BACHELOR OF BUSINESS ADMINISTRATION Change Management III

BACHELOR OF BUSINESS ADMINISTRATION Change Management III Contact details: Regenesys Business School Tel: +27 (11) 669-5000 Fax: +27 (11) 669-5001 Email: info@regenesys.co.za www.regenesys.co.za

Version Control: 5.2_f Date of Publication: August, 2014 Publisher: Regenesys Management Place of Publication: Sandton Document Change History Date Version Initials Description of Change 23 August 2013 5_f FVS Formatting 18 December 2013 5.1_f FVS Updating template 24 December 2013 5.1_e_f CJ Editing language and referencing 14 August 2014 5.2_e_f TS Updated articles and textbook This study guide highlights key focus areas for you as a student. Because the field of study in question is so vast, it is critical that you consult additional literature. Copyright Regenesys, 2014 All rights reserved. No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording or otherwise) without written permission of the publisher. Any person who does any unauthorised act in relation to this publication may be liable for criminal prosecution and civil claims for damages.

CONTENTS 1.! WELCOME TO REGENESYS... 1! 2.! INTRODUCTION... 2! 2.1! ALIGNING ORGANISATIONAL, TEAM AND INDIVIDUAL OBJECTIVES... 2! 2.2! TEACHING AND LEARNING METHODOLOGY... 3! 3.! ICONS USED IN THIS STUDY GUIDE... 4! 4.! STUDY MATERIAL FOR THE MODULE... 5! 5.! RECOMMENDED RESOURCES... 5! 5.1! RECOMMENDED READING... 5! 5.2! RECOMMENDED ARTICLES... 5! 5.3! MULTIMEDIA... 7! 5.4! ADDITIONAL SOURCES TO CONSULT... 8! 6.! LEARNING OUTCOMES... 9! 7.! CONTENT SCOPE AND LEARNING GUIDANCE... 10! 7.1! AN INTRODUCTION TO CHANGE MANAGEMENT... 11! 7.1.1! DEFINE THE CONCEPTS... 11! 7.1.2! TYPES OF ORGANISATIONAL CHANGE... 14! 7.2! CHANGE MANAGEMENT MODELS AND INTERVENTIONS... 16! 7.2.1! KURT LEWIN: CHANGE MANAGEMENT MODEL... 16! 7.2.2! ADKAR CHANGE MODEL... 18! 7.2.3! KOTTER S MODEL FOR SUCCESSFUL TRANSFORMATIONS... 21! 7.2.4! MCKINSEY S 7-S MODEL... 22! 7.2.5! CHANGE STRATEGIES... 24! 7.3! THE CHANGE MANAGEMENT PROCESS... 26! 7.3.1! IDENTIFY THE NEED FOR CHANGE... 26! 7.3.2! THE PROCESS OF CHANGE... 27! 7.3.3! DEVELOP A CHANGE MANAGEMENT STRATEGY... 29! 7.3.4! MANAGEMENT TOOLS FOR DEALING WITH CHANGE... 30! 7.4! THE ROLES AND RESPONSIBILITIES IN THE CHANGE MANAGEMENT PROCESS... 33! 7.4.1! KEY ROLE PLAYERS IN THE CHANGE PROCESS... 33! 7.4.2! THE CHANGE AGENT... 36! 7.4.3! CHANGE AND LEADERSHIP... 38! 7.5! CHANGE MANAGEMENT SUCCESS AND FAILURE FACTORS... 43! 7.5.1! RESISTANCE TO CHANGE... 43! 7.5.2! WAYS TO OVERCOME RESISTANCE TO CHANGE... 47! 7.5.3! SUCCESS FACTORS IN IMPLEMENTING CHANGE... 49! 7.5.4! FAILURE FACTORS IN IMPLEMENTING CHANGE... 50! 8.! REFERENCES... 52!

List of Tables TABLE 1: TYPES OF ORGANISATIONAL CHANGE... 14! TABLE 2: CHANGE STRATEGIES... 24! TABLE 3: CHANGE MANAGEMENT STRATEGY OUTLINE... 29! List of Figures FIGURE 1: CHANGE PYRAMID... 13! FIGURE 2: FORCE-FIELD ANALYSIS... 17! FIGURE 3: THE 7-S MODEL... 23! FIGURE 4: THE CHANGE MANAGEMENT PROCESS... 27! FIGURE 5: EIGHT-STEP CHANGE MANAGEMENT PROCESS... 28! FIGURE 6: A COMPREHENSIVE VIEW ON THE CHANGE PROCESS... 30! FIGURE 7: CHANGE OPTIONS... 36! FIGURE 8: INDIVIDUAL RESISTANCE TO CHANGE... 44! FIGURE 9: ORGANISATIONAL RESISTANCE... 46!

1. WELCOME TO REGENESYS Have a vision. Think big. Dream, persevere and your vision will become a reality. Awaken your potential knowing that everything you need is within you. Dr. Marko Saravanja At Regenesys we help individuals and organisations to achieve their personal and organisational goals by enhancing their management and leadership potential. We approach education and development holistically, considering every interaction not only from an intellectual perspective but also in terms of emotion and spirituality. Our learning programmes are designed to transform and inspire your mind, heart and soul, and thus allow you to develop the positive values, attitudes and behaviours required for success. Having educated more than 100 000 students based in highly reputable local and international corporations across more than 160 countries since inception in 1998, Regenesys is now one of the fastest-growing and leading institutions of management and leadership development in the world. Regenesys ISO 9001:2008 accreditation bears testimony to our quality management systems meeting international standards. Regenesys is accredited with the Council on Higher Education. Our work is rooted in the realities of a rapidly changing world and we provide our clients with the knowledge, skills and values required for success in the 21st century. At Regenesys, you will be treated with respect, care and professionalism. You will be taught by business experts, entrepreneurs and academics who are inspired by their passion for human development. You will be at a place where business and government leaders meet, network, share their experiences and knowledge, learn from each other, and develop business relationships. You will have access to a campus, in the heart of Sandton, with the tranquillity of a Zen garden, gym and meditation room. We encourage you to embark on a journey of personal development with Regenesys. We will help you to awaken your potential and to realise that everything you need to succeed is within you. We will be with you every step of the way. We will work hard with you and, at the end celebrate your success with you. Areas of Expertise Regenesys Business School 1

2. INTRODUCTION Welcome to the module on Change Management (CHM). This module discusses the concept of change management with the aim of allowing you, the learner, to develop change agent skills and the ability to identify the need for change in an organisation. By studying different change management models and interventions, identifying the cardinal role players in the change process and planning for the implementation of change, as offered in this module, you will achieve these change agent skills. 2.1 ALIGNING ORGANISATIONAL, TEAM AND INDIVIDUAL OBJECTIVES This course will draw on a model, developed by Regenesys management, which demonstrates how the external environment, the levels of an organisation, the team and the components of an individual are interrelated in a dynamic and systemic way. The success of an individual depends on his/her self-awareness, knowledge and ability to manage successfully these interdependent forces, stakeholders and processes. The degree of synergy and alignment between the goals and objectives of the organisation, the team and the individual determines the success or failure of an organisation. It is, therefore, imperative that each organisation ensures that team and individual goals and objectives are aligned with the organisation s strategies (vision, mission, goals and objectives, etc); structure (organogram, decision-making structure, etc); systems (HR, finance, communication, administration, information, etc); culture (values, level of openness, democracy, caring, etc). Hence, an effective work environment should be characterised by the alignment of organisational systems, strategies, structures and culture, and by people who operate synergistically. Please read through this study guide carefully, as it will influence your understanding of the subject matter and the successful planning and completion of your studies. Regenesys Business School 2

2.2 TEACHING AND LEARNING METHODOLOGY Regenesys uses an interactive teaching and learning methodology that encourages self-reflection and promotes independent and critical thinking. Key to the approach utilised is an understanding of adult learning principles, which recognise the maturity and experience of participants, and the way that adult students need to learn. At the core of this is the integration of new knowledge and skills into existing knowledge structures, as well as the importance of seeing the relevance of all learning via immediate application in the workplace. Practical exercises are used to create a simulated management experience to ensure that the conceptual knowledge and practical skills acquired can be directly applied within the work environment of the participants. The activities may include scenarios, case studies, self-reflection, problem solving and planning tasks. Training manuals are developed to cover all essential aspects of the training comprehensively, in a user-friendly and interactive format. Our facilitators have extensive experience in management education, training and development. REGENESYS INTEGRATED MANAGEMENT MODEL Regenesys Business School 3

3. ICONS USED IN THIS STUDY GUIDE Icons are included in the study guide to enhance its usability. Certain icons are used to indicate different important aspects in the study guide to help you to use it more effectively as a reference guide in future. The icons in this study guide should be interpreted as follows: Definition The definitions provide an academic perspective on given terminology. They are used to give students a frame of reference from which to define a term using their own words. Examples The example icon is used to indicate an extra/additional text that illustrates the content under discussion. These include templates, simple calculation, problem solution, etc. Video clip or presentation This icon indicates a URL link to a video clip or presentation on the subject matter for discussion. It is recommended that students follow the link and listen/read the required sources. Interesting source to consult The source icon is used to indicate text sources, from the Internet or resource centre, which add to the content of the topic being discussed. In a nutshell This icon indicates a summary of the content of a section in the workbook and to emphasise an important issue. Calculations This icon indicates mathematical or linguistic formulae and calculations. Self-reflection Students complete the action of selfreflection in their own time. It requires students to think further about an issue raised in class or in the learning materials. In certain instances, students may be required to add their views to their assignments. Tasks The task icon indicates work activities that contact students must complete during class time. These tasks will be discussed in class and reflected upon by students and facilitators. E-learning students can use these tasks simply to reinforce their knowledge. Regenesys Business School 4

