CHANGE

Nature Of Change

 Change is inevitable
 Continuous and Fluid Essential for survival
 Resistance and Acceptance
 Face Transitional
Stage
 Revolution or Evolution
 Unpredictability
 Borders
group

Kodak

Blockbust
er
Creating Culture for Change

 Education and Communication

 Inclusion in decision making
 Training and Support
 Negotiations
 Manipulation and cooptation
 Coercion
FORCES OF ORGANIZATIONAL CHANGE

All business organization establish, operate and grow within wide range
of changing environment. All such forces affecting the survival and growth
of business organization are known as forces of organizational change.
Broadly, there are two types of change forces consisting of :
1. Internal forces
2. External forces
 FORCES OF ORGANIZATIONAL CHANGE

Internal External
forces forces
•Owners
•Board of
Task/ General
Directors Specific Forces
•Organizational •Competitors •Political
Goals •Customers Forces
•Plans and •Suppliers •Economic
Strategy •Government Forces
•Organizational •Pressure Groups •Socio-culture
Structure •Media Forces
•Job Technology •Financial •Technology
•Work Institution
environment •Strategic
Alliance
INTERNAL FORCES

All the conditions and forces within the organization affecting in the business
operation is internal forces. For internal strength of the organization it is
necessary to manage internal changes effectively. However, internal forces
are in some