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Direction and Motivation A leader’s major responsibility is to lead and direct his team, as well as to motivate them to achieve their objectives. In the work group, he should instil confidence and zeal. Link between Management and Workers A leader serves as a vital link between management and employees. He communicates the management’s policies and programmes to the subordinates and represents the subordinates’ interests to the management. A leader can only be effective if he or she can act as a sincere custodian of his or her followers’ interests. Qualities of a good leader A successful leader gets his people to do what he wants. It all depends on the leadership’s quality and ability to give. To be effective, a leader must possess certain fundamental qualities. Good personality, emotional stability, sound education, and professional competence initiatives and creative thinking, sense of purpose and responsibility, ability to guide and teach, good understanding and sound judgement, communication skill, sociable, objective, and flexible approach, honesty and integrity of character, self-confidence, and courage to accept responsibility are some of them. Importance of leadership • It improves motivation and morale. Image Source: www.freepik.com • Leadership acts as a motor part of group efforts. • It acts as an authority. • It is needed at all levels of management. • It reflects the imperfectness of the formal organisation relationships. • It provides the basis for cooperation. Module 5 | Emerging Trends in Management Page 51

Techniques or processes of effective leadership • A few effective leadership should follow the following techniques: • The leader should cancel the group in framing the policies and lines of action, and in initiating any radical change. • They should attempt to develop voluntary cooperation from his subordinates in realizing common objective. • They should exercise authority whenever necessary to implement the policies. • They should give clear, complete instructions to his subordinates, • They should build up confidence and zeal in his followers. • They should listen to her subordinate properly and appreciate their feelings. • They should communicate effectively and should follow the principles of motivation. 4.2 Leadership Concepts Leadership involves an intuitive grasp of human nature—basic people’s needs, wants, and abilities—in order to be effective. A leader must grasp the following in order to be effective: a. People, paradoxically, need security and independence at the same time. b. People are sensitive to external rewards and punishments and yet are also strongly self- motivated. c. People like to hear a kind word of praise. Catch people doing something right, so you can pat them on the back. d. People can process only a few facts at a time; thus, a leader needs to keep things simple. e. People trust their gut reaction more than statistical data. f. People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions. Module 5 | Emerging Trends in Management Page 52

Leaders must empower their staff while also ensuring a safe working environment that encourages and rewards accomplishment. By not penalising mistakes, a working climate must be created that encourages employee inventiveness and risk-taking. A leader will concentrate on a few important ideals and goals. Focusing on a few values or objectives allows employees to choose what is important and what is not on a daily basis. Employees must be given personal authority over the task after they have grasped the objectives in order to make the task their own and thus something to which they can commit. By providing an individual some authority over a critical activity, a leader can tap into the person’s inner drive. Employees might become enthusiastic participants in the company if they are led by the boss. It is not always enough to have a desirable purpose, such as complete quality management, to entice employees to engage. People (and thus employees) follow a leader rather than a cause. People will try to adapt or reconcile their vision with the leader’s vision if they like the leader but not the vision. People will not look for a new leader if the current one is liked. This is particularly true in politics. Employees will participate in the comprehensive quality management cause if the leader is trusted and loved. As a result, a leader’s character and competency, which are established via good habits and ethics, must be above reproach. Effective leadership starts on the inside and works its way outward. Leadership Styles Kurt Lewin defined three sorts of company leadership styles in 1939: authoritarian, democratic, and laissez-faire. • Autocratic Business Leader An autocratic leader recognises the power of his or her position. They don’t want to involve the rest of the group in decision-making; instead, they want to carry the burden of leadership on their own. They expect people under their command to carry out their directives. Streamlining work, which promotes efficiency and production, is one of the advantages of authoritarian leadership. They set form deadlines and have a clear understanding of what is expected of them. Module 5 | Emerging Trends in Management Page 53

This is ideal in a crisis or when you need to make a quick decision. As instructions are transmitted down, this leadership style allows for less misunderstandings. Because they can only draw on their own ideas and experiences, they frequently have narrow perspectives. Any suggestions from other team members are likely to go unheard. Those who work under this leadership can become resentful of their bosses. Autocratic CEOs frequently find themselves in the midst of low employee morale and significant turnover. • Democratic Leader A democratic leader promotes the free exchange of ideas among his or her team members. Every member has a valuable contribution to make, and the leader serves as a spokesperson or facilitator. Democratic leaders rely on everyone in the organisation to participate. They stress the importance and knowledge that each team member brings to the table. Every team member shares the leadership’s freedoms and duties. The unbridled creativity of the entire group, which allows for open debate of concerns and solutions, is one of the benefits of a democratic leader. Democratic leadership tends to strengthen team cohesion. This type of environment can make an employee feel valued, accomplished, and vital to the company’s success. Office politics such as gossiping, clicking, and manipulating are becoming less popular. As a result, the working atmosphere has improved and staff turnover has decreased. Deliberation can be pricey if choices must be Image Source: www.freepik.com taken quickly, which is one of the downsides of a democratic leader. Under this risk, a democratic team may be unable to adapt and function; democratic leadership can lead to a lack of clarity in tasks and responsibilities for our own team members, as well as trouble identifying employees who are carrying their weight. Module 5 | Emerging Trends in Management Page 54

• Laissez-Faire Style In the Laissez-Faire leadership style, the leaders are the hands of type. They delegate responsibilities and provide basic guidance, but they are rarely involved in day-to-day operations. Employees choose the best method for carrying out their obligations. Leaders of the laissez- faire movement place a lot of trust in individuals. They have faith in their ability to stay self-motivated, on target, and accountable. If problems emerge, these leaders are there to provide guidance, but only if asked. Leaders that practise laissez-faire management let each member of their team to succeed or fail on their own merits. Advantages of lazy fare • The freedom to function without limits or interference from management is what it means to be a leader. • This allows highly talented and self-motivated employees to achieve their full potential. • Without a strong leadership hand to keep things on track, the downsides can include lower production. Disadvantages • This can lead to missed deadlines, process omissions, and poor quality. • Team unity may be difficult to build since each team member perceives goals differently. • Because of the distance and seemingly inattentive leaders, some people may begin to lose interest in their jobs. 4.3.7 Habits of Highly Effective People Integrity, humility, fidelity, temperance, courage, justice, patience, industry, simplicity, modesty, and the Golden Rule are all part of Stephen R. Covey’s foundation for success. The character ethic takes precedence over the personality ethic, which includes personality Module 5 | Emerging Trends in Management Page 55

development, communication skill training, and education in the fields of persuasion methods and positive thinking. What we are says a lot more about us than what we say or do. The way we view, analyse, and interpret the world around us is referred to as a paradigm. It’s a different perspective on people and things. We must undergo a paradigm change in order to be effective. The majority of scientific advances are the consequence of paradigm changes, such as Copernicus’ belief that the sun, not the earth, is the centre of the universe. Quantum transitions, whether slow and intentional or sudden, are paradigm shifts. A habit is formed when information, skill, and desire come together. Knowledge is the understanding of what to do and why to do it; skill is the ability to accomplish it; and desire is the desire to do it. You must have all three in order for anything to become a habit. The 7 Habits are a comprehensive technique that transitions from reliance (you look after me) through independence (I look after myself) to interdependence (we can do something better together). The first three habits are all about independence, which is at the heart of character development. Interdependence is addressed in Habits 4, 5, and 6—teamwork, cooperation, and communication. The habit of renewal is habit number seven. The 7 Habits are in line with a natural law that Covey refers to as the “P/PC Balance,” in which P represents for desired results production and PC stands for production capacity, ability, or asset. For example, if you do not maintain a lawn mower (PC), it will wear out and become unusable (P). You must strike a balance between the amount of time spent mowing the grass (desired result) and the amount of time spent maintaining the lawn mower (asset). Physical assets, such as a lawn mower, financial assets, such as the balance between principal (PC) and interest (P), and human assets, such as the balance between training (PC) and meeting schedules, are all examples of assets (P). You need the balance to be effective; otherwise, you will have neither a lawn mower nor a mowed lawn. Habit 1: Be Proactive Being proactive is taking charge of your life and having the capacity to pick your response to a situation. Instead of reactive conduct, which is based on feelings, proactive behaviour is the result of an intentional choice based on principles. Reactive people let situations, conditions, or their surroundings to dictate how they should react. Proactive people follow their ideals, which have been carefully considered, chosen, and internalised. The difference between the two behaviours is not what happens to us, but how we respond to it. No one can make you unhappy unless you let them to. Our language is a true reflection of our actions. The table below shows the comparisons: Module 5 | Emerging Trends in Management Page 56

Reactive Proactive There’s nothing I can do. Let’s look at our alternatives. I control my own feelings. She makes me so mad. I have to do that. I will choose an appropriate response. I can’t. I choose. I must. I prefer. Things are getting worse. What initiative can we use? Habit 2: Begin with the End in Mind Beginning each day with an image, vision, or paradigm of the end of your life as your frame of reference is the most basic application of this habit. Each aspect of your life can be assessed in terms of what matters most to you—a holistic view of your existence. All things are produced twice: mentally (the first creation) and physically (the second creation). To construct a house, you must first make a blueprint and then build the actual structure. Before giving a speech, you write it down. If you want to build a successful organisation, start with a strategy that will lead to the desired outcome; consequently, leadership is the first step, followed by management. Leadership is doing the right things, and management is doing the right things, as well. Develop a personal philosophy or credo to help you start with the end in mind. Consider the following items as a starting point: • Never compromise with honesty. Remember the people involved. Maintain a positive attitude. • Exercise daily. • Keep a sense of humour. Do not fear mistakes. • Facilitate the success of subordinates. Seek divine help. • Read a leadership book monthly. We provide a strong foundation for the growth of the life-supporting aspects of security, guidance, wisdom, and power by focusing our lives on proper principles. Fundamental truths are what principles are. They are finely woven threads that flow through the fabric of life with precision, consistency, beauty, and strength. Habit 3: Put First Things First Module 5 | Emerging Trends in Management Page 57

