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TERM PAPER
HUMAN RESOURCE MANAGEMENT

TOPIC: MANAGING CHANGE IN THE ERA

OF GLOBALIZATION.

SUBMITTED BY: SUBMITTED TO:

TAUSEEF AHMAD SHAGOO. Miss CHANJYOT.
ROLL NO: B- 32.
SECTION: S-1904.
REG. NO: 10906175.

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CONTENTS
FOREWORD………………………………………………………………………………….
04

INTRODUCTION…………………………………………………………………………….
O5

Organizational change…………………………………………………………. O7

 Forces for change……………………………………………………………………. O8

 Resistance to change…………………………………………………………… 09

 Response to change………………………………………………………………. 10

 Overcoming resistance to change……………………………………… 11

 Types of organizational change………………………………………… 13

Factors determining change……………………………………………………. 18

Managing culture change in the organization…………………….. 19

Appropriate change model……………………………………………………… 21

Steps for managing cultural change…………………………………….. 22

Role of strategic planning……………………………………………………… 23

Role of change management……………………………………………………. 26

Change management…………………………………………………………………. 27

Importance of change management………………………………............. 28

Change management roles & responsibility………………………..... 32

Related articles……………………………………………………………………….. 34

Conclusion……………………………………………………………………………………
41

References…………………………………………………………………………............ 42

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ACKNOWLEDGEMENT

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When emotions are profound, words sometimes are not sufficient to express our
thanks and gratitude. With these words, I am trying to express my extreme
gratitude and sincere thanks to Miss Chanjyot my course tutor and guide who
helped and provided the very much enthusiasm and consistent
encouragement required for the completion of my project. I gratefully
acknowledge and thanks to her for providing enough support and help to
accomplish this project. The successful completion of my project is the blessing of
my teachers, parents and sincere advice of my friends.

Foreword

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In the last decade, Indian business organizations have been challenged by the
forces of globalization and competition. Organizations have tackled these forces
in a number of ways to become competitive and maintain their leadership. In order
to do so, organizations are becoming flatter, leaner and more accountable than
ever before. This has led to increased decision-making at every position.
Successful management of this change is crucial. Thus, interventions for change
management have become necessary leading to several concepts, theories, models
and practices. Changes in organizations to improve competitiveness and efficiency
are incomplete if advancements in information technology are untapped.
Innovative concepts like business process re-engineering, total quality
management and e-business are influencing all aspects of managing an
organization successfully. Today, organizations are able to control their resources
to improve their effectiveness, efficiency and quality. This micro-level control
helps in improving coordination and monitoring, leading to better results.
Every organization today, attempts to bring synergy between people, technology
and management. It is from this angle that the interventions of organization
development (OD) are important. As more technological advancements take
place, the process of OD will become dynamic, evolutionary and self-learning in
character. No wonder, as we move to more knowledge-based businesses, the
organizations will have to strengthen their learning processes, becoming self-
propelled to face the challenges. The process of knowledge management will
enable the organizations to plan and manage their knowledge assets and to
constantly innovate to stay ahead in the global market. Thus, the role of the
change agent will be important in the organizational success.
INTRODUCTION:

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Globalization has become a dominant issue in work organizations all over the
world. It has the potential to enrich not only the nation’s economy but also the
workplace as it can increase productivity, profitability and ease the performance
of tasks. However certain changes such as privatization, deregulation,
liberalization, subsidies removal, actualizations, downsizing, rightsizing,
rationalization, recapitalization, merger and acquisition among others, have made
it very unpopular among workers in the developing countries. Understandably in
the recent times the anti-globalization protests have increased all over the world as
a form of resistance to the changes. Against this backdrop this paper examines the
Nigerian situation by focusing critically on ways and reasons why workers react
and resist changes emanating from globalization both within and outside the work
organizations.

Globalization has engendered changes in all aspects of human endeavor.

Therefore, everywhere, people, institutions, roles, statuses, organizations etc, are
changing. Changes are therefore inevitable consequence of globalization in any
organization. It has been argued that change is the very essence of the
environment in which an organization operates. A change is any deviation from
normal situation and its management requires special skills to weather the change.
In the past few decades, all over the world, organization environment has
undergone rapid and tremendous changes largely due to globalization.
Globalization has resulted in huge advances in the areas of technology. This has
completely reshaped the landscape of formal organizations all over the world, the
less sighted organizations operating in the same environment lost their fortunes
and in some cases were faced with virtual extinction as a result of the inability to
anticipate and adapt their operations to changes brought about by the latent forces
of globalization in the society Globalization has enriched the world scientifically
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and culturally. It has also benefited most nations and peoples economically.
Change is a process that requires action and whichever way workers react to it, it
has implicit and explicit implications for realization or non realization of
organizational goals and objectives. Globalization has become one of the most
prominent phenomena characterizing ending part of 20th century and of course
has become the major force that will propel the direction of most organizational
activities in the now emerged 21st century. Terms like a “global village”,
“international competitiveness”, “liberalization”, “deregulation”
“actualization” “downsizing” etc have almost become universal. Against this
background it useful to explore briefly the meanings of globalization. We are
living today in a boundary-less environment where different nations of the world
together seem to be like one big melting pot where all cultures merge. In the
seamless world of socio-cultural ethos, the only constant is perhaps changing.
This is the age of great intellectual fertility where knowledge stands out as the
most crucial factor for managing change. If change is inevitable in the socio-
cultural and political milieu of nations, the spheres of economics and business
activities are also not left untouched by it. Today’s business organizations
recognize the volatility in which they are operating and clearly recognize that
generation, refinement and application of business processes are the only key to
survival. A decade ago a dozen big enterprises and multinational conglomerates
seemed to matter in shaping the business environment from the global plain. But it
is not so today. These dominant firms have been toppled over by initially weaker
and smaller rivals, pointing to the fact that marginal importance of brainpower has
increased as a competitive weapon. In this era of globalization, it becomes
inevitable that indigenous industries strategize effectively in counteracting the
onslaught of bigger or more powerful multinational corporations (MNCs) which
seem to be sprawling everywhere in their insatiable greed for conquest of nascent
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markets for economic dominance. In this context, it becomes necessary to reflect

on the nature, type and extent of change, which is sweeping organizations, big and
small, around the globe in their bid to survive and sustain themselves in an ever
changing and uncertain business environment.