Note This icon indicates important information of which to take note. 4. STUDY MATERIAL FOR THE MODULE You have received material that includes the following: Study guide Recommended reading Assignment These resources provide you with a starting point from which to study the contents of this module. In addition to these, other resources to assist you in completing this module will be provided online via the link to this module. Guidance on how to access the material is provided in the Academic Handbook that you received when you registered for this qualification. 5. RECOMMENDED RESOURCES 5.1 RECOMMENDED READING The following textbook is recommended and must be used to complete the module: Senior, B. and Swailes, S. 2014, Organisational Change, 4th ed., Cape Town: Pearson Education. A number of prescribed and recommended resources have been identified to assist you in successfully completing this module. 5.2 RECOMMENDED ARTICLES The following articles are recommended and must be used to complete the module: Abbas, W. and Asghar, I. 2010, The role of leadership in organisational change, Master s thesis, University of Gavle, http://hig.diva-portal.org/smash/get/diva2:326289/fulltext01.pdf (accessed August 14 2014). Regenesys Business School 5

Change Management Institute, 2012, Change Management Practitioner Competencies, https://www.changemanagement-institute.com/sites/default/files/cmi_accreditation_cmpcompetencymodel.pdf (accessed August 14 2014). Regenesys Business School 6

Keller, S. and Aiken, C. nd, The Inconvenient Truth About Change Management, McKinsey & Company, Chicago, http://www.mckinsey.com/app_media/reports/financial_services/the_inconvenient_truth_about_change_manag ement.pdf (accessed 14 August 2014). Kerridge, J. 2012, 'Leading change: 1-identifying the issue', Nursing Times, 108(4), 12 15, http://www.nursingtimes.net/journals/2012/01/19/d/h/x/120124-prdisc-kerridge1-single.pdf (accessed August 14 2014). Latta, G.F. 2009, 'A process model of organisational change in cultural context (OC 3 model)', Journal of Leadership and Organisational Studies, 16(1), 19 37, http://cmapspublic.ihmc.us/rid=1gsqpfh9l-d6kvcn- Q90/A%20Process%20Model%20of%20Org%20Change%20in%20Cutural%20Context.pdf, (accessed August 14 2014). Pryor, M.G., Taneja, S., Humphreys, J., Anderson, D. and Singleton, L. 2008, 'Challenges facing change management theories and research', Delhi Business Review, 9(1), 1 20, http://www.delhibusinessreview.org/v_9n1/v9n1a.pdf, (accessed August 14 2014). Additional articles that may prompt discussions and further assist you in completing this course will be saved on Regenesys Online under the relevant course. Please visit the site regularly to access these additional sources. 5.3 MULTIMEDIA Dixon, P.J. 2007, 'Secret of change management motivation, leadership skills, development', (video online), http://www.youtube.com/watch?v=_kzl15houuc (accessed August 14 2014). Kotter International. 2012, 'Change management vs change leadership what s the difference?', (video online), http://www.youtube.com/watch?v=2ssunbrhf_u (accessed August 14 2014). Learning TOC. 2010, 'Overcoming resistance to change Isn t it obvious?', (video online), http://www.youtube.com/watch?v=hcz1az60k7w (accessed August 14 2014). Regenesys Business School 7

5.4 ADDITIONAL SOURCES TO CONSULT As a higher education student, you are responsible for sourcing additional information that will assist you in completing this module successfully. Below is a list of sources that you can consult to obtain additional information on the topics to be discussed in this module: Emerald: NetMBA: Mind Tools: Brunel Open Learning Archive: ProvenModels: 12manage.com: The Free Management Library: Business Dictionary: Business Day Live: TEDx: This is an online database containing journal articles that are relevant to your studies. Information on how to access Emerald is provided in your Academic Handbook. You will receive access to the database once you register as a student. This is one of several web addresses that provide a selection of MBA constructs and discussion. It is one of the better of these addresses. http://www.netmba.com/ MindTools.com is a very useful source of ideas, constructs, management models, etc with even more useful commentary and description. http://www.mindtools.com/ A Brunel University support-site that provides an easily accessible library of ideas, concepts, constructs techniques, tools, models, etc. http://www.brunel.ac.uk/ ProvenModels' Digital Model Book presents digitalised management models categorised in a clear, consistent and standardised information structure to improve the usability and reusability of management literature. Management models are important generalisations of business situations when applied in context and are powerful tools for solving business issues. http://www.provenmodels.com/ This is a website on which one can access numerous models as well as global comments on the models and principles. This could also serve as a place where you could voice your ideas and get feedback from all over the world. http://www.12manage.com/ The Free Management Library can be used to improve your organisation, and for your own personal, professional and organisational development. This is by far the most comprehensive overview of all aspects of management. http://www.managementhelp.org/ This site is useful for general terms and concepts. Enter your word or phrase in the search function (no need to log in). http://www.businessdictionary.com To keep up to date with business news National and World go to this site. Other useful selections include Opinions and Analysis, Markets, Economy, and Personal Finance. http://www.bdlive.co.za The TEDx programme (Technology, Entertainment and Design) was created to help communities, organisations and individuals to spark conversation and connection through local TED-like experiences. It includes topics from science to business to global issues in more than 100 languages their mission is to spread ideas ("to make great ideas accessible and spark conversation"). https://www.ted.com/about/our-organization There are many more sites and articles available that can help you to successfully complete this module. You are encouraged to post the website addresses or URLs of any additional interesting sites that you come across on the Regenesys Learning Platform. In this way, you can assist other students to access the same wonderful information that you have discovered. Regenesys Business School 8

A word of caution not all information available on the Internet is necessarily of a high academic standard. It is therefore recommended that you always compare information that you obtain with that contained in accredited sources such as articles that were published in accredited journals. 6. LEARNING OUTCOMES Upon completing this course, students should be able to: Explain change management terminology, concepts, definitions, and techniques; Review key strategic change process success and failure factors within an organisation; Determine and critically analyse the need for change within an organisation; Critically evaluate change management models and interventions; Review the roles and responsibilities of relevant stakeholders in the change management process; Formulate a process and plan to implement change effectively within an organisation, and Identify all organisational areas affected by the change management process. Regenesys Business School 9

7. CONTENT SCOPE AND LEARNING GUIDANCE A number of topics will be covered to assist you in successfully achieving the learning outcomes of this module. It is important to study each of these sections to ensure that you expand your knowledge in the subject and are able to complete the required assessments. The sections that will be dealt with include: Section 1 Section 2 Section 3 Section 4 Section 5 An Introduction to Change Management Change Management Models and Interventions The Change Management Process The Roles and Responsibilities in the Change Management Process Change Management Success and Failure Factors A more detailed framework of what is required for each of these topics follows under each section heading. A number of questions to probe discussion and guide you towards comprehension and insight are also provided. The timetable under each section heading provides guidance on the time to be spent to study each section. It is recommended that you follow the given timetable to ensure that you spend the appropriate amount of time on each section. Following the timetable will ensure that you have covered the required sections relevant to each assignment and have appropriate time to prepare for the examination. Regenesys Business School 10

7.1 AN INTRODUCTION TO CHANGE MANAGEMENT Timeframe: Learning outcome: Multimedia: Section overview: Minimum of 6 hours Explain change management terminology, concepts, definitions and techniques. Dixon, P.J. 2007, Secret of change management motivation, leadership skills, development. (video online), http://www.youtube.com/watch?v=_kzl15houuc, (accessed 14 August 2014). Kotter International. 2012, Change management vs change leadership what s the difference? (video online), http://www.youtube.com/watch?v=2ssunbrhf_u, (accessed 14 August 2014). The strategic plan of an organisation expects change as it initiates an understanding that the organisation is expected to increase profitability and enhance productivity. The idea of change often evokes fear in employees yet, if well implemented, change can result in increased organisational performance and therefore in the organisation achieving its strategic objectives. This section explores the key terms and concepts of change. 7.1.1 Define the Concepts What does it take for a business to change? Is it possible to manage change? Could change be planned? What is change? Change can be defined as: The act, process, or result of altering or modifying that cause a specific framework to be different after undergoing alterations to transform or bring about transition in a certain environment. (Merriam-Webster Dictionary, 2012) As this definition implies, change management requires an altered framework focussing on transformation and/or transition from one set of processes, acts or results to a different set. Change therefore requires employees to engage in a different way of thinking in order to achieve transformation. There are key terms that you need to remember throughout this module: transformation and behaviour. We will discuss these later. If change requires employees to alter their thoughts in the attempt to transform, how is it possible to manage change? Porras and Robertson (1992:719) define change management as: A set of behavioural science-based theories, values, strategies and techniques aimed at the planned change of the organisational work setting for the purpose of enhancing individual development and improving organisational performance through the alteration of organisational members on-the-job behaviours. Regenesys Business School 11

Porras and Robertson s (1992:719) definition specifically focuses on managing change using theories, values, strategies and techniques adjusted from behavioural science. The definition implies that change management requires employee behaviour altering. This however does not address the key term transformation. In order to explain the significance of transformation one needs to understand the term organisational change. Tripon and Dodu (nd:10) define organisational change as: a state of transition between the current state and a future one, towards which the organization is directed. Organisational change requires work process and subsystem altering. Change management therefore implies that one controls both the context in which strategy happens as well as the process through which it takes place (Tripon and Dodu, nd:11). For change management to be successful, it needs to fulfil the following criteria: Reach the goals it set out to achieve Stay within the time and budget set for it Lead to positive results, and All stakeholders see the change implementation as a success (Tripon and Dodu, nd:12) Organisational change requires the consideration of five ranges of change an organisation might adopt. These are illustrated and described below: Regenesys Business School 12

FIGURE 1: CHANGE PYRAMID Figure 1: Change pyramid Level of discomfort Change' Culture' Change' behaviour' Change' Structure' Organisation design Hard to do (invisible) Change'Roles' Job design Easy to do (visible) Change'Tasks' Process design (Source: :22) (Essential Tools series, nd:22) Figure 1 implies that the more difficult the change, the higher the level of discomfort for the employees. It further implies that the more significant the change (higher up in the pyramid), the more the organisation needs to invest in terms of time and cost. Understanding the change pyramid is thus an important issue when considering the types of organisational change. This is discussed in the next section.