“You are the maker,” says Habit 1. “You are in command.” Habit 2 is the first invention, and it is founded on imagination—values-based leadership. Self-management is habit number three, and it requires Habits 1 and 2 as prerequisites. It’s how you manage your time on a day-by-day, moment-by-moment basis. Urgent indicates it needs to be addressed right away, and important means it contributes to your mission, goals, and values. People that are effective and proactive spend the majority of their time in Quadrant II, limiting their time in Quadrant I. To be effective, four activities are required. First, make a list of your main responsibilities for the week (such as research manager, United Way chairperson, and parent). Second, utilising a variety of Quadrant II activities, make a list of your goals for each role. These aims should be linked to your personal philosophy or ideals from Habit 2. Third, set aside time to complete the goals. Fourth, make adjustments to the weekly timetable to accommodate your daily activities. Habit 4: Think Win-Win Win-Win is a frame of mind and heart that constantly seeks mutual benefit in all human interactions. Both sides come out ahead; in fact, the end result is usually a better way. Time Management Matrix Urgent Not urgent Important I II Not Important Crises, fire-fighting Pressing Prevention, PC Relationship problems Deadline driven building, Recognizing new projects opportunities, Planning, recreation III IV Interruptions, pressing matters Trivia, busy work Time wasters Some mail, calls, reports, Pleasant activities Some meetings, proximate, Popular activities (Time Management Matrix) To establish shared benefits, it takes a lot of courage and thought, especially if the other party is thinking Win-Lose. Character, relationships, agreements, systems, and processes are five interdependent elements of life that Win-Win encompasses. Integrity; maturity, which is a balance between being respectful of others and having the bravery to express feelings; and abundance mentality, which is the belief that there is enough for everyone. Relationships imply that both Module 5 | Emerging Trends in Management Page 58

sides are committed to achieving a win-win situation. Desired results, guidelines, resources, accountability, and repercussions are all required in agreements. Win-Win agreements can only thrive in a system that encourages them—impossible it’s to talk Win-Win while rewarding Win-Lose. A four-step strategy is required to achieve Win-Win: 1. see the problem from the other viewpoint, 2. identify the key issues and concerns, 3. determine acceptable results, and 4. seek possible new options to achieve those results. Habit 5: Seek First to Understand, Then to Be Understood We normally attempt to be understood first, therefore seeking first to understand is a paradigm change. Effective communication requires empathic listening. It emphasises on understanding how the other person perceives and feels about the world. Empathic Listening isn’t about agreeing with someone; it’s about fully comprehending them emotionally as well as intellectually. A human being’s greatest need, aside from physical existence, is psychological survival—to be understood, acknowledged, validated, and valued. The second aspect of the habit must be comprehended. Covey used three Greek words in order: ethos, pathos, and logos. Ethos is your personal credibility or character; pathos is your empathy for the other person’s communication; and logos is your presentation’s logic or reasoning. Habit 6: Synergy The term “synergy” refers to the fact that the sum of its components is greater than the sum of its parts. We can accomplish more as a group than we can as individuals. This is best demonstrated by the musical group The Beatles, who produced more music as a group than any member produced after the group disbanded. Habit 6 is built on the foundation of the preceding five habits. It concentrates the Win/Win concept and empathic communication skills on difficult issues that result in new options that were not previously available. When people quit their boring presentations and Win/Lose mentality in favour of creative collaboration, synergy emerges. When people have true understanding, they can come up with answers that are better than what they could have come up with on their own. Habit 7: Sharpen the Saw (Renewal) Taking the time to sharpen the saw so it can cut faster is habit number seven. It’s your personal computer, and it’s all about protecting and increasing your most valuable asset: yourself. It’s about recharging your physical, spiritual, cerebral, and social/emotional natures. Module 5 | Emerging Trends in Management Page 59

All four aspects of your personality must be utilised on a regular basis in an intelligent and balanced manner. Physical renewal entails proper nutrition, rest and relaxation, as well as frequent exercise. Your dedication to your value system is the spiritual dimension. Prayer, meditation, and spiritual reading are all sources of renewal. Continue to enhance your intelligence through reading, seminars, and writing in the mental dimension. These three aspects, which are Quadrant II activities, necessitate the allocation of time. Because our emotional existence is predominantly, but not exclusively, created out of and manifested in our relationships with others, the social and emotional components of our lives are intertwined. This activity does not necessitate time, but it does necessitate exercise. Correct principles are natural laws, according to Covey’s 7 habits book, and God, the Creator and Father of us all, is the source of them as well as our conscience. People will grow to fulfil their natures to the extent that they live by this inspired conscience; to the extent that they do not, they will remain on the animal plane. Image Source: www.freepik.com Module 5 | Emerging Trends in Management Page 60

6. ORGANISATIONAL DEVELOPMENT AND CHANGE The term “change” refers to the altering of the status quo or the creation of something new. It can relate to any change that occurs in an organisation’s entire work environment. Change can occur when an organisational system is disrupted by an internal or external factor. A change is a modification of a system’s structure or process, which can be beneficial or harmful. It disrupts an organisation’s established equilibrium or status quo. Any change in one section of the organisation can have variable degrees of impact on the rest of the organisation or on numerous other portions of the organisation. It can have an impact on an organisation’s personnel, structure, technology, and other aspects. It might be either reactive or proactive. Reactive change occurs when a person’s behaviour is influenced by external circumstances. Proactive change, on the other hand, is launched by management on its own to improve organisational effectiveness. One of the most important parts of effective management is change. Individuals, people, and organisations engage in this coping process to move from their current condition to a desired state in response to numerous internal and external events that modify current reality. Even the most successful organisations do not have a guarantee of survival. Organisations in various sectors of the economy must be able to change swiftly in order to survive. The cost of failure can be fairly significant when businesses fail to change. All organisations operate in a dynamic environment and are continually transforming themselves. Organisations that stress bureaucratic or mechanistic systems are becoming increasingly unproductive. Organisations with rigid hierarchies, high levels of functional specialisation, restricted and constrained job descriptions, inflexible rules and procedures, and impersonal management are unable to appropriately respond to change demands. Flexible and adaptable designs are required by companies. They also need mechanisms that demand both and allow employees and supervisors to commit more and use their talents more effectively. Organisations that do not implement adequate change in a timely manner are unlikely to survive. One reason for the rapid pace of development is that knowledge and technology feed on one other, resulting in constant invention at exponential rates. The process by which organisations transition from their current state to a desired future state in order to improve their effectiveness is known as organisational change. Planned organisational transformation is to develop new or better methods to use resources and Module 5 | Emerging Trends in Management Page 61

capabilities in order to improve an organisation’s potential to create value and improve returns to its stakeholders. In order to enhance its fit with the environment, a declining company may need to rearrange its resources. In the 1990s, for example, IBM and General Motors saw a drop in demand for their products and have been looking for innovative ways to use their resources to improve their performance and re-engage customers. Even a thriving business, on the other hand, may need to change the way it uses its resources in order to produce new goods or discover new markets for old ones. Companies like as Wal-Mart, Google, Reliance, Tata group, and Godrej have been aggressively expanding their scale of operations and opening new avenues to capitalise on the popularity of their products. Over half of all Fortune 500 companies have gone through major organisational changes in the recent decade to improve their ability to produce value. Change is one of the few things that has remained consistent throughout recorded history. The capacity to effectively handle and exploit change conditions is often a defining characteristic of society’s “winners,” both historical and modern. Individuals, cultures, governments, and businesses that have been at the forefront of economic and/or technical advancement have attained dominance, or at the very least a ‘competitive’ advantage, via innovative thinking and/ or action. They were both enterprising and business-minded. It is stated that management and change are identical; it is impossible to embark on a journey, which is what change is in many ways, without first determining the objective of the journey, the path you desire to take, and with whom you wish to travel. It’s all about dealing with the challenges of travel when it comes to managing change. It is about reviewing, planning and implementing operational, tactical and strategic ‘journeys’ — about always ensuring that the journey is valuable and the destination is relevant. The Industrial Revolution, which took place in Europe between 1750 and 1880, accelerated the rate of development to levels never imagined before. Other economies followed suit, and the rate of change has never slowed; in fact, many argue that it has now surged beyond control. The spear and sword were replaced by the gun; the scribe by the printing press; manpower by James Watt’s steam engine; the horse and waggon by the combustion engine; the typewriter by the word processor; and so on. 6.1 The Importance of Change One can attempt to foresee the future. Predictions, on the other hand, produce only a hazy picture of what might happen, not a blueprint for future events or conditions. Change management that is both effective and progressive can help shape a future that is better suited to the company’s survival prospects. Change will not go away or fade away. Technology, civilizations, and creative thought will continue to advance at a breakneck pace. Managers and the businesses they lead, whether public or private, service or manufacturing, Module 5 | Emerging Trends in Management Page 62

will continue to be rated on their capacity to manage change successfully and efficiently. Unfortunately, managers in the early twenty-first century will be graded on their capacity to handle difficult transition scenarios across ever-shorter time periods. The rate of development has accelerated tremendously; before the invention of the wheel and its subsequent “technological convergence” with the ox and horse, people travelled the globe on foot for ages. The world may not be spinning faster than ever, but mankind is! Businesses and managers are currently operating in highly dynamic and increasingly complicated contexts. Technologies and products are convergent, as are the industries they support and serve. Is the media company in the business of broadcasting, telecommunications, data processing, or all three? Is the grocery chain primarily a retailer or a financial services provider? Is the television just a receiver for broadcast messages, or does it play a role in a multi-media communications package? Is the airline a transportation service, a retailer of wines, liquor, and fine goods, or a vehicle rental and lodging agency? As businesses and products, as well as the markets they serve, converge, a rising recognition emerges that a holistic strategy to marketing goods and services is essential, simplifying the purchasing decision. Strategic partnerships, which are meant to increase ‘added value’ throughout a supply chain while lowering supply costs, are quickly becoming the competitive weapon of the future. In today’s intensely competitive global markets, controlling and exploiting the supply chain makes good business sense. For the foreseeable future, what were formerly individual items (or services) will be packaged into what are effectively “consumer solutions.” Automobile manufacturers no longer only make cars; they now sell them through sophisticated dealer networks that offer appealing service and a number of financing options, many of which are linked to a variety of insurance packages. Utility companies today provide far more than their basic service. Scottish Power has bought utilities in other countries and has recently expanded into water, gas, and telecoms in order to become a ‘unified’ utilities firm that can provide ‘one-stop shopping’ to home and commercial consumers. How can we manage change in such a fast-paced environment without jeopardising the organisation’s key competencies? There are no simple answers, and there are no blueprints for optimum practise. The ability of the management team to construct organisations in such a way as to assist the change process in a responsive and progressive manner is critical to designing, evaluating, and implementing successful change strategies. 6.2 The Imperative of Change Utility companies today provide far more than their basic service. Scottish Module 5 | Emerging Trends in Management Page 63