ORGANIZATIONAL CHANGE

Organizational change may be defined as the adoption of a new idea or behaviour

by an organization (Daft 1995). It is a way of altering an existing organization to
increase organizational effectiveness for achieving its objectives. Organizational
change is primarily structural in character and it is designed to bring about
alterations in organizational structure, methods and processes. Successful
organizational change must continually focus on making organizations responsive
to major developments like changing customer preferences, regulatory norms,
economic shocks and technological innovations. Only those organizations that are
able to undertake suitable change programmes, can sustain and survive in a
changing and demanding economic order in their bid to remain ahead of others in
the race.

FORCES FOR CHANGE

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Forces for change are of two types: internal and external.

Internal forces
Change in size of the organization Change in the organization’s size leads to
change in the internal structure and complexity of the operations in the
organization. Performance gaps When a gap between set target and actual results
(in terms of market share, employee productivity and profit) is identified,
organizations face the forces to change and reduce the gap. Employee needs and
values With changing needs and values of the employees, organizations change
their policies. For example, attractive financial incentives, challenging
assignments, vertical growth opportunities and autonomy at work may be
provided in an organization to attract and retain its effective employees. Change in
the top management Change in the top management and consequent change in the
ideas to run the organization also leads to change in the system, structure and
processes.

External forces
Technology According to Handy (1980), the rate of technological change is
greater today than any time in the past and technological changes are responsible
for changing the nature of the job performed at all levels in an organization.
Business scenario Due to rapid changes in the business scenario with increasing
competition and global economy, the needs and demands are also changing among
the customers, suppliers and other stakeholders. Organizations are, therefore,
forced to change their operational methods to meet the demands of the
stakeholders. Environmental factors Environmental factors such as economic,
political and demographic factors play a vital role in devising organizational
policies and strategy. For example, organizations may have to change their
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employment policies in accordance with the government policy, demand of the

non-government organizations and changing economic conditions of a country.

Resistance to Change
Resistance to change may be of two types: individual and organizational.
Individual’s resistance to change due to fear of losing jobs, obsolescence of skills,
change in the equations in the social relationships, etc. The organizations may also
resist to change due to resource crunch, difficulty to bring in the change in the set
operational methods and sometimes simply due to the fear of the unknown.

Individual resistance to change

Change leads to insecurity among the employees because of its unknown
consequences. Employees do not know for certain whether the change will bring
in better prospects. For example, because of technological change people may feel
threatened due to the fear of obsolescence of skills, less wages and losing the job.
Change sometimes leads to new dimensions of work relationships. Due to
organizational redesign, the employees may have to work with other set of people
than their existing co-workers with whom they have direct relationship, and it is
generally not welcome by most of the employees.

Organizational resistance to change

Change may bring some potential threat to the organizational power to some
people. Therefore, people try to resist change. The structural inertia in the
bureaucratic organizations also hinders change. Furthermore, resource constraints
play a vital role in resistance to change.

Responses to Change
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The responses to change depend upon the employees’ perception about the
change. Different individuals differ in their attitudes and hence, the perceptions
towards change. Therefore, one important task of the management of an
organization is to understand and create a positive attitude among employees
regarding change. Figure 1.1 shows various responses to change.

Reactions to Change
Once a change is announced, usually the first reaction people have is to meet the
change with a sense of shock. Three major reactions which may follow are:
Anger After employees have passed over the shock of the new situation, most
people who view the change as having a negative impact on their personal
situation, become very agitated.
Many times, they will begin a process of looking for the person or persons to
blame. They may begin to talk about the new situation in negative terms. This
agitation and anger, if not addressed, may lead to some people actually trying to
sabotage the change process by taking stances varying between active non-
cooperation and passive resistance.
Denial This phase is a little harder to define. Many people, depending on their
basic values and beliefs, move from anger to acceptance. However, there are a
significant number of people who go through a denial phase. A person going
through this phase will make up excuses why he or she should not be held
accountable for anything that goes wrong with the organization as a result of the
change. Such attempts to disassociate from the new situation often cause the
person to alienate oneself from the group.
Acceptance Only after a person gets through the first phase, can he truly begin to
accept the change that is taking place. Once the person has accepted the change as
real and that it is going to happen, he or she begins to rationalize his or her role in
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the new situation. It is important to understand that not only can an individual
accept the situation and begin to work towards the new vision, but one can also
accept the situation as having a negative impact and choose to leave the
organization. Either way, the individual accepts the fact that the new environment
exists.
It is extremely important for us to understand that people may go through each of
these phases in varying degrees, as they make transition from the old way of doing
business to the new one. How one manages this transition period is crucial.

Figure 1.1 Responses to change.

