1.7 CHANGE MANAGEMENT
1. Overview
a. Change management is important to all organizations. An appropriate balance between change and stability is necessary for an organization lo thrive.
1) Organizational change is conducted through change agents, who may include managers, employees, and consultants hired the purpose.
2. Interpersonal skills
a. The internal audit activity can add value to an organization by acting as a catalyst of change, According to The IIA competency framework internal auditors need the following interpersonal skills to interact with s effectively. An internal auditor can do the following:
1) Champion the change, enlist others in its pursuit, and develop a change strategy that includes milestones and a timeline.
2) Model the change expected of others.
3) Accurately assess the potential barriers and resources for change initiatives.
4) Provide resources, remove barriers, and act as an advocate for those initiating change
5) Maintain work efficiency and respond positively to a changing environment.
6) Promptly switch strategy if the current ones are not working.
7) Provide direction and focus during the change process.
8) Support new ideas, systems, and procedures.
9) Respond quickly to changing situations by having creative ideas and taking ideas appropriate action.
10) Support the need for change.
11) Take steps to understand reasons for change in environment and tasks.
12) Operate even if decisions and actions are unclear.
13) Cope with stress.
3. Types of Change
a. Cultural change is a change in attitudes and mindset, for a example, when a total quality management approach is change adopted.
b. A product change is a change in product’s physical attributes and usefulness to customers.
c. A structure change is a change in an organization’s systems or structures.
4. Resistance
a. Organizational and procedure changes often are resisted by the individuals and group affected. This response may be caused by simple surprise, inertia, or fear of failure. But it also may arise from the following:
1) Misunderstandings or lack of needed skills
2) Conflicts with, or lack of trust of, management
3) Emotional reactions when change is forced
4) Bad timing
5) Insensitivity to employees' needs
6) Perceived threats to employees' status or job security
7) Dissolution of tightly knit work groups
8) Interference with achievement of other objectives
b. Methods of coping with employee resistance include the following:
1) Prevention through education and communication
2) Participation in designing and implementing a change
3) Facilitation and support through training and counseling
4) Negotiation by providing a benefit in exchange for cooperation
5) Manipulation of information or events
6) Co-optation through allowing some participation but without meaningful input
7) Coercion
5. Models for Planned change
a. Change management has been studied by management experts. The following three models have emerged:
1) Kurt Lewin's process model consists of three stages:
a) Unfreezing is the diagnosis stage. It involves choosing a change strategy, preparing employees for the change, and offsetting resistance.
b) Change is the intervention in (altering of) the status quo.
c) Refreezing makes the change relatively permanent so that old habits will not reassert themselves. It is the follow-up stage.
2) The continuous-change process model recognizes that change is ongoing and often requires a change agent to prevent the process from being haphazard. In this five-step model, the change agent coordinates steps d) through e) below.
a) The forces for change accumulate.
d) The organization recognizes that a problem exists and defines it.
c) The problem is submitted to the organization’s a problem-solving process.
d) The change is implemented.
e) Success in implementation is measured and evaluated.
3) Organizational development (OD) provides a framework for managing change using the findings of the behavioral sciences.
a) True OD has three distinctive characteristics:
i) The change must be planned and deliberate.
ii) The change must actually improve the organization. Changes forced by regulatory requirements or changes that merely attempt to follow management trends and fads are not included.
iii) The change must be implemented using the findings of the behavioral sciences, such as organizational behavior and group Psychology.
b) The following are the objectives of OD:
i) Deepen the sense of organizational purpose and align individuals with it
ii) Promote interpersonal trust, communication, cooperation, and support
iii) Encourage a problem solving approach
iv) Develop a satisfying work experience
v) Supplement formal authority with authority based on expertise
vi) Increase personal responsibility
vii) Encourage willingness to change
Stop and review! You have completed the outline tor this subunit. Study multiple-choice ns 17 through 19 on page 36