Managing Change

Principles of Management

Assignment

2003/ 2004

ÐŽ§The key theme of this module is change. What did Charles Handy mean when he commented that change could not be managed? If he was right what can a manager do in the face of change? Explain the responsibilities of a manager to their organisation and its employees during periods of change.ЎЁ

Word Count: 1940

Pages: 10

Contents Page

Page

Front page 1

Contents page 2

1. Introduction 3

2. Change 3

2.1. Turbulent time 3

2.2. Definition: change management 4

2.3. Sources of change 4

2.4. Change theory 4

3. Managing change 5

3.1. Resistance 5

3.2. Is change manageable? 6

3.3. Responsibilities and actions 7

4. Conclusion 8

5. Bibliography 9

1. Introduction

This piece of work should give a brief insight in the field of change management.

It should present basic ideas and coherences that seem to be useful in order to understand the nature of organizational change and how it can be coped with successfully.

First, IÐŽ¦m going to explain how change affects todayÐŽ¦s business world and why organizations need to change. Then I will continue with a definition of ЎҐmanaging changeÐŽ¦, before I am going to outline external and internal sources of change. Next, a theoretical framework for change is going to be presented; subsequently followed by an explanation of various factors that lead to the resistance to change. Then I am going to discuss, if change is manageable or not, before I will finally point out, what a manager is responsible for and what he can do in the change process in order to achieve a positive outcome.

2. Change

All things must change

To something new, to something strange.

Henry Wadsworth Longfellow

2.1. Turbulent time

The basic characteristic of todayÐŽ¦s business world is its turbulence and - as experts like to point out ÐŽVchange is the sole constant. Change (The American Heritage Dictionary, 1976) is the process or condition of changing; alteration or modification; transformation. Change is omnipresent and therefore we are all subject to change in one form or another, going through a process of ongoing adaptation and adjustment. Rapid changes are creating dramatic dislocation in the workplace, affecting peopleÐŽ¦s skills and how business firms compete amongst themselves for power and resources. These ongoing changes are of increasingly complex and intensive character. In order to survive and to develop, organizations continually have to adapt to the changing environment.

The different set of values and opinions, and the conflicts that arise within organizations and their environments seem to be essential in this adaptation process.

Consequently, it is essential for managers to identify the multi-dimensional change environment, to understand the different types of change, the forces behind them and how best to manage concurrently these changes through active and participative leadership.

Likewise, in his book ÐŽ§Understanding OrganizationsЎЁ, Charles Handy writes, that ÐŽ§Change is a necessary condition of survival, be we individuals or organisations, and differences are a necessary ingredient in that change, that never ending search for improvement.

The challenge for the manager is to harness the energy and thrust of the differences so that the organisation does not disintegrate but develops. Without politics we would never change and without change we would wither and die.ЎЁ

2.2. Definition: Managing Change (a task oriented approach)

Managing change is itself a term that has at least two meanings.

On the one hand it refers to the implementation of internal changes in a planned and managed or systematic way. The aim is to more effectively implement new methods and systems in an ongoing organization. The changes to be managed lie within the sphere of the organization and are controlled by it. On the other hand, these internal changes might have been triggered by events originating in the organizationÐŽ¦s environment. Subsequently, the second meaning of managing change is the response to changes over which the organization exercises only little or no control (e.g., legislation, the actions of competitors, shifting economic tides and currents, and so on).

2.3. Sources of Change

Organisational change can be set off deliberately by managers, it can develop slowly within a department, it can be enforced by specific changes in policy or procedures, or it can come up as a result of external pressures. In order to promote and to adapt to change, it is therefore essential to define the origin of the need to change, as well as the nature of any proposed change.

Change may originate from outside or inside the organisation. External forces for change include market forces (e.g. financial pressures and competition), legislation (in particular environmental and employee legislation), tax structures, new technologies (e.g. new computer technology, process equipment,.. ) and last but not least political forces( world, national and organizational politics). Change also originates within the organization itself. Internal sources for change include the need for profitability (which is indeed a major thrust for change),