Overcoming Resistance to Change

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Some approaches can be taken to reduce the resistance to change. Some of them
are listed below (Schermerhorn, Hunt, and Osborn 2000): Education and
communication Open communication and proper education help employees to
understand the significance of change and its requirement. For that, proper
initiative should be taken to provide the information regarding the type, timing,
implication, purpose and reason for change. Employee participation and
involvement in the change process It has been seen that people generally get more
committed towards the change, if they are directly involved in the change process.
This way, they have the opportunity to clarify their doubts and understand the
perspective and requirement of change for the organization. The management also
gets the chance to identify the potential problems that may occur in the workplace
and the chance to prevent it. Facilitation and support Change agent can offer a
range of supportive measures to reduce resistance. Empathetic and considerate
listening can reduce employees’ fear and anxiety towards change. Counseling
sessions to reduce stress, trauma, etc., can be an effective measure. Negotiation
and agreement Organizations which have a fair chance to face potential resistance
from the union representatives, can defuse the resistance by involving them
directly in the change process. They should be properly briefed about the need and
value of change. However, this can be a costly proposition when there is more
than one dominant union in the organization, as all the contending parties would
fight for power and recognition.

TYPES OF ORGANIZATIONAL CHANGE

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As organizations are operating in a volatile environment, it may not always be

able to direct changes in a planned fashion. Thus, changes may occur
spontaneously or randomly in an organization. Such changes may be termed as
unplanned changes as they occur spontaneously and without a change agent’s
direction. They may be disruptive, like a sudden strike, which may result into
plant closure and so on. In comparison, planned change is a result of specific
efforts by a change agent and more intentional in nature (Farrell 2000; Burnes
1996). Planned changes are undertaken by organizations with the purpose of
achieving a goal that might otherwise be difficult to accomplish. It is also
undertaken to reach new horizons and progress rapidly towards a given set of
goals and objectives. Most planned changes are directed at dealing with
performance gaps to bridge the discrepancy between the desired and the actual
state of affairs. Some of the features of planned change are described as follows:
 It is deliberate, systematic and well thought of.
 Velocity of change depends on the degree or level of significance.
 Status quo is challenged.
 Reaction can be both positive and negative.
 Focuses on long-term change.
The Process of Planned Change
The forces for planned change can be found in the following:
 Organization-environment relationship (merger, strategic alliances, etc.)
where organizations attempt to redefine their relationships with changing
social and political environment.
 Organizational life cycle (changes in culture and structure of organization’s
evolution from birth through growth towards maturity).

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 Political nature of organization (changes in internal control structures, etc.)

to deal with shifting political current.
Planned change, based on any of these above mentioned forces, can be aimed at
changing organizational purpose, strategy, structure, people, objectives, task,
culture and technology. It must be remembered that though conceptually they are
being categorized separately, in reality they are highly intertwined since changes
in any one are likely to require changes in other. For example, if technology
changes, tasks too change, bringing in alterations in structures, changes in pattern,
authority, communication, etc. as well as the roles of the workers (Cooke 1979;
Nadler 1987; Kilmann 1984). To initiate planned changes organizations have to
undertake two processes: remove or lessen the restraining forces and move
towards strengthening the driving forces that exist within the organizations. Kurt
Lewin (1951) has applied his theory of Force Field Analysis to study the process
of bringing about effective change. Lewin’s model assumes two obstacles which
generally affect the change process:
(i) generally individuals experience obstacles to change as they are unable
or unwilling to alter long established attitude or behaviour for various
reasons, and
(ii) (ii) they may try to do things differently but may have the tendency to
return to traditional ways after a short time.
To overcome this, Lewin (1951) proposed a three step sequential model of change
process:

Unfreezing
At this stage, the forces, which maintain the status quo in the organizational
behaviour, are reduced by refuting the present attitude and behaviour to create a
perceived need for something new. It is facilitated by environmental pressure such
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as increased competition, declining productivity and performance, felt need to

improve the style of work, etc.

Moving/changing
This stage involves a shift in behaviour of organizations by modifying system,
process, technology and people. This phase can be explained in terms of
compliance, identification and internalization (Rao and Hari Krishna 2002).
Compliance or force occurs when individuals are forced to change whether by
reward or by punishment. Internalization occurs when individuals are forced to
encounter a situation that calls for new behaviour. Identification occurs when
individuals recognize one among various models provided in the environment that
is most suitable to their personality.

Refreezing
At this stage, actions are taken to sustain the drive for change and to facilitate the
institutionalization process of the change even in a day-to-day routine of the
organizations. Here, the desired outcomes are positively reinforced and extra
support is provided to overcome the difficulties. Lewin’s model provides a general
framework for understanding the organizational change. At the later stage, this
model has been modified by Lippitt et al. (1958) who proposed a seven step
model of planned change. In this model, seven steps of change have been
discussed: scouting, entry, diagnosis, planning, action, stabilization, and
evaluation. The first three steps refined the unfreezing step, the fourth and fifth
steps represent the moving stage, and the sixth and seventh step represent the
refreezing stage.

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Toolkit for Managing Change

According to Nicklos (2004), to manage change effectively, the following sets of
skills are required:
 Political skills
 Analytical skills
 People skills
 System skills
 Business skills
Some of the factors to select an effective change strategy and some tips to manage
change are described as follows.
Generally, there is no single change strategy. You can adopt a general or what is
called a ‘grand strategy’ but for any given initiative some mix of strategies serves
best. Which of the preceding strategies to use in your mix of strategies is a
decision affected by a number of factors. Some of the more important ones are:
 Degree of resistance: Strong resistance argues for a coupling of power-
coercive and environmental-adaptive strategies. Weak resistance or
concurrence argues for a combination of empirical-rational and normative-
re-educative strategies.
 Target population: Large populations argue for a mix of all four strategies.
 The stakes: High stakes also argue for a mix of all four strategies because
when the stakes are high, nothing can be left to chance.
 The time frame: Short time frames argue for a power-coercive strategy.
Longer time frames argue for a mix of empirical-rational, normative-re-
educative and environmental-adaptive strategy.

