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Organizational Development
Organization Change
 Understanding Organization
 Understanding what is a change
 Understanding types of change
What are we attempting…
 A purpose to exist, survive, serve, to be served
 An identity of itself
 People, process, products or services
 Manufactures or have them manufactured
 Procures, Uses, Manufactures and Distributes
 Laws and rules, code and guidelines
 Policies and Procedures
 …
Organization – Consists of
 A unit, an association, a company, a conglomerate
 A territory, a vision
 Markets and it’s constituents
 Law of the land
 Environment and it’s use
 Economic development – domestic and international
 A private or public organization
 …
Organization - Covers
 “…in its simplest form is a person or group of people
intentionally organized to accomplish an overall,
common goal or set of goals…”
 “…the process of organizing, planning, leading and cont
rolling resources within an entity with the overall aim of
achieving its objectives.
Organization definition
 Vision
 Members of the organization often have some image in their minds about how the
organization should be working, how it should appear when things are going well.
 Mission
 An organization operates according to an overall purpose, or mission.
 Values
 All organizations operate according to overall values, or priorities in the nature of how they
carry out their activities. These values are the personality, or culture, of the organization.
 Strategic Goals
 Organizational members often work to achieve several overall accomplishments, or goals, as
they work toward their mission.
 Systems and Processes that (Hopefully) Are Aligned With Achieving the Goals
 Organizations have major subsystems, such as departments, programs, divisions, teams, etc.
Each of these subsystems has a way of doing things to, along with other subsystems, achieve
the overall goals of the organization. Often, these systems and processes are define by
plans, policies and procedures.
 Culture
 A methods, defined or otherwise, by which people and process interact with each others to
deliver an outcomes and in cases of difference manage / resolve the conflict, problem
 People
 The “human” performers
Organization - Features
Organization – Growth
Organization - Transitions
Organizational - Leadership
Organization - Maturity
Change…
 Is a deviation from the current path and performance
 Is a problem, is a challenge
 Is an opportunity, is growth
 Is a force that influences the impacting body adopt the
force and transition, transform to what is required in
the context
Types of Changes
PLANNED CHANGE
UNPLANNED
CHANGE
RADICAL CHANGE
TRANSFORMATIONAL
CHANGE
 Planned change
 It is a change resulting from a deliberate
decision to alter the organization.
 Unplanned change
 It is imposed on the organization and is
often unforeseen. Changes in government
regulations and changes in the economy, for
example, are often unplanned.
 Radical Change
 It is a process by which firms regain
competitive advantage after it has been lost
or threatened significantly. Radical change
is divergent, meant to fundamentally
change the firm’s processes, systems,
structures, strategies, and core values.”
 Transformational change
 Transformational change occurs when
organizations incur drastic changes and must
essentially transform themselves. This can
occur when an organization faces different
technologies, significant changes in supply
and demand, unexpected lossesz
 Strategic Change
 Change in the mission (when acquired)
 Structural Change
 Decentralization
 Process-oriented Change
 In manufacturing operations, in process industry like
pharmaceuticals, chemicals, etc.
 People-oriented Change
 Self – actualization (Motivation, Loyalty, Training,
Relationships)
Types of Change
 Vital to avoid stagnation inside and outside (markets,
etc.)
 Process not a event, not something that is short
 Fast especially in present competitive scenario (look at
companies that are not there)
 Can be directive or participative
 Natural or adaptive, influenced by nature, by external
forces
 Incremental or step, not necessarily transformational
 Interdependent on organizational environment or
culture, allows for change in people
Characteristics of change
Organization-Context
External Forces
Macro environment (PEST factors)
Micro Environment (Consumers, Suppliers,
Stake Holders)
Opportunities & Threats (SWOT)
Internal Forces
Internal Environment (Men, Money,
Machinery, Materials, Minutes)
Strengths & Weaknesses (SWOT)
Forces of Change
Government Force New laws, rules, guidelines
Technology Faster ,cheaper & more mobile
computer
Economic factor Fluctuating interest rate, declining
productivity, uncertainties due to
inflation or deflation, oil prices etc.
Competition Global competition, mergers &
acquisitions, growth of e commerce
Social Trends Internet chat room, retirement of
body boomers
Customers Changing need & preference
External Forces for Change
Nature of workforce More cultural diversity; aging
population; many new entrant with
inadequate skill
System dynamics Technology, dominant group, formal or
informal relationship
Inadequacy of admin processes Revision of org goal & objective; rules
;regulations, procedures.
Individual/group speculations Positive factor need, ambitions,
potentialities, capabilities, career
growth etc.
Structure focused change Downzing,rightsizing,job redesign
Technological changes Changes in equipment, work process,
sequence, information processing
system, automation
Resources constraints Depletion, non-availability
Internal Forces for Change
 On Individuals
 Job assignment, Job Role, Location, New Skills
 Redundancy, Promotion, Challenges, New S
 On Teams, Groups of People
 New focus areas, new sets of process, new sets of tools,
 New sets of practices, new functions
 On Division, ORG
 New markets, new partners, new territory, etc.
 New sets of leaderships, new rules and regulations
 New sets of leadership,s
Depth of Change
 Change in an organization is
 Necessary as the environment in which it operates is constantly
under focus or pressure to innovate or re-organize or constrained
to perform, unable to delivery, etc.