Power has bought utilities in other countries and has recently expanded into water, gas, and telecoms in order to become a ‘unified’ utilities firm that can provide ‘one-stop shopping’ to home and commercial consumers. How can we manage change in such a fast-paced environment without jeopardising the organisation’s key competencies? There are no simple answers, and there are no blueprints for optimum practise. The ability of the management team to construct organisations in such a way as to assist the change process in a responsive and progressive manner is critical to designing, evaluating, and implementing successful change strategies. 1. A big worldwide marketplace that has shrunk due to advances in technology and international competition. The liberalisation of Eastern European governments, the introduction of a single European currency, e-trade, the formation of new trading blocs such as the Far East’s ‘tiger’ economies, and reductions in transportation, information, and communication costs have changed the world. What strategy does a business have in place to deal with such competitive pressures? 2. A global acknowledgement of the environment as an influencing variable, as well as government efforts to mitigate environmental disaster. Realizing that resource consumption and allocation have finite limits has legal, cultural, and socioeconomic ramifications, and that global solutions to ozone depletion, toxic waste dumping, raw material depletion, and other environmental challenges will push organisations to change sooner rather than later. How does a single organisation react to the larger picture? 3. Globally, health consciousness has become a constant trend among people of all ages. A shift away from synthetic to natural products has resulted from a greater awareness and concern about the content of food and beverage products. Salmonella in eggs and poultry, listeria in cold foods, BSE (‘mad cow disease’) and CJD in humans, genetically altered foods, and animal cloning have all been cited as sources of concern. How does a business deal with the needs of an increasingly health-conscious public? 4. People’s attitudes toward employment, purchases, leisure time, and society are changing as a result of changing lifestyle trends. The way we do business and interact is being challenged by a more morally inquisitive, affluent, educated, and involved populace. What kind of lives will people and their organisations lead? 5. The changing workplace necessitates the hiring of non-traditional workers. Many companies have reduced too much, resulting in management and labour skill shortages. Organisations are currently relying on a core/periphery workforce, teleworking, multi-skilled personnel, and outsourcing to make up the shortage. A larger percentage of the population who have never worked before (for example, women with school-aged children) will need Module 5 | Emerging Trends in Management Page 64

to be recruited into the workforce. Equal pay for equal work and non-monetary incentives will be challenges in the future. How will a single company deal with these challenges? 6. The company’s knowledge asset, its employees, is becoming increasingly important to its competitive viability. Technological and communication advancements are lowering entrance costs in global markets. This allows businesses to become multinational without ever leaving their home country. However, internet marketing, e-mail communication, and other technological applications are all dependent on how you arrange your human resources. Your people are your only long-term competitive advantage. What plans do you have for them in the new millennium? In the same method that you did before? What matters is that people recognise that change happens all the time, that it has many reasons, and that it needs to be addressed all the time. It is not impossible to make a planned change, although it is frequently challenging. The main idea is that change is a continuous process, and it is erroneous to believe that a visionary end state can be achieved through a highly designed procedure. Stimulating Forces What motivates a company to consider change? There are several distinct, even obvious elements that will force a change in the status quo. The most visible of these are those that are triggered by changes in the external environment. The move by automobile manufacturers and petroleum companies to provide more environmentally friendly kinds of ‘product’ in the last few years is an example of this. To credit all change to the environment, on the other hand, would be a massive denial. This would indicate that organisations were simply ‘bobbing around’ in a chaotic sea of change, unable to influence or exert control. Changes in an organisation occur as a result of both business and economic events, as well as management perception, choice, and action processes. In this sense, managers observe situations that they believe indicate the need for change. They also sense the internal context of change in terms of structure, culture, and power and control structures, which provides them with additional information on whether or not it is worthwhile to try to implement change. But what is it that generates change? What elements should we examine while looking for causal effects in an organisation that go from point A to point B? The alteration could arise as a result of: • Changes in technology used • Changes in customer expectations or tastes • Changes as a result of competition Module 5 | Emerging Trends in Management Page 65

• Changes as a result of government legislation • Changes as a result of alterations in the economy at home or abroad • Changes in communication media • Changes in society’s value systems • Changes in the supply chain • Changes in the distribution chain Internal changes can be seen as responses or reactions to the outside world which are regarded as external triggers. There are also a large number of factors which lead to what are termed internal triggers for change. Organisation redesigns to fit a new product line or new marketing strategy are typical examples, as are changes in job responsibilities to fit new organisational structures. The final cause of change in organisations is where the organisation tries to be ahead of change by being proactive. For example, where the organisation tries to anticipate problems in the marketplace or negate the impact of worldwide recession on its own business, proactive change is taking place. 6.3 Planned Change Human resources, functional resources, technology capabilities, and organisational capacities are all areas where planned organisational change is usually aimed at boosting effectiveness. Human Resources Human resources are a company’s most valuable asset. Finally, an organisation’s distinct competencies are its personnel’ talents and abilities. Organisations must constantly monitor their structures to identify the most effective means of encouraging and arranging human resources to acquire and use their skills since these skills and abilities provide them a competitive advantage. The following are examples of typical human resource change initiatives: 1. New investment in training and development activities so that employees acquire new skills and abilities; 2. Socializing employees into the organisational culture so that they learn the new routines on which organisational performance depends; Module 5 | Emerging Trends in Management Page 66

3. Changing organisational norms and values to motivate a multi-cultural and diverse work force; 4. Ongoing examination of the way in which promotion and reward systems operate in a diverse work force; and 5. Changing the composition of the top-management team to improve organisational learning and decision making. Functional Resources Each organisational function must establish processes that allow it to control the environment in which it operates. Organisations frequently migrate resources to the functions where the most value may be achieved when the environment changes. Critical functions are becoming more important, whereas those whose use is dwindling are becoming less so. Changing an organisation’s structure, culture, and technology can increase the value that its functions generate. The transition from a functional to a product team organisation, for example, may hasten the creation of new products. Changes in functional structure can aid in creating an environment where employees are encouraged to perform. Companies can typically improve product quality and productivity by switching from traditional mass production to a manufacturing operation based on self-managed work teams if employees can share in the benefits of the new work system. Technological Capabilities Technological skills provide a company with a tremendous ability to alter in order to take advantage of market opportunities. One of an organisation’s essential capabilities is the capacity to generate a steady supply of new items or tweak old products to keep them appealing to customers. Similarly, the ability to improve the production of goods and services in order to improve their quality and reliability is a critical organisational capability. An organisation must offer the framework that allows it to transfer its technological competencies into value for its stakeholders at the organisational level. This task frequently entails reorganising organisational tasks. For example, IBM has recently changed its organisational structure in order to better leverage on its capabilities in IT consulting. It had previously been unable to transfer its technological talents into economic prospects due to its structure, which was geared toward manufacturing and selling computer hardware and software rather than providing assistance. Module 5 | Emerging Trends in Management Page 67

Organisational Capabilities An organisation’s human and functional resources can be harnessed to take advantage of technological opportunities through the design of organisational structure and culture. Changing the relationship between people and functions to boost their potential to create value is a common part of organisational change. Changing the routines an individual uses to greet customers, changing work group relationships, improving integration between divisions, and changing corporate culture by changing the top-management team are all examples of changes in structure and culture that occur at all levels of the organisation. These four layers of change are obviously interrelated, and changing one without changing the others is generally impossible. Let’s say a company invests in and hires a team of scientists who are experts in a new technology, such as biotechnology. If this human resource transition is successful, it will result in the emergence of a new functional resource as well as a new technology competence. To ensure that its new functional resources are supported, top management will be obliged to re-evaluate its organisational structure and the way it integrates and coordinates its other functions. To make the most of the extra resources, a shift to a product team organisation may be necessary. It may even necessitate downsizing and the abolition of functions that are no longer critical to the company’s success. To make the most of the extra resources, a shift to a product team organisation may be necessary. It may even necessitate downsizing and the deletion of functions that are no longer critical to the objective of the business. 6.4 Change Agents Organisations and their leaders must understand that change is not always a bad thing. The issue is frequently a lack of competence to properly manage change: not only can the adopted procedure be incorrect, but the conceptual framework may also be lacking in vision and knowledge. What is the reason for this? The problem might be related to managers’ growing inability to build and reinforce their function and purpose inside complex, dynamic, and difficult organisations, as many practising managers would agree. Organisations, and particularly their managers, must realise the necessity to develop strategic ways when confronted with change challenges. Organisations, both national and multinational, worked hard in the 1980s and 1990s to gain a lasting competitive advantage in both turbulent and competitive operating contexts. Those that have survived and/or developed have frequently discovered that imaginative and market-driven human resource management can provide the much-needed competitive ‘cushion.’ Module 5 | Emerging Trends in Management Page 68

This is unsurprising: individuals deal with change, and well-managed people do it more effectively. Change management is a multi-disciplinary endeavour. Those in charge, regardless of their title, must have or have access to a diverse set of skills, resources, support, and knowledge. Consider the following: • Communication skills are essential and must be applied for managing teams. • Maintaining motivation and providing leadership to all concerned is necessary. • The ability to facilitate and orchestrate group and individual activities is crucial. • Negotiation and influencing skills are invaluable. • It is essential that both planning and control procedures are employed. • The ability to manage on all planes, upward, downward and within the peer group, must be acquired. • Knowledge of, and the facility to influence, the rationale for change is essential. There are many terms that have been used to denote those responsible for the effective implementation of change: for example, change agents, problem owners, facilitators, project managers or masters of change. The focal point of a change needs not to be an individual; a work group could quite easily be designated as a special task force responsible for managing the change. However, generally within, or above, any work group there is still someone who ultimately is accountable and responsible. What are the essential attributes of a change agent/master and are there any guidelines for them? It has been advised that people who will be affected should be encouraged to participate and participate in the change management process. The goal is to increase interest and commitment while minimising anxieties and consequently opposition. It’s also possible that facilitation and support services will be required. These could help raise an individual’s awareness of the need for change, as well as provide counselling and therapy to help them conquer their concerns. Management must engage in a negotiating process in order to reach an agreement. This is critical when individuals opposed to the change have the power and influence to resist and eventually obstruct it. When consensus fails, there is no choice but to resort to explicit and implicit compulsion. Management may strive to manipulate events somewhere in the middle between the two extremes in order to avoid sources of resistance. They may, for example, pit interested parties against one another or create a dramatic crisis in order to deflect attention. The techniques don’t have to be used in isolation. They might be most effective when used in tandem. A change agent’s or project manager’s main responsibilities are to lessen the ambiguity around the change situation and then inspire positive action. The following are some of the steps that can be taken to help: Module 5 | Emerging Trends in Management Page 69

