Change Management – Theoretical Perspective · Change Management – Theoretical Perspective ... 2 R.W. Griffin, Podstawy zarządzania organizacjami., Wydawnictwo Naukowe PWN, Warszawa

Projekt „Partnerski System Zarządzania Zmianą Gospodarczą na Obszarach Natura 2000” nr POKL.08.01.02-20-027/11

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Projekt współfinansowany przez Unię Europejską w ramach Europejskiego Funduszu Społecznego oraz Budżet Państwa

Change Management – Theoretical Perspective

,,Tempora mutantur et nos mutamur in illis”

(“Times change and we change with them”)

a Roman proverb1

Białystok 2013

1 Z. Mikołajczyk, Zarządzanie procesem zmian w organizacjach., Wydawnictwo Dolnośląskiej Wyższej Szkoły Handlowej im. Wojciecha Korfantego w Katowicach, Katowice 2003, p. 13


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Introduction

Change is an inseparable element of our contemporary reality and pertains to nearly all the

areas of human activity. Flexible adaptation of an organization to changes occurring both

inside the organization and in the proximal and distal environment of it is an essential

condition for its survival and development. Equally important is the ability to predict the

changes to occur and be ahead of them, not only react to the existing ones. Therefore, skilful

and consistent change management, or – in a narrower meaning – management of a change

process, is especially important in that area.

The study will also present selected theoretical issues referring to the issue of change

management. Both the concept of management with its characteristic features and

management in the context of managing change will be presented. Different approaches to the

process of change management will be shown, with lists of individual phases of the process.

The issue of examining the effectiveness of the process will also be mentioned. Finally, the

main trends within change management will be pointed out.

1. “Management” – the concept and its basic characteristic features.

There are many different definitions of the term 'management', derived from particular

currents and schools of management. They display various approaches to considering that

issue and expose different characteristic features, but at the same time they allow for getting

broader knowledge and better understanding of the discussed issue. As a result, finally they

allow to create a coherent image of the defined issue.

The most often quoted definition of the term 'management' is the one proposed by R.W.

Griffin, which describes management as “a set of actions (including planning and decision-

making, organizing, leading, i.e. managing people and controlling), directed at the resources

of the organization (human, financial, material and information ones) and carried out for the

purpose of achieving the objectives of the organization efficiently (using the resources wisely

and avoiding unnecessary waste) and effectively (taking proper decisions and successfully

implementing them)”.2 It is complex enough to comprehensively express what management is

2 R.W. Griffin, Podstawy zarządzania organizacjami., Wydawnictwo Naukowe PWN, Warszawa 2005, p. 6


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– to determine the actions included in it, the assumed goal and means of carrying it out – and

thus to clearly communicate the essence of the process.

Another definition says that management is “a process based on taking decisions which make

it possible to use particular resources to achieve the desired goals, with coordination of

actions involved in a particular activity of people.”3 It is based on similar elements as the

definition mentioned before – it also emphasizes that management is not a single action but a

set of activities (a process) directed at a particular objective.

Still another definition indicates that management “involves the provision (conscious

creation) of proper conditions for an organization to operate in accordance with its

assumptions, in other words, to carry out its mission, achieve goals compliant with it and

maintain the necessary level of coherence allowing for survival, which means separation from

the environment and development, which means carrying out the mission and goals in the

future”: setting the direction and ensuring that the organization follows that direction.4 In this

case, the emphasis is on another aspect of management – ensuring the survival (and in the

future also development) of the organization by creating conditions appropriate for it.

Henri Fayol, as a representative of the administrative trend, defined management from the

perspective of five functions, i.e.:5

planning – predicting the future, setting objectives and the directions of activity

enabling to achieve those objectives;

organizing – mobilization of resources (both material and human) necessary to achieve

the set objectives and distribution of the resources among the selected contractors;

ordering – assigning tasks to individual persons involved in a given process and

ensuring its completion;

coordinating – combining particular resources and ensuring their harmonious

functioning for the achievement of the set objectives;

controlling – comparing the real state with the target one.