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 Expertise: Having adequate expertise at making change argues for some

mix of the strategies outlined above. Not having the expertise argues for
reliance on the power-coercive strategy.
 Dependency: This is a classic double-edged sword. If the organization is
dependent on its people, management’s ability to command or demand is
limited. Conversely, if people are dependent upon the organization, their
ability to oppose or resist is limited. (Mutual dependency almost always
signals a requirement for some level of negotiation.)

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FACTORS DETERMINING CHANGE

Three factors determine the need for making transitions to more complex
structures. They are:
Increasing vertical differentiation
For an organization to be in tune with what is going on internally, it needs to
control in a vertical direction. This involves:
 Increasing the number of levels in the hierarchy.
 Deciding how much decision-making authority to centralize at the top of
the organization.
 Deciding how much to use rules and norms to standardize behaviour.

Increasing horizontal differentiation

To know the workings horizontally, the organization needs to exert control
horizontally. This involves overlaying a functional grouping with another kind of
subunit group—most often, self contained product teams or product divisions that
possess all the functional resources they need to meet their goals.
Increasing integration
For any organization to say that it has full control, the way of its work is to regain
control both vertically and horizontally. For this to happen there must be
integration between the units in both a horizontal and vertical fashion. The more
complex the subunits and the higher the number of levels of hierarchy, the more
complex and difficult the integrating mechanisms will be. These integrating
mechanisms include task forces, teams and integrating roles. These integrating
mechanisms have to be clear and unambiguous for the people and the
organization.

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MANAGING CULTURE CHANGE WITHIN ORGANIZATIONS

Changing organizational culture is by no means an easy task, since it develops
over a period of time and gets embedded within the very structure, systems and
processes in which it develops. Long-term members of a culture may take it all for
granted and be so accustomed to some limiting conditions as to regard these as
necessary and normal. What is, therefore, required is to create a trust-building
process within organizations by CEOs to gain acceptability from colleagues
before even attempting to usher in outside help in this matter. Cultural change
must be considered as a process in which outside consultants can help a CEO to
act. While the role of the consultant will be to make discoveries and map the
culture, it is an influential insider (whose credibility stands high), not necessarily
the CEO or managing director, who may implement those changes. Change
models can be categorized into three types: top-down; transformational leadership
and strategic approaches. Top-down models They talk about the top
management’s enthusiasm to change vision which can orchestrate relatively rapid
change by developing a vision, communicating it and involving employees. The
leaders set goals, clarify desired outcomes, provide feedback, give rewards for
desired performance and take action when goals are not met. During this process,
focus is on performance driving cultural change. Transformational leadership
Transformational leaders not only direct people to achieve targets, but also inspire
them by influencing the values and priorities of people. They inspire followers
through the mission, optimism, enthusiasm and emotional appeal. They provide
personal support and encouragement, show concern and offer coaching. They set
personal examples, sacrifice for the group and show good ethics. They encourage
people to look at problems from new perspectives and to find new solutions, while
ensuring the feedback, both positive and negative. As a result, people in the
organization relate more to the mission, want to improve their performance and
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thus, enhance the organization’s culture. Strategic approaches Kotter’s eight-step

strategic approach is quite comprehensive and captures in detail the sequence for
managing change. The eight steps of the approach are as follows:
 Establish a sense of urgency.
 Create the guiding coalition.
 Develop a vision and strategy.
 Communicate the change vision.
 Empower employees for broad-based action.
 Generate short-term wins.
 Consolidate gains and produce more change.
 Anchor new approaches in the culture.
According to Kotter, all stages are critical and must not be skipped. Although
cultural change is critical to long-lasting change, Kotter lists it at the end rather
than at the start of the process. He is of the opinion that cultural changes will
follow once the people’s actions have been successfully altered. Action will
produce change in behaviour and then can lead to better performance. And, thus,
cultural change within the organization will take place (Kotter and Heskett 1992).

APPROPRIATE CHANGE MODEL TO FIT THE SITUATION

A top-down approach apparently can be effective, but only if the leader controls
the levers of recruitment, promotion, incentives and dismissal, and at the same
time pays attention to the people factor and is open to feedback. New behaviour
will eventually be accepted and become the culture. In another view, culture
change comes through changing the way things are done in an organization so
that, over time, people will change as well. A third view holds that if you change

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how individuals feel and provide them with new experiences, they will eventually
adopt the new behaviors, leading to the emergence of a new culture. What matters
is to find what works best in a specific situation, given your understanding of all
the factors. The appropriateness of the chosen strategy will depend on what an
organization wishes to achieve through culture change. Bate (1995) identified
what he terms as design parameters for cultural change and suggests that their
relative importance, weight and value will differ both between organizations and
over time within an organization. Based on Bate’s conception, according to
Thornhill et al. (2000), five parameters can be identified in organizational context:
Expressiveness (feeling component) The ability of the cultural change approach
adopted to express a new symbol, which captures employees’ attention and excites
or converts them. Commonality (social component) The ability of the cultural
change approach adopted to create a shared common purpose amongst a group of
employees or the whole organization. Penetration (demographic component) The
ability of the cultural change approach adopted to spread throughout all levels of
an organization and to affect employees’ basic underlying assumptions.
Adaptability (development component) The ability of the cultural change
approach adopted to adjust to changing organizational and wider environmental
circumstances. Durability (institutional component) The ability of the cultural
change approach adopted to create a lasting culture.

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STEPS FOR MANAGING CULTURAL CHANGE:

The following model may be adopted to manage cultural change effectively.

Stage 1: Acknowledge the need for change The first step should be identifying the
need for change. Top management must understand the organization’s current
culture by collecting information on the types of behaviors being practiced and the
level of resistance for change may be expected. On the basis of that, the best-fit
strategy for change should be adopted.