7.1.2 Types of Organisational Change Change within an organisation depends on three main dimensions: origin, result an change (Tripon and Dodu, nd:13). Within these dimensions, different types of chan identified. These are summarised in Table 1 and discussed below: TABLE 1: TYPES OF ORGANISATIONAL CHANGE Dimension Description Type of Organisational Change Origin Result Process The way in which change appears in an organisation (change happening from the internal environment). Change that results because of external events. How radical the change appears Unintentional change Intentional change Reactive change (change happening as a res Anticipatory change (change that happens been initiated) Gradual change (supporting structure and cur Revolutionary change (deconstruct the stru and replace with new) Incremental change (continuous change at a Transformational change (no continuity at a la Change of the first degree (change to basic sy Change in the second degree (change the ru in the system) Convergent change (change that is comp organisational structure) Frame changing change (at system leve strategy, power, structure and control) Low level learning (behavioural change) Higher level learning (cognitive change wh organisational norms) Evolutionary incremental (low number of c time) Revolutionary dramatic (an increased num changes) Evolution (using dominant types of managem growth) Revolution (new management style is create problem aiming at continued growth) (Tripon and Do Regenesys Business Sch

The origin of change implies that change can either be planned or forced. Planned change is initiated and implemented by the members of the organisation. Planned change is a response to needs that appear in the organisation. Forced change happens from continuous activities of the organisation members and addresses problems and opportunities as they arise (Tripon and Dodu, nd:17). Watch the clips below; they provide an overview of change management and the pertinent concepts of this module: Dixon, P.J. 2007, Secret of change management motivation, leadership skills, development, (video online), http://www.youtube.com/watch?v=_kzl15houuc, (accessed 14 August 2014). Kotter International. 2012, Change management vs change leadership what s the difference? (video online), http://www.youtube.com/watch?v=2ssunbrhf_u, (accessed 14 August 2014). Understanding the concept of change management and the type of change the organisation is facing places you in the position of being able to apply a model of change to a specific environment. The next section describes different models and change interventions. Recap Questions 1. Define change management as it is applicable in your organisation or an organisation with which you are familiar. 2. Differentiate critically between planned change and forced change. 3. Critically discuss the secret to change management, according to Dixon (2007). Regenesys Business School 15

7.2 CHANGE MANAGEMENT MODELS AND INTERVENTIONS Timeframe: Minimum 20 hours Learning outcome: Critically evaluate change management models and interventions. Recommended reading: Latta, G.F. 2009, 'A process model of organisational change in cultural context (OC 3 model)', Journal of Leadership and Organisational Studies, 16(1), 19 37, http://cmapspublic.ihmc.us/rid=1gsqpfh9l-d6kvcn- Q90/A%20Process%20Model%20of%20Org%20Change%20in%20Cutural%20Context.pdf, (accessed August 14 2014). Pryor, M.G., Taneja, S., Humphreys, J., Anderson, D. and Singleton, L. 2008, 'Challenges facing change management theories and research', Delhi Business Review, 9(1), 1 20, http://www.delhibusinessreview.org/v_9n1/v9n1a.pdf, (accessed August 14 2014). Keller, S. and Aiken, C. nd, The Inconvenient Truth About Change Management, McKinsey & Company, Chicago, http://www.mckinsey.com/app_media/reports/financial_services/the_inconvenient_truth_about _change_management.pdf (accessed 14 August 2014). Section overview: Due to the complexity of change and the repercussions of incorrectly implementing a change process, models have been developed in order to assist organisations with this challenging process. Each model has respective strengths and weaknesses, which need to be considered before they are selected. This section critically examines the four most commonly used models of change. 7.2.1 Kurt Lewin: Change Management Model Kurt Lewin, a psychologist focussing his attention on sociology, developed a three-stage theory of change. This theory is described as the Unfreeze, Change, Freeze (or Refreeze) theory of change management (Ritchie, 2007). These three stages are discussed in detail below. Stage 1: Unfreezing The first stage in the model describes the function of getting ready to change. Organisations need to evaluate and discuss the need for change and get to the point of understanding that change is necessary. It is also important to understand the gap between the current comfort zone and the desired future state. This is thus the stage in which the organisation prepares for change. It is also during this stage where employees should be motivated to change. To evaluate and motivate the change needed, Lewin (2013) prescribes the Force Field analysis. The Force Field analysis is illustrated and described below. Regenesys Business School 16

FIGURE 2: FORCE-FIELD ANALYSIS (Value Based Management, 2013) Lewin s (2013) Force Field Analysis is a technique that can be used for evaluating those influences supporting a change and those opposing it. The process involves identifying the factors that support and those that resist a major change. These factors can be weighted in order to give an overall framework of the relative strength of these respective forces. Carnall (1995:143) presents the following steps in this analysis: Stage 1: Stage 2: Stage 3: Stage 4: Define the strengths and weaknesses of the current situation and the situation you wish to achieve. Identify the forces working for and against your desired changes. Identify the forces that you consider to be most important and list the actions to reduce the strength of an opposing force and exploit a favourable force. Agree on the actions most likely to achieve change and the resources needed to implement them. Should the above analysis indicate that the forces in favour of change are in balance with or outweigh the forces opposing it, it may be appropriate to press ahead with implementation of the strategy. If there are major forces opposing the change, it may be necessary to consider how these can be reduced and how the forces favouring the change can be further strengthened. Clearly, the applicability of this method is a matter of judgement. However, it does represent a clear analytical overview of the dynamics of the change situation and, as such, can be a helpful guide to managing the strategic change process. Regenesys Business School 17

Stage 2: Change or transition The next stage of Lewin s model involves change/transition. Change requires a reaction, and in the transition stage this reaction is actioned. Many argue that this stage is the most challenging especially if the motivation for the change has not been specified. Within this stage, the change strategy should be implemented and monitored. It involves the development of new behaviours, attitudes and values within the change structure and cultural processes of the organisation. Stage 3: Refreezing This stage involves the re-establishment of stability, once changes to the organisation have been made. Organisations need to establish whether the new changes are acceptable and can be maintained. Ideally, there should be little danger of people reverting back to their previous behaviour forms. Reinforcing mechanisms include policies, procedures, training and development programmes. Lewin himself did not focus much on this stage, but other models enforce this stage (for example, the Adkar model, which is described below). (Lewin, 2013) 7.2.2 Adkar Change Model The Adkar change model focuses on change management activities and specific business results. The model requires the managing of five goals (Prosci, 2007). These goals include: Awareness: employees need to understand the need to change Desire: employees must support the change Knowledge: employees must know what the change strategy requires and what it requires of them Ability: employees must implement the change and have the ability to do so, and Reinforcement: change must be kept in place Read more about this model in the article provided below Adkar Change Management: Creating Change in Individuals Adkar change management is one of many change management models, which can assist in the development of a cultural transition program. It focuses on change at an individual level, and the specific needs of that individual, in order for that person to change their behaviours to the desired ways of working the new culture: the new way we do business! Adkar was developed by Jeff Hiatt of Prosci research in 1998 and was initially used as a tool for determining if change management activities were having the desired results during organisational change. Regenesys Business School 18

Now, it is used widely and for many, the tool of choice to help identify and drive change whilst also being used as a tool to understand any gaps that are needed to strengthen along the change process. It is also a useful framework for planning change within an organisation, before implementation, and more importantly, a useful model In the Execute phase of the change management process. The theory is simple: Each step in the Adkar model focuses on people and how to create the right conditions for those effected by change to eventually adopt new behaviours and ways of working. The Five Elements of Adkar Each element of the Adkar change management model must be thoroughly completed and should also be followed in a sequential basis in order for successful change to take place. The five Steps of the Adkar change management Model are as follows: Awareness: Create an understanding for the need to change ie Why is the change necessary? Why is it happening now? What is wrong with what we are doing today? What will happen if we don t change? What s in it for the individuals? Desire: Create the desire to support and take part in the change Which is dependent on the nature of change, the credibility of the person leading the message of change, intrinsic factors, history of the organisation. Effective leading and influencing can go a long way to help people choose to follow the desire to change. Knowledge: Give knowledge so people can understand how to change and what to do ie providing training and education, detailed understanding of new tasks, processes and systems, and understanding new roles and responsibilities. Ability: Provide the skills to implement change on a day to day basis ie Providing day to day involvement, access to subject matter experts, provide effect performance monitoring, hands on exercise during training. Reinforcement: Create the ability and environment to sustaining the change and keep it going, keeping the momentum going. ie Celebrations and recognition, rewards, feedback to and from employees, audits and performance measurement systems, accountability systems. Factors Effecting Successful Change In order to successfully apply change using the Adkar change management model, it is advisable that one understand the barriers that could form at each stage. Once identified, plans can be created to remove these factors, and therefore effectively creating change. Examples of those factors which can form barriers at each stage of the Adkar change management program are: Awareness: A person s view of the current state, How a person perceives problems, Credibility and trust of the leader, misinformation and rumours that circulate, disagreement of the need to change. Desire: The nature of change (incremental or large transformation), What s in it for me? An individual s personal life, intrinsic motivation what motivates them? Regenesys Business School 19

Knowledge: The current knowledge base of an individual, the capacity and capability of the individual to gain additional knowledge, resources available for education, the access to expertise and this knowledge for learning. Ability: Psychological blocks and fear, physical ability to work the new way, intellectual capability, the time available to develop the new skills, the availability of resources to develop those skills. Reinforcement: How meaningful to the individual is this change? Is the progress demonstrated and reinforced? Is there a no blame culture? Are there accountability systems in place? Adkar Change Management for the Manager As a manager, you can use this model to identify gaps in your change management process and to provide effective coaching for your employees. The Adkar model can also be used to: Diagnose employee resistance to change ; Used as a learning tool in teaching change management; A framework for change management teams to evaluate their change management plans; A coaching tool for managers and supervisors; Help employees transition through the change process; and Create a successful action plan for personal and professional advancement during change. The Adkar change management model can be used throughout the change management process to ensure that the transition plan is successful and that the cultural change is happening successfully therefore can be used to support the change project as a tool to cultural change. Bringing the two dimensions together in a logical format means that the business should be able to successfully close out its project objectives and tasks, whilst ensuring that cultural change is happening and transitioning well along its path. As one can see in the model above, Adkar can go hand in hand with the change management process. It can be used to help prepare people for change, create a transition plan and also be used to gauge current change performance, highlighting any gaps in and areas of improvement in real time, within the five phases of the model. (Educational Business Articles, nd) Regenesys Business School 20