 Akin to how humans have evolved and changed and this is
contributory too
 …
 Organization evolve
 Through an external stimuli or a need generated or through
forces of continuous improvement within
 And change to provide economic advantage to the society with
the changing face of demand-supply
 …
In Summary…

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Understanding Organizational Change

  • 2.  Understanding Organization  Understanding what is a change  Understanding types of change What are we attempting…
  • 3.  A purpose to exist, survive, serve, to be served  An identity of itself  People, process, products or services  Manufactures or have them manufactured  Procures, Uses, Manufactures and Distributes  Laws and rules, code and guidelines  Policies and Procedures  … Organization – Consists of
  • 4.  A unit, an association, a company, a conglomerate  A territory, a vision  Markets and it’s constituents  Law of the land  Environment and it’s use  Economic development – domestic and international  A private or public organization  … Organization - Covers
  • 5.  “…in its simplest form is a person or group of people intentionally organized to accomplish an overall, common goal or set of goals…”  “…the process of organizing, planning, leading and cont rolling resources within an entity with the overall aim of achieving its objectives. Organization definition
  • 6.  Vision  Members of the organization often have some image in their minds about how the organization should be working, how it should appear when things are going well.  Mission  An organization operates according to an overall purpose, or mission.  Values  All organizations operate according to overall values, or priorities in the nature of how they carry out their activities. These values are the personality, or culture, of the organization.  Strategic Goals  Organizational members often work to achieve several overall accomplishments, or goals, as they work toward their mission.  Systems and Processes that (Hopefully) Are Aligned With Achieving the Goals  Organizations have major subsystems, such as departments, programs, divisions, teams, etc. Each of these subsystems has a way of doing things to, along with other subsystems, achieve the overall goals of the organization. Often, these systems and processes are define by plans, policies and procedures.  Culture  A methods, defined or otherwise, by which people and process interact with each others to deliver an outcomes and in cases of difference manage / resolve the conflict, problem  People  The “human” performers Organization - Features
  • 11. Change…  Is a deviation from the current path and performance  Is a problem, is a challenge  Is an opportunity, is growth  Is a force that influences the impacting body adopt the force and transition, transform to what is required in the context
  • 12. Types of Changes PLANNED CHANGE UNPLANNED CHANGE RADICAL CHANGE TRANSFORMATIONAL CHANGE  Planned change  It is a change resulting from a deliberate decision to alter the organization.  Unplanned change  It is imposed on the organization and is often unforeseen. Changes in government regulations and changes in the economy, for example, are often unplanned.  Radical Change  It is a process by which firms regain competitive advantage after it has been lost or threatened significantly. Radical change is divergent, meant to fundamentally change the firm’s processes, systems, structures, strategies, and core values.”  Transformational change  Transformational change occurs when organizations incur drastic changes and must essentially transform themselves. This can occur when an organization faces different technologies, significant changes in supply and demand, unexpected lossesz
  • 13.  Strategic Change  Change in the mission (when acquired)  Structural Change  Decentralization  Process-oriented Change  In manufacturing operations, in process industry like pharmaceuticals, chemicals, etc.  People-oriented Change  Self – actualization (Motivation, Loyalty, Training, Relationships) Types of Change
  • 14.  Vital to avoid stagnation inside and outside (markets, etc.)  Process not a event, not something that is short  Fast especially in present competitive scenario (look at companies that are not there)  Can be directive or participative  Natural or adaptive, influenced by nature, by external forces  Incremental or step, not necessarily transformational  Interdependent on organizational environment or culture, allows for change in people Characteristics of change
  • 16. External Forces Macro environment (PEST factors) Micro Environment (Consumers, Suppliers, Stake Holders) Opportunities & Threats (SWOT) Internal Forces Internal Environment (Men, Money, Machinery, Materials, Minutes) Strengths & Weaknesses (SWOT) Forces of Change
  • 17. Government Force New laws, rules, guidelines Technology Faster ,cheaper & more mobile computer Economic factor Fluctuating interest rate, declining productivity, uncertainties due to inflation or deflation, oil prices etc. Competition Global competition, mergers & acquisitions, growth of e commerce Social Trends Internet chat room, retirement of body boomers Customers Changing need & preference External Forces for Change
  • 18. Nature of workforce More cultural diversity; aging population; many new entrant with inadequate skill System dynamics Technology, dominant group, formal or informal relationship Inadequacy of admin processes Revision of org goal & objective; rules ;regulations, procedures. Individual/group speculations Positive factor need, ambitions, potentialities, capabilities, career growth etc. Structure focused change Downzing,rightsizing,job redesign Technological changes Changes in equipment, work process, sequence, information processing system, automation Resources constraints Depletion, non-availability Internal Forces for Change
  • 19.  On Individuals  Job assignment, Job Role, Location, New Skills  Redundancy, Promotion, Challenges, New S  On Teams, Groups of People  New focus areas, new sets of process, new sets of tools,  New sets of practices, new functions  On Division, ORG  New markets, new partners, new territory, etc.  New sets of leaderships, new rules and regulations  New sets of leadership,s Depth of Change
  • 20.  Change in an organization is  Necessary as the environment in which it operates is constantly under focus or pressure to innovate or re-organize or constrained to perform, unable to delivery, etc.  Akin to how humans have evolved and changed and this is contributory too  …  Organization evolve  Through an external stimuli or a need generated or through forces of continuous improvement within  And change to provide economic advantage to the society with the changing face of demand-supply  … In Summary…