Stage 2: Select the strategy In this step, a strategic plan is designed. Here it is
important to develop the enabling forces for culture change by
(i) developing awareness among employees,
(ii)communicating the vision of the top management,
(iii) getting feedback and
(iv) involving the people who will be affected by the change.

Stage 3: Modification of change strategy and developing suitable culture for

change Here the change strategy may be modified and altered considering the
resistance and requirement of the organization.
Stage 4: Create the culture for enduring change A culture for enduring change has
to be nurtured and maintained to have a long-term benefit out of the change
programme. Role of the top management and HR activities to reinforce the change
is very important at this stage.
Stage 5: Follow-up and evaluation It is important to keep measuring progress,
seek feedback and continue to adjust and improve.

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ROLE OF STRATEGIC PLANNING IN MANAGING

ORGANIZATIONAL CHANGE
Strategic planning is both externally and internally oriented: externally oriented to
be able to respond to markets and competition in the future, and internally
oriented to manage its resources in order to achieve a competitive advantage and
create for itself a future (Harigopal 2001).
A strategic plan attempts to answer the following questions:
 What is our business and what should it be? As a corollary, what is not our
business?
 Who are our present customers, and who should they be, i.e. in which
geographical area, in which purchasing power sectors, with what
sophistication levels of product demands and service expectations?

The factors that it seeks to deal with are as follows:

 Competitions’ present and proposed activities.
 Economic conditions and their trends.
 Government’s standing, the political winds blowing around it, its
legislation and quality of implementation.
 Consumers’ preferences, awareness and attitude towards the organization’s
goods and services.
 Environmental and/or ecological considerations that would emerge, and the
kind and extent of their effect on the organization’s operations.
 Relations between the employees/their unions and the management, and
between the multiple unions and their effect upon employees’ attitudes
towards;

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(i) Work,
(ii) Technological changes and
(iii) The peers and superiors in the organization.

 Management relations and the union’s attitude towards management’s

efforts to improve productivity, to bring in higher technologies, mergers,
expansions and diversifications.
 Threats and opportunities arising from the above-mentioned situations, and
the possibilities of utilizing them to the advantage of the organization. In
order to live up to the expectations as mentioned above, an organization’s
strategic planning needs to be operated along with the following lines:
 It has to have the right combination of factors. In-depth analysis of the
situation and of the factors contributing to the problems or to opportunities
can lead to identification of the factors that constitute the ‘vital few’ and the
‘trivial many’. This is then utilized for the formulation of suitable plans.
 Next, it relates the business organization to its environment. Strategic
decisions are primarily concerned with external rather than the internal
problems of the organization.
 It is relative. It is an action to meet a particular condition to solve a certain
problem or to attain a certain desired objective.
 It may require seemingly contradictory actions. A manager may have to
take a course of action now and he may revise or retrace his steps later
because of the demands made by changes in situations.

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 It has to be obviously forward-looking since strategies are always

developed in relation to new situations.

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ROLE OF CHANGE MANAGEMENT IN

MANAGING THE CHANGE IN THE
ORGANIZATION

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Change Management:

Change management is the process of developing a planned approach to change in

an organization. Typically the objective is to maximize the collective benefits for
all people involved in the change and minimize the risk of failure of implementing
the change. The discipline of change management deals primarily with the human
aspect of change, and is therefore related to pure and industrial psychology.
Change management is a structured approach to transitioning individuals, teams,
and organizations from a current state to a desired future state. Change
management (or change control) is the process during which the changes of a
system are implemented in a controlled manner by following a pre-defined
framework/model with, to some extent, reasonable modifications. In project
management, change management refers to a project management process where
changes to a project are formally introduced and approved. The field of change
management grew from the recognition that organizations are composed of
people. And the behaviors of people make up the outputs of an organization.

Types of Organizational Change

1. Strategic changes
2. Technological changes

3. Structural changes

4. Changing the attitudes and behaviors of personnel

As a multidisciplinary practice, Organizational Change Management requires for

example: creative marketing to enable communication between change audiences,

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but also deep social understanding about leadership’s styles and group dynamics.
As a visible track on transformation projects, Organizational Change Management
aligns groups’ expectations, communicates, integrates teams and manages people
training. It make use of metrics, such as leader’s commitment, communication
effectiveness, and the perceived need for change to design accurate strategies, in
order to avoid change failures or solve troubled change projects.

Importance of Change Management

Change management plays an important role in any organization since the task of
managing change is not an easy one. When we say managing change we mean to
say that making changes in a planned and systemic fashion. With reference to the
IT projects we can say the change in the versions of a project and managing these
versions properly. Changes in the organization or a project can be initiated from
within the organization or externally. For example a product that is popular among
the customers may undergo a change in design based on the triggering factor like
a competitive product from some other manufacturer. This is an example of
external factor that triggers a change within the organization. How the
organization responds to these changes is what that is more concerned. Managing
these changes come under change management. Reactive and proactive responses
to these changes are possible from an organization.

Change management is done by many independent consultants who claim to be

experts in these areas. These consultants manage the changes for their clients.
They manage changes or help the client make the changes or take up the task
themselves to make the changes that must be made. An area of change that needs

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attention is selected and certain models, methods, techniques and tools are used
for making these changes that are necessary for the organization.

When there is a process in an organization it is not an easy task to make changes

to this process immediately. Sometimes a single organization may have varied
business entities and changes in an entity may be reflected in another entity. In
such organizations changes are not so easy. There are different types of
organizations which have many branches across the world with varied cultures.
Implementing a change in such organizations is a task by itself.

