MANA 3319 A PANDEY Managing Change September 17, 2007.

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MANA 3319 A PANDEY Managing Change September 17, 2007

A Metamorphosis Fredrik Idestam( a mining engineer by trade ) built a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland Fredrik Idestam( a mining engineer by trade ) built a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland – The company added electricity generation to its business activities 1902 – The company added electricity generation to its business activities founded Finnish Cable Works founded Finnish Cable Works began to manufacture mobile phones began to manufacture mobile phones Today- has just sold its billionth mobile phone Today- has just sold its billionth mobile phone

Types of Change Planned Change-change that is anticipated and allows for advanced preparation Planned Change-change that is anticipated and allows for advanced preparation Dynamic Change-change that is ongoing or happens so quickly that the impact on the organization cannot be anticipated and specific preparations cannot be made Dynamic Change-change that is ongoing or happens so quickly that the impact on the organization cannot be anticipated and specific preparations cannot be made

Forces for Change: Environmental Forces Environmental forces include: Environmental forces include:  Technology  Market forces  Political and regulatory agencies and laws  Social trends  Put pressure on a firm’s relationships with customers, suppliers, and employees.

Forces for Change: Internal Forces Events within the company. Events within the company. May originate with top executives and managers and travel top-down May originate with top executives and managers and travel top-down May originate with front-line employees or labor unions and travel bottom-up. May originate with front-line employees or labor unions and travel bottom-up.

Why Don’t we like change? 1. Lack of Trust and Understanding 2. Self Interest 3. Uncertainty 4. Different Perspectives and Goals 5. Cultures that Value Tradition

Lawler’s Star Model Type: Evolutionary or Transformational Structure: decisions and people Reward System: Team or Individual Processes: Information communication and behavior control People: skills and capabilities. Within or outside organization

1. Unfreezing: melting away resistance 3. Refreezing: change becomes routine Present State Desired state Time Lewin’s Three Step Model 2. Change: departure from the status quo

Restraining forces Driving forces Status quo Desired state Time Force-field Analysis Model of Change 1.Decrease Restraining Forces 2.Increase Driving Forces 3.Both

Implementing Organizational Change Top-down Change: initiated by executives Change Agents: people who act as catalysts to change Bottom-up Change: originates with employees.

How to introduce Change: Communication and Education Employee involvement Negotiation Coercion Top Management Support

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