Unnecessary

2. The speed of change is: (a) Slow

(d) All Kinds

(b) Very Slow

(c) Fast

3. "Change may be defined as any variation in the established way of life to which people are accustomed in the

organisation." This Statement is of (a) Svalgi

(d) Fayol

(b) RA: Sharma

(c) Taylor

4. Which of the following is not type of change?

(a) Developmental change

(b) Transitional change

(c) Changeable change

(d) Transformational change

5. According to Kurtz Lewin, which of the following is not a step of unfreezing?

(a) Changing the driving force (c) Increasing the Driving Force

(b) Recognising Driving Force (d) Decreasing the Driving Force

6. Which of the following is not a pressure for change arise from external forces outside the organisation?

(a) Market situation (b) Technology

(c) Deficiency in existing system

(d) Political and legal system

7. The ADKAR model of change includes the following building blocks:

(a) Awareness

(b) Desire (c) Knowledge

(d) All of these

8. Kurt Lewin developed the concept of force field analysis force affecting changes of the following types: (b) Restraining force which oppose change

(a) Driving forces which favour change

(c) Both (a) and (b)

(d) None of these 9. What are the main causes of resistance to change?

(a) Individual Resistance (c) Both (a) and (b)

(b) Organisational Resistance

(d) None of these

10. An accepted model for bringing about changbelas suggested by

Kurtz Lewin in terms of:

(a) Unfreezing

(b) Changing

(c) Refreezing

(d) All of these

11. Planned change is:

(a) Conscious

(b) Deliberate

(c) both (a) and (b)

(d) None of the abov

12. Changes done to improve current business procedures is called as :

(a) Transitional change

(b) Transformational change (d) None of the above

(c) Developmental change

13. Changes that occur after the transition period is called:

(a) Transitional change (c) Developmental change

(b) Transformational change

(d) None of the above 14. Changes that are made to replace processes with new processes are called: (a) Transitional change

(b) Transformational change

(c) Developmental change (d) None of the above 15. According to Kurt Lewin, refreezing stage does NOT includes: (a) Individual components

(b) Task components

(b) Design (a) Desire 19. The model which is based on the fact that the main determining factor is whether a change is successful in (c) Development

(d) Durable

(d) Plans

Ans. 1. (a) (a) Control system

(c) Structural components 16. Unfreesing stage Includes:

(d) identify the need for change

(a) Recognising the driving forces Icl Managing the resisting forces

(b) increasing the driving forces (d) All of the above

17. Esternal forces for planned change does not include:

(a) Market situation 18. What does D stands for in 'ADKAR model of change?

(b) Technology

(c) Other changes

(d) Population dynamics

people is called: (a) AKDAR model

(b) ADKAR model

20. Change may disrupt and undermine the existing

(c) Two factor model

(d) Force field analysis

(b) Policies

(c) Procedures

2. (d) 2, (b) 4, (c) 5. (a) 6. (e) 7. (d), (c) 11. (c) 12. (c) 13. (b) 14. (a) 15. (d) 16. (d) 17. (e) 18. (a)

9. (c) 10. (d)

19. (b) 20. (a)

1. Fill in the blanks.

change is the intentional attempt by an organisation to influence status quo.

2. change are neither visible face any resistance.

3. A change implemented by an organisation due to pressure by external forces is known as change. 4. Unfreeze change refreeze is a three stage process of change which was developed by

5. Negotiation through the exchange of rewards, communication, coercion or punishment, education, participation in decision-making, manipulation, etc are the techniques for

6.

Implies giving people a desirable role in the design and implementation of change.

7. In method of overcoming resistance to change, managers force people to accept change by explicit or implicit threads for example termination, transfers, etc. 8.

ADKAR model of change developed by

9. R stands for

in ADKAR model.

10. When the restraining forces

the driving forces, management may postpone or abandon the

change programme.

