1. Leading and Managing Change
JUST THINK ABOUT HOW WE HANDLE CHANGE IN OUR EVERYDAY LIVES.

2. Leading and Managing Change
Identify reasons that act as stimulants to change.
Summarize the sources of individual and organizational resistance to change.
3. To understand how leadership is linked to change activities
L E A R N I N G O B J E C T I V E S
Page No.

3. Reasons for change External Causes Internal Causes Government Policies
Change in Leadership
Changes in the Economy
New Technology
Competition
Decline in Profitability
Technology
Union Actions
Pressure groups

4. Managing Planned Change
Goals of Planned Change:
Improving the ability of the organization to adapt to changes in its environment.
Changing the behavior of individuals and groups in the organization.

5. Magnitude of Change First-Order Change.
Change is continuous in nature and involves no major shifts in the way an organization operates. This type of change is often associated with the continuous improvement movement.
Second-Order Change.
Radical change; major shifts involving many different levels of the organization and many different aspects of business. These are major and complex changes.

6. What can change agents change?
Structure
Strategy
Technology
People
Process

7. Change Management Activities
Motivating Change
Creating Vision
Effective
Change
Management
Developing
Political Support
Managing the Transition
Sustaining Momentum

8. Motivating Change Sensitize the organization to pressures for change
Creating Readiness for Change
Sensitize the organization to pressures for change
Identify gaps between actual and desired states
Convey credible positive expectations for change
Overcoming Resistance to Change

9. Resistance to Change Forms of Resistance to Change Overt and immediate
Voicing complaints, engaging in job actions
Implicit and deferred
Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism

10. Sources of Individual Resistance to Change

11. Sources of Organizational Resistance to Change

12. Overcoming Resistance to Change
Tactics for dealing with resistance to change:
Education and communication
Participation
Facilitation and support
Benefits and provide incentives
Negotiation
Manipulation and cooptation
Coercion
Psychological safety

13. Creating a Vision
Discover and Describe the Organization’s Core Ideology
What are the core values that inform members what is important in the organization?
What is the organization’s core purpose or reason for being?
Construct the Envisioned Future
What are the bold and valued outcomes?
What is the desired future state?

14. SOUTHWEST AIRLINES
Our vision is to expand our locations both domestic and overseas by being the largest and most profitable airline company to achieve both short and long-haul carriers efficiently and with low cost. Also to be an airline carrier that has the most productive workforce to guarantee the best flight possible for each and every passenger

15. McDonald
"McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."

16. Developing Political Support
Assess Change Agent Power
Identify Key Stakeholders
Influence Stakeholders

17. Sources of Power and Power Strategies for Change Agents
Individual Sources of Power
Power Strategies
Knowledge
Playing it Straight
Knowledge
Playing it Straight
Using Social
Networks
Others’ Support
Using Social
Networks
Others’ Support
Going Around the
Formal System
Personality
Going Around the
Formal System
Personality

18. The Politics of Change
Impetus for change is likely to come from outside change agents.
Internal change agents are most threatened by their loss of status in the organization.
Long-time power holders tend to implement only incremental change.
The outcomes of power struggles in the organization will determine the speed and quality of change.

19. Managing the Transition
Activity Planning
What’s the “roadmap” for change?
Commitment Planning
Who’s support is needed, where do they stand, and how to influence their behavior?
Change-Management Structures
What’s the appropriate arrangement of people and power to drive the change?

20. Change as a Transition State
Desired
Future
State
Current
State
Transition
State

21. Sustaining Momentum Provide Resources for Change
Build a Support System for Change Agents
Develop New Competencies and Skills
Reinforce New Behaviors
Stay the Course

22. Lewin’s Three-Step Change Model

23. Lewin’s Three-Step Change Model

24. Unfreezing the Status Quo

25. Human Resource Shifts From Perform task Reward for doing
Skills life equal to career life
Training as 1% of payroll
Individual treated as cost To
Perform task and provide knowledge
Reward learning and doing
Skills obsolescence at 20% p.a.
Training as 7% of payroll
Individual viewed as asset

26. Human Resource Shifts From Teach Productivity Teach the Need to Change
Customer Satisfaction To
Teach Innovation & Creativity
Teach the Process of Change
Society / Stakeholder Satisfaction