1. Identify and manage stakeholders (Gains visible commitment). 2. Work on objectives (Clear, concise and understandable) 3. Set a full agenda (Take a hostile view and highlight potential difficulties) 4. Build appropriate control systems (Communication is a two-way process, feedback is required). 5. Plan the process of change (Pay attention to: establishing roles – clarity of purpose; build a team – do not leave it to choose; nurture coalitions of support – fight apathy and resistance; communicate relentlessly – manage the process; recognize power – make the best use of supporting power bases; handing over – ensure that the change is maintained). Change agents exist throughout the company (but are most important at the top) and act as a latent force. They are capable of: • Question the past and challenge old assumptions and beliefs • Leap from operational and process issues to the strategic picture • Think creativity and avoid becoming bogged down in the ‘how-to’ • Manipulate and exploit triggers for change Further, some of the traits of change agents as business athletes are: 1. Able to work independently without the power and sanction of the management hierarchy. 2. Effective collaborators, able to compete in the ways that enhance rather than destroy cooperation. 3. Able to develop high trust relations with high ethical standards. 4. Possess self-confidence tempered with humility. 5. Respectful of the process of change as well as the substance. 6. Able to work across business functions and units – ‘multi-faceted and multi- dexterous’. 7. Willing to take rewards on results and gain satisfaction from success. To summarise, an effective change agent must be able to orchestrate events, socialise within the stakeholder network, and manage the communication process. It is necessary to appoint competent internal change agents to the project in order to ensure cooperation, effective implementation, and a successful handover at the end. The external change agent’s responsibilities include: • To assist in fully defining the problem • To help in determining the cause and suggesting potential solutions • To stimulate debate and broaden the horizons • To encourage the client to learn from the experience and be ready to handle future situations internally; is complementary to that of the internal problem owner. Module 5 | Emerging Trends in Management Page 70

Potential clients must determine the necessity for an objective outsider by considering their own internal competencies as well as their understanding of external opportunities. The main issue with using internal change agents is that they may be perceived as being politically involved in the changes and prejudiced toward specific groups by other members of the company. External change agents, on the other hand, are more likely to be seen as unaffected by internal politics. Another reason to hire external change agents is that they have a detached view of the organisation’s challenges and can tell the difference between the “forest and the trees” as outsiders. Insiders can become so engrossed in the situation that they fail to notice the true source of the issues. Large firms typically use Mckinsey and Co. management consultants to assist the top-management team in diagnosing problems and suggesting remedies. Many consultants focus on certain aspects of organisational change, such as restructuring, re-engineering, or implementing comprehensive quality management. 6.5 Unplanned Change Not every force for change can be attributed to strategic planning. Indeed, organisations are typically responsive to unforeseen changes, particularly those resulting from sources within the company. Changes in the workforce’s demographic makeup and performance differences are two such forces. • Changing Employee Demographics: Even during our lifetimes, it is simple to see how the labour makeup has evolved. Women now make up a larger percentage of the workforce than ever before. At the junior and middle management levels, an increasing number of women with professional skills are joining the organisation. In addition to these factors, the workforce is ageing. Many former government and public-sector employees are now working in the private sector, resulting in a shift in employee demographics. The workforce is growing increasingly diverse as the economy opens up and globalisation takes hold. These aren’t only interesting sociological phenomena to anyone concerned with the long- term operation of organisations; changing conditions will push organisations to adjust. Human resource managers are particularly interested in questions about the amount of people who will be working, the skills and attitudes they will bring to the job, and the new influences they will bring to the workplace. Module 5 | Emerging Trends in Management Page 71

• Performance Gaps: If you’ve ever heard the saying “If it ain’t broke, don’t repair it,” you’re familiar with one of the most powerful sources of unplanned internal changes in organisations: performance gaps. A stagnant product line, dwindling profit margins, and sales that fall short of corporate expectations are all instances of gaps between actual and expected levels of organisational performance. Unexpected information concerning bad performance is one of the few things that forces change. In general, organisations stick to a winning strategy and change when they fail; in other words, they follow the win-stay/lose-change rule. Indeed, a performance gap has been identified as one of the primary variables driving organisational innovation in various research. Those businesses who are best equipped to organise change in the face of impending downturns are anticipated to succeed. Furthermore, one of the most difficult issues that an organisation has is its ability to respond to changes from the outside, which it has little or no influence over. Organisations must adapt to changes in the environment. According to research, companies that can best adapt to changing conditions are more likely to survive. Government regulation and economic competitiveness are two of the most significant unanticipated external influences. • Government Regulation: Government regulation is one of the most common causes of unanticipated organisational changes. The ways in which companies must operate change quickly as the economy opens up and various regulations established by the government regarding de-licensing, complete or partial convertibility of the currency, and so on. These actions have a significant impact on how businesses are done in organisations. With more international firms entering the competitive market, Indian industries must discover new ways and procedures to run their businesses securely and profitably. • Economic Competition in the Global Arena: Someone makes a better mousetrap – or at least a chapter one – every day. As a result, businesses must frequently compete to keep their market share, advertise more effectively, and make items at a lower cost. Economic rivalry compels organisations to adapt, but it also requires them to change effectively if they are to survive. Competition can grow so severe at times that the parties involved would be more effective if they buried the hatchet and banded together. This ‘If you can’t defeat them, join them’ logic was behind the announced alliance, which one financial analyst named “the deal of the decade.” Module 5 | Emerging Trends in Management Page 72

Although competition has always been important for organisational success, it now comes from all around the world. As the cost of transporting materials around the world has decreased, the industrialised nations have found themselves fighting for market share in the worldwide economy. All organisations intending to participate in the global economy face a tough challenge as a result of extensive globalisation. The main problem is to respond to the constant need for change, i.e., to be creative. Organisations change in a variety of ways and for a variety of causes. Problems, challenges, and opportunities arise as a result of the ubiquitous nature of change. Individual managers and organisations who grasp the inevitability of change and learn to innovate, adapt, and manage it while focusing on delivering world-class best value will be the most successful. People and organisations, especially in large and established institutions, frequently oppose change, even when it is in their best interests. 6.6 Lewin’s Force-Field Theory of Change Organisations are resistive to change due to a range of factors, while organisations are pushed to change due to a variety of factors. Kurt Lewin, a researcher, created a theory on organisational change. These two sets of forces are always in antagonism in an organisation, according to his Force-Field Theory. The organisation is in a condition of inertia and does not change when the forces are evenly balanced. Managers must find a means to strengthen forces for change, diminish resistance to change, or do both at the same time to get an organisation to change. Any of these tactics will help an organisation overcome inertia and change. (Kurt Lewin’s Force-Field Analysis) Page 73 Module 5 | Emerging Trends in Management

The Force Field Analysis, developed by Kurt Lewin, is a basic yet effective decision-making technique to add to your management toolkit. Here’s how to use force field analysis to make better decisions, whether for yourself or with others, in a hurry. An organisation at performance level X is in balance. Forces for change and resistance to change are equal. Management, however, decides that the organisation should strive to achieve performance level Y. To get to level Y, the managers must increase the forces for change (the increase is represented by the lengthening of the up arrows), reduce resistance to change (the reduction is represented by the shortening of the down arrows), or do both. If they pursue any of the three strategies successfully, the organisation will change and reach performance level Y. Kurt Lewin, whose Force-Field theory argues that organisations are balanced between forces for change and resistance to change, has a related perspective on how managers can bring change to their organisation. 6.8 Lewin’s Three-Step Change Process In Lewin’s view, implementing change is a three-step process: 1. Unfreezing the organisation from its present state, 2. Making the change, or movement, and 3. Refreezing the organisation in the new, desired state so that its members do not revert to their previous work attitudes and role behaviour Module 5 | Emerging Trends in Management Page 74

Unless the organisation actively takes efforts to refreeze the organisation with the changes in place, Lewin cautions, resistance to change will swiftly force an organisation and its members to revert to their old ways of doing things. It’s not enough to make a few adjustments to task and role connections and expect the improvements to stick. Managers must actively manage the transition process in order for a company to remain in its new state. 6.9 Resistance to Change Planned organisational transformation is to develop new or better methods to use resources and capabilities in order to improve an organisation’s potential to create value and improve returns to its stakeholders. In order to enhance its fit with the environment, a declining company may need to rearrange its resources. At the same time, even a profitable company may need to alter its resource allocation in order to develop new goods or find new markets for existing ones. Over half of all Fortune 500 companies have gone through major organisational changes in the recent decade to improve their ability to produce value. Organisations and its members generally resist change, according to one of the most well- documented conclusions from studies. In some ways, this is a good thing. It gives behaviour a sense of regularity and steadiness. If there was no opposition, organisational behaviour would take on chaotic unpredictability features. Functional conflict can arise as a result of resistance to change. Resistance to a reorganisation plan or a change in a product line, for example, might spark a good debate about the idea’s merits and lead to a better conclusion. However, there is a drawback to resisting change. It stifles progress and adaptation. Change resistance may not always manifest itself in predictable ways. Overt, implicit, immediate, or deferred resistance are all possibilities. When resistance is overt and immediate, it is easier for management to deal with it. For example, when a change is suggested, employees swiftly respond by voicing objections, slowing down work, threatening to strike, and so on. Managing implicit or postponed opposition is a bigger issue. Implicit resistance efforts are more subtle—loss of allegiance to the organisation, lack of willingness to work, greater errors or blunders, increased sick leave—and hence more difficult to detect. Deferred acts, likewise, obscure the relationship between the cause of resistance and the response to it. When a change is made, it may appear to create just a minor reaction at first, but resistance emerges weeks, months, or even years later. Alternatively, a single modification that may have little impact on its own can be the final straw that breaks the company’s back. Change reactions can build up and then explode in a response that appears to be out of proportion to the change action it is responding to. Of course, the opposition has just been postponed and stored, and what emerges is a reaction to a cascade of preceding changes. Module 5 | Emerging Trends in Management Page 75