7.2.3 Kotter s Model for Successful Transformations Kotter (1995) reinforces our previous discussion around the problems associated with organisational transformation and changes. From extensive research, he developed an eight-step model for resolving these issues around organisational change: 1 Establish a sense of urgency o Create sufficient pain o Identify and discuss crises or opportunities for change 2 Form a powerful guiding coalition o Assemble a group with enough power to lead the change effort 3 Create a vision o Create a vision to help direct the change effort o Develop strategies for achieving that vision 4 Communicate the vision o Use every vehicle possible to communicate the new vision and strategies o Teach new behaviours by the example of the guiding coalition 5 Empower others to act on the vision o Get rid of obstacles to change o Change systems or structures that seriously undermine the vision o Encourage risk taking and creativity 6 Plan for and create short term wins o Plan for visible performance improvements o Recognise and reward 7 Consolidate improvements and produce even more change Use increased credibility to change systems, structures, strategies and culture that do not fit the vision 8 Institutionalise new approaches o Articulate the connections between the new behaviours and institutional success o Develop leadership and a succession plan Regenesys Business School 21

7.2.4 McKinsey s 7-S Model Silbiger (1999:293) explains that: The 7-S model provides a structure with which to consider a company as a whole, so that the organisation s problems may be diagnosed and a strategy may be developed and implemented. The model is explained in more detail below: The 7 S s Structure An organisation s structure affects and reflects its strategic planning goals and its focus. Structure may have a client, geographic, or centralised structure. Its internal structure may be hierarchical or flat, or a matrix structure may exist, with fluid teams forming and dispersing as projects come and go. Systems These are the procedures by which an organisation operates, including the collection and disbursement of money, materials and information. Skills These are the combined knowledge, skills and abilities of the staff. Style Style or culture refers to the behaviours, ways of doing things, the ethos and values that characterise a particular organisation. Changing the culture of an organisation is a slow process. Regenesys Business School 22

Staff This includes both the people who do the work and the human resource systems that allow and encourage work to be done, including performance appraisals, motivation and morale. Super-ordinate goals (shared values): These are the core of the organisation the guiding principles, the fundamental ideas around which an organisation is built. Strategy: This refers to the actions that an organisation plans as response to, or anticipation of, changes in its external environment. (Adapted from: Silbiger, 1992:295 298) Figure 3 below does not reproduce the Seven S Model exactly, but it represents a similar way of seeing the organisation as a system. FIGURE 3: THE 7-S MODEL Figure 3 illustrates the connectivity between the different units and functions within an organisation. All systems connect to one another and require a communicative action to ensure that the organisation is conducting business as a collaborative team. Without the assistance of any of the systems, the activities of the other units and systems become obsolete. Use the Regenesys integrated model and link the theory to McKinsey s 7-S theory. Regenesys Business School 23

7.2.5 Change Strategies The Essential Tools series (nd: 22 23) identifies and describes different change strategies, which organisations could adapt. These are briefly discussed in the table below: TABLE 2: CHANGE STRATEGIES Directive strategy Expert strategy Negotiating strategy Educative strategy Participative strategy Change is imposed directly by management in this strategy. It can be carried out swiftly, but it is likely that it will be met with resistance. This strategy is employed when the organisation has a technical problem which requires a specific operational change. When this strategy is used it is important to remember that the knowledge of the change is limited and that other employees must either be trained or coached in the management of the changes. The negotiation strategy is used when employees are consulted and change is negotiated. The teams have direct input in the change proposed and might have some power to resist if the change is not supported. This strategy involves changing the values and beliefs of people to support the change and commit to the organisational values. This involves activities like persuasion, education, training and a specialised recruitment and selection process. The advantage of this strategy is that employees will be committed to the change, yet it will take longer to implement than any other strategy mentioned in this table. This strategy involves getting all employees involved in making the change. Employees are more likely to commit and be motivated as they are involved directly in the change process. Read more about change management models in the articles below: Latta, G.F. 2009, 'A process model of organisational change in cultural context (OC 3 model)', Journal of Leadership and Organisational Studies, 16(1), 19 37, http://cmapspublic.ihmc.us/rid=1gsqpfh9l-d6kvcn- Q90/A%20Process%20Model%20of%20Org%20Change%20in%20Cutural%20Context.pdf, (accessed August 14 2014). Pryor, M.G., Taneja, S., Humphreys, J., Anderson, D. and Singleton, L. 2008, 'Challenges facing change management theories and research', Delhi Business Review, 9(1), 1 20, http://www.delhibusinessreview.org/v_9n1/v9n1a.pdf, (accessed August 14 2014). Keller, S. and Aiken, C. nd, The Inconvenient Truth About Change Management, McKinsey & Company, Chicago, http://www.mckinsey.com/app_media/reports/financial_services/the_inconvenient_truth_abou t_change_management.pdf (accessed 14 August 2014). Regenesys Business School 24

Case Study Read the case studies below and answer the questions that follow. Case 1 An organisation in Pretoria was experiencing a huge problem with the theft of uniforms and equipment, specifically shoes. Shoes were being stolen by store men and sold to supplement incomes. Random security searches revealed that the organisation could have been losing 20 pairs of shoes a week at R250.00 a pair. The situation was identified as a strategic issue, and three measures were put in place to solve the problem: Project 1: Outsourcing of the front office security (as it was perceived that there was collusion between security staff and staff members) Project 2: Installing closed-circuit television in the stores, and Project 3: Instituting a zero-tolerance policy and prosecuting all cases in civil court These measures cost approximately R1.5 million. After a period, stock-takes revealed that the problem had not been solved. The organisation then changed its approach. The nature of the store man position implied long periods of mundane activities such as sorting, cleaning and packing. An intervention was instituted that included job rotation, reimbursement for working overtime, staff training, up-skilling and sports activities. Within six months, shrinkage had dropped to industry-accepted levels, staff motivation had increased and injuries at the workplace had dropped. Case 2 Another organisation required that staff work extensive periods of overtime as a result of services rendered to other organisations. The general nature of the tasks performed involved highly sophisticated machinery with a high risk of injury, should the individual lose concentration. To supplement incomes, some staff would overextend themselves and work extremely long shifts. Senior management started to observe the extent to which errors as a result of exhaustion were costing the organisation millions of rands. A decision was made to stop the transfer of overtime between staff and restrict overtime worked. Staff members were outraged and the organisation was plunged into turmoil for six months as management and staff argued over the issue. An employee wellness programme was instituted, which included holistic issues around financial literacy, physical health, medical examinations, family support and group decision-making. Despite working long hours, staff members are now more committed to the organisation, staff turnover is lower, injuries have fallen and productivity has increased into the double digits. 1. Identify the change that needed to occur in the two cases and why change was necessary in each case. 2. Rank the change in terms of emotion and technical complexity. 3. Why do you think the initial options chosen did not succeed? 4. In your opinion, were the managers who made these decisions incompetent or careless in the decisions taken initially? 5. What lessons can you take from these two cases that can be applied within your organisation? Regenesys Business School 25

7.3 THE CHANGE MANAGEMENT PROCESS Timeframe: Learning outcomes: Recommended reading: Section overview: Minimum 20 hours Determine and critically analyse the need for change within an organisation. Identify all organisational areas affected by the change management process. Formulate a process and plan to implement change effectively within an organisation. Kerridge, J. 2012, 'Leading change: 1-identifying the issue', Nursing Times, 108(4), 12 15, http://www.nursingtimes.net/journals/2012/01/19/d/h/x/120124-prdisc-kerridge1-single.pdf (accessed August 14 2014). In this section we will be studying the change management process. We will analyse the need for organisational change, evaluate the change management process and discuss the development of a change management strategy. 7.3.1 Identify the Need for Change In the previous sections we discussed change management concepts, models and theory. All theories and systems indicated that the first step of the change management process was an identification of the need for change in an organisation. But how does the organisation know they need to change? Or, what drives change in an organisation? Ensuring that an organisation is ready for change requires that the organisation identifies the possible factors that could drive change. Often, management assumes that a change in organisational structure, for example, will make things better for the organisation. What is forgotten is the impact that this will have on the daily lives of the individuals in the organisation. Therefore, it is important to briefly state the possible drivers for change in order to ensure the readiness of employees for the change. Ascotbarclay.com (nd) identifies the following drivers for change in an organisation: Change in the senior management team The implementation of a new technological system A new or changed business strategy A change in working processes and practices (implementation of a new operational plan) Budget cuts and an expected increase in workload of individuals Changes in organisational growth Mergers and acquisitions Workplace restructuring and more difficult operational conditions Changes in expected organisational behaviours and skills A need to improve organisational culture, and Specific legislative changes Regenesys Business School 26

Self-Reflection Evaluate the organisation you are working for or an organisation with which you are familiar in order to complete this activity. Think of situations in the past that might have upset your daily life. Can any of these situations be categorised as a driver for change? What would have made the situation more acceptable to you? What actions should the senior management team have taken to make the transition easier for you or any of your team members? Knowing what would drive change in an organisation sets the change process in motion. The next section discusses this process. 7.3.2 The Process of Change Whilst many of us are becoming more keenly aware of the necessity for change, we do not necessarily take the right actions to correctly identify what to do, successfully make it happen or make it stick. At this stage of your studies, it is necessary for you to know that a change management process is required when organisations recognise that they need to change from a current situation to a desired future. Figure 4 describes what we have discussed up to this point. The Change Process FIGURE 4: THE CHANGE MANAGEMENT PROCESS Current situation Old paradigm Unfreezing Pain Change Management Changes in: structure processes culture systems All impact on people Freezing Alternatives Desired Future New paradigm As with any project, change should be managed in steps or stages to ensure that it is effectively implemented. From Figure 4 we can see that the change process starts from a current situation. This current situation then changes due to foreseen or unforeseen circumstances and a new desired future with new paradigms has to be created. The process of change occurs through the implementation of structures, processes, cultures and systems, and the impact of these. Kotter and Regenesys Business School 27

