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Most employees have negative
attitudes and perceptions towards change. They have fears of
losing their job, their status or their security, or they are
afraid of a higher workload. In many cases, the initial effects
of change on employees, managers and performance levels are
negative.
These effects include fears, stress,
frustration and denial of change. Most employees tend to react
with resistance to change rather than seeing change as a chance
to initiate improvements. They are afraid of losing something,
because they have incomplete information on how the change
processes will effect their personal situation in terms of
tasks, workload, or responsibilities.
If chance processes lead to
redundancies, those who “survived job cuts” still have a
negative attitude towards change. One reason may be that they
now face additional tasks and responsibilities. Some people may
feel guilty for still having their job while others became
unemployed. Such emotional reactions may cause additional stress
in the changing organization.
Managers need to keep in mind those
negative side-effects of change initiatives in order to achieve
the expected positive results. The success of change projects
depends on the organization’s ability to make all their
employees participate in the change process in one way or the
other.
Change management means to plan,
initiate, realize, control, and finally stabilize change
processes on both, corporate and personal level. Change may
cover such diverse problems as for example strategic direction
or personal development programs for staff.
Change is the continuous adoption of
corporate strategies and structures to changing external
conditions. Today, change is not the exception but a steady
ongoing process. On contrast ‘business as usual’ will become the
exception from phases of turbulence. Change management comprises
both, revolutionary one-off projects and evolutionary
transformations.
Hence, there are two types of
changes:
-
Organizational Development. This
is the more gradual and evolutionary approach to change. It
bases on the assumption that it is possible to align
corporate objectives with the individual employees
objectives. In practice, however, this will rarely be
possible.
-
Reengineering. This is known as
corporate transformation or business transformation. It is
the more radical form of change management, since it
challenges all elements of processes or structures that have
evolved over time.
In order to successfully manage
change processes, it is necessary to analyze the phases of this
process. Managers need to know in which phase they have to
expect what types of situations and problems. Most successful
organizations are those that are able to adjust themselves to
new conditions quickly. This requires planned learning processes
that lead to improved organizational effectiveness. Ideally,
employees are able to reflect their own behavior in relation to
the organizational context (e.g. processes, products, resources,
customers).
Normally, people perceive change
processes in seven typical stages. The seven phases of change
can be described as follows:
1. Shock and Surprise
Confrontation with unexpected
situations. This can happen ‘by accident’ (e.g. losses in
particular business units) or planned events (e.g. workshops for
personal development and team performance improvement). These
situations make people realize that their own patterns of doing
things are not suitable for new conditions any more. Thus, their
perceived own competence decreases.
2. Denial and Refusal
People activate values as support
for their conviction that change is not necessary. Hence, they
believe there is no need for change; their perceived competency
increases again.
3. Rational Understanding
People realize the need for change.
According to this insight, their perceived competence decreases
again. People focus on finding short term solutions, thus they
only cure symptoms. There is no willingness to change own
patterns of behavior.
4. Emotional Acceptance
This phase, which is also called
‘crisis’ is the most important one. Only if management succeeds
to create a willingness for changing values, beliefs, and
behaviors, the organization will be able to exploit their real
potentials. In the worst case, however, change processes will be
stopped or slowed down here.
5. Exercising and Learning
The new acceptance of change creates
a new willingness for learning. People start to try new
behaviors and processes. They will experience success and
failure during this phase. It is the change managers task to
create some early wins (e.g. by starting with easier projects).
This will lead to an increase in peoples perceived own
competence.
6. Realization.
People gather more information by
learning and exercising. This knowledge has a feedback-effect.
People understand which behavior is effective in which
situation. This, in turn, opens up their minds for new
experiences. These extended patterns of behavior increase
organizational flexibility. Perceived competency has reached a
higher level than prior to change.
7. Integration
People totally integrate their newly
acquired patterns of thinking and acting. The new behaviors
become routine.
Only if change managers understand
these phases of change, and only if they act accordingly, they
will be able to successfully manage change processes without
destroying peoples motivation and commitment. |