6.9.1 Sources of Resistance Sources of resistance could be at the individual level or at the organisational level. Sometimes the sources can overlap. Individual Factors Basic human qualities such as perceptions, personalities, and needs are all sources of individual resistance to change. There are four main reasons why people are resistant to change. • Habit: Humans are creatures who stick to their routines. Life is complicated enough as it is; we don’t need to analyse all of our options while making the hundreds of decisions we must make every day. We all rely on habits of programmed responses to deal with this complexity. When confronted with change, though, our natural propensity to respond in familiar ways becomes a source of resistance. When your office relocates, you’ll have to modify a lot of behaviours, such as driving down new streets to work, finding a new parking spot, adjusting to a new office layout, adopting a new lunchtime routine, and so on. It’s difficult to break a habit. People have a built-in inclination to revert to their previous behaviour, which stymies progress. • Security: People who have a high need for security are more inclined to oppose change since it jeopardises their sense of security. They are unsure and concerned about the outcome. It’s possible that a worker will be assigned more responsibilities. It’s possible to rearrange role relationships. Some employees may lose their jobs. Some individuals may gain an advantage at the expense of others. Organisational inertia can be caused by workers’ reluctance to the uncertainty and instability that comes with change. As change occurs, absenteeism and turnover may rise, and employees may become uncooperative, try to delay or impede the change process, or otherwise quietly reject it in an attempt to stop it. • Selective Information Processing: Perceptions help people shape their surroundings. They process information selectively in order to maintain their perceptions. They only listen to what they want to hear. They refuse to listen to information that contradicts the world they have built. As a result, people have a tendency to selectively receive information that supports their existing perceptions of their companies. As a result, when change occurs, workers tend to focus solely on how it will affect them directly in their role or division. If they don’t see many benefits, they may reject the change’s objective. Module 5 | Emerging Trends in Management Page 76

Unsurprisingly, developing a consistent platform to promote change across the business and getting people to view the need for change in the same way can be tough. • Economic Factors: Individual resistance is sometimes fueled by fears that change may reduce one’s income. Changes in job tasks or established work routines can also cause economic anxiety if workers are anxious that they won’t be able to accomplish the new activities or routines to their former standards, especially if compensation is based on productivity. For example, the implementation of TQM will need production staff to acquire statistical process control techniques, which some may be unable to perform. As a result, if statistical techniques are required, they may develop a negative attitude toward TQM or act dysfunctionally. Group Level Factors Groups conduct much of an organisation’s work, and numerous group traits might cause resistance to change: • Group Inertia: Many communities establish strong informal rules that define acceptable and unacceptable behaviour and govern interactions among members. Change frequently modifies a group’s duties and role connections; when it happens, it upends group norms and the informal expectations that group members have of one another. As a result, members of a group may resist change because a new set of norms will need to be formed to match the new situation’s requirements. • Structural Inertia: Group cohesion, or how appealing a group is to its members, has an impact on group performance. Although a certain level of cohesion might help a group perform better, too much cohesiveness can actually hinder performance by limiting the group’s ability to alter and adapt. Management may face resistance from a highly cohesive group if it tries to change what it does or even who is a member of the group. Members of a group may band together to maintain the status quo and safeguard their own interests at the expense of others. Organisations have mechanisms in place to maintain stability. The selection process, for example, systematically selects specific persons in and out. Specific role needs and skills are reinforced through training and other socialisation strategies. Employees can follow job descriptions, rules, and processes thanks to formalisation. People are employed into organisations because they are a good match, and they are subsequently shaped and directed to act in certain ways. When a company is faced with change, structural inertia acts as a counterbalance to keep things stable. Module 5 | Emerging Trends in Management Page 77

Group think is a type of erroneous decision-making that arises when members of a cohesive group disregard negative information in order to reach a consensus. The dilemma is made worse by escalating commitment, because even when group members recognise their decision is incorrect, they persist in pursuing it because they are committed to it. Changing a group’s behaviour is extremely difficult due to these group dynamics. The greater the impact of these processes on organisational performance, the more significant the group’s activities are to the organisation. • Power Maintenance: The power balance in organisations is threatened by changes in decision-making authority and control over resource distribution. Units that profit from the change will support it, but those who lose power will reject it, slowing or stopping the change process. Managers, for example, frequently oppose the formation of self-managed work teams. Alternatively, manufacturing departments frequently oppose allowing the purchasing department to regulate input quality. There are times when a CEO will fight change, claiming that it is not his responsibility to promote socially acceptable behaviour throughout a worldwide network. • Functional Sub-optimisation: Changes that are advantageous to one functional unit may be regarded as harmful to another due to differences in functional orientation, goals, and resource requirements. When considering potential adjustments, functional units normally think of themselves first. They favour individuals who improve their personal well-being, but they oppose those who lower it or appear inequitable. • Organisational Culture: The established values, standards, and expectations of an organisation act to foster predictable ways of thinking and doing. Members of an organisation will reject changes that cause them to relinquish long-held beliefs and accepted practises. Overcoming Resistance to Change Kotter and Schelsinger (1979) has identified six general strategies for overcoming resistance to change. • Education and Communication: Employee resistance can be decreased by engaging with them and helping them understand the reasoning of a change. This strategy assumes that misinformation or poor communication is the source of resistance. Employee opposition will fade if they are given all of the facts and any misunderstandings are cleared up. One-on-one conversations, memos, group presentations, and reports can all be used to communicate. Is it effective? It can, if the root of resistance is a lack of Module 5 | Emerging Trends in Management Page 78

communication and the management-employee relationship is marked by mutual trust and credibility. Change is unlikely to succeed unless these requirements are met. • Participation and Involvement: Individuals find it difficult to oppose a change decision in which they would have voted. Those who are opposed to a change can be consulted before a decision is made. People might be encouraged to participate in the design and implementation of the change to express their opinions and create commitment. When change directly impacts people, participation boosts comprehension, enhances feelings of control, lowers uncertainty, and promotes a sense of ownership. • Facilitation and Support: Employees who are given encouragement, support, training, counselling, and resources have an easier time adapting to new needs. Managers have a higher chance of obtaining respect and the dedication to make it work if they acknowledge people’s worry as valid and assist them cope with change. • Negotiation and Agreement: Management might make a deal to offer rewards in exchange for a willingness to change. When dealing with strong resistance, such as negotiating units, this strategy is frequently required. Specific items can sometimes be exchanged in exchange for assistance in effecting change. Other times, broad rewards can be widely distributed to make the change easier to implement. • Manipulation and Co-optation: Manipulation is the process of framing and selectively employing facts and implied incentives in order to increase the chances of acceptance. For example, suppose management informs employees that accepting a wage cut is required to avert a plant closure when a plant closure is not required. Co-optation is the practise of persuading reluctant stakeholders to support a change attempt by giving them with desired benefits and a non-influential involvement in the process. • Explicit and Implicit Coercion: To force acceptance of a planned change, management may employ authority and the prospect of negative incentives. If employees do not accept the suggested changes, management may elect to close the facility, reduce compensation, or lay off workers. Transfer, loss of advancement, unfavourable performance ratings, and poor letter of recommendation are all examples of coercion. Coercion’s advantages and disadvantages are similar to those of manipulation and co-optation. Module 5 | Emerging Trends in Management Page 79

Methods for Dealing with Resistance to Change Approach Commonly used Advantages Disadvantage Education and When there is Once persuaded, Can be time Communication lack of information people will often consuming if lots of or inaccurate help with the people are involved. information and implementation of analyses. the change. Participation Where the initiators People who Can be time and involvement consuming it do not have all the participate will participants de- sign information they need be committed to to design the change, implementing change, in inappropriate and where others and nay relevant change. have considerable information they have power to resist. will be integrated into the change plan. Facilitation and When people are No other approach Can be time Support resisting because of works as well with consuming, adjustment problems. adjustment problems. expensive and still fail. Negotiation and When someone Sometimes it’s Can be too Agreement or some group will a relatively easy expensive in many clearly lose out in a way to avoid major cases if it alerts Manipulation and change and when resistance. others of negotiate Co-optation that group has for competence. considerable power Explicit and to resist. It can be a relatively Can lead to future implicit coercion Where other tactics will not work or are quick and inexpensive problems if people too ex- pensive. solution to resistance feel manipulated. Where speed is essential, and the problems. changes initiations possess consider- It is speedy and can Can be risky if it able power. overcome any kind of leaves people mad resistance. at the initiator. Module 5 | Emerging Trends in Management Page 80