The change process can be thought of a process which stops the current process,
makes the necessary changes to the current process and the run the new process. It
is easy said than implemented. Stopping a current process in some industry is fatal
for that organization. Hence it has to be done in steps which have the minimal
effect in the process. These changes cannot take place for a longer time in the
organization since that may also be a disaster for the organization. The
involvement of the staff concerned is also very important for the change process
to be smooth.

The change process could also be considered as a problem solving situation. The
change that is taking place could be the result of a problem that has occurred. You
should know that a problem is a situation that requires some action to be taken
positively to handle that situation. This positive action is known as problem
solving. The change process could be problem solving for a particular situation. In
this process there is a move from one to state to another so that the problem gets
solved. The change process is leaving the current state and moving to the final
state through some structured organized process.

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Managing the changes in an organization requires a broad set of skills like

political skills, analytical skills, people skills, system skills, and business skills.
Having good analytical skills will make you a good change agent. You should
evaluate the financial and political impacts of the changes that can take place. You
should know that following a particular process at that instant would fetch you
immediate financial effects and start that process so that the change process is
noted by the management. The workflow has to be changed in such a manner to
reflect the financial changes that are taking place. Operations and systems in the
organization should be reconfigured in such a manner that you get the desired
financial impact.

Hence change management plays an important role in an organization. This allows

the organization to give a reactive or a proactive response to the changes that
happen internally or externally. Knowing the change management and its process
would help an organization and it s processes to be stable.

THREE STEP PROCESS FOR MANAGING AND GUIDING CHANGE:

1. Unfreezing: This step involves reducing the forces maintaining the

organization's behavior at the present level. During this period the organization
and the individuals within it are saying goodbye to their old way of doing things.
Change leaders are telling people to let go of what feels to them like their whole
world of experience, their sense of identity, even "reality" itself. Unfreezing can
be successfully accomplished by introducing information that shows discrepancies
between behaviors desired by the organizational members and those behaviors
they currently exhibit. It is important that the staff has had input in identifying the

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discrepancies and desired changes. Staff must also be included in planning and
carrying out specific actions to correct the identified problems.

2. Moving: This step shifts the behavior of the organization or department to a

new level. It involves developing new behaviors, values, and attitudes. Although
the staff may have let go of their old ways they will find themselves unable to start
a new. This "neutral" zone is full of uncertainties and confusion. Simply coping
with it takes most of the staff's energy. Because the neutral zone is so
uncomfortable the staff are driven to get out of it. If a change is going to be
successful organizations and its people should spend more time in the neutral zone
so that they can become acclimated to the new way of doing things. In other
words, people cannot do the new things that the new situation requires until they
come to grips with what is being asked.

3. Refreezing: This step stabilizes the organization at a new state of equilibrium.

This stage (also referred to as "moving forward") can be disconcerting for the staff
because it puts one's sense of competence and value at risk. In organizations that
have a history of punishing mistakes people hang back during the final phase or
change, waiting to see how others are going to handle the new beginning. This
phase can be successfully accomplished through the use of supporting
mechanisms that reinforce the new organizational state, such as organizational
culture, norms, policies and structures.

Change management experts argue that the way in which leaders present their
case for change can make a world of difference in the kind of reaction those
results. By involving others (i.e., the staff--those affected by the change) in
decision-making managers can avoid bruising egos, and increase staff members'
levels of self-esteem.

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Change Management Roles and Responsibilities:

The change manager works very closely with stakeholders and it is important that
relationships based on trust are established. The personal attributes of a successful
change manager are empathy and patience. The role and responsibility of the
change manager is focused on understanding stakeholder needs, building an
awareness of the need for change and supporting these stakeholders as they
transition to new work practices.

Some key responsibilities for the change manager include communications,

setting up reporting and communication channels, participating in business
process reform, workshop facilitation, staff training, mentoring and awareness
building. In short, any activity that interacts and prepares the user community to
participate in reformed work practices.

Regardless of the scale of undertaking information management projects require a

change management capability. In large scale projects there may be dedicated
change management resources. For smaller scale projects this role may be a part-
time or shared responsibility. The change management role can in many instances
be a shared role across the development. Sometimes this can be provided through
a corporate change management function. Regardless of how the role is resourced
it is essential that it is included.

Many routinely conducted project activities such as workshops, interviews,

training and presentations are in fact change management opportunities as these
events they are interactions with stakeholders. They therefore present the ideal
opportunity to develop the relationship of trust between the project team members
and stakeholders is important to avoid the situation where contributing

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stakeholders tester feel as though they have been sucked dry for information by
technical people. This can be avoided through the development of awareness of
the importance of the project team/stakeholder relationship thereby maximizing
the value of this contact time.

Further, 'champions' can be identified from within the stakeholder community.

This provides a critical change management input. As these champions are
representatives drawn from the stakeholder community their roles can be a very
influential and positive contributor to project success. Summary Research shows
proves that higher levels of user acceptance and greater use of installed solutions
are achieved when deliberate change management activities are included antiracial
the implementation work plan and life cycle. Best practice in change management
is focused on the early involvement of stakeholders and on building a trusting
relationship. Accordingly, leading organizations have recognized its importance
and routinely allocate resources as projects are planned. For most organizations
there is the opportunity improve information management performance.

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Analysis of Related Articles:

ARTICLE NO 1

SINHA, R (2000) analyzed from his article that SHRM or Strategic human resource
management is a branch of Human resource management or HRM. It is a fairly new
field, which has emerged out of the parent discipline of human resource management.
Much of the early or so called traditional HRM literature treated the notion of strategy
superficially, rather as a purely operational matter, the results of which cascade down
throughout the organization. There was a kind of unsaid division of territory between
people-centered but values of HR and harder business values where corporate
strategies really belonged. HR practitioners felt uncomfortable in the war cabinet like
atmosphere where corporate strategies were formulated.

