Assignment Set- 1

Q.1 What are the types of organizational change? Ans:There are many types of organisational changes: Organisation-wide versus subsystem change: Usually, organisations undertake organisation-wide change to evolve into a different level in their life cycle. Examples for organisation-wide changes are major restructuring, collaboration, cultural change. Examples of subsystem change include addition or removal of a product or service, reorganisation of certain department, or implementation of a new process to deliver products or services. Transformational versus incremental change: Transformational change is also referred to as quantum change. Examples of transformational change include changing an organisations structure and culture from the traditional top-down, hierarchical structure to a large amount of self-directing teams, Business Process Re-engineering. Examples of incremental change include continuous improvement as a quality management process or implementation of new computer system to increase efficiencies. Sometimes, organisations experience incremental change, but its leaders fail to recognise that change. Remedial versus developmental change: Change can be used as a remedy to the current situation. Examples for remedial changes are to improve the poor performance of a product or the entire organisation, reduce burnout in the workplace, and help the organisation to become more proactive and less reactive, or address large budget deficits. Change can be developmental i.e., it can be applied to a successful situation and make it more successful. Examples for developmental change are, expand the amount of customers served, or duplicate successful products or services. Unplanned versus planned change: Unplanned change occurs because of a major, sudden surprise to the organisation, which forces its members to respond in a highly reactive and disorganised fashion. Planned change occurs when leaders in the organisation recognise the need for a major change and proactively organise a plan to accomplish the change. Note that the planned change often does not occur in a highly organised fashion. Instead, it occurs in a chaotic and disorderly fashion than expected by participants. .

Q.2 Explain change management process? Ans:Change management process is a part of change management. Change management is a process, tool and technique for managing peoples side of change. It is not a separate process for designing a business solution. Tools or components of change management include:

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 Process of change management. Assessment of readiness. Communication and communication planning. Coaching and manager training for change management. Development of training and employee training. Sponsor activities and sponsor roadmaps. Management of resistance. Collection of data, analysing feedback and remedial action. Celebrating and recognising success. But before going into change management process, it is important to know what change management is and what change management is not. Change management is not a process improvement method, but it is a method for reducing and managing resistance to change while implementing process, technology or organisational change. Change management is not a separate technique for improving organisational performance. It is a necessary component for any organizational performance improvement process to succeed. For example programs like Six Sigma, Business Process Reengineering, Total Quality Management, Organisational Development, Restructuring and continuous process improvement. It is all about managing change to get best business results. There are nine elements which contain the areas or components of the change management program. They along with change management process help in managing change. Good project managers apply these components successfully to bring about project success, avoid the loss of valued employees, and minimise the negative effect of the change on productivity and customers. The nine elements are: Process of change management. Assessment of readiness. Communication and communication planning. Coaching and manager training for change management. Development of training and employee training. Sponsor activities and sponsor roadmaps. MU0018 Change Management Page 2

 Management of resistance. Collection of data, analysing feedback and remedial action. Celebrating and recognising success. These nine elements can be explained as follows: Process of change management The change management process is the series of steps or activities that a change management team or project leader follow to apply change management to a project or to a change. The change management process allows an organisation to deal with both the human and technical aspects of change. Assessment of readiness Assessments are tools that are used by change management team to assess the organisations readiness to change. This assessment can include organisational assessments, culture and history assessments, employee assessments, sponsor assessments and change assessments. Each tool provides an insight into the challenges and the opportunities that the project team may face during the change process. Communication and communication planning Many managers believe that if they communicate clearly with their employees, their job is done. However, there are many reasons why employees may not understand what their managers are saying at the first time. That is because each employees readiness to hear is based on many factors. Effective communicators consider three components: the audience, what is said, and when it is said. For example, the first step in managing change is to build awareness about the need for change and create a desire among employees. Therefore, initial communications are naturally designed to create awareness about the reasons for change and the risk of not changing. Like this, at each step in the process, communications should be designed to spread the right message at the right time. Therefore, communication planning starts with a careful analysis of the audiences, the key messages and the timing for those messages. The change management team must design a communication plan that addresses the needs of front-line employees, supervisors, and executives. Each of the audience has particular needs for information that is based on their role in the implementation of the change. Coaching and manager training for change management Supervisors play a major role in managing change. Ultimately, the supervisor will have direct influence over an employees motivation to change than any other person at workplace. Unfortunately, it is difficult to convince supervisors about the need for change and they even become the source of resistance. It is essential for the change management team and executive sponsors to increase the support of supervisors and to build change leadership. Use of individual change management activities will help these supervisors to understand and implement the change process.