6.10 Minimizing Resistance to Change Resistance to change among those who are impacted is frequently the most difficult barrier to its successful implementation. It is important to recognise right away that resistance to change is not the primary issue that needs to be addressed. Rather, any resistance is frequently a symptom of deeper issues that lie beneath the surface of the circumstance. Putting all of your attention on a single symptom can only get you so far. The most effective strategy is to look beyond the sign of resistance to its more fundamental roots. A manager’s focus on situational and environmental elements that produce resistance is both appropriate and practical. Many of these are under management’s direct control. Attempts to lessen any prospective resistance should probably be made while it is still potential rather than real. To reduce resistance, managers might employ a variety of techniques. Compulsion Threats and Bribery Fundamentally, there are only two strategic options available for minimizing resistance. One is to increase the pressure that can overcome resistant behavior. The other is to reduce the very force that cause resistance. In the first strategy, the act of resistance itself is attacked directly. The causes or reasons for resistance are ignored. Thus, only the symptoms are addressed. For example, managers using their authority can threaten subordinate with disciplinary actions. But such compulsions could create counter measures that would prevent or delay the change from taking place. The change could even be sabotaged to such an extent that no benefits would be realised. Sometimes, in discriminate offers of pay increase to lure subordinates into accepting change can also fail to produce lasting benefits. This can happen when the reasons for resistance are primarily non-economic. Such actions attack the resistance rather than its causes. New problems are created and nullify any potential benefit from change. Therefore, the strategic option that aims directly at overcoming resistance itself, whether by threat or bribery, is both unwise and undesirable. The consequences of such approach will be to reduce rather than increase the possibilities for successful implementation of a change. Therefore, management should reject outright the use of either threats or bribery as methods for reducing resistance. Persuasion, Rewards and Bargaining The second strategic alternative, lowering resistance-causing forces, appears to be more promising. Offers of appropriate rewards can help to break down resistance. Managers can improve their chances of bringing about change by focusing on the core causes rather than the symptoms. Offering a monetary incentive tied to a specific reason for resistance can Module 5 | Emerging Trends in Management Page 81

be a strong tool for motivating people to accept a change. There are two types of rewards: monetary and non-monetary. Annual total compensation is higher when monetary incentives are given. An increase in the rate of pay can often be justified when a change modifies the content of an individual work in terms of increased responsibilities, mental and physical effort required, education and experience required. Compensation increases may be justifiable if the change results in an individual or group contributing more to the company’s profits. Fringe benefits such as a better pension scheme, a better holiday or sickness protection lan, or a better medical insurance programme might be used to supplement the monetary award. When people believe that an unforeseen modification would somehow improve the value of what they’re being asked to accomplish, they’re more likely to feel treated unfairly. As the requirements they may meet are so diverse, a large range of non-monetary rewards can be supplied. Concerns about threat and status, for example, might be addressed with an offer of a more attractive job title, higher benefits, and a shift in personal contacts as well as education and training. When work is rearranged or group interactions are reconstructed, the applicable reward could be more pleasant social relationships at work and the ability to obtain more satisfaction from the work itself. Education and training opportunities may be viewed as a means of enhancing one’s personal growth chances within the firm. Bargaining is a type of persuasion that uses rewards to persuade people. Bargaining is a conversation between management and those who will be affected by the change, as well as their union representatives. The goal of this process is for management to get their suggestions accepted. Management does not guarantee that any proposal made by the group with whom conversations are held will be accepted. However, there is an unspoken agreement that management may accept some of the group’s recommendations in exchange for the group’s support of what management wants. In this sense, any concessions or compromises made by management during bargaining might be compared to a reward offer. Compromise is at the heart of bargaining. Both management and persons affected by a change must give way to some of the points on which they would have to win agreement in order to maximise the attainment of their goals and the satisfaction of their requirements. Every complaint and dissatisfaction must be given serious and open-minded attention by management. They must do so while also acknowledging that the employees’ and the union’s perceptions of the change are frequently diametrically opposed to their own. The fact that management, the union, and the workforce all have different priorities, values, and concerns is usually the source of such disagreements. The use of incentives as a lever to persuade employees to accept a change is crucial. This might be done unilaterally or as part of a bargaining process. The approach’s performance Module 5 | Emerging Trends in Management Page 82

is determined on how well management, such as: • Matches rewards offered (both monetary and non-monetary) to their employee’s needs and goals, • Gives serious consideration to all complaints and suggestions and • Gives some concession in order to achieve the major portion of their objectives. Security and Guarantees The most effective way for management to reduce emotions of insecurity, especially fears of redundancy, is to ensure that these anxieties are unfounded. A promise that there would be no redundancies as a result of a given change might be used as a leverage by management. This can often make it possible for it to be accepted. Putting such a vow into action might be a difficult undertaking for management. In essence, there are six ways to honour a vow of no redundancy in a changing scenario. • Not replacing by engagement from outside the company anyone who leaves the organisation in a natural course of events (e.g., people who retire, are sacked, die or resign voluntarily). • Reabsorbing work being done by subcontractors and reassigning any surplus employees to that work. • Retraining redundant employees and transforming or upgrading them to their work. • Reducing or eliminating any overtime work. • Absorbing additional work resulting from business growth with no new additions to the workforce until all those who are surplus have been productively re-employed. • Investing and implementing new areas of business activity. Another option is to ensure the employee that he will be paid until he finds another comfortable employment, either within or outside the organisation. The management commits to assisting each surplus individual in finding another suitable work in this method. If this cannot be done within the organisation, outplacement aid can be provided. Until this happens, the employer will continue to pay the employee’s salary as a supplement to any unemployment Module 5 | Emerging Trends in Management Page 83

compensation. Maintaining income, however, does not guarantee that you will not be laid off. Even though employees are confident in their salary, they are concerned about the impending change in their personal lives. They’d almost certainly have a lot of unresolved questions and concerns regarding new careers and environments. They may nonetheless fight the change as a result of their fears, though possibly less vehemently than if they were to be laid off with no promises. If there is a concern of not being able to perform well in the new setting, a person’s sense of uneasiness can be heightened. The utilisation of training by management can help to alleviate this worry. A well-designed training programme can often aid in the success of the transformation. This entails tailoring the training to the specific needs of the individuals engaged. It also entails delivering training that is both engaging and motivating. Another advantage of training programmes is that they might help you learn new skills. The act of creating one demonstrates that management is doing everything necessary to assist individuals affected by the change. Such encouraging evidence of management’s support should help to alleviate the insecurity that sometimes comes with feelings of inadequacy. Management can engage their staff in discussion to alleviate any feelings of uncertainty caused by issues other than fear of redundancy or inadequacy. Participants in the conversation can gain a realistic picture of the change and its likely effects. Such knowledge can help to alleviate any worry that may have arisen as a result of misunderstanding or a lack of information. Understanding and Discussions Resistance is likely to be decreased when as many people as feasible involved in a change understand as much as possible about it and its implications. It is the responsibility of management to foster this knowledge. Resistance will be reduced to the extent that the change agent assists the change-affected individuals in developing their own understanding of the need for change, as well as an explicit awareness of how they feel about it and what they can do about it. Only when the information presented is sufficient, factual, and accurate will such an understanding emerge. In a variety of ways, management can communicate information about a proposed change and its likely effects to individuals who are affected or worried. Written material, audio-visual material, and oral communication are the only three practical channels for communication. However, no single method should be relied on solely. The more the complexity of the change, the greater the possibility. That the maximum amount of information is communicated to all parties concerned. In order to gain comprehension in a changing setting, several requirements must be met. Module 5 | Emerging Trends in Management Page 84

• Information must be readily accessible, factual and accurate. • Information must be communicated in such language or in such a form that is readily understandable. • Information must answer the questions that are being asked not only what is to happen, but also how, why, when, where and to whom. • There must be a way to test and conform that real understanding has in fact been achieved. Anxiety over the prospective repercussions of change might be exacerbated by a lack of understanding. As a result, resistive behaviour may emerge. Furthermore, employees doing the labour are likely to be less satisfied with their occupations as a result of this deficiency. This is something that management should be concerned with, especially during a transition. When people don’t understand what they’re doing, they can’t use their abilities, which are unique to humans. The application of educated and intelligent judgments to the performance of task is what these abilities are all about. When people are denied the ability to make important decisions, they get increasingly frustrated. Not only will the individual and his or her work suffer, but so will the organisation. Time and Timing When management is ready to address all aspects of an impending change openly with their staff, it is preferable to leave enough time between the initial announcement of the change and its actual implementation. This time frame should be used by management to ensure that everyone engaged has a thorough grasp of the change and its likely repercussions. Management should work out a trade-off between two factors when determining the length of this period. These are frequently at odds with one another. The first is a matter of how long it takes for the majority of persons engaged to go through the processes of accommodation and rationalisation. The second thing to consider is an assessment of the situational factors that define when the change should be made and when the benefits should be achieved. To achieve the best trade-off between these two considerations, management must weigh the relative costs of two options: delaying the implementation of the change to gain more preparation time in the interest of realising maximum benefits, or sticking to the planned schedule at the risk of increased resistance and, as a result, reduced benefits. In many cases, management may find it more cost-effective to postpone the change until the likelihood of its acceptance improves. If management decides not to wait, resistance may result in not only a Module 5 | Emerging Trends in Management Page 85

reduction in the potential benefits, but also possible delays in their realisation. Management should allow enough time during the early stages of the change for accommodation and rationalisation, as well as the development of understanding. Involvement and Participation Management’s most potent approaches for gaining acceptance of change are involvement and participation. The determination to carry out these judgments has grown stronger. Personal pleasure as a result of the job improves. Personal involvement can range from simply being informed to debating issues and expressing sentiments to actually making and implementing decisions. At the most basic level, participation happens when someone is designated to receive information via distribution lists or face-to-face briefings. Individual or group consultations might be used to gain engagement on a little more extensive level. This procedure is simply a continuation of the face-to-face talk. Managers take this strategy a step further in the process of collecting inputs. Those in attendance are urged to provide suggestions about how the change could be implemented. A problem could also be allocated to a committee for analysis and action recommendations. Spectrum of Levels of Participation Active Management action Employee action Delegating decision Management and implementing decision making authority - Task assignment with accountability Group Formulating proposed plans and Soliciting inputs solutions Consultation to problems Inclusion Planning Passive Task forces Group suggestions and recommendations Analysis of problems and alternatives Individual suggestions Face-to-face discussion of problem Face-to-face invitations to voice opinions Electronic exchanges Attendance at briefing Inclusions on distribution list Module 5 | Emerging Trends in Management Page 86