Rathgeber (2005) have identified an eight-step process to ensure successful change. This process is illustrated in Figure 5 below: FIGURE 5: EIGHT-STEP CHANGE MANAGEMENT PROCESS Set#the#stage# Create&a&sense&of&urgency:##Help#others#see#the# need#for#change#and#the#importance#of#ac4ng# immediately.# Pull&together&the&guiding&team:##Make#sure#there#is#a# powerful#group#guiding#the#change#g#one#with#leadership# skills,#credibility,#communica4on#ability,#authority,# analy4cal#skills#and#a#sense#of#urgency.### Decide#what#to#do# Develop&the&change&vision&and&strategy:##Clarify#how#the#future#will#be#different#from#the#past,#and#how# you#can#make#that#future#a#reality.# Make#it#happen# Communicate&for& understanding&and&buy&in:&& Make#sure#as#many#others#as# possible#understand#and# accept#the#vision#and#the# strategy.# Empower&others&to&act:&& Remove#as#many#barriers# as#possible#so#that#those# who#want#to#make#the# vision#a#reality#can#do#so.# Produce&short:term&wins:## Create#some#visible,# unambiguous#successes#as# soon#as#possible# Don't&let&up:##Press#harder# and#faster#aber#the#first# successes.##be#relentless# with#ini4a4ng#change#aber# change#un4l#the#vision#is#a# reality.# Make#it#s4ck# Create&a&new&culture:##Hold#on#to#the#new#ways#of#behaving#and#make#sure#they#succeed,#un4l#they# become#strong#enough#to#replace#old#tradi4ons# Be#prepared#to#recognise#the#need#for#renewed#change# Understanding the process of change allows managers and employees to set a plan or strategy in motion to deal with the change presented. Regenesys Business School 28

7.3.3 Develop a Change Management Strategy A change management strategy outlines the vision, goals and objectives of the change process. This allows managers to identify the activities, responsibilities and deadlines for the change process. It provides direction and informs the decision making throughout the implementation of the process. The change management strategy should include the following: TABLE 3: CHANGE MANAGEMENT STRATEGY OUTLINE Change characteristics Organisational attributes Impacted groups Team structure Sponsor coalition Risk assessment Anticipated resistance Special tactics Situational Awareness The characteristics of the change are introduced. This section addresses the following: The scope of the change The impact of the change The people involved in the change process The process, system, roles, and so on being changed, and The change timeframe The impact of the change in relation to the history and culture in the organisation and the current situation of the organisation are described in this section of the strategy. The groups and individuals impacted by the change are described in detail. The level of impact is described and the desired change is described. Supporting Structures This section introduces the change management team structure and describes who will be doing the change management work. (The roles and responsibilities of the change management team are discussed in the next section of the study guide.) The sponsor coalition explains the management and leaders who are involved in the change process. This is essential as it outlines the senior management responsible for making the change successful. Strategy Analysis The risks involved in the change management process should be identified. The overall risk and the specific risk factors should be described. Visit your Project Management modules (Year 1 3) and review the risk management process. Resistance to change is a specific threat to the change management process. Strategists can anticipate this resistance in order to make plans to overcome it. The last step in the strategy allows for the identification of specific tactics that will be needed for the change initiative. (Prosci, 2012) Developing the strategy will give managers direction for the change initiative. From here, managers can develop communication, coaching, training, resistance management and reinforcement plans. In the next section we will briefly discuss the impact that change has on managing. Regenesys Business School 29

7.3.4 Management Tools for Dealing with Change Everyone reacts differently to change. Reactions to change will depend on the employee s perception of the change and the resources for responding to change (e.g. coping skills, problemsolving skills, support), as well as the degree to which the organisation understands and is prepared for the magnitude of possible reactions to change. In terms of employee perception, it is important to understand the relationship between employees and the employing organisation. Remember: A job means more than a pay cheque to most individuals. There is a strong sense of attachment to a job and a psychological bond exists between the employee and the organisation. A major factor in how people define themselves is by what they do for a living. The organisation also provides security to the employee; for example, financial security, sense of belonging, a sense of worth/ self. In return, the employee gives loyalty to the organisation. When this bond is changed or broken, it can affect all employees (e.g. loss of control, loss of security, distrust, fear, hostility) and also impact on organisational productivity. In the case of layoff, for example, an organisation can expect reactions from both employees laid off and from those remaining on the job, as they are also impacted by the change. Included in the latter group may be those who participated in the "bumping" process. Figure 6 uses the change process and explains specific activities which a manager could employ to assist employees with the change. FIGURE 6: A COMPREHENSIVE VIEW ON THE CHANGE PROCESS Regenesys Business School 30

For more information on the management of change, please read the article below: Kerridge, J. 2012, Leading change: 1-identifying the issue, Nursing Times, 108(4), 12 15 Institutionalising Organisational Change: A Case Study Read the scenarios below and answer the questions that follow: Situation 1 The organisation has been in the midst of a restructuring. The change requires that the human resource function, which had representation in three provinces, now be centralised in just one location. As HR manager, a member has been assigned to you who previously worked 300 km s away. The transition was very traumatic for the staff member, as she either had to accept the transfer or be retrenched. As a result, the staff member had to sell her house and part with a partner who could not relocate. She has been in your department for one month. As a committed manager, you feel that socialisation within your new department is very important. You free up some funds and arrange a staff lunch the following week. To your dismay, this staff member does not confirm her attendance. She is also rather hostile in her response and ends by telling you: you cannot force me to go! As the manager, you are really hurt by the reaction and you write her a stern memorandum indicating, that sort of behaviour is not tolerated at the branch and never has been. You send the memo. Situation 2 Following a relocation of the call centre and front desk staff, your team has been moved to walk-in offices to allow members of the public to query administration around services. Staff members have been unsettled by the move but small improvements such as new desks and computers have softened the blow. Unfortunately, staff are complaining that the interaction with the public is making them susceptible to illness such as the flu. The concerns are genuine as the winter months have seen your staff absenteeism rate increase by 12%. Staff realise that if they are away it puts strain on the rest of the team, but cannot attend to work if they are ill. As the manager, you are faced with a dilemma: You need the front desks filled to attend to the customers but staff members are falling ill. You request that three heaters be purchased to keep the staff warm and make them less susceptible to illness. Situation 3 Following the announcement of a change process, both you and your staff begin to hear about consolidations and restructuring of various business units through the grapevine. As manager, you are seen as the leader and staff members seek reassurance from you. You yourself are unsure about the future and what the changes could mean for your career. Even though you want to put on a brave face, the concern makes you more unsettled. You decide to keep a low profile and keep your office door closed. You also cancel your weekly team meeting. Regenesys Business School 31

Questions Answer each of the following questions with reference to the scenarios presented above: 1. At what stage in the change process were the staff/ staff members, according to Figure 6? 2. Was the manager s response correct in the situation? 3. How might you have handled the situation differently? Regenesys Business School 32

7.4 THE ROLES AND RESPONSIBILITIES IN THE CHANGE MANAGEMENT PROCESS Timeframe: Learning outcome: Recommended reading: Section overview: Minimum 10 hours Review the roles and responsibilities of relevant stakeholders in the change management process. Abbas, W. and Asghar, I. 2010, The role of leadership in organisational change, Master s thesis, University of Gavle, http://hig.diva-portal.org/smash/get/diva2:326289/fulltext01.pdf (accessed August 14 2014). In the previous section we discussed the process of change and briefly mentioned that specific individuals in the organisation must take responsibility for that process. In this section we will examine the roles and responsibilities of the change management team more closely. Specific attention is given to the role of the change agent and the responsibilities involved in being a change agent in an organisation. 7.4.1 Key Role Players in the Change Process This section highlights some of the key role players in the change process. The change management project manager Many organisations use external consultants as the technical managers of the change process. Organisational change consultants are experts in both the technical and the human aspects involved in an organisation, successfully unfreezing, establishing a new state, and refreezing. The change management project manager usually receives a mandate from the change sponsor with an indication of a desired future end state. Regenesys Business School 33

The change agent The change agent is the person/ team who/ that institutes the change. This entity acts as the catalyst that gets the ball rolling. Change agents need to have the ability to get all people affected by the change process involved to ensure their support and commitment. This requires high levels of flexibility and the ability to accept change, as well as certain soft skills which are often collectively referred to as emotional intelligence. This includes the ability to communicate, to understand and to take into account the opinions and doubts of others. Change projects involve a great variety of factors and forces. These factors are comprised not only of the reasons and objectives for change, but also include the existing state of the organisation, values, beliefs and routines of the people within it. Many change projects challenge the existing cultural framework of an organisation. Efforts to change such lasting values, however, lead to resistance and denial. With this sort of change, more than in technology-related projects (e.g. the implementation of new software), it takes the acceptance and support of all people affected by such change projects to make them succeed. It is the change agent s task to generate this acceptance in order to implement change with the people, not against them. The change sponsor A change sponsor is the person in authority who has given approval for the change. The sponsor of your strategy has the authority to provide funding and resources to your change project and the power to both reward and reprimand. An effective sponsor must generally have a clear definition of what should be changed, believe that change needs to occur, understand the long-term impact the strategy will have on the organisation, understand what people are being asked to change about the way in which they operate, and display the type of support needed to convey strong commitment to the change. As the process unfolds, the sponsor is also required to use their influence and authority to show consistent and sustained support for the change. Stakeholders Stakeholders include all individuals who are affected by the change, including staff, their dependents, clients, customers and the community. Although change is generally focused on taking the organisation from a present state to a desired state, the effect that changes will have on staff must also be weighed up against the business imperatives that are driving the change. The change owner In the change process there has to be a time when the change agent provides the stimulus and resources for the change process. Once this has happened, managers become the change owners and are provided with support and coping strategies to maintain the change momentum. Most change processes fail because either the incorrect process or a mix of communication media failed to establish the new systems, procedures and vision. Failure of the change agents to generate sufficient momentum and resources for the change means that there is no driving force to help establish and take ownership of the new system. Regenesys Business School 34

