Sem-1, MBA, Leadership and Organizational Behaviour,Unit V- Leadership

IDOL Institute of Distance and Online Learning ENHANCE YOUR QUALIFICATION, ADVANCE YOUR CAREER.

2 M.B.A LEADERSHIP & ORGANIZATIONAL LEADERSHIP & ORGANIZATIONAL BEHAVIOR BEHAVIOR ❑Course Code: 21MBA613 ❑Semester: First ❑e-Lesson: 5 ❑SLM Unit: 5 www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

TOPICS TO BE COVERED 3 ❖ Meaning of Change Management LEADERSHIP & ❖ Forces of Change ORGANIZATIONAL ❖ Levels of Change BEHAVIOR ❖ Importance of Change ❖ Types of Changes ❖ Resistance to change www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

Change management 4 ❖ Change management is a systematic approach that includes dealing with the transition or transformation of organizational goals, core values, processes or technologies. ❖ The purpose of every organizational change management initiative is to successfully implement strategies and methods for effecting change and helping people to accept and adapt to change. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

CHANGE MANAGEMENT 5 Organizational change is the process by which organizations move from their present state to the desired state to increase their effectiveness. Change has following characteristics: 1. It is critical for a company if it wants to survive and avoid stagnation; 2. It is a continuous process not just an event; 3. It is fast and is likely to increase further in the present competitive business scenario; 4. It has two terms associated with it, directive(implementation by top down management) and participative (involvement of those parties of organization which are impacted by change). www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

5. It is natural, evolutionary and hence adaptive in nature. It is in response to changes in external 6 environmental pressures; 6. It can be incremental (gradual small changes) or step (radical shift from current processes to newer owns); 7. It is dependent on organization culture/environment. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

Forces of Change 7 ✔ External Forces: These forces are change in environment external to the company. Globalization, technology, governmental policies, legal implications, economic scenario, sociocultural trends, workforce diversity, scarcity of resources, managing ethical behavior etc. are major external forces demanding change. ✔ Internal Forces: Change of process, modification to human behavior, training and development of work force based on new technology and adopting new polices, job redesign; providing facilities like child care, frequent rest periods, flextime due changing composition of workforce ; issues relating to industrial relations, strikes, layoffs etc are some of the internal forces. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

Levels of change: 8 ✔ Individual level change: At this level, change is reflected in job assignment, change of location of work, level of maturity etc. Significant changes at individual levels have its repercussions on the group, which might influence the whole of the organization. ✔ Group level change: Changes at group level affect work flow, job design, social organization, influence and status system and communication pattern. Informal groups can pose a major barrier to change because of inherent strength they possess. Formal groups can also resist change. As group have powerful influence over individuals, effective implementation of change at group level, can overcome the resistance to change. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

✔ Organization level changes: change at organizational level is referred as „organization 9 development‟. These are long term changes and affect everyone in the organization. These are designed at the top management level. These changes include reorganization of organizational structure and responsibilities, revamping of remuneration system, changes in vision, mission and strategy etc. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

IMPORTANCE OF CHANGE 10 MANAGEMENT ✔ External factors Organizational transition is strongly affected by external influences. Organizations are being forced to respond as a result of globalisation and the rapid growth of new digital solutions. Ignoring such external influences would almost definitely jeopardise the company's performance. ✔ Making ideas succeed To help ideas flourish, many organisations employ change management methodologies. Shift managers and change agents support project managers in ensuring that new .capabilities are completely implemented by workers by working alongside project managers www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

✔ Enabling cross-functional changes Almost every functional unit in a modern organisation relies on 11 change management to do the following: • Match the transition plan with the company's overall strategy. • Enhance internal and external demands and services. • Keep track of and fix problems. ✔ Engaging people with the change process Engaging those impacted by a change plan is an important aspect of handling change in an organisation. Since workers will ultimately be involved in the transition process, communicating and talking with them about the strategy early on helps lay the foundation for its later success www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

✔ Preparing for organisational transition Change managers are often named to ensure the smooth 12 transition of an organisation. To make changes, they employ change management models such as: • Reorganizing work functions. • Reorganization of company processes. • Putting emerging technology into effect. ✔ Decreasing resistance to a change initiative People also find it unsettling to be expected to act in new and different ways, so resistance is unavoidable in every change initiative. As a result, change managers should expect a rejection response from employees. Overcoming such reactions requires time. The less opposition change managers face when they are open from the start, the better. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

✔ Improving performance and productivity If an organisation adopts new ways of working, it appears to 13 become more profitable. At the same time, it stimulates imagination. As a consequence, it ensures increased results and positions an organisation in a healthier, more successful atmosphere. ✔ Reducing costs;If constructive change is introduced properly, it aids in the elimination of waste and, as a result, costs. An organization's ability to make smart decisions is aided by effective change management. It improves productivity, reduces costs, and aids in increasing a company's profitability. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

TYPES OF CHANGE 14 Incremental Changes: These changes take place frequently and in a gradual manner. These changes are logical and involve little deviation from the past, for example – upgradation of existing technology, expansion of existing market etc. Piecemeal Changes ;It is simply a change only in some strategies while others remain unchanged. For example – marketing strategy of an organisation is being changed because of growing competition without affecting other functional strategies. Transformational Changes:This type of the change take place rarely. But the nature of these changes is major and involves significant departure from the past e.g. adopting a new technology, diversification of organisation, operations etc. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

• Flux Changes: When the strategies of organisation are changed without any clear direction it is known as 15 period of flux. For example some new products are added to existing product line just for broadening. • Anticipating Changes: These changes are systematically planned by managers and are made with an intention to take advantage of the situation which are expected to arise. The manager continuously monitors the situation and whenever he expects change, he attempts to make a change in organisation as to get maximum benefits. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

• Reactive Changes:Such changes are generally made for survival of the organisation. These changes are 16 forced on the organisation by unexpected environment pressure. In simple words if there is a change in external environment, reactive changes are made in organisation, to cope with this changing environment. • Incremental Changes:These changes are made with an intention to maintain functioning of organisation on its selected / chosen path or way. For example, an organisation has many sub-systems. These systems may be adjusted from time to time so as to secure smooth functioning of the organisation. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

17 • Strategic Changes:This type of changes is more basic in nature and has great influence on the overall functioning of organisation. It can alter, overall shape, size nature or direction of the organisation, for example Change in technology, changes in location of plant or diversification of organisational operations etc. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

Resistance to change 18 Job Security: people fear losing their jobs due to change. This is especially true in the recent times when downsizing the organization as a measure of cost cutting is the trend. Introduction of modern technology and systems gives doubts in the minds of employees rather than the growth in productivity of the organization Lack of Communication: Different people will see perceive proposed change in different ways and resist it. Therefore, management must communicate in advance the need for change, process to adopt for implementation of change. Employees should be the participants right from the beginning of change process. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

Rapidity and Extent of Change: If the change is of a minor nature and involves routine operations, the 19 resistance would be minimal. If on the contrary the change is major and involves large number of employees there could be tremendous resistance to it. Group Phenomenon: Individual resist change because group wants it that way. Importance of group cohesion, group norms, code of conduct and the group security play a dominant role in individual behavior that makes them to resist change. Emotions: If the experience of a past change has been pleasant, the resistance would be negligible. Technical change is accepted willingly if it does not have adverse effect on social fiber of the group. Resistance may be faced if the change ignores already established institutions in the group with particular reference to customs and group norms. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

Loss of Power: Downsizing of department or posting of an executive to different department, where there 20 is a reduction of power base will be resisted by the affected individuals. Technology: Introduction of technology that causes economic loss and disturbs social relationship is generally resisted. New Practices: Certain practices like women domination at the top and strategy of acquisitions and mergers is also resisted by the employees. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

Summary 21 ❑ Change management is a systematic approach that includes dealing with the transition or transformation of organizational goals, core values, processes or technologies. ❑ Incremental Changes:These changes are made with an intention to maintain functioning of organisation on its selected / chosen path or way. ❑ Transformational Changes:This type of the change take place rarely. But the nature of these changes is major and involves significant departure from the past e.g. adopting a new technology, diversification of organisation, operations etc. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

MCQ 22 1. Change management can take place on levels. a. Two b. Three c. Four d. Five 2. _______involves changes that are generally new and unfamiliar. a.Innovative Change b. Adaptive Change c. Reactive Change d. Planned Change 3. strategy involves the use of authority to impose change a. Expert b. Negotiative c. Directive d. Educative 4. management focuses on the close development and introduction of new styles and processes on a personal level a. Individual Change b. Organizational Change c. Enterprise Change d. Wide Change 5. is the change brought about by a sudden or unplanned event. a. Innovative Change b. Adaptive Change c. Reactive Change d. Planned Change Answers 1. (b) 2. (a) 3. (c) 4. (a) 5. (c) www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

FAQ’S Q1. Define Change Management ? 23 Ans :- Change management is a systematic approach that includes dealing with the transition or transformation of organizational goals, core values, processes or technologies. Q2. Write a note on Importance of Change Management ? Ans:- External factors , Making ideas succeed , Enabling cross-functional changes, Engaging people with the change process, Preparing for organisational transition (Explain all in detail) Q3. Write a note on Resistance to change? Ans:- Job Security, Lack of Communication, Rapidity and Extent of Change, Group Phenomenon (Elaborate more on each point) www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

REFERENCES 24 • R1, Marlene Caroselli, “Leadership Skills for Managers”, Tata McGraw-Hill Publication, New Delhi. • R2 Aswathappa A, “Organizational Behaviour – Text Cases and Games”, 13thEdition, Himalayan Publishing House, India. ISBN: 9789352990887. Textbooks: • T1 Kevin Dalton, “Leadership and Management Development: Developing Tomorrow’s Managers”, 1 st Edition, Pearson Education, India, ISBN: 9789332511194. • T2 George, J. and Jones, G.R, “Understanding and Managing Organization Behaviour”, 5 thEdition, Pearson Education, India, ISBN:9788131724965. www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL

25 THANK YOU For queries Email: [email protected] www.cuidol.in LEADERSHIP & ORGANIZATIONAL BEHAVIOR (21MBA613) All right are reserved with CU-IDOL