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When managers and supervisors are into the project, the change management team must prepare a coaching plan. They should provide training for supervisors including how to use individual change management tools with their employees. Development of training and employee training Training is the foundation for building information about the change and other skills required. Project team develops training requirements based on the skills, the knowledge, and the behaviours that are necessary to implement the change. These training requirements will be the foundation for the project team to develop training programs. Sponsor activities and sponsor roadmaps Business leaders and executives play a major role as sponsors in change management. The change management team develops a plan for sponsor activities and help key business leaders to carry out these plans. Sponsorship should be seen as the most important success factor. Avoid confusing the idea of sponsorship with support. The CEO (Chief Executive Officer) of the company may support your project, but that doesnt mean that they sponsor your initiative. Sponsorship involves energetic and visible involvement by senior business leaders throughout the process. Unfortunately many executives will not be aware of what this sponsorship looks like. A change management agents or project leaders role here is to help senior executives to do the right things to sponsor the project. Management of resistance Resistance from employees and managers at early stage is a normal behaviour. However, continuous resistance can threaten a project. So, the change management team must identify, understand and manage resistance throughout the organisation. The processes and tools used by managers and executives along with the support of the project team to manage employee resistance is called resistance management or management of resistance. Collection of data, analysing feedback and remedial action Employee involvement is essential and integral part of change management. Managing change can not happen from one side. Feedback from employees is a key factor of the change management process. Analysis and remedial action based on this feedback aids in implementing change. Celebrating and recognising success Success at early stage and long-term must be recognised and celebrated. Individual and group appreciation is also a necessary component of change management in order to strengthen and support the change in the organisation. After-action review is the final step of the change management process. At this point you can stand back from the entire program, calculate successes and failures, and categorise process changes for the next project. This is part of the ongoing, continuous improvement of change management for your organisation and ultimately leads to change proficiency. MU0018 Change Management Page 4

Q.3 Discuss the factors responsible for resistance? Ans:There are several factors that cause resistance to change. Here, we shall look into some of the critical reasons why employees resist change. These could include, their: Inability to understand change and its implications. Conviction that change is irrelevant and inappropriate. Difficulty to cope with the level and pace of work after the change. Speculated notion that change is a temporary phase. Perception that their superiors regard them as incompetent. Lack of influence or control. Lack of faith in their talent to learn new skills. Feeling of too many changes occurring too soon. Dislike to some managers/superiors and total mistrust in them. Feeling that it would involve a compromise on their income. Belief that the organisation does not need the extra effort. Unwillingness to use new technology to simplify work processes. Lack of proper communication channels between the management and themselves. We observe that the mentioned reasons broadly belong to basically two categories. These are: A lack of awareness about the change. Comfort with the way things are and hence a fear of the unknown. Given figures briefly explain the two broad categories. Figure 6.1, illustrates how a lack of awareness about the change gives rise to a fear of incurring a potential for loss on a personal level. Some of the losses on the personal level have been given in the diagram. Figure 6.1 illustrates the lack of awareness about the change MU0018 Change Management Page 5

Figure 6.1: Lack of Awareness about the Change Figure 6.1 gives us an insight into how the potential for loss on a personal level acts as a reason for factor instigating the resistance to change; even though there isnt a potential threat, the individual believes that there is. Figure 6.2, on the other hand, explains how comfort with the way things are develops within us the resistance in change. When, in reality, there is no such thing as comfort. Comfort is something that we assume or rather create for ourselves. It is that situation, wherein, we make ourselves believe that the way the things are currently is good and safe, and that any change to this would require us to get out of our comfort zone. The figure illustrates some of the factors that influence this state of mind.Figure 6.2 illustrates the comfort with the status quo.

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Figure 6.2: Comfort with the status quo Thus, figure 6.2 tells us how an individuals comfort with the ways things are causes him to raise a resistance to change. When actually in truth comfort is something an individual perceives in his mind, it does not exist. It is a creation by the human mind. It is important to note that fear of the unknown could also lead to the described. Resistance can also be classified into two other categories, which include: Resistance to the content of change. Resistance to the process of change. Resistance to the content of change: This involves the object of the change. An example of this type of resistance is that, when a specific change is introduced in technology, like the introduction of a particular reward system. Resistance to the process of change: This involves the way in which a change is introduced and not the object of change. An example of this kind of resistance is when the management re-structures jobs with no prior consultation with the employees who are affected by the change. Types of resistance There are three types of resistance involved in any resistance to change. These are: Level 1: I Do Not Get It. Level 2: I Do Not Like It. Level 3: I Do Not Like You. The following example[3] will give us an insight into the different types of resistance. Let us consider a real life scenario wherein an executive announces that the company will restructure starting the following week. The employees and middle managers begin to resist. As the project unfolds, executives see resistance appearing in many forms malicious compliance, in-your-face arguments, even sabotage. The executives respond by pushing the change even harder. They then start to make demands. Employees start to redouble their opposition and the change ends up either failing or going far over budget and way past deadlines. Let us now look into the types of resistance involved in the same. Level 1: I Do Not Get It: Level 1 involves information involving the facts, figures and ideas. It is the world of thinking and rational action. It is the world of presentations, diagrams, and logical arguments. This could also arise from lack of information, disagreement with data, and lack of exposure to the critical information or maybe even just the confusion over what it means. MU0018 Change Management Page 7

Many at times, we make the mistake of treating all resistance as if it were Level 1. Well-meaning managers supply their people with more information hold more meetings, and make more PowerPoint presentations when, in fact, something completely different is called for. And thats where Levels 2 and 3 come in. Level 2: I Do Not Like It: Level 2 concerns the emotional reaction to the change. Blood pressure rises, adrenaline flows, pulse increases. It is centred on fear: People are afraid that this change may cause them to lose face, status, control maybe even their jobs. When Level 2 is active, it makes communicating the change very difficult. People stop listening. So no matter how terrific your presentation is, once people hear "downsizing" their minds go elsewhere. This, however, is uncontrollable. They are not choosing to ignore you; its just that theyve got more important things on their minds like their own survival. Level 3: I Do Not Like You: This means, maybe they do like you, but they dont trust you or dont have enough confidence in your leadership. This is difficult to digest, but lack of attention to Level 3 is a major reason why resistance flourishes and changes fail as it is seldom talked about. In Level 3 resistance, people are not resisting the idea in fact, they may love the change you are presenting they are resisting you. But maybe it may not be you; they may be resisting those whom you represent. Whatever be the reason for this deeply ingrained resistance, you cant afford to ignore it. People may understand the idea you are suggesting (Level 1), and they may even have a good feeling about the possibilities of this change (Level 2) but they wont go along if they dont trust you. Thus, the example broadly classifies the types of resistance involved in an actual organisational change. However, the following section explains the methodology involved in reducing resistance to change.

Q.4 Explain challenges in implementing the successful change? Ans:There are many challenges that have to be addressed for implementing the change. It is human tendency 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 be implemented by the organisation. They are: There is more competition from other countries in the market of today. In this situation we have to look with our organisation whether the organisation is able to cope with the market after implementing the change. MU0018 Change Management Page 8

 There will be some socio, economic problems like the resource allocations and the impact of the resource 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 is needed in the case of change process. There is a need to learn about the learning of new skills in the case of implementation of change that has to be carried out. There are many theories that explain why the people resist the change even when there is a necessity for the change. The resistance to change is the major challenge that is faced in all the organisations 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, each employee has to commit for the plan. This begins at the top so that it shows the good leadership. A change 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 raise their 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 then they may have to face some consequences. Rewards and celebrations: The successful implementation in the organisation should be well acknowledged. 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 relationship between 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 as defined by the documents of the company like job descriptions, employment contracts and performance agreements. The psychological compact: This involves the trust between the employee and the employer. This is needed for the better achievement of the individual as well as the companys objectives. The social compact: This involves the employees opinion about the culture of an organisation and the success of that organisation. MU0018 Change Management Page 9

Change usually destabilises the relationship between the employee and the employer, since they will not be comfortable with these changes. These will cause the resistance to change. It is not simply 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 to protect themselves. The position of the employees in the organisation will be: Argumentative: There are some employees who aggressively challenge against the change which is necessary. This is the time waster and it opposes the critical objectives that have to be met. The employee must agree that every idea is worth of consideration. We need to ask some suggestions from the employees those who challenge the change. Avoidance: Some managers and the members of the leadership team will simply avoid the change without refusing the change process. This is done by showing some kind of avoidance like not attending the meetings, denying the resources, or withholding the feedback. Leading the change is difficult 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 some diversions during the change process that definitely reduce the effort. A distracted individual shows this 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 overcome the resistance to changes. All the employees must be given the same respect, since every individual will have their own opinion for the change. It is advisable to seek the agreement in all the stages of change process. When there are many on the board in the organisation then it is good to ask and address 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 dimensional format. Adult learning theory supports the need to propagate the messages that are seen, heard and felt.