Case Study Extract from the Gauteng SIYAKHA Project: South African Revenue Services The Change Management senior manager s expectations for Gauteng Central (GC region) were to give the necessary support to the Siyakha project team, management and staff in the region by sharing the necessary information through information sessions, induction programmes and meetings, and also by partnering with wellness at work if and when the need arose. The new changes as a result of SARS transformation demanded everyone to work in an integrated approach (customs, revenue and service) and we played a big role in creating awareness around this. We were also required to promote the SARS vision 2010 and Re Mmogo programme whereby the following key desired outcomes are emphasised: Improved service delivery Improved compliance and risk reduction Enhancing human capacity Heightened border security, and Greater internal efficiency The area that the Change Management GC team put more emphasis on with regard to the acceptance and quick adaptation to change as well as improved performance was more internal. In our attempts to enhance service delivery internal capacity, we empowered TPS staff through our TPS refresher workshops, where we covered topics like: team culture, critical conversations, emotional intelligence, service charter, conflict management, as well as discrimination. With this intervention we were aiming at promoting good work ethics, building a culture of integrity, and encouraging selfmanagement and employee empowerment at all levels. Through our team leader induction programme we also tried to support the newly-appointed team leaders by giving them insight to their new roles. 1. Referring to the case study, identify the various role-players required: 1.1 The change management project manager; 1.2 The change agent; 1.3 Change sponsor; 1.4 Stakeholders; and 1.5 Change owner 2. Who are the key stakeholders in this change issue? 3. What are key ways in which to manage the stakeholders identified in Question 2 so that your learning team s change intervention is managed effectively? Regenesys Business School 35

7.4.2 The Change Agent What can a change agent change? The answer to this, according to Robbins, Odendaal and Roodt (2009:406) is: Structure Technology Physical setting, and People These are depicted in Figure 7 below. FIGURE 7: CHANGE OPTIONS Structure# What#are#the# change#op4ons?# Technology# Physical#seKng# People# (Robbins, Odendaal and Roodt, 2009:406) The above-mentioned change options will now be discussed in detail as they appear in Robbins, Odendaal and Roodt (2009:406 407). Regenesys Business School 36

Changing structure Structural issues such as work specialisation, span of control, and various organisational designs can also change, but organisational structures are not set in stone. Changing conditions demand structural changes. As a result, the change agent might need to modify the organisation s structure. An organisation s structure is defined by how tasks are formally divided, grouped and coordinated. Change agents can alter one or more of the key elements in an organisation s design. For instance, departmental/ unit responsibilities can be combined, vertical layers removed, and spans of control widened to make the organisation flatter and less bureaucratic. More rules and procedures can be implemented to increase standardisation. An increase in decentralisation can be made to speed up the decision-making process. Change agents can also introduce major modifications in the actual structural design. This might include a shift from a simple structure to a team-based structure or the creation of a matrix design. Change agents might consider redesigning jobs or work schedules. Job descriptions can be redefined, jobs enriched, or more flexible working hours introduced. Still another option is to modify the organisation s compensation system. Motivation could be increased, for example, by introducing performance bonuses or profit sharing. Changing technology Most of the early studies into management and organisational change dealt with efforts aimed at technological change. At the turn of the century, for example, scientific management sought to implement changes based on time-and-motion studies that would increase production efficiency. Today, major technological changes usually involve the introduction of new equipment, tools or methods; automation; or computerisation. Competitive factors or innovations within an industry often require change agents to introduce new equipment, tools or operating methods. Automation is a technological change that replaces people with machines. It began in the Industrial Revolution and continues as a change option today. Examples of automation are the introduction of automatic mail sorters by postal service organisations and robots on motor vehicle assembly lines. The most visible technological change in recent years has been the expansion of computerisation. Most organisations now have sophisticated management information systems that link the organisation s employees, regardless of where they are located. And the office of 2014 is dramatically different from its counterpart in 1993, predominantly because of computerisation. This is typified by desktop microcomputers that can run hundreds of business software packages and network systems that allow these computers to communicate with one another. Regenesys Business School 37

Change the physical setting The layout of a workspace should not be a random activity. Typically, management carefully considers work demands, formal interaction requirements and social needs when making decisions about space configurations, interior design, equipment placement and the like. For example, by eliminating walls and partitions, and opening up an office design, it becomes easier for employees to communicate with each other. Similarly, management can change the quantity and types of lights, the temperature, the levels and types of noise, and the cleanliness of the work area, as well as interior design dimensions like furniture, decorations and colour schemes. Change people The final area in which change agents operate is in helping individuals and groups within the organisation to work more effectively together. This category typically involves changing the attitudes and behaviours of organisational members through the processes of communication, decision-making, and problem solving. As you will see later in this chapter, the concept of organisational development has come to encompass an array of interventions designed to change people and the nature and quality of their work relationships. We review these people-changing interventions in our discussion of organisational development. 7.4.3 Change and Leadership With the ever-familiar norm of change occurring daily in our internal and external environments, it is of the utmost importance to identify new opportunities, to the point that it has now become a matter of survival for every business and every employee. As Pulitzer prize-winning author Thomas Friedman noted in his book The World is Flat, not just every company, but also every individual is competing today in a global economy. Regenesys Business School 38

Six characteristics of highly effective change leaders Leading change is a highly involved process. The article below provides insight in the leadership required for the change process: Six Characteristics of Highly Effective Change Leaders It is worth noting that learning how to learn, learning how to innovate, and learning how to change are all closely related. The notion of change is arguably the most powerful because it focuses on results and implies proactive movement from one place to another. For example, if you ask your employee, What did you learn today? it begs the question, What did you do differently afterward?, which begs the next question, And what was the result?. Contrast that with asking your employee, What did you change today? The question implies continuous improvement. It manifests the notion that doing what you did yesterday, being as good as you were yesterday, is not acceptable. Imagine if each of your employees changed one thing every day. That s approximately 240 improvements per employee per year. What would that do for your business? While being a change leader may not be easy, the first step is knowing what it requires. People who are effective leaders of change have six characteristics. As a supervisor and leader, knowing these six characteristics helps you in several ways. First, you want to cultivate these qualities in yourself. Second, you can factor these characteristics into your hiring decisions. Third, you will want to cultivate these characteristics in your team culture by taking steps to reinforce them and avoiding steps that contradict them. Here are the six characteristics of change leaders: 1. Low Level of Anxiety Anxieties are emotions and beliefs that prevent us from coping effectively with our current circumstances. Anxieties stem mostly from past negative experiences that continue to generate strong negative emotions. For example, many children who grew up in poverty during the Great Depression continued to live in fear of poverty, literally saving pennies in glass jars, despite achieving economic success in adulthood. But, current circumstances can also be the source of fear, uncertainly, and doubt. For example, employee reward systems that pit colleagues against one another in gladiator-like competitions that reward winners and penalize losers may cause employees to constantly look over their shoulder to see who is going to stab them in the back next. Anxieties wield enormous influence on our behaviour, usually resulting in one of two responses. People usually either a) erect strong defences, figuratively digging fox holes to protect themselves, or b) go on the attack, making sure to harm and disable the perceived threat, before it can hurt them. These are destructive behaviours that not only prevent people from responding effectively to change, but can also harm others around them. To perform at the highest level and to drive innovation and change, people must have a sense of security and be unencumbered by anxieties. Tip: Hire people with low levels of anxiety and create an environment where people feel secure, rather than threatened. Regenesys Business School 39

2. Emotional Stability To learn well and perform at a high level, people must be in a good mood. One of the definitions of the word mood is, a frame of mind disposed or receptive, as to some activity or thing. Large swings from levels of depression to elation and back to depression do not put people in a mental state that is receptive and ready for constructive action. One landmine to avoid is breaking an employee s attitude and belief that s/he can succeed in the job. Once an employee crosses a certain line toward depression, they become locked in a vicious cycle where their performance suffers, which causes further depression, which further reduces their performance, and so on. At that point, you ve lost the employee. Tip: Hire people whose emotional wiring is permanently connected to happy and take daily action to maintain a high level of enthusiasm among your team. 3. Action Orientation Adapting to and leading change requires action. Being receptive to learning is not sufficient. The purpose of learning is to then take action and achieve the goal. People who have low levels of energy and are inclined to sit and watch will be the last to learn and adapt to change. Effective leaders are inclined to step up and participate in the action. They feel energized and exhilarated by the action and the progress. Tip: Hire people with high energy levels and have events and activities that stimulate action and energy. Note: This requires that you allow time for these activities. Don t tell people there is a 3pm team volleyball game and also give them a 4pm deadline for a project. 4. Confidence By definition, learning, innovating and changing require exploration of the unknown. It is natural to feel anxious about stepping into unknown territory. Exploration is not without risks. Scurvy, cannibals, poisonous snakes, and avalanches, new suppliers that fail to deliver the hazards that have befallen explorers are innumerable. But, exploring the unknown can only identify new opportunities. Therefore, people must hold the belief that, despite the unknown risks, the unknown outcomes will be positive. In other words, they must be confident in their ability to succeed. Tip: Hire people who are not afraid to take risks and have experienced the sweet taste of success in the past. Also, consider measuring and rewarding the exploration process itself, rather than worshiping the conquistadors who have blazed new trails. True innovation requires knocking on many doors before finding the one that opens. So, it is important to maintain an appropriate perspective. Regenesys Business School 40