4. Kurt Lewin 8. Jeff Hiatt

3. reactive

2. Evolutionary

Ans. 1. Planned

7. Coercion

6. Cooptation 10. Dominate

5. Unfreezing

9. Reinforcement

III. Short Answer Type Questions

1. What do you understand by change management? 2. Why does the need for planned change in an organisation arise?

3. Why do people resist change?

4. How should a manager handle the in an organisation?

5. What do you understand by 'Planned Change'?

6. Define the concept of change.

7. State various stages followed in the process of change management. IV. Long Type Questions

1. What do you understand by the term 'Change'? Why do people resist change in an organisational setting? 2. Discuss the causes and remedies for human resistance to change. 3. What do you mean by 'planned change? How should a manager handle change in his organisation?

4. Resistance to change is considered to be one of the major problems in improving performance of organisations

What are the possible causes of this resistance and how can these be overcome?

5. The management of a well-established unit manufacturing readymade garments wishes to introduce new machines and modern methods of production so as to increase efficiency and output. The workers in the

factory numbering two hundred are afraid of the changing and are resisting it in several ways. How should the

management overcome this problem? 6. "Several economic, social and psychological factors contribute to resistance to change. Explain in this context

the reasons for resistance to change.

7. Fashion Fabrics Ltd is a well-established ready made garments manufacturing company. The company has 250 employees including the supervisory staff. The entire output of the company is exported to the European countries. The company is planning to introduce new machines and methods of production to reduce the cost and have new designs. The management is apprehensive that the change will be resisted by the employees in many ways. You have a senior position in the company. You are required to advise the management about:

(a) The reason for human resistance to change

(6) Strategies to overcome the resistance to change. 8. Explain the various strategies for overcoming resistance to change. What are the main steps in the process of

managing change.

10. What do you understand by the term 'change? Why do people resist change? How should the manager handle

a change in his organisation?

9. Explain the process of planned change.

11. "Resistance to change is a type of human behaviour which arises to protect human beings from the real or perceived effects of change. Man by nature adopts ways of life, thought and action which are familiar to him This is partially because he is scared of new and the unknown and partly because adopting new thoughts is a complicated and painstaking process. Whenever a person thinks that the change is likely to have a negative impact on him, even if it is really not so, he will try to protect himself through resistance behaviour." Elucidate.

12. Explain ADKAR model of change

13. Explain Kurt Lewin model of change.

QUESTION BANK

1. Very Short Answer Questions

1. What do you understand by change management?

Ans. Change management is the process of identifying the need for change, deciding the type and timing of change,

overcoming any resistance to change and implementing the change.

2. What is the concept of change?

Ans. Change refers to the alteration made in the present situation for meeting a specific purpose.

3. Change can broadly be classified into which parts?

Ans. Change can broadly be classified into three parts namely (i) Evolutionary () Revolutionary and () Planned

change.

4. Name the various types of change.

Ans. There are three major types of change, viz. (1) Developmental change (2) Transitional change and (3)

Transformational change.

5. According to Kurt Lewin, name the various forces affecting change. Ans. According to Kurt Lewin the force affecting change are of two types (1) Driving forces which favour change. and (2) forces which oppose change.

6. Give one characteristics of planned change.

Ans. Planned change is a conscious and deliberate attempt to modify the existing organisational system

7. What are transformational changes?

A formal changes are those which are made to completely reshape the business strategy and processes, often ring in a shift in work cultur

& Answer Questions

1e the change you want to see in the world". Explain.

A Matika Gandhi said. "Be the change you want to see in the world. These words imply that before expecting a change in the habits, attitudes, etc, of others, one should change one's own habits, attitudes, etc re words the process of change should start with self. This would set an example for others. They will be more wing to change when their leader takes the initiative.

2. What are the characteristics of change? as Change has the following characteristics

change results from the pressure of both internal and external forces in the organisation.

existing equilibrium or stotis que in the organisation.

It disturbs the

Changes may affect people, structure, technology and other elements of the organisation The change in any part of the organisation affects the whole of the organisation Change may be reactive or proactive When change is brought about due to the pressure of external

forces, it is called reactive change. Proactive change is initiated by the management on its own to increase

organisational effectiveness. 3. What is a Group Level Change?

ans. Management most consider group factors while implementing any change, because most of the organisational changes have their major effects at the group level. The groups in the organisation can be formal groups or informal groups. Formal groups can always resist change, for example, the trade unions can very strongly resist the changes proposed the management informal groups can pose a major barrier to change because of the inherent strength they contain. Changes at the group level can affect the work flows, job design, social organisation influence and status systems and communication patterns.

The groups, particularly the informal groups have a lot of influence on the individual members of the group. As

such by effectively implementing change at the group level, resistance at the individual level can be frequently

overcome.

4. What do you mean by resistance to change?

Ans.

Well-documented findings from studies of individual and organisational behaviour have revealed that organisations and their members resist change. And this resistance can be overt, implicit, immediate or deferred As for example, while threat to go on strike is an overt expression resistance to change, increased errors c mistakes is an implicit resistance to change. Likewise, resistance to change may be an immediate response o it may be deferred and stockpiled. While resistance to change is not always dysfunctional, rather at times can contribute to better decision-making and can be a source of functional conflict, it often obstructs benefic changes. Hence, management needs to identify the sources of individual and organisational resistance to chang

5. What do you mean by response to change?

Ans. Whenever any change is implemented, the managers as well as workers both have certain responses of reactio to it. Such reactions are based on the impact of change on their Need-Satisfaction. If they feel that the chan is likely to affect them favourably, they would accept the change, if the changes do not pose any impact them they would remain indifferent towards it and if they have a feeling that the change is likely to affect the unfavourably then they would insist the change. Thus, human response to the organisational change can b three types:

Acceptance: People accept the change if they feel that it would have a positive impact on them. (i) Indifferent: Sometimes people do not react to a change, Le., neither they accept nor resist the cha This, happens either because they are unable to estimate the impact of change on their need-satisfa or they feel that the change has nothing to do with them. Sometimes they remain indifferent due to lack of capacity to resist.

() Resistance: People resist the change when they feel that such change would affect them unfavourably. Such becomes more forceful when they feel that they can stop the changes with their resistance to t

III. Long Answer Questions

1. What are the objects or Need of Management change?

Ans. The planned change is needed to meet the overall objectives of the organisation. Since, there may be changes in the forces-both internal and external-affecting organisational functioning, the organisation has to make suitable change to meet its objectives.

(1) Environmental Adaptation: Every organisation has a tendency to maintain balance and equilibrium. Because of changes in the environment, the organisational equilibrium is affected. If the changes are minor the organization will accommodate them automatically, if the changes cannot be adapted to the existing

framework, organisational effectiveness is adversely affected. In this case, the organisation requires some

Innovation,

(i) Individual Adaptation: The organisation cannot reach to the objective of its environmental adaptation unless some basic internal adaptation is achieved. These internal factors may be individual organisation structure, technology and task. (H) Structural Adaptation: Structural adaptation involves changing the internal structure of the organisation.

This change may be in the whole set of relationships, work assignment and authority structure.

(iv) Technology Adaptation: In order to cope with the changed environment which may include technological factor as well, the organisation has to incorporate new technology. (v) Task Adaptation: Task focuses on the job performed by the individuals in the organisation. Since, there may be many new types of jobs, the existing job techniques may not be suitable. Moreover, there may be

new job load because of job enlargement. In this matching process, there may be several problems which

must be encountered by planned change.

2. Why changes is resisted? Discuss factors responsible for resistance to change. Ans. New policies and programmes often meet with resistance, and cause a fallure, unnecessary delay or distortion in implementation. Conflict between human reaction to change and the increased need for change is the most perplexing problem in the management of change.

Following are usually identified as the more important factors responsible for people's resistance to change: (1) People find it easy to do what they have been doing and find it inconvenient to learn something new. (i) Since change almost invariably brings with it a redistribution of power and influence, it tends to be opposed by those individuals and groups who are negatively affected by it.

(iii) Change is also resisted when people in course of doing or learning a new system experience failure. (iv) Change is also resisted by individuals who are less educated and less intelligent, and who rely heavily on their personal experience and are not inclined to take risks. Those who stand to lose the most by the change tend to oppose it the most. People with traditional temperament know that change will expos their inadequacy and inefficiency, and, as such, they must oppose change.