Employees take delight in knowing that their thoughts or recommendations are being considered, and this gives them a sense of fulfilment. When their inputs are actually taken or acted upon, these feelings are amplified. If, however, inputs are rejected, individuals who provided them must be made to understand why. Consultation and solicitation can still be beneficial if managers are effective in explaining why some inputs were rejected. There are three main causes behind this. To begin with, the fact that employees have opportunities to express themselves as well as be given serious attention can be advantageous to attitude and morale in and of itself. Second, an employee may gain a greater grasp of the change by knowing why a recommendation was rejected. Third, an employee may be enticed to make greater recommendations in the future. The desire to engage is one of the most basic requirements for involvement. The manager or superior must also feel sufficiently confident in his or her position and job as a second prerequisite for successful participation. Managers who are willing to jeopardise their position in the eyes of their subordinates by including them in some type of participation may be surprised by the results. Employees’ respect for their supervisors generally rises rather than falls when they are allowed or encouraged to engage. The absence of a manager’s commitment to a particular course of action is the third requirement for participation. He must be willing to consider different options or techniques. If someone is convinced from the start that his method is the greatest and only way to effect change, he will not include others, and such an attempt will quickly be seen as worthless and ultimately dishonest. The manager’s willingness to openly credit and recognise all outstanding contributions made by others is the fourth requirement required for effective involvement. It’s the acceptance of change. In addition, if unworkable ideas are proposed, the management must guarantee that the contribution receives complete explanations for rejections. The employee’s readiness to express their opinions and make suggestions after being encouraged to do so is the fifth criteria. People who are inert and indifferent will not engage in participation. When all of these factors are in place, using participation to manage change can result in at least eight substantial benefits: • Participation aids in the development of a more comprehensive and accurate understanding of the change, its causes, and its likely repercussions. • Participation is a powerful approach to unfreeze established attitudes, stereotypes, or cultural ideas that are maintained by either management or the workforce and that Module 5 | Emerging Trends in Management Page 87

obstruct the transformation process. These views can be objectively re-examined through involvement. • Employees’ trust in management’s intentions and goals is bolstered by participation. • As a result of engagement, firsthand ideas are frequently shared, resulting in improved strategies for initiating and executing change. • People become involved in the transformation by participating. They get more invested in the decision in which they participated. • Participation sometimes serves to present poorly-conceived changes from being made • Through participation, staff specialists tend to broaden their outlook. • Through participation, employees at every organisational level gain a broader perspective and develop their capabilities. Flexibility and the Tentative Approach It is frequently preferable to implement a change as a hesitant trial effort at first. A trial can be characterised by a certain time period or two, or by a specific portion of the operating system. Using the method of positioning the change as a tentative experiment has various advantages: • Before making an irreversible commitment, all involved might test their reactions to the new scenario. • Before the change becomes final, all involved can gather more information on which to base their attitudes and behaviours. • Those participating will be in a better position to see the change with greater objectivity during the trial if they have strong perceptions about it beforehand. They will be able to reconsider their impression and possibly amend it as they gain experience with change during the trial. • Those involved are less likely to see the change as a danger since they will feel like they have some control over the outcome. • Management is better able to assess the technique of change and make any necessary changes before implementing it. All of these benefits stem from the possibility to obtain some limited experience with the change while it is still in flux and open to additional revision or adjustment. As a result, presenting a change as a preliminary trial reduces the threat to individuals who are affected. As a result, their resistance to the change will often be diminished in the long run. By proactively addressing the strategies indicated, management can reduce opposition to change and often build support. Module 5 | Emerging Trends in Management Page 88

7. CHANGE PROGRAM In the life of an individual or an organisation, change is unavoidable. In today’s business world, most businesses are operating in a dynamic and ever-changing environment. There is no third option; they must either change or perish. Organisations that learn to adapt and cope with change will thrive, while those that do not will be wiped away. The technical, economic, political, social, legal, international, and labour market settings are the major drivers that make changes not only desirable but also unavoidable. According to recent assessments of some of the world’s most successful organisations, all successful organisations are constantly interacting with the environment and making adjustments to their structural design, philosophy, policies, and strategies as needed. “The biggest cause identified for organisational difficulties is managers’ failure to appropriately foresee or adapt to forces of change,” according to Barney and Griffin. As a result, in today’s dynamic society, the question of whether or not change will occur is no longer important. Instead, the issue is how managers deal with the constant onslaught of changes that they must deal with on a daily basis in order to maintain their companies viable and contemporary. Otherwise, the organisations’ survival will be challenging, if not impossible. 7.1 Meaning of Change Unlike other notions in organisational behaviour, the term “change” has a limited number of definitions. We can define change as the alteration of the status quo or the making of things different in very simple terms. “The term change refers to any alternation which occurs in the overall work environment of an organisation.” To use a different definition “Change occurs regularly when an organisational structure is disrupted by an internal or external factor. Change is the changing of a system’s structure or process as a process. It doesn’t matter if it’s excellent or awful; the concept is just descriptive.” From the above definitions we can conclude that change has the following characteristics. Module 5 | Emerging Trends in Management Page 89

• Change occurs as a result of internal and external pressures in the organisation. It disrupts the organisation’s current equilibrium or status quo. • Any change in any section of the organisation has an impact on the entire organisation • Change will influence different segments of the organisation at different rates and with diverse degrees of relevance. • People, structure, technology, and other aspects of the organisation may be affected by changes. • It is possible to be reactive or proactive when it comes to change. Reactive change occurs when a person or organisation undergoes change as a result of external pressure. Management initiates proactive change on its own to improve organisational effectiveness. 7.2 Forces for Change Organisational performance is influenced by a variety of internal and external factors. Any change in these variables needs organisational modifications. The following are the most essential factors: A. External Forces The external environment has direct and indirect effects on organisations. In such an environment, organisations have little control over the factors. As a result, the organisation cannot change the environment, but it may adapt itself to accord with it. These are a handful of them: 1. Technology Technology is the most powerful external force driving change. New technology adoption, such as computers, telecommunication systems, and flexible manufacturing operations, has a significant impact on the organisations that embrace it. The replacement of direct supervision with computer control has resulted in managers having broader control spans and flatter organisations. Organisations are becoming more responsive as a result of sophisticated information technology: both the organisations and Module 5 | Emerging Trends in Management Page 90

and their personnel will have to become more adaptive. A large number of employment will be restructured. Workers who perform regular, specialised, and narrow jobs will be replaced by those who can make many decisions. Because employees’ abilities are becoming obsolete at a faster rate, management will have to increase their investment in employee training and education. Japanese companies have advanced quickly because they are quick to accept new technology breakthroughs. 2. Marketing Conditions Marketing conditions are no more static. They are in the process of rapid change as the needs, desires and expectations of the customers change rapidly and frequently. Moreover, there is tough competition in the market as the market is flooded with new products and innovations every day. New methods of advertising are used to influence the customers. Today the concept of consumerism has gained considerable importance and thus, the consumers are treated as the kings. Furthermore, there are some significant new twists in the competition today. Because of falling transportation and communication costs and businesses’ rising export orientation, most marketplaces will soon be international. Competitors will undoubtedly come from across the seas as well as across town, thanks to the global economy. Organisations that can alter in reaction to competition will be successful. Organisations that are not prepared for these new sources of competition in the coming decade may not be able to survive. 3. Social Changes The social and cultural context also suggests some changes to which businesses must adapt. Due to the growth of education, knowledge, and government endeavours, there have been several social changes. The management has faced new obstacles as a result of social equality, such as equal chances for women and equal compensation for equal effort. When it comes to hiring, marketing, and other rules, management must adhere to specific social standards. 4. Political Forces The political climate both inside and outside the country has a significant impact on industry, particularly transnational firms. In most countries, the government’s involvement in business Module 5 | Emerging Trends in Management Page 91

has expanded dramatically. A plethora of laws and regulations govern the corporate sector. The organisations have little control over the political and legal forces, but they must adapt to deal with their pressure. The new economic policy in our country has significantly liberalised the economy. Many regulatory rules have been changed to decrease the government’s meddling in industry. World politics has an impact on an organisation as well. The reunification of Germany, Iraq’s invasion of Kuwait, and the dissolution of the Soviet Union are just a few examples of global political events that have impacted industry around the world. B. Internal Forces Internal forces are many, and it is difficult to provide a full list of them. Internal reasons, on the other hand, are as follows: 1. Nature of the Work Force The nature of the labour force has evolved over time. Different generations have articulated various work values. Employees above the age of 50 place a high emphasis on loyalty to their company. Mid-thirties to mid-forties workers are only loyal to themselves. Workers in their twenties and thirties are committed to their jobs. The workforce’s profile is likewise rapidly changing. The new generation of workers has stronger educational credentials, places a higher priority on human values, and questions management authority. Then there’s the fact that human behaviour has become increasingly complex, making it difficult for managers to guide them toward organisational goals. Employee turnover is also significant, putting further burden on management. The workforce is evolving, with a rapid rise in the share of female employees, implying more dual career couples. In order to meet the needs of a two-career couple, organisations must change their transfer and promotion procedures, as well as provide kid and elder care. 2. Change in Managerial Personnel Another variable that causes organisational transformation is a shift in managerial people. Because of promotion, retirement, transfer, or dismissal, old managers must be replaced by new managers. Each manager brings his or her own thoughts and methods to the workplace. Because of changes in management staff, informal ties shift. Even when there is no change in personnel, people’s opinions can shift. As a result, the organisation will need to adapt. Module 5 | Emerging Trends in Management Page 92

When top executives shift, the pace of change in the organisation accelerates. Changes in top executives will result in significant changes in the organisation’s structure, task allocation, delegation of power, and control implementation, among other things. All of these modifications will be required since each top executive will have his or her own personal style and will choose to employ his or her own ideas and philosophies. 3. Deficiencies in Existing Management Structure Changes are sometimes required due to flaws in the existing organisational structure, arrangement, and processes. These flaws may manifest themselves as an unmanageable span of management, a bigger number of administrative levels, a lack of coordination among multiple departments, communication barriers, a plurality of committees, a lack of uniformity in policy decisions, and so on. In such circumstances, however, the need for change is not recognised until a significant crisis develops. 4. To Avoid Developing Inertia Organisational reforms are frequently made to avoid growing inertia or inflexibility. Conscious managers take into account this viewpoint that organisations should be dynamic because a single management approach is not always the greatest instrument. As a result, adjustments are included so that employees develop a like for change and there is no unneeded resistance when substantial organisational changes are implemented. 7.3 Level of Change Programs Individual level changes, group level changes, and organisational level changes are the three types of change programmes. Individual Level Change Programs Individual level changes can occur as a result of a change in job assignment, a transfer of an employee to a different location, or changes in a person’s maturity level over time. Change at the individual level, according to popular belief, will have little impact on the organisation. However, this is incorrect because changes at the individual level have an impact on the group, which in turn has an impact on the entire organisation. As a result, a manager should never regard people as individuals, but must recognise that individual level changes have ramifications that extend beyond the individual. Module 5 | Emerging Trends in Management Page 93