5. Openness To explore new ideas and learn how to apply them one must be receptive to them. We can always think of a million reasons something won t work. But, if we open our minds to the possibilities, we can also find many ways new ideas can work. But, simply being receptive is not enough; Harvard psychologist Ellen Langer says we must be mindful. By mindful she means being constantly attentive and exposing our minds to many different perspectives. We are able to see more ways new ideas can work if we equip ourselves with a vast repertoire of perspectives and ideas. Tip: Hire people who have diverse experiences and multidimensional skills. Give employees white space between the normal duties in their job description and encourage them to gain different experiences and perspectives. 6. Risk Tolerance At first glance high-risk tolerance may seem synonymous with high confidence. The difference is that confidence is an attitude and a belief that is accepted on faith, while risk is a mathematical concept that can be measured and managed. All actions involve risk and uncertainty including the action of staying in the same place. In fact the world is changing so fast, that staying in the current position could be the riskiest proposition of all like standing in the middle of a highway. But dealing with risk doesn t mean simply rolling the dice and accepting your fate. A healthy risk tolerance means taking all possible steps to mitigate or eliminate risks, and then making a well calculated, highly likely bet. Tip: Rather than penalizing your staff when they fail, encourage them to take risk. Furthermore, rather than measuring outcomes, which is a no-brainer, be a value-added supervisor by measuring and coaching your staff on how well they manage risk. In conclusion, if you use the six characteristics of change leaders as hiring criteria, then build those characteristics into the culture of your organization, your team will discover and exploit new opportunities that will put you ahead of your competition. (Clay, 2010) Based on the six characteristics of a good change leader acknowledged by Brett Clay (2010): Identify the characteristics that you possess and the ones that you do not possess. Think about why you do not possess all six characteristics. For a further discussion on the role of leadership in organisational change, please read the following: Abbas, W. and Asghar, I. 2010, The role of leadership in organisational change, Master s thesis, University of Gavle, http://hig.diva-portal.org/smash/get/diva2:326289/fulltext01.pdf (accessed August 14 2014). Regenesys Business School 41

Recap Questions Think about situation that requires a change; for example: a new system implemented at work, a new product being offered, a shift in an organisation s culture or strategy, new policies being executed, etc. If you do not adapt to this change, how will it affect the following aspects? 1. You in your capacity within the organisation 2. Your team/ department/ division 3. Your organisation, and 4. Your external environment Regenesys Business School 42

7.5 CHANGE MANAGEMENT SUCCESS AND FAILURE FACTORS Timeframe: Minimum 10 hours Learning outcome: Review key strategic change process success and failure factors within an organisation. Recommended reading: Multimedia: Section overview: Change Management Institute, 2012, Change Management Practitioner Competencies, https://www.change-managementinstitute.com/sites/default/files/cmi_accreditation_cmpcompetencymodel.pdf (accessed August 14 2014) Learning TOC. 2010, 'Overcoming resistance to change Isn t it obvious?', (video online), http://www.youtube.com/watch?v=hcz1az60k7w (accessed August 14 2014). In the last section of this study guide we will discuss the factors that might lead to change management success or failures. We specifically look at overcoming resistance to change, which is a constant threat to the success of the change management process. 7.5.1 Resistance to Change Resistance to change does not necessarily surface in standardised ways. Resistance can be overt, implicit, immediate or deferred. It is easiest for management to deal with resistance when it is overt and immediate. For instance, a change is proposed and employees quickly respond by voicing complaints, engaging in a work slowdown, threatening to go on strike, or the like. The greatest challenge is to manage resistance that is implicit or deferred. Implicit resistance efforts are more subtle loss of loyalty to the organisation, loss of motivation to work, increased errors or mistakes, increased absenteeism due to illness and hence, more difficult to recognise. Similarly, deferred actions cloud the link between the source of the resistance and the reaction to it. A change may produce what appears to be only a minimal reaction at the time it is initiated, but then resistance could surface weeks, months or even years later. Or a single change within and of itself that might have had little impact becomes the straw that breaks the camel s back. Reactions to change could build up and then explode in some response that seems totally out of proportion to the change that follows. The resistance, of course, has merely been deferred and stockpiled. What surfaces is a response to an accumulation of previous changes. Robbins, Odendaal and Roodt (2009:408) categorise the reasons for resistance to change into two sources; namely: individual and organisational. In the real world, the sources often overlap. Regenesys Business School 43

Resistance to change by people The following information discussing the resistance to change by people was taken from Robbins, Odendaal and Roodt (2009:408). Resistance to change resides in basic human characteristics such as perceptions, personalities and needs. The following summarises five reasons why individuals may resist change. (See Figure 8). FIGURE 8: INDIVIDUAL RESISTANCE TO CHANGE Selec4ve# informa4on# processing# Habit# Security# Fear#of#the# unknown# Individual# resistance# Economic# factors# Habit As human beings, we are creatures of habit. Life is complex enough; we do not need to consider the full range of options for the hundreds of decisions we have to make every day. To cope with this complexity, we all rely on habits or programmed responses. But when confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance. So, when your department is moved to a new office building across town, it means you are likely to have to change many habits: waking up ten minutes earlier, taking new streets to work, finding a new parking place, adjusting to the new office layout, developing a new lunch-time routine, and so on. Security People with a high need for security are likely to resist change because it threatens their feelings of safety. When Federated Timbers (then part of the Barlow Group) reduced employees by 20% and when ABSA restructured their operations, many employees at these firms feared that their jobs were in jeopardy. Regenesys Business School 44

Economic factors Another source of individual resistance is concern that changes will lower one s income. Changes in job tasks or established work routines can also arouse economic fears if people are concerned that they will not be able to perform the new tasks or routines according to their previous standards, especially when salaries are closely tied to productivity. Furthermore, a country s macro-economic condition will have a direct impact on inflation and unemployment figures. Fear of the unknown Changes substitute ambiguity and uncertainty for the known. If, for example, the introduction of Total Quality Management (TQM) means production workers will have to learn statistical process control techniques, some may fear they will be unable to do so. They may, therefore, develop a negative attitude towards TQM or become dysfunctional if required to use statistical techniques. Selective information processing Individuals shape their world through their perceptions. Once they have created this world, it resists change. So, individuals are guilty of processing information selectively in order to keep their perceptions intact. They hear what they want to hear. They ignore information that challenges the world they ve created. To return to the production workers who are faced with the introduction of TQM, they may ignore the arguments of managers in explaining why the knowledge of statistics is necessary or how they will potentially benefit from the change. Resistance to change in an organisation Robbins, Odendaal and Roodt, (2009:409) state that: organisations, by their very nature, are conservative. They actively resist change. You do not have to go far to see evidence of this phenomenon. Government agencies wish to continue doing what they have been doing for years, whether the need for their service changes or remains the same. Organised religions are deeply entrenched in their history. Attempts to change church doctrine require great persistence and patience. Educational institutions, which open minds and challenge established doctrine, are themselves extremely resistant to change. Most school systems are using essentially the same teaching technologies today as they did 50 years ago. The majority of business firms, too, appear highly resistant to change. Six major sources of organisational resistance have been identified and are shown in Figure 9 Regenesys Business School 45

FIGURE 9: ORGANISATIONAL RESISTANCE Structural# iner4a# Limited#focus# of#change# Threat#to# established# resource# alloca4ons# Group#iner4a# Threat#to# established# power# rela4onships# Organisa4onal# resistance# Threat#to# exper4se# These aspects are explained by Robbins, Odendaal and Roodt (2003:409) as follows: Structural inertia Organisations have built-in mechanisms to produce stability. For example, the selection process systematically selects certain people in and keeps certain people out. Training and other socialisation techniques reinforce specific role requirements and skills. Formalisation provides job descriptions, rules and procedures for employees to follow. The people who are appointed in an organisation are chosen because they fit in; they are then shaped and directed to behave in certain ways. When an organisation is confronted with change, this structural inertia acts as a counterbalance to sustain stability. Limited focus of change Organisations are made up of a number of interdependent subsystems. You cannot change one without affecting the other. For example, if management changes the technological processes without simultaneously modifying the organisation s structure to match, the change in technology is not likely to be accepted. So, limited changes in subsystems tend to get nullified by the larger system. Regenesys Business School 46

Group inertia Even if individuals wish to change their behaviour, group norms may act as a constraint. An individual union member, for instance, may be willing to accept changes in his job suggested by management, but if union norms dictate resisting any unilateral change made by management, he is likely to resist. Threat to expertise Changes in organisational patterns may threaten the expertise of specialised groups. The introduction of decentralised personal computers, which allow managers to gain access to information directly from a company s mainframe, is an example of a change that was strongly resisted by many information systems departments in the early 1980s. Why? Because decentralised end-user computing was a threat to the specialised skills held by those in the centralised information systems departments. Threat to established power relationships Any redistribution of decision-making authority could threaten long-established power relationships within the organisation. The introduction of participative decision-making or self-managed work teams is the kind of change that is often seen as threatening by supervisors and middle managers. These managers might experience that their decision-making is threatened by those whom they previously assumed are not on the same level as they are. Threat to established resource allocations Those groups in the organisation that control sizable resources often see change as a threat. They tend to be content with the way things are. Will the change, for instance, mean a reduction in their budgets or staff cuts? Those benefiting the most from the current allocation of resources often feel threatened by changes that may affect future allocations. 7.5.2 Ways to Overcome Resistance to Change Robbins, Odendaal and Roodt (2009:409 410) identify six tactics for use by change agents in dealing with resistance to change. They are: Education and communication Participation Facilitation and support Negotiation Manipulation and co-optation, and Coercion The authors (ibid) explain these as follows: Regenesys Business School 47

Education and communication Resistance can be reduced through communicating with employees to help them see the logic of a change. This tactic basically assumes that the source of resistance lies in misinformation or poor communication: If employees receive the full facts that would clear up any misunderstandings, there will be less resistance. Communication can be achieved through one-on-one discussions, memos, group presentations, or reports. Does it work? It does, provided that the source of resistance is inadequate communication and that management-employee relations are characterised by mutual trust and credibility. If these conditions do not exist, the change is unlikely to succeed. Participation It is difficult for individuals to resist a decision to change in which they participated. Prior to making a change, those opposed could become part of the decision-making process. Assuming that the participants have the expertise to make a meaningful contribution, their involvement could reduce resistance, ensure commitment and increase the quality of the decision to change. However, there are also downsides to these advantages: the potential for a poor solution and increased time consumption. Facilitation and support Change agents can offer a range of supportive efforts to reduce resistance. When employees fears and anxieties are high, counselling and therapy, new skills training, or a short paid leave of absence may facilitate adjustment. The drawback of this tactic is that, as with the others, it is timeconsuming. Additionally, it is expensive, and its implementation offers no assurance of success. Negotiation Another way in which the change agent could deal with potential resistance to change is to exchange something of value to lessen the resistance. For instance, if a few powerful individuals resist the change, a specific reward package could be negotiated to meet their individual needs. Negotiation as a tactic may be necessary when resistance comes from a powerful source. Yet one cannot ignore its potentially high costs. In addition, there is the risk that once a change agent negotiates with one party to avoid resistance, he or she is open to the possibility of being blackmailed by other individuals in positions of power. Regenesys Business School 48

Manipulation and co-optation Manipulation refers to covert influence attempts. Twisting and distorting facts to make them appear more attractive, withholding undesirable information, and creating false rumours to get employees to accept a change are all examples of manipulation. If corporate management threatens to close down a particular manufacturing plant if that plant s employees fail to accept an across-the-board pay cut, and if the threat is actually untrue, management is using manipulation. Co-optation, on the other hand, is a form of both manipulation and participation. It seeks to buy off the leaders of a resistance group by giving them a key role in the decision to change. The leaders advice is sought, not to make a better decision, but to get their endorsement. Both manipulation and co-optation are relatively inexpensive and easy ways to gain the support of adversaries, but the tactics could backfire if the targets become aware that they are being tricked or used. Once discovered, the change agent s credibility may drop to zero. Coercion Last on the list of tactics is coercion; that is, the resisters are threatened or forced directly to accept the change. If the corporate management, mentioned in the previous discussion, were really determined to close a manufacturing plant should employees refuse to accept a pay cut, then this tactic to affect change would be called coercion. Other examples of coercion are threats of transfer, loss of promotions, negative performance evaluations and a poor letter of recommendation. The advantages and drawbacks of coercion are approximately the same as those mentioned for manipulation and co-optation. Learn more about resistance to change in the clip indicated below: Learning TOC. 2010, 'Overcoming resistance to change Isn t it obvious?', (video online), http://www.youtube.com/watch?v=hcz1az60k7w (accessed August 14 2014). 7.5.3 Success Factors in Implementing Change In conclusion, one could argue that the success factors in implementing change are as follows: Have a defined communication strategy. Be consistent about sharing information. Consider using a variety of media to reach people. Involve stakeholders in the planning process. Support staff with training and opportunities to practise. Listen to and act on questions, feedback and concerns. Celebrate ideas, achievements and successes. Have a clear reason for implementing change. Have a shared vision about what the change will achieve. Regenesys Business School 49

Learn about the target population. When developing strategies, consider the barriers to implementing change and cater for them within the strategy development. Remember that resistance is a natural response to change that is introduced by somebody else. Identify the change champions, the innovators; these are the people who will be prepared to introduce change. 7.5.4 Failure Factors in Implementing Change According to research by McKinsey & Company, about 70% of all changes in all organizations fail. After almost two decades of intense change from corporate reorganizations, new software systems, and quality-improvement projects, the failure rate remains at 70%. (Maurer, 2010) The reasons behind this huge failure rate are discussed below. Application of knowledge Organisations are generally very careful when appointing leaders responsible for managing the change process or change agents. The reason behind this is that there is a huge gap between what people know and what people do. All the knowledge that they have is not necessarily applied; all their talents identified are not always used. This could be a huge expense for organisations (Maurer, 2010). Therefore, the issue lies not in lack of knowledge but in applying existing knowledge effectively. Lack of skill and practice Many organisations confuse knowledge with skills. They teach staff change management concepts but don t give them an opportunity to practise what they have learned. The infamous saying practice makes perfect applies in this category. In order to fully master knowledge it needs to be practically applied in order to perfect. Malcolm Gladwell s fine book Outliers discusses the work of Anders Ericcson, who found that most people who gain mastery in any field have practised it for at least 10 000 hours. For example, the Beatles played 1 200 live shows in Hamburg before breaking in on the hit parade. The best pro hockey players started skating when they were really young. Bill Gates was already writing software when he was 13. Many managers confuse knowledge with skill. They teach people change management concepts, but don t give them time to practise their skills. (Maurer, 2010) Regenesys Business School 50

Hidden conflicts working against change Most leaders or change agents would say that their number one goal is to help their organisation survive and flourish. However, some leaders share information for fear that employees can t handle the truth ; they feel it takes too long to involve others; and they believe that delegating is a sign of weakness. Limitations like these create conflicts between what a leader or change agent knows and what they do. Without realising it, they undermine their own plans and goals. This results in change management strategies that look good on paper, but unwittingly set up barriers that limit these organisations from reaching their objective (Maurer, 2010). Culture working against change Leaders and change agents need to analyse their organisation s rules and regulations (written and unwritten) in order to identify whether they limit or support change. For example, your organisation may claim to respect individuals, teamwork, diversity, innovative thinking, and so on in their policies (written), but your manager or CEO may not be open to criticism and voicing an opinion which conflicts with your CEO or manager s views may lead to victimisation (unwritten) (Maurer, 2010). Please read the article below for additional information concerning building an organisational change management competency: Change Management Institute, 2012, Change Management Practitioner Competencies, https://www.change-managementinstitute.com/sites/default/files/cmi_accreditation_cmpcompetencymodel.pdf (accessed August 14 2014) Recap Questions 1. Identify one reason for resistance to change by individuals as experienced in your organisation or an organisation you are familiar with, and describe the impact in the organisation. 2. Identify an organisational resistance to change and analyse it in terms of its impact on the organisation. 3. List ways in which a change agent can help to overcome resistance to change. Regenesys Business School 51

8. REFERENCES Ansoff, H. and McDonnell, J. 1990, Implanting Strategic Management. 2 nd ed, New York: Prentice Hall. Ascot Barclay Group. 2013, Why do organisations need to transform and change? http://www.ascotbarclay.com/page/167/why-do-organisations-need-to-transform-and-change-.htm (accessed 30 March 2013). Bolognese, A. 2002, Employee resistance to organizational change, www.newfoundations.com/orgtheory/bolognese721.html (accessed 12 February 2013). Bowman, C. and Asch, D. 1987, Strategic Management. Basingstoke: Macmillan. Carnall, C.A. 1995, Managing Change in Organizations. London: Prentice Hall. Clay, B. 2010, Six characteristics of highly effective change leaders, http://www.innovationexcellence.com/blog/2010/08/20/six-characteristics-of-highly-effectivechange-leaders/ (accessed 3 February 2013). Educational Business Articles. nd, Adkar change management: Creating change in individuals, http://www.educational-business-articles.com/adkar-change-management.html (accessed 29 March 2013). Essential Tools Series. nd, Chapter 2: Change management and organisational development, http://www.essentialtoolsseries.com/springboardwebapp/userfiles/estools/file/chapter%202.pdf (accessed 30 March 2013). Kotter, J.P. 1995, Leading change: Why transformation efforts fail. Harvard Business Review, 73(2), 59. Kotter, J. and Rathgeber, H. 2005, Our Iceberg is Melting: Changing and Succeeding Under Any Conditions. London: Macmillan. Kotter, J. 2013, Implementing change powerfully and successfully, http://www.mindtools.com/pages/article/newppm_82.htm (accessed 12 February 2013). Lewin, K. 2013, Force field analysis, http://www.change-management-coach.com/force-fieldanalysis.html (accessed 12 February 2013). Louw, L. and Venter, P. 2011, Strategic Management. Cape Town: Oxford University Press Southern Africa (Pty) Ltd. Maurer, R. 2010, Why 70% of changes fail, http://www.reply-mc.com/2010/09/19/why-70-ofchanges-fail-by-rick-maurer/ (accessed 25 February 2012).. Regenesys Business School 52

Merriam-Webster. 2012, Change: Definition, usage and pronunciation, http://www.merriamwebster.com/dictionary/change (accessed 12 February 2013). Porras, J. and Robertson, I. 1992, Organizational development: Theory, practice, and research, in M. D. Dunnette, L. and M. Hough (Orgs.), Handbook of Industrial and Organizational Psychology, Palo Alto, CA: Consulting Psychologists Press, pp.719 822. Prosci. 2012, Start with a solid change management strategy, www.changemanagement.com/tutorial-2007prep-strategy.htm (accessed 30 March 2013). Richards, L. 2013, Why is change important in an organisation? http://smallbusiness.chron.com/change-important-organization-728.html (accessed 22 February 2013). Ritchie, B. 2007, Lewin s change management model: Understanding the three stages of change, http://www.consultpivotal.com/lewin's.htm (accessed 3 February 2013). Robbins, S. P., Judge, T. A., Odendaal, A. and Roodt, G. 2009, Organisational Behaviour: Global and Southern African Perspectives, 2nd ed. Cape Town: Pearson Education South Africa. SearchCIO-Midmarket. 2012, Change management: Define, http://searchciomidmarket.techtarget.com/definition/change-management (accessed 12 February 2013). Silbiger, S. 1999, The 10-Day MBA: A Step by Step Guide to Mastering the Skills Taught in Top Business Schools. London: Judy Piatkus. Tripon, C. and Dodu, M. nd, Change management and organisation development, http://www.apubb.ro/wp-content/uploads/2011/02/od_suport_de_curs_masterat.pdf (accessed 30 March 2013). Tucker, J. 2007, Types of change, http://suite101.com/article/types-of-change-a28594 (accessed 22 February 2013). Value Based Management. 2013, Force-field analysis, http://www.valuebasedmanagement.net/methods_lewin_force_field_analysis.html (accessed 29 March 2013). Regenesys Business School 53