3 J. Bogdanienko, Wprowadzenie do zarządzania., Wydawnictwo Wyższej Szkoły Finansów i Zarządzania w Białymstoku, Białystok 2001, p. 7 4 A. K. Koźmiński, D. Jemielniak, Zarządzanie od podstaw., Wydawnictwo Akademickie i Profesjonalne, Warszawa 2008, p. 16 5 J. Bogdanienko, Wprowadzenie do …, p. 13 and P. Buhler, Zarzadzanie., Wydawnictwo HELION, Gliwice 2012, pp. 25-29


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These are the basic functions included in management, applicable to any area. R.W. Griffin

defined the term 'management' with the use of those functions, which has already been

mentioned.

P. Drucker, in turn, presented the basic qualities ascribed to management, which express the

essence of it. According to him, management:6

mostly refers to people;

is deeply rooted in culture;

requires simple and clear values, goals and tasks;

should result in the organization being able to learn;

requires communication within the organization and with the environment;

is based on a complex system of indicators allowing for constant and comprehensive

monitoring, evaluation and, as a result, increase of effectiveness;

is one-sidedly and unambiguously oriented at the fundamental, most important result –

the set objective.

It is not, of course, a closed catalogue of characteristic features of management but only a

proposal, which can be modified in the case of a particular situation. At the same time, for a

process to be called management, not all the listed qualities must occur; what is important is

that the essence of activity is shown.

In the context of management, environment plays a particularly significant role and therefore

it should not be forgotten that the environment has a considerable influence on the process of

management. Individual changes of environmental conditions make the organization

constantly react and even predict those changes and take actions before, thus initiating the

process of management within the organization.

2. Change management as a specific kind of management

There are at least two approaches in defining the term of change management. The first of

them indicates that change management is a specialist method of management, just like e.g.

strategic management, human resources management or quality management.7 The other

6 A.K. Koźmiński, W. Piotrowski, Zarządzanie. Teoria i praktyka., Wydawnictwo Naukowe PWN, Warszawa 2006, pp. 62-67 7 L. Clarke, Zarządzanie zmianami., Wydawnictwo Gegethner&Ska., Warszawa 1997, p. 58


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represents a view that change management is an interdisciplinary subject combining elements

of the theory of management, methods and techniques of organizing the institution and its

work and knowledge of psychology, sociology, economics and technology.8 The first of the

presented approaches is definitely much narrower than the second one, as it only refers to the

“kind” of management and thus it (or at least certain elements of it) is included in the concept

of management. As for the second, it refers to change management in a more cross-sectional

and comprehensive way, at the same time showing the multidimensional character of the

process, and should be analysed from that perspective.

It is often indicated that it is not change that is managed but a process of changes, and

according to P. Drucker, change cannot be managed: it can only be anticipated9; that,

however, is the question of a particular approach to the phenomenon and the scope of

analysis. The term 'change management' is commonly used and means, among others,

predicting and anticipating changes as integral elements of the management process. We are

going to stick to this attitude.

A few selected definitions of the term 'change management' are presented below in order to

introduce the analysed subject matter.

Change management involves actions aimed at remaining in the course of change and making

use of it so as to achieve one's own benefits. At the same time, it is a cyclical process of

planning, operational activities, monitoring and control, which refers to all the entities

functioning on the market, i.e. enterprises, territorial self-government units, business

environment institutions etc.10 This definition is closely related to the general definition of

management expressed from the perspective of functions of management but also considers

the background of occurring changes.

Another definition says that change management is a process of using the organization's

strategies to ensure harmony with reference to the changing environment, being closely

8 M. Bratnicki, Zarządzanie zmianami w przedsiębiorstwie., Wydawnictwo Akademii Ekonomicznej w Katowicach, Katowice 1998, p. 9 9 P.F. Drucker, Zarządzanie XXI wieku – wyzwania., Wydawnictwo MT Biznes, Warszawa 2009, p. 83 10 Analiza trendów rozwojowych i podejmowanych partnerskich inicjatyw i projektów gospodarczych. Przygotowanie do planowania i zarządzania zmianą gospodarczą w województwie małopolskim., PwC, Eurokreator, 2011, p. 11 (http://www.cnz.eurokreator.eu/dokumenty/analizy/Analiza_trendow_rozwojowych-Krakowski-Obszar-Metropolitalny.pdf, 20/03/2013)


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related to the available resources.11 In this case, the special role of strategy as a tool enabling

management of the whole process of changes was emphasized.

Still another definition indicates that change management is a key and inseparable element of

change, as its purpose is to allow people accept the subject of change (transition from the

present state to the state which should occur after the change) with the use of a proper set of

actions and techniques.12 The definition points out the essence of the whole process in a very

general – but also very telling – way.

To sum up, change management is a process which enables to take an organization from the

initial state to the assumed final state using the available resources, techniques and tools,

taking into account its needs and aspirations as well as environmental conditions. Therefore,

in the simplest meaning, change management is a category of management analysed with

reference to the occurring changes of environmental conditions.

3. Change management as a process.

It can surely be said that change management is not a simple activity but a process – it

includes many actions occurring gradually in time and basically aiming at the achievement of

the goal set in the beginning.

Since change management is a gradual process, selected approaches to it will be presented

below.

There is a multitude of various authors' proposals regarding the phases (stages) of change

management. Some of them are very general, including only a few stages, whereas others are

complex and detailed. Below, the ones will be presented which have a particular cognitive

value for the discussed issue. It should not be forgotten that these are just model solutions, not

common schemes of activity.

A multi-phase process of change management includes only 3 phases (preparation,

implementation and evaluation), but at least several stages are singled out within each of

them:13

11 A. Zarębska, Zmiany organizacyjne w przedsiębiorstwie. Teoria i praktyka., Wydawnictwo Difin, Warszawa 2002, p. 29 12 R. Wendt., Zarządzanie zmianą w polskiej firmie., Dom Wydawniczy Zachorek, Warszawa 2010, p. 16 13 Z Mikołajczyk., Zarządzanie procesem zmian w organizacjach., Wydawnictwo Górnośląskiej Wyższej Szkoły Handlowej, Katowice 2003., p. 64


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the phase of preparation

taking the decision that changes are necessary, drawing up the general goals of activity

and informing the interested parties of the planned actions;

creating the control team and the research and planning team;

analysis and diagnosis of the opportunities and threats occurring in the environment;

analysis of the internal situation of the organization and the available resources;

formulating the vision and strategy of action;

development of the types of change from the strategic and operational perspectives

and their evaluation;

selection of the best solution and planning it.

the phase of implementation

creation of a detailed plan of changes and a plan of implementation;

informing the staff of the selected program of changes and obtaining funds for the

execution of the project. Development of schedules of implementation and training

the staff;

implementing the plan of changes (in the organizational structure, in technical and

technological resources);

appropriate control of the implementation program, elimination of the occurring

barriers, including psychological ones.

the phase of evaluation

evaluating the results of changes from the perspective of economic effectiveness or

social consequences;

reinforcing the former achievements by further adaptation of the conducted changes.

The multi-phase process of change management is very detailed and indicates particular

actions within the framework of particular phases. It must be emphasized, however, that each

organization is specific and the course of the above-mentioned model scheme may be a little

different in each of them. Not all the steps must occur but all may occur. Some others may

also need to be added to “link” the process together. Therefore, the indicated stages of change

management must be approached flexibly and adapted to one's own needs.


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Another approach proposes the following stages of change management:14

determination of the organization's maturity to change;

preparation to the implementation of change, including:

analysis of the initial situation which is the subject of changes and identification of the

entities / persons affected by change and their readiness for the process of change;

planning actions as part of a project of change and developing the vision;

communicating the idea of change based on the conviction to change;

carrying out – determination whether the planned change has resulted in organizational

changes and development of a schedule of training sessions to support the planned

change;

creating and implementing – execution of the prepared plans and their adjustment as

the need arises on the basis of a wide range of communication and feedback,

overcoming resistance to changes;

training sessions;

synchronization and compatibility of actions between particular areas.

In this case, the number of actions was greatly reduced, and the stage of preparation to

introduction of the change was emphasized and divided into particular activities.

So as to keep the balance, one more approach to determination of individual phases of change

management will be presented below. In that approach, the following stages are enumerated:15

analysis of the organization's strategy and changes occurring in its proximal and distal

environment;

determination of the purpose and scope of change;

diagnosis of possible solutions;

planning the change in a multi-variant way, at the same time considering the interest

of all the interested parties;

selection of the variant and the strategy of implementing changes;

implementation of the change and evaluation of its efficiency and effectiveness.

On the basis of the information presented above, there are many different approaches to

isolating individual phases of the change management process. It is worth emphasizing that

14 R. Wendt., Zarządzanie zmianą w …, pp. 41-82 15 M. Lisiecki, Zmiany jako czynnik rozwoju organizacji, Wydawnictwo KUL, Lublin 2003, p. 16


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identical phases and characteristic elements can be found in each above-mentioned approach

to the determination of stages of change management. So, one can say that change

management covers the same key stages and has the same qualities in every situation,

regardless of what it refers to. Most generally, the primary stages of change management

include:16

the strategic stage (taking the decision as to the need of change and its direction);

the planning stage (determination of the initial situation, development of a plan of

changes aiming at the achievement of the desired state);

the stage of realization (management of the change implementing project).

The following characteristic features (elements) ascribed to the process of change

management are enumerated:17

identifying the reason for the need for change;

emphasizing the target, “where we want to be” after the completion of the change;

planning the implementation of the process of change;

carrying out the process of change;

taking actions to ensure durability of the introduced changes.

Undoubtedly, each stage of change management is important and plays a particular role in the

whole process, as it ensures its comprehensiveness; the phase of implementation, however, is

especially vital. It is the culminating point of the whole process, because in that phase the

plans, ideas and developed programs are confronted with the reality – in other words, the

obtained information and knowledge is used in practice in the initial stages, and the effects of

the further part of the process are dependent on the result of that stage. Therefore, it is good to

look more closely at the “structure” of that stage. The phases distinguished within the stage of

implementing a program of changes are enumerated below.18

gaining support and involvement of the key entities;

preparing a suitable implementation plan;

16 K. Dziekoński, A. Jurczuk, Zarządzanie zmianą w procesach inicjatyw klastrowych., [in:] ed. A. Wasiluk, Nowoczesne podejście do zarządzania organizacjami., Wydawnictwo Difin, Warszawa 2009, p. 78 17 T. Wołowiec, D. Reśko, Strategia rozwoju gminy jako narzędzie zarządzania zmianą gospodarczą., Zeszyty Naukowe WSEI, seria Ekonomia 5 (2/2012), p. 75 18 K. Krzywicka- Szpor, Zarządzanie zmianą i okresem przejściowym., Wydawnictwo MT Biznes, Warszawa 2002, pp. 74 - 94


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supporting the implementation plan with consistent activity and behaviour;

developing the structures which enable to achieve the goal;

celebrating the achievement of milestones;

constant communication.

Change management as a process includes a number of stages, each of which is extremely

important as it contributes to the success of the whole process – achievement of the set goal –

but it must be remembered that achieving the success is not so easy.

4. Effectiveness of the change management process.

There are two basic premises for taking up the introduction of change: necessity to quickly

improve the economic situation or necessity to improve the organization's efficiency.19 The

change is supposed to contribute not only to improving the effectiveness of functioning but

also to improving the ability to improve: in other words the ability to conduct further

changes.20

Depending on the occurring situation, a given organization develops a specific program of

change management directed at the achievement of the set goal, not forgetting, of course,

about all the determinants of the whole process, including risk (in the process of change

management, determination of the risk level related to introduction of the change is necessary,

as the risk may prove to be disproportionately high in relation to the expected benefits).

All the concept models of effective implementation of changes are based on the natural and

previously verified potential of the company and manifest the following qualities:21

the changes must be cross-sectional;

already existing procedures should be used to introduce the changes;

indication of a set of factors necessary to achieve success.

For more effective change management, it is necessary to have and further develop

multidimensional resources, particularly the capital of strategic planning, company capital,

social capital, human capital, sources of financing, infrastructure and technical capital. 22

19 K. Krzywicka- Szpor, Zarządzanie zmianą i …, p. 20 20 M. Lisiecki, Konieczność zmian oraz ogólne zasady ich wprowadzania w organizacji. [in:] ed. Lisiecki M., Zmiany jako czynnik rozwoju organizacji., Wydawnictwo KUL, Lublin 2003, p. 16 21 D. K. Carr, K. J. Hard, W.J. Trahant, Zarządzanie procesem zmian., Wydawnictwo Naukowe PWN, Warszawa 1998, pp. 39-40


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For the process of changes to be effective, it must be based on the following seven steps:23

mobilization of energy and involvement by means of common identification of

problems and solutions to them;

drawing up a vision of the changed and improved future accepted (shared) by all the

interested entities;

identification of leadership concerning the change, i.e. the leader to control the whole

process;

concentrating on current (short-term and fragmentary) results, not on particular

actions;

beginning the change from periphery (smaller areas) and spreading it to the whole area

covered by change without pushing it “from the top”;

institutionalization of success by formal rules, systems and structures;

monitoring and adapting the strategy of changes as a response to the occurring

problems in the process of changes.

Behaviour complying with the above-mentioned steps will allow to efficiently and effectively

manage the process of changes occurring in an organization; 'effective' meaning one that

ensures the achievement of the assumed objective.

5. Trends in the change management.

Within the domain of management, there are different approaches to considering this issue.

Literature sources point out three primary trends:24

systemic (represented by: H.J. Leavitt, R.H. Waterman, T.J. Peters, J.R. Philips,

A. Bednarski, J. Szlendak);

behavioural (represented by: W.L. French, C.H. Bell, E. Masłyk - Musiał,

M. Trocki, W.W. Burke, G.H. Litwin);

22 Analiza trendów rozwojowych i podejmowanych partnerskich inicjatyw i projektów gospodarczych. Przygotowanie do planowania i zarządzania zmianą gospodarczą w województwie małopolskim., PwC, Eurokreator, 2011, p. 14 23 K. Krzywicka- Szpor, Zarządzanie zmianą i okresem przejsciowym., Wydawnictwo MT Biznes, Warszawa 2002, pp. 50-72 24 A. Zarębska, Zmiany organizacyjne w przedsiębiorstwie. Teoria i praktyka., Wydawnictwo Difin, Warszawa

2002, pp. 35 -73 and K. Krupa, Ewolucja procesu zmian organizacyjnych. Wybrane poglądy i koncepcje., Łódź

2012, pp. 33- 38 (http://www.kkrupa.pl/Ewolucja%20procesu%20zmian%20organizacyjnych.pdf, 20/03/2013)


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integrated (represented by: Z. Mikołajczyk, B. Wawrzyniak, M. Bratnicki,

L. Clarke, D.K. Carr, K.J. Hard, W.J. Trahant, B. Grouard, F. Meston).

The systemic (object) approach is based on the assumption that each organization is a system

(a set of cooperating and interrelated elements) connected with the environment through

information. That system is influenced by different forces but it will suffice to change the

structures, technologies and people and the change will automatically spread to the whole

organization. The essence of change management in that approach is based on working out

mutual relations and adjusting individual elements of the system to one another, whereas all

the difficulties result from unsuitable adjustment of particular components of the system (i.e.

the strategy, structure, systems, action styles, personnel, skills, norms and values).

The behavioural (subject) approach is mainly related to the areas of organizational structures,

technologies, attitudes of individual participants of the changes and the essence and quality of

employment relations. It treats change as a process of improving the organization, whose

effectiveness depends on proper definition of methods, rules and procedures and the sense of

need for change among the organization's members. It assumes that change is a condition of

the organization's survival in the environment. However, it should occur not only in structures

but also among the executives. It points out mutual relations of the participants of the change

process and refers to educational methods of the trend of “learning by experience”. It

emphasizes the special importance of the process of development of personalities and needs

of the people who form the organization.

The integrated (comprehensive) approach combines the elements of the systemic and

behavioural approach. It points out the special role of leaders of changes in the change

management process and the necessity to direct the changes in a strategic way.

Conclusion

Changes occurring both in organizations and in their environment are an inseparable element

of the contemporary world. An organization, in order to survive and develop in the future,

must skilfully and reasonably manage change with the use of all the available methods, tools

and resources. It is not easy, it issues many challenges and requires overcoming a number of

barriers but it is possible.


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In the 21st century, it must not be forgotten that change management is first of all:25

the key skill of learning organizations which are oriented at the constant process of

improvement;

the most important skill of the people managing the organization;

one of important aspects of economic entities transforming into companies managing

knowledge.

No doubt an increase of complexity and dynamics of changes in the environment has a

detrimental effect on the process of management, complicates it to a great extent and forces

the organization to look for newer and more effective ways of survival and development.26

Thus, each organization should pay great attention to the process of change management,

which is a tool and at the same time a way to find one's place in permanently changing

environment.

25 K. Krupa, Ewolucja procesu zmian organizacyjnych …, p. 33 26 R.W. Griffin, Podstawy zarządzania organizacjami., Wydawnictwo Naukowe PWN, Warszawa 1996, p. 120


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Wydawnictwo MT Biznes

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Change Management – Theoretical Perspective · Change Management – Theoretical Perspective ... 2 R.W. Griffin, Podstawy zarządzania organizacjami., Wydawnictwo Naukowe PWN, Warszawa