Q.5 Write a note on transformation strategies? Ans:The transformation strategies are the strategies and plans that are well designed for the development of the organisation. The strategies of transformation are based on the transformation through Values, Organisation development, Re-engineering, McKinseys[1] Plan, Competitive Benchmarking, Six Sigma, Kaizen Principle which can be explained as follows: Transformation through Values The values are the important factors for the companies, and these reflect an ethic. The values are the foundation of the culture of an organisation. Usually organisations will have some of the core values. They should be: Very well suited with the societys core values. MU0018 Change Management Page 10

 Based on the human interests. Very well suited for the purpose and operating context. Transformation through organisation development The organisation development depends on the three factors. They are: The organisation change will be present throughout all the stages. The organisation can be changed by changing the climate of the organisation. There is a requirement of social awareness in the organisation. Greiner has given the seven approaches for change that are commonly used. They are: The Decree Approach. The Replacement Approach. The Structural Approach. The Group Decision Approach. The Data Discussion Approach. The Group Problem Solving Approach. The T-Group Approach. Transformation through reengineering The reengineering process is revolutionary, and it improves the old way of doing the business. Transformation through through McKinseys plan The McKinseys Plan gives the ten ways of transformation for an organisation. They: Organise mainly the processes not the task. Minimise the subdivision of processes. Give in charge of the change process to the senior persons. Link the objectives to the customer satisfaction. Focus mainly on the teams rather than the individuals. Focus on combining both the managerial and non managerial activities as much as possible. Focus more on the development of competencies among all the individuals. Inform and train the people without the delay. MU0018 Change Management Page 11

 Increase the supplier and customer contact with all the individuals in the organisation. Reward the skill development and team performance rather than the individual performance alone. Transformation through competitive benchmarking This involves the process of measuring the products based on the quality and standards. This also involves the viewing the good services and practices to the customers in comparison with the other competitors in the market. Transforming through Six Sigma This defines the statistical variation. This aims at reducing the defectsapproximately from 35000 to three defects per million operations. This makes use of the infrastructure of highly trained employees from different fields of the company. Transformation through Kaizen Principle This mainly depends on the factors like: Small improvement. Conventional knowledge. Personal involvement. Many people. Improve the process. Standardisation is needed.

Q.6 Differentiate between effectiveness and efficiency? Ans:In order to be successful, organisations have to be effective and efficient. Effectiveness is to achieve the right things and efficiency is to achieve the things right. Effectiveness and efficiency are generally used very closely or interchangeably, although both these terms have very clear and separate meanings the difference in these two terms can be explained as follows: Organisational effectiveness is commonly referred to as the degree to which predetermined operational and operative goals are achieved, but the concept of efficiency represents the benefit rate incurred in the search of these goals or in other words efficiency is the input to output ratio. It tells the number of inputs that is required to produce certain amount of outputs.

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For Example, Take two customer service representatives, the first representative is very fast with the customer. If the customer tells him unnecessary information, the first representative tells the customer that is not important and quickly resolves the issues. The first representative ends up handling more number of calls. The second representative is slow with the customer, shows empathy and concern, and resolves the issue, gains customer satisfaction by the end of the call. Here the first representative is efficient and the second representative is effective. There are some major differences between the effectiveness and efficiency. These are shown in the table 7.1. Table 7.1: Difference between Effectiveness and Efficiency Effectiveness Efficiency

Efficiency is defined as the output to Effectiveness is defined as theinput ratio and focuses on achieving measure of actual output meeting thethe maximum output with minimum required output. resources. It considers the present state and the It considers in meeting the end goals. process. This encourages innovation andThis requires documentation and different ways to execute the requiredrepetition of same steps many number goal. of times. It is about gaining success. This refers to quality. This is to achieve the right things. It is about avoiding errors. This refers to quantity. This is to achieve the things right.

Creating an effective and efficient organisation leads to the minimum utilisation of resources. The effective and efficient organisation brings to its customers the prize of superior quality and value for money.

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