Group Level Change Programs Because most organisational changes have large implications at the group level, management must consider group factors while implementing any change. Formal and informal groups might exist inside the organisation. Formal groups can always be resistant to change; for example, trade unions might be extremely resistant to management’s suggested reforms. Because of their intrinsic power, informal groupings can be a substantial impediment to change. Workflows, job design, social organisation, influence and status systems, and communication patterns can all be affected by changes at the group level. Individual members of the organisation, particularly those in informal groups, have a lot of power. As a result, resistance at the individual level can frequently be overcome by skillfully implementing change at the group level. Organisation Level Change Programs Major programmes that influence both individuals and groups are part of the organisational level change. Senior management makes the decisions about such adjustments. These changes take place over a lengthy period of time and necessitate extensive planning. The following are a few examples of changes at the organisational level: 1. Strategic Change: The term strategic change refers to a shift in an organisation’s fundamental goals or aims. It’s possible that a single goal will need to be split into many goals. Many Indian enterprises, for example, are being altered to fit various aspects of global culture brought in by multinational or transnational corporations. 2. Structural Change: The pattern of relationships between distinct positions and position holders is known as organisational structure. Changes to the organisation’s internal structure are referred to as structural change. This shift could occur across the board in terms of relationships, work assignments, and power structures. Because past relationships and interactions are no longer relevant and useful in the altered conditions, a change in organisational structure is required. Module 5 | Emerging Trends in Management Page 94

3. Process Oriented Change: These shifts are a result of current technological advancements, data processing, and automation. Personnel will be replaced or retrained, large capital equipment will be purchased, and operational modifications will be implemented. All of this will have an impact on organisational culture and, as a result, individual behaviour patterns. 4. People Oriented Change: Performance enhancement, group cohesion, dedication and loyalty to the organisation, as well as generating a sense of self-actualization among members are all goals of people-oriented improvements. Closer connection with employees, as well as specialised behavioural training and modification sessions, can help achieve this. To sum up, changes at any level have an impact on the other levels. The strength of the influence will be determined by the amount of change or the source of change. Managing Planned Change A planned change is one that is initiated by the organisation and does not occur on its own. It is influenced by the organisation in order to achieve something that would otherwise be unattainable or difficult to achieve. An organisation can quickly achieve its objectives by implementing planned transformation. The basic reasons for planned change are. • To improve the means for satisfying economic needs of members • To increase profitability • To promote human work for human beings • To contribute to individual satisfaction and social well being. The main difficulty facing management when introducing planned change is to handle it in such a way that multiple forces are required to adjust. The manager who will act as the change agent must go through a certain process in order to accomplish this. The three steps that make up a planned change process are as follows: 1. Planning for change 2. Assessing change forces 3. Implementing the change Module 5 | Emerging Trends in Management Page 95

7.4 Planning for Change The first phase in the change process is to determine what will be changed next and whether it will be a strategic change, a process-oriented change, or an employee-oriented change. Internal or external factors can be used to identify the need for change. The following broad procedures can be followed once this need has been identified. i. Develop New Goals and Objectives: The management must decide what new outcomes he or she wants to attain. This could be a shift in earlier goals as a result of changes in the internal and external environment, or it could be a completely new set of goals and objectives. ii. Select an Agent of Change: The next step is for management to select who would be in charge of initiating and overseeing the change. This task may be allocated to one of the existing managers, or professionals and consultants may be brought in from outside to recommend various strategies for bringing in the change and monitoring the process. iii. Diagnose the Problem: The individual selected as the change agent will then collect all necessary facts about the area or situation where change is required. This information should be scrutinised in order to identify the most important issues. The remedies can then be narrowed down to those primary challenges. iv. Select Methodology: The next crucial step is to choose a change approach that is both widely acceptable and correct. Employees’ emotions must be considered when developing such an approach, as humans have a natural predisposition to resist change. v. Develop a Plan: The next phase will be to create a plan for what needs to be done when the technique has been developed. For example, if management wishes to modify the promotion policy, it must first determine which types of employees would be affected by the change, as well as whether to change the policy for all departments at once or to test it out first on a few select departments. vi. Strategy for Implementation of the Plan: The management must decide on the plan’s “when,” “where,” and “how” at this point. This includes the best time to implement the strategy, how the plan will be conveyed to staff so that there is minimal resistance, and how the plan will be monitored. Module 5 | Emerging Trends in Management Page 96

Assessing Change Forces Planned change does not happen by itself; there are many forces at work in persons, groups, and organisations that resist it. The reform process will never be successful unless the employees’ collaboration is guaranteed. As a result, management will need to establish a climate in which individuals are willing to accept change. The change process will be successful if management can overcome resistance. There are always certain factors in a group process that favour change and some forces that are opposed to change. As a result, the equilibrium is maintained. Kurt Lewin refers to this as the “field of forces.” Lewin assumes that there are both driving and restraining forces at work in every environment that influence any change that may occur. Driving Forces are those forces that influence a situation by pushing it in one way or another. These forces are more likely to start the shift and keep it going. The driving forces are restrained or reduced by restraining forces. When the sum of the driving forces equals the amount of the restraining forces, equilibrium is established. As both driving and restraining forces are in operation, there may be three types of situations: 1. Management can push driving forces and overpower restraining forces if the driving forces substantially outweigh the restraining forces. 2. If restraining forces outnumber driving forces, management must either abandon the transformation programme or focus on driving forces, converting restraining forces to driving forces or immobilising them. 3. If the driving and restraining forces are about equal, management can increase the driving forces while converting or immobilising the restraining forces. To persuade individuals to embrace change, managers must use driving forces while converting or immobilising restraining factors. Implementing Change The plan will be put into effect once management has been able to arrange favourable conditions, the appropriate time, and communication channels. It could take the form of a simple statement, or it could necessitate briefing sessions or in-house seminars to achieve acceptance from all members, particularly those who would be directly impacted by the Module 5 | Emerging Trends in Management Page 97

change. Following the implementation of the plan, the plan should be evaluated, which includes comparing actual results to the objectives. Feedback will confirm if these objectives are being accomplished, allowing corrective action to be performed if there is a discrepancy between the objectives and actual performance. 7.5 Effectiveness of Change Program Individuals and organisations resist change, according to well-documented findings from research on individual and organisational behaviour. In some ways, this is beneficial since it gives behaviour some consistency and predictability. If there was no opposition, organisational behaviour would take on chaotic unpredictability features. The fundamental question is what produces such resistance. Let us categorise the reasons into the following categories for the sake of analysis: • Individual resistance • Group resistance • Organisational resistance Individual Resistance Below are stated some reasons why people resist changes. Some of these appear to be rational and emotional. These reasons are: 1. Economic Factors: The economic reasons for the resistance to change may be the following: a. Workers may fear technological unemployment as a result of the transformation. People will reject a change that will influence their employment in general since new technology is related with labour education. b. Workers fear that, as a result of the new technology’s enhanced efficiency, they will be idle for the majority of the time, leading to a reduction in the workforce. c. Employees may be concerned that if they do not learn the skills needed for the new occupations, they would be demoted. d. Workers oppose change, which leads to the establishment of strong job standards, which may limit bonus or incentive pay prospects. Module 5 | Emerging Trends in Management Page 98

2. Habits: AHuman beings are habitual creatures. Nobody wants to evaluate all of the choices for the hundreds of decisions we have to make every day because modern life is so complicated. Rather, we all rely on habits or pre-programmed responses. For example, rather than trying a new restaurant every time we go out to dinner, we usually stick to our tried-and-true favourites. Because of this, anytime a person is confronted with a change, his natural reaction is to reject it. When a person is transferred, for example, his first instinct is to reject the change because it will result in additional difficulties such as moving, changing the children’s schools, adjusting to the new environment, making new acquaintances, joining a new group, and so on. As a result, everyone will strive to avoid the change by rejecting it. 3. Insecurity: Uncertainty regarding the impact of change, particularly on job security, is one of the main causes for resistance to change. Individuals’ decisions are always influenced by their dread of the unknown. Employees are concerned and scared about the change because they don’t know what it will entail. 4. Lack of Communication: Workers’ resistance is likely to be reduced if they are given the opportunity to participate in the change process. However, if the change is not effectively communicated to the staff in an appropriate manner, resistance is likely. 5. Extent of Change: If the change is mild and simply affects routine processes, the opposition, if it exists, will be minimal. However, large changes, such as staff reshuffles, will elicit strong public opposition. Similarly, if the transition process is long, resistance will be lower than if the change is quick or abrupt. 6. Psychological Factors: One of the most common causes for reluctance is the emotional upheaval that a change can bring, especially if previous adjustments have not gone well. The following are some of the psychological factors that contribute to change resistance: Module 5 | Emerging Trends in Management Page 99

a. Workers may not appreciate the hidden criticism in a change that the current procedure is insufficient and unsuitable. b. New changes may cause workers to lose pride in themselves because they fear that new work changes will eliminate the necessity for considerable manual labour. c. Workers may be concerned that specialisation brought on by new technologies may lead to boredom and repetition in their new work. d. They may oppose change because learning and adapting to new ideas will need more effort, and they do not want to go to the hassle of learning new things. e. Employees may be unable to comprehend the ramifications of new ideas and practises. 7. Social Factors: Individuals have social wants such as companionship, belonging, and so on, which they satisfy by developing social relationships within the organisation. They join a variety of unofficial groups. People will be fearful of change because they dislike new adaptations, breaking existing social relationships, lower social satisfaction, and a sense of outside intrusion in the form of a change agent, among other things. Group Resistance The majority of organisational changes have an impact on formal groups within the company. Breaking up a close-knit work group or altering a social relationship might elicit a lot of pushback. The fundamental reason why organisations resist change is that they believe it would jeopardise their cohesiveness or existence. This is especially true in groups that are extremely cohesive, where people feel a strong sense of belonging to the group, and when group members see their own group as superior to other groups. Organisation Resistance The majority of organisational changes have an impact on the organization’s informal groupings. Breaking up a close-knit work group or altering a social relationship might elicit a lot of pushback. The fundamental reason why organisations resist change is that they believe it would jeopardise their cohesiveness or existence. This is especially true in groups that are extremely cohesive, where people feel a strong sense of belonging to the group, and when group members see their own group as superior to other groups. Module 5 | Emerging Trends in Management Page 100