Managing organisational change The implementation of new procedures and technologies intended to realign an organization with the new demands of its business environment.

Nature of change in business Incremental change Fundamental change

Push factors to change These are factors within the environment that fuel change in organizations. a) Globalization Because of technology, barriers are breaking and distances are shrinking. The business environment has opened to new products and new markets.

Push factors to change cont… b) HIV/AIDS effects to the workforce Threat to loss of skilled labour since the most productive ages are mostly affected.

Push factors to change cont… c) Women in management position and dealing with traditionally male dominated set-ups To what extent are women leaders appreciated? Are the women themselves confident in the leadership positions? Is the set-up in organizations ready for women managers?

Push factors to change cont… d) Worldwide concern for the environment Need for environmental management by organizations because environmental concerns now have legal and socio-economic connotations.

Push factors to change cont… e) Health conscious consumers People are becoming more careful about what they consume.

Push factors to change cont… f) Structural Transformations Mergers, acquisitions and expansion to international markets, necessitate strategic realignment.

Push factors to change cont… g) Competition Rising competition in target markets may trigger urgent reviews of strategies in efforts to enhance competitive advantage..

Factors influencing resistance to change in organizations Threat to social relationships Previous unsuccessful change Fear of loss of control Fear of loss of face Poor timing Fear of the unknown Failure to recognize the need for change.

Managing organizational resistance to change i) Education and communication Explain the need and logic for change in the organization. This strategy is useful when employees have inadequate or inaccurate information employees lack proper skills to analyse and interpret available information.

Managing organizational resistance to change cont… ii) Manipulation and cooption Manipulation is a secret attempt to influence, such as distorting facts, creating false rumours or withholding information. Effective where: initiators do not have enough information needed to design change, and subordinates have considerable power to resist.

Managing organizational resistance to change cont… iii) Negotiation Reaching a common ground with or soliciting for understanding with potentially resisting employees.

Managing organizational resistance to change cont… Necessary when: resistance comes from a powerful source. management will clearly lose out in a change process.

Managing organizational resistance to change cont… iv) Facilitation and support Providing supportive efforts to people negatively affected by change. Useful when: employees resist for adjustment problems.

Managing organizational resistance to change cont… Coercion This involves using direct threats or force to get support for proposed change. Though a faster and easier way to gain support, coercion is often associated with high recruitment costs.

Guidelines to dealing with resistance to change Explain the need for change to all employees. Avoid being defensive when discussing the desired change. Plan for anticipated change and avoid surprising employees. Engage a team to share the news of change Establish employees’ reasons for liking or disliking the proposed change.

Guidelines to dealing with resistance to change cont… Allow for open discussion of concerns and show appreciation of members’ view. Whenever possible, pilot test the change and assess the results. Make major changes all at once. Explain the replacement plan to members. Provide training and support to guide subordinates through the new system.