CIMA E2 – 8. Change Management

What is change management?
approach to transitioning ind. teams/org to a desired future state.
Change agent
individual or group that helps to bring about strategic chanage in an organisation
What causes org. change
Is driven by:
External Events: Competition, change in customer taste, social changes, recession, political and legal pressures, new tech

Internal Events: out of date working practices, change in org. performance, change in senior management, high staff turnover

Process – Balogan & Hope Hailey
1 – analyse competitive position
2 – determine type of change needed
3 – identify desired future state
4 – analyse the change context
5 – identify the critical change features
6 – determine the design choices
7 – design the transition process
8 – manage the transition
9 – evaluate the change outcome
Process – Lewin’s stage model
Types of change – Lewin
3 stage process:

Unfreeze: breaking current state of affairs and preparing an org for change. i.e physically removing individuals/consulting individuals

Change: new working methods, systems and cultures must be implemented – requires staff participation

Refreeze: new state embedded. i.e positive reinforcement as compliance is rewarded and non-compliance is punished.

Types of change – Balogan & Hope Hailey
analyses types of change that an org. may implement into its scope and nature as follows:

Incremental –
Adaptation ( step by step in the current way of thinking)
Evolution (Paradigm changes over time)

Big Bang –
Reconstruction ( major change within the current paradigm)
Revolution – Rapid, fundamental shift in the paradigm

Problem identification
Problem identification – Lewin
achieving the desired state depended upon the success of overcoming the forces that resist change.

Lewin’s Force field analysis:

Driving forces: Restraining Forces

Need to improve stds – Existing system sufficient

Greater motivation – Concern over effects on jobs

Improved quality of service – Perceived as divisive

Reduced running costs – what if not fairly operated

Resistance to change
biggest challenge is staff resistance, reason for this is:

– high level of uncertainty
– increase in work load
– sense of embarrassment
– rapid change
– loss of autonomy
– skills and competence

Managing resistance to change – Kotter and Schlesinger
6 approaches to overcoming staff resistance:

education & Comm – resistance is caused by ignorance
Participate & involve – staff in design processes
Facilitate & support – via counselling & open door policy
Negotiate & agreement – negotiate where union influence is strong
manipulate & Co-operation –
Coercion, implicit and explicit – suitable where management are strong and staff weak