Introduction to Managing Organizational Change by Soumyaa Srikrishna

1. Managing
Organizational Change
Soumyaa Srikrishna

2. Overview

3. Organization
 A social unit of people that is structured
and managed to meet a need or to pursue
collective goals. All organizations have a
management structure that determines
relationships between the different
activities and the members, and
subdivides and assigns roles,
responsibilities, and authority to carry out
different tasks. Organizations are open
systems--they affect and are affected by
their environment.

4. Organizational Environment
Organizational environment refers to the forces
that can make an impact. Forces made up of
opportunities and threats. An organization does
not exist in isolation. It works with the overall
environment.
These factors are divided into two main parts,
1) InternalEnvironment
2) External Environment,
It is further divided into specific and general
environment

5. Internal Environment
 Internal environment refers to
people internal to the organization
who influence the organizations
performance

6. External Environment
 External environment refers to force
and institutions outside organization
that potentially affect an
organizations performance

7. General Environment
 The general environment is composed of the
nonspecific elements of the organization's
surroundings that might affect its activities.
It consists of five dimensions:
 economic
 technological
 socio-cultural
 political-legal and
 international

8. Specific Environment
Consists of five elements:
 Competitors
 Customers
 Suppliers
 Regulators
 Strategic partners.
Because these dimensions are associated
with specific organizations in the
environment, their effects are likely to be
more direct and immediate.

9. Organizational Development
 Focus on Result
 Learning or transfer of knowledge
 Evidence of Improvement

10. “It’s a system wide application and
transfer of behavioral science
knowledge to the planned
development, improvement, and
reinforcement of strategies,
structures, and processes that lead
to organization effectiveness”

11. Need for Existence of an Org.
 To increase specialization and division of
labour
 To use large scale technology
 To manage the external environment
 To economize on transaction costs
 To exert power and control

12. Organizational Effectiveness

13. “Organizational effectiveness is the
concept of how effective an
organization is in achieving the
outcomes the organization intends to
produce. The idea of organizational
effectiveness is especially important for
non-profit organizations as most people
who donate money to non-profit
organizations and charities are
interested in knowing whether the
organization is effective in
accomplishing its goals.”

14. Organizational Effectiveness
Employee
Performance
Employee
Motivation
Organizational
Effectiveness

15. Measuring Effectiveness
 Setting Standards
 Selecting Indicators
 Outcomes
 Processes
 Structures

16. Approaches to Measuring
Organizational Effectiveness
 Goal Approach: Effectiveness is the
ability to excel at one or more output
goals.
 Internal Process Approach:
Effectiveness is the ability to excel at
internal efficiency, coordination,
motivation, and employee satisfaction.
 System Resource Approach:
Effectiveness is the ability to acquire
scarce and valued resources from the
environment.

17. Contd…
 Constituency Approach:
Effectiveness is the ability to satisfy
multiple strategic constituencies both
within and outside the organization.
 Domain Approach: Effectiveness is
the ability to excel in one or more
among several domains as selected
by senior managers.

18. Organizational Structure

19.  The typically hierarchical
arrangement of lines of authority,
communications, rights and duties of
an organization. Organizational
structure determines how the roles,
power and responsibilities are
assigned, controlled, and
coordinated, and how information
flows between the different levels of
management.

20.  A structure depends on the organization's
objectives and strategy. In a centralized
structure, the top layer of management
has most of the decision making power
and has tight control over departments
and divisions. In a decentralized structure,
the decision making power is distributed
and the departments and divisions may
have different degrees of independence. A
company such as Proctor & Gamble that
sells multiple products may organize their
structure so that groups are divided
according to each product and depending
on geographical area as well.

21. CEO
VP - Sales VP - Operations VP - IT
Quality Manager Production Manager

22. Organization Chart
 Visual representation of how a firm
intends authority, responsibility, and
information to flow within its formal
organizational structure.
 It usually depicts different management
functions (accounting, finance, human
resources, marketing, production, R&D,
etc.) and their subdivisions as boxes
linked with lines along which decision
making power travels downwards and
answerability travels upwards.

23. Why Organization Structure?
 Structure gives members clear guidelines for
how to proceed. A clearly-established structure
gives the group a means to maintain order and
resolve disagreements.
 Structure binds members together. It gives
meaning and identity to the people who join the
group, as well as to the group itself.
 Structure in any organization is inevitable -- an
organization, by definition, implies a structure. Your
group is going to have some structure whether it
chooses to or not. It might as well be the structure
which best matches up with what kind of organization
you have, what kind of people are in it, and what you
see yourself doing.

24. Selection
 Selection is the process of screening applicants to
ensure that the most appropriate candidate to
suit a position is hired.
 The first step in the selection process is to review
the information (resume, application form)
provided by all applicants to determine which
applicants meet the minimum qualifications as
per the requirement. No further consideration will
be given to those who do not meet the minimum
qualifications.

25. Organizational Reward Systems
 Financial Rewards
 Social Rewards

26. Socialization
 Organizational socialization, refers to the
mechanism through which new employees
acquire the necessary knowledge, skills,
and behaviors to become effective
organizational members and insiders.
Tactics used in this process include formal
meetings, lectures, videos, printed
materials, or computer-based orientations
to introduce newcomers to their new jobs
and organizations.

27. Case Study & Discussion