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Change Process

significant changes in the way they operate. Changes can to be largely ineffective in dealing with organizational
be realized in a number of areas. They can, for example, change processes, particularly for successful integration. A
be observed in attitude or behavior. Many major organi- common misconception about carrying out a change is
zational changes, however, are technological ones. Some- that it must be directed from the top. The foundation of
times these changes are not intended to change behavior, successful change management lies in involving the peo-
but they almost always do in some respect. Another type ple who will be affected by the change.
of change is replacement of personnel; when top manage- Sharing responsibility for change is a process whereby
ment is impatient with the pace of productivity, they those at the top and those at lower levels are jointly
often replace key individuals. Changes also occur in orga- involved in identifying problems and/or developing solu-
nizational structure, formal roles and jobs, control sys- tions. Virtually continual interaction takes place between
tems, work processes, and other elements of the top and bottom levels. The shared responsibility or partic-
organization’s internal environment. ipative approach can be addressed in several ways: (1) Top
The motivation for change typically stems from the management defines the problem and uses staff groups or
fact that something is not working (e.g., continued nega- consultants to gather information and develop solutions.
tive feedback from customers, reduced profitability, These identified solutions are then communicated to
threats of acquisition, or other market pressures). For lower-level groups in order to obtain reactions. The feed-
most organizations, a crisis is the catalyst for change. back from the lower levels is then used to modify the solu-
While a crisis may be sufficient to initiate a change, it tion, and the communication process starts again. The
takes much more to successfully integrate the change into assumption underlying this approach is that although
the work processes. Managers must have more than an involving others in the definition of the problem or its
extensive knowledge of the marketplace, how to compete solution may be impractical, the solution can be improved
in it, and what internal structures must be in place to and commitment obtained by involving lower levels. (2)
make the company successful. Top management defines the problem but seeks involve-
Every change effort should be accompanied by an ment from lower levels by appointing task forces to
action plan. Once a compelling reason to change has been develop solutions. The task forces provide recommenda-
identified, it is necessary to create a picture of what the tions to top management, where the final decision is
change will require, how the organization will effect it, made. These task forces are composed of people who will
and what the organization will look like when the change be affected by the change and have some level of expertise
has been implemented. Although each action plan for in the areas that will be affected by the proposed change.
change will be unique, all plans should follow a basic The assumption here is that those who have the expertise
structure: (1) identification of a course of action and allo- to solve the problems are those groups that are closer to
cation of resources to achieve the organization’s change the situation. Also, the group’s commitment to the change
goals; (2) designation of the authority, responsibility, and may be made deeper by this involvement. (3) Task forces
relationships that will drive the change efforts; (3) deter- composed of people from all levels are formed to collect
mination of who will lead the change effort and the spe- information about problems in the organization and to
cific roles and responsibilities of these individuals; (4) a develop solutions. The underlying assumptions in this
description of the procedures and processes that will expe- approach are that people at the top, middle, and lower
dite implementation of the change; (5) identification of levels are needed to develop quality solutions and that
the training that will be required to enable people to commitment must build at about the same rate at all
incorporate the change into their work processes; and (6) levels. These approaches emphasizing shared responsi-
identification of the equipment, tools, or machinery that bility usually take longer to implement but result in
will affect the way work is accomplished. more commitment from all levels of the organization and
Many organizational changes are initiated and imple- more successful integration of the change into the work
mented through the authority of top levels of manage- processes.
ment. The problems are defined and solutions are Understanding the factors that drive change and how
developed by top-level managers based on information people react to change is critical to the successful imple-
that is gathered by others with help from a limited num- mentation of change. It is part of human nature to resist
ber of people. Once a decision is made, the changes are change. People prefer the security of familiar surroundings
often communicated to people in the organization and often do not react well to changes in their work or
through memo, speech, policy statement, or verbal com- social environment. Resistance to change often takes some
mand. Since only a few people, usually at the top, are typical forms. One typical reaction is denial, which indi-
involved in making the decisions, the change is usually viduals use to protect themselves. If the change never
introduced very rapidly. However, this strategy has proved really occurs, it does not need to be addressed. Another

106 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION