Chapter 5 / Types of Management Strategies in Handling Change Everyone thinks of changing the world, but no one thinks of changing himself . ~ Leo Tolstoy ~

COMMON THINGS TO CONSIDER BEFORE EMBARKING UPON AN ORGANISATIONAL CHANGE What do I want to change? Is it the fundamental thing that needs to change? Why do I want the change? How will I achieve the change? What about the finances required to implement the change? Will business continue as usual during the change phase? What type of resources are to be used? How will the change impact the work culture or vice versa? How critical is the situation and how how much do we have to respond? Does the core change driver team have the contextual and operational knowledge, capability and influence to survive the change process? 2

CHANGE MANAGEMENT STRATEGIES 3

EMPIRICAL – RATIONAL STRATEGY Developed by Robert Chin and Kenneth D. Benne, this strategy is built on the premise that, in general, human beings are rational and can be reasoned with Although Change innately is resisted, people can be won over by the genuine logic behind the Change, and by what is there in it for them Empirical Rational Approach disregards the fact that while employees may understand the need for Change or the rationale behind Change, they may still not like to undergo Change, because of the emotional troubles, adjustment issues etc. that come with transition 4

NORMATIVE – RE-EDUCATIVE STRATEGY This strategy takes wings from the fact that humans are social beings and they always have the inherent urge to conform to social norms and standards X axis shows Phases in the Implementation of Normative-Reeducative Strategy Y axis shows the Acceptance Levels for the new culture corresponding to each phase 5

POWER – COERCIVE STRATEGY According to Hans Morgenthau this strategy advocates “power” in the form of threat sanctions, and believes that people are, in general compliant, and will ultimately bow down to those who possess greater power The use of power may not always be negative, for instance, one power – coercive strategy uses the behavioral psychology concept of “the carrot and the stick” The Power – Coercive Strategy, runs the risk that once the power is removed, people may revert to their original behavior The use of authority structures and threat sanctions can accomplish change, they may breed hatred and contempt for the organisation or the senior management, which is harmful to organisation in the long run 6

ENVIRONMENTAL – ADAPTIVE STRATEGY The Environmental-Adaptive Strategy, suggested by Fred Nickols, is built on the premise that while people innately resist change, they also eventually adapt themselves to it, when they are left with no choice This human psychology translates to a strategy of first creating a new environment and then gradually moving people from the old to the new system Rather than proactively trying to “Change” the organisation by effecting a “Change” in the behavior, processes, culture and norms of people, this strategy recommends that a new set of circumstances be created, and the innate nature of humans to eventually adapt be exploited, in letting the Change “sink in” This strategy is best suited for changes that are radical in nature rather than those that are gradual 7

SELECTING THE RIGHT STRATEGY If the change is radical, it is best to go for an Environmental – Adaptive strategy In incremental changes, a mix of the other strategies can be used In case of less submissive organisation, Empirical – Rational or Normative – Re-educative strategies work well Power – Coercive strategy is used If you anticipate strong opposition a shorter time frame if the stakes are high, since you cannot leave much to chance non-availability of area experts 8

© Copyright 2011 The Art of Change Management Implementing Change from the Top ISBN: 978-93-80227-60-3 Published by Embassy Books, India. www.artofchangemanagement.com Author: Percy Agreras Dastur www.percydastur.com Email: contact@percydastur.com