Sree Vidyanikethan institute of
What is change?
Change is making things different. It is an alternation in the
existing field of forces which tends to affect equilibrium.
Change is one reality with individuals, groups organizations
must constantly cope up in order to SURVIVE.
Change is the most critical aspect of an effective
If an organization fail to change – the cost of failure may be
If organization fail to bring timely change – survival is ruled
• Knowledge creative thoughts
• Technology competition with SCA
• Innovation new products and services
• Usage of internet
Force of change
• Nature of work place (multicultural environment
caused by demographic changes, immigration and
• Technology (To cope with new opportunities for
• Economic shocks (economic bubbles burst)
• Competition (merges, acquisitions, take over's)
• Social trends (internet chat rooms, more female
workers, consumer forums, on-line shopping)
• World politics (political instability – terrorism etc..,)
Micro Factors causing Organizational
1. Rapid growth or even decline of business
2. Induction of new people
3. Decaying of effectiveness of organization
4. Change in the corporate strategy
5. Any major crisis in the organization
6. Personal goals of new leader or change of
7. The Dominico effect i.e. one change touching off a
sequence of related changes
Types of changes
• Change is to move from present to the future, from
known state to relatively unknown state.
1. Happened change:
Change is rather unpredictable and takes place
naturally due to external factors.
Ex: currency devaluation
2. Reactive change:
• Changes that are clearly in response to an event or
series sub events are termed as reactive change. ex:
technological changes i.e. forced to invest in modern
3. Anticipatory change:
Change carried out in expectation of an event or series of events
is called anticipatory change.
4. Planned change:
Planned change or developmental change is undertaken to
improve upon the current ways of operating. It is calculated
Ex: T&D, Building Teams
Change directed at micro level and focused on
units, sub-units and components with in the
organization are termed as incremental changes.
• Changes are bought in gradually and are
usually adaptive in nature.
• Slowly / step by step change leads to healthier
6. Operational change:
This is necessitated when an organization
needs to improve the quality of its products or
services due to external competition.
• Operational change include bringing new
Change that addressed to the organization as a
whole or to the most of the organization
components including strategy.
Ex: Toyota…. Less hierarchical…leaner, flexible
Infosys ….. No boss
A change in direction may become imperative
for an organization due to
b)Regulatory shifts in Government policies
ex: pricing , import and export, R& D activities
9. Fundamental Change:
This entails a redefinition of the current purpose
or mission of the organization.
Ex: If drastic changes in business environment
If failure of corporate leadership
If problem with employee morale
Sharp fall in turnover
For total change , the organization is
constrained to develop a new vision and a
strong link between its strategy, employees
and business performance.
…… due to long term failure of business
……. Concentration of powers in one hand
using for personal interest at company cost.
11. Transformational Change:
where entire or greater part of the change
involves in the organization.
It could be change in shape ( size, Complexity)
Structure ( system , ownership)
Nature ( assumption, culture and technology)
12. Revolutionary change:
Abrupt change in organizational strategy and
design represent revolutionary change.
… such change comprises of 3 E’s
1.Envisioning: which is to articulate a clear and
2.Energizing: Which is mobilizing of employees
individually and collectively and uncalculating
the excitement of change.
3.Enabling: Which is to provide necessary
resources support structures and process.
Sources of resistance to change
• Resistance to change at two levels
1.At individual level 2. organizational level
1.Habit ( habits die hard)
2.Security ( change may cause to lose job)
3.Economic factors ( may result low earnings)
4.Fear of unknown ( people in unknown
5. Selective information processing ( people
purposely try to avoid more information)
6. Saving face( ( some executives are adamant…
to avoid such people and save their face)
1.Structural inertia ( established system is seay
than new one)
2.Limited focus of change ( ( organization with a
number of interdependent subsystems, one
can not be cahnged)
3. Group Inertia: Even if individuals are willing to
change, group norms prevent them acting
4. Threat to Expertise: Specialized groups may
feel that their expertise may become
irrelevant in the changed environment.
5. Loss of power or authority: Top officials may
fear of their power gets eroded when changes
are made in the new organization.
6. Reduction in resource allocations: Groups
may feel fear of resources in case of change
Managing resistance to change
1. Education and communication
3. Stress management
5. Support and commitment
6. Equity in implementing changes
7. Avoid twisting and distorting facts
8. Co-optation ( key roles to resistors)
9. Selection of Amenable people.