The concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, etc. Some experts refer to organizational transformation. Often this term designates a fundamental and radical reorientation in the way the organization operates.
Change affects everybody, every business, every industry, every day. If you want to create a better future and succeed in your professional and personal life, you must understand the driving forces of change and how to lead, embrace and manage change.
2. Why an organization need
change
Any substantive modification to some part of
the organization (e.g., work schedules,
machinery, employees) is known as
Organizational Change.
Any business in today's fast-moving
environment that is looking for the pace of
change to slow is likely to be sorely
disappointed. The world changes every day.
Society is constantly changing.
If businesses fail to keep up with these
constantly-moving targets, they lag behind,
become stale and, ultimately, fail.
3. Why an organization need change- continued
Great business leaders understand the need of change,
which is why they continually look for ways to evolve and
improve, because-
Technological innovation continues to accelerate
Disruption is continually driving marketplace evolution
Businesses that don’t continually change with their
markets will fall behind
Those that change more quickly can gain an edge over
their competitors
Ultimately, organizations that use obsolete processes or
tools won’t be able to participate in the global economy
4. According to Rupert Murdoch, “The world is changing very fast. Big will not
beat small anymore. It will be the fast beating the slow.”
According to Orlando A, Anaam C, The Change Agent, “Change is a
permanent part of life. No matter who we are, where we live, how old or
young, we all make changes in our lives. Most of us struggle with change…
The ways we change inside, the ways we grow and learn, and become
transformed are because of the changes in our lives.”
According to Lao Tzu , “If you do not change direction, you may end up
where you are heading.”
According to Andy Warhol , “They always say time changes things, but you
actually have to change them yourself.”
So , from above we can conclude that ,we can not avoid the change. Not
many things in life are inevitable. Even though we often fear it, change is
one of the few things guaranteed in life. To cope up with this world , we
have to face dynamic change (change upon change upon change).
5. Forces for Change
External forces Internal forces
Force the organization to alter
the way it competes.
1. Changing customers’ needs
and preferences
2. Globalization and increased
competition
3. Government policies
4. Technological change
5. Economic factors
6. Political factors
Force to change organization’s
structure and strategy
1. System dynamics
2. Organizational design and
structure
3. Individual and group
expectations
4. Managerial and
administrative processes
6. Shift in Trends because of change
Industrial era
National economy
Technology development
Stability and predictability
Long term
Hierarchical
Emphasis on continuity
Centralization
Information era
Global economy
Technology sophistication
Sudden Change
Short term
Networking
Emphasis on change
Decentralization
8. Kinds of Organizational Change
Change in structure
Change in work process
Change in organizational
culture
• Organizational
structure
• Downsizing or
rightsizing
• Restructuring etc.
• Re engineering
• Technology-driven
• Economically driven
• Equipment driven
• Personnel driven
• Change in leadership
• Change in mission
• Change in management
style
• Evolution
9. Planned change/proactive Unplanned change/reactive
Change that is designed and implemented in an
orderly and timely fashion in anticipation of
future events
Change that is a piecemeal response to events
and circumstances as they develop
A planned change can bring in the desired result
for a business and can help in improving some
portions of it
An unplanned change can be chaotic and may
bring in unexpected results. If the outcome of a
situation remains unclear or unknown, the
changes may not be expected and can be a sort
of unplanned change
Wide scope Narrow scope
Change are planned in anticipation of event Change are made on occurrence of an event
Huge amount of resource as required. Have not too many resources, like time, money,
knowledge ,skills as required.
Intentional or goal oriented Accidental
Example-Change in product and service,
administrative system, organizational size or
structure, introduction of new technology.
Example-Changing employee demographics,
performance gap, governmental regulation,
economic competition in global arena.
Types of change
10. Theoretical framework of organizational change
Life cycle theory –as living organism
Teleological theory-purposeful or adaptive
Dialectical theory-collision with others
Evolutionary theory-ongoing and evolving
11. Conditions for successful change
dissatisfaction with the status quo
people have the necessary knowledge and skills
tools needed to are available
implementers have time to learn, adapt,
integrate and reflect on change
rewards or incentives exist for participants
participation in process is expected and
encouraged
have support for innovation by key players and
stakeholders