Reference: Rana sinha [Link]

management?&id=54958

ARTICLE NO2

NEILL, T (2001) analyzed from his article that The new HR professional performs
transformational work that involves knowledge management, foresight, and strategic
redirection and renewal. Knowledge programs evaluate and manage the process of
accumulation, creation, and application of intellectual capital.

Reference: http;//[Link]/;the-changing-hr-structure---leadership,-foresight,-
and-strategy & id=1498805

ARTICLE NO3

GROENEWALD, J (2002) analyzed from her article that . An important aspect of an

organization's business focus and direction towards achieving high levels of
competency and competitiveness would depend very much upon their human resource
management practices to contribute effectively towards profitability, quality, and other
goals in line with the mission and vision of the company.

Reference: http;//[Link]/;human-resource-management-and-organizational-
effectiveness&id-2844811

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ARTICLE NO 4

CHAN,A(2003) analyzed from her article that The role of the Human Resource
Manager is evolving with the change in competitive market environment and the
realization that Human Resource Management must play a more strategic role in the
success of an organization. Organizations that do not put their emphasis on attracting
and retaining talents may find themselves in dire consequences, as their competitors
may be outplaying them in the strategic employment of their human resources.

References: http;//[Link]/;human-resource-management//id32209

ARTICLE NO 5

PATHAK, S (2004) analyzed from her article that this century has belonged to the
manufacturing sector. Starting from the days of Fords assembly line to the present
emphasis on quality systems. The next millennium will belong to the convergence of
Information Technology. How organizations are able to leverage IT to get advantage in
a highly competitive market will be the key to success. Leading the way would be the
organizations which are in the IT industry. These are the ones which have shown that
the quickest way to business excellence would be through optimum utilization of IT.

References: http;//[Link]/challenges-of-hr-in-it-sector&id=1947916

ARTICLE NO.6

BROWN, S (2004) analyzed from his article that Many things have changed over the
last 20 to 30 years in American culture. Some of the changes include the advancement
of technology and the industry shift from production to service. As history has shown,
unequal pay and treatment of employees has transformed employment an unbiased
opportunity for the American dream to a dog-eat-dog world. Many companies believe
their employees should be happy with a paycheck at the end of the week, while
employees want more than just a paycheck. Thus many new laws and the formation of
a Union came forth.

Reference: http;//[Link]/collective-bargaining & id=708271

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ARTICLE NO. 7

LONG, K (2008) analyzed from his article that Changing a corporate culture that
employee’s value is a major management task. It's something that leaders have to
wrestle with everyday. It's not a quick process because the existing values and beliefs
are deeply ingrained in every one. Here are some things adapted from the work of
Edgar Schein, though that can get a leader started down the right path towards
shaping the organization's culture.

Reference: [Link]
Effective-Leadership=1453764
ARTICLE NO. 8
SHUM, T (2009) analyzed from his article that According to few of HR recent statistics,
HR outsourcing could increase profits to as big as $3 trillion over the next five years as
been studied by the Corporate Research Forum. Additionally, this has made HR to
gain more importance and maintain focusing on the core functions of employees
consider such as "must-haves" for these fast growing business plans ever drawn.
While it has come up as a result of the breaking neck competition around outsourcing
partners, this phenomenal growth of HR outsourcing could really leverage delivery of
routine tasks.
Reference: [Link]
Markets-Over-the-Years&id=4121339
ARTICLE NO. 9

HEERDAN, C (2009) analyzed from her article that Fast-tracking the recruitment
process, without taking the time to fully understand all the role requirements, can often
distract recruiters. This dilemma was again highlighted to me recently, after a coffee
meeting with a recruiter friend, who was asked to fill a difficult [Link] may
often struggle to fill a role without being able to attract the right candidates. Sometimes,
this could be a strong signal for the role to be redesigned.

Reference: [Link]
Roles&id=3047838

ARTICLE NO: 10

BHAGRIA, A (2010) analyzed from his article that More strategies are written than
acted upon. More visions are created than realized. More missions are espoused than

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executed. More goals are stated than accomplished. Becoming a strategic partner
means turning strategic statements into a set of organizational actions. Overcoming the
challenge of SPOTS requires that HR professionals force organizational issues into the
strategic discussion before strategies are decided. HR needs to facilitate organizational
diagnosis that highlights how aligned business strategies are to organization culture.

References:[Link]
Partner&id=836298

ARTICLE NO.11

HIMACHALI, S (2009) analyzed from his article that Competencies have become
integral part of HR field. In the last 25+ years, the competency approach has emerged
from being a specialized and narrow application to being a leading method for
diagnosing, framing and improving most aspects of Human Resource Management.
Changes to business practice have forced HR professionals to adjust their role and the
contributions they make as well as to obtain new skills and competencies to meet
these demands.

Reference: [Link]
Knowledge-based-Industry-with-Reference-to-IT,-ITES-BPOs&id=51179

ARTICLE NO12

SHAH, B (2009) analyzed from his article that A human resource consultant has the
work of aligning the company's employees with the strategies of the organization. They
have the task of attracting the best-qualified candidates for job openings. Many
companies have lost their best employees to rival companies and competitors. In
addition, they have also seen their workers resign for different reasons. A HR resource
consultant has the responsibility of ensuring that this never happens. The work
Brisbane HR consultants is also in leadership training for the management

References: [Link]

ARTICLE NO 13

SPAIR, R (2006) analyzed from her article that It's one thing to foster a corporate
culture that embraces security as a core value, but it's quite another to do so at the
sacrifice of actual security technology investments. Gartner recommends that before
companies even start thinking about implementing a security awareness program, they

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should:
•Solidify and strengthen all enterprise security systems and technologies.
•Establish formal practices and support for workers using these systems.
•Invest in security awareness only when the two previous steps are complete.

Reference: [Link]

ARTICLE NO. 14

CLIFF, I (2003) analyzed from his article that When a new employee starts with your
company, the first few months are like a honeymoon period. You and the employee are
getting to know each other, working out what makes each other tick and the employee
is learning about your business. During this period, both sides work out if they are a "fit"
and if the employee is not working out, then their probation is not confirmed (read -
sacked). Generally probation lasts for 3 months, but in Australia under Work Choices
(and where you notify the person before they commence), this probationary period can
be up to 6 months.

Reference: [Link]
Probation&id=1476519

ARTICLE NO. 15

COLLINS, A(2009) analyzed from his article that Many HR professionals are stuck in
the old-school mindset that HR career success comes from following some kind of
rigid, carefully laid-out career plan. Some companies have even taken years to develop
carefully constructed "HR career paths" or "HR career ladders" for their HR folks. This
is all a bunch of bunk. And this is the biggest career mistake just about every HR
professional makes. That approach may have worked in the past, but it won't in today's
workplace. Talk to any successful Human Resources leader with 10-15 years of
experience who is happy and satisfied with their HR career so far - including yourself.
Ask them where they saw themselves at the beginning of their careers and a large
number of them will tell you it was not necessarily what they are doing today. And it
didn't happen from following some career plan they put in concrete.

Reference: [Link]
Mistake-Just-About-Every-HR-Professional-Makes&id=2092931

ARTICLE NO. 16

REGAN, B (2009) analyzed from his article that Like every successful organization,
your strategy needs to include recruiting and retaining the best quality employee
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possible. In an expanding economy with a tightening job market, higher performing

companies recognize the challenge of retaining staff. With multiple generations present
in today's workplaces, providing customized and targeted training is key.

Reference: [Link]

ARTICLE NO: 17

RUSSEL, K (2010) analyzed from his article that Most of the time, economic
downturns are short-lived so keep the bigger picture of long-term growth in sight. Keep
your nerve. It's easier to invest training time for new recruits during slower growth
periods. It's also worth remembering that if you dismiss employees during a recession,
not only is there a cost, you will have to appoint someone to take their places when
times get better - and that can cost a lot more money in the long run.

References:[Link]
1&id=1638414

ARTICLE NO.18

TAYLOR, J (1999) analyzed from her article that Interviews have undeniable value in
every organization's hiring process. Performance-based interviewing is a technique to
make your interviews even more effective in finding the best hires. Performance-based
interviewing takes into account the most important job metrics of a target position
(performance), as well as behavioral traits that have proven to deliver great results in
those metrics, then matches that data to the behavioral makeup of the candidate.

Reference: [Link]
Game-Changers-in-Your-Candidate-Pool&id=3700470

ARTICLE NO. 19

HOLLAND, R(2003) analyzed from his article that Due to the fact of the high price of
litigation, most of today's major firms and corporations have elaborate systems in place
to deal with workplace conflict resolution. Many of these sorts of situations are handled
by the Human Resources director or their department. The sort of training that the HR
person has will go a long way in to be able to manage workplace conflict resolution that
goes on every day. Work place conflicts between staff are a lot more typical than they
seem. At finest they might be a slight annoyance, at worst it can lead to violent

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confrontations. Workplace conflict resolution needs to be handled swiftly and internally

prior to the trouble grows into something entirely unmanageable.

Reference: ttp://[Link]/?Workplace-Conflict-Resolution-Starts-at-the-
Top&id=4177515

ARTICLE NO. 20

WALLER, R (2010) analyzed from his article that Getting the right people involved with
the change is key. Have someone with change management or organizational
development experience to (typically your HR department) help navigate you through
the various steps in your changing environment. Depending on the degree of the
change, you may want to contract someone from outside the organization to support in
the change process.

References: [Link]
The-Workplace-&id=1580997.

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CONCLUSIONS

This paper set out as a contribution to the current discourse on the interaction of
globalization and business performance especially with a flavor of the challenges
from the perspectives of developing countries such as Malaysia and Nigeria. This
paper presents a framework for Strategic Human Resource Management as a
response to prepare organizations for the challenges of globalization. It has been
observed that by and large organizations have achieved relatively low levels of
effectiveness in implementing Strategic Human Resource Management (SHRM)
practices. If the propositions outlined above are supported, then the real challenge
for organizations in the era of globalization is to pay particular emphasis to
strengthening their human resources by upgrading the relevant competencies.
As governments and corporate bodies brace up for the new millennium
characterized by an ever-increasing global challenge, developing countries have
no choice but to develop and continuously upgrade the human resource and
business competencies of their workforce. In the case of developing countries,
distinct competencies are important to deal with not only the HR issues but also
others including partnerships in economic recovery especially in South East Asia,
dealing with the “big boys”, the fund managers, concerns over possibility of fraud
in E-commerce with fast spread of Information Technology and last but not least,
implementing prescriptions for recovery and growth taking in to consideration the
development agenda and unique circumstances of individual countries.
Addressing these issues is a necessary step towards facing the challenges of
globalization in to the next millennium.

REFERENCES
*[Link]/od/hrbasicsfaq/a/hr_role.html

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*www. [Link]/od/hrjobs_mgr.html

*[Link]…changingroleof humanresource.ml_presentation_united

*[Link]..[Link]

*[Link]/…ever_changingrole-hrm-html

*[Link]/..changingroleofhrminmgt-response-to-trends

*[Link]/Wichita/focus-html-unitedsates

*[Link]

[Link]

*[Link]/changing-role-of-hrm-diversity.

*text book of human resource mgt –by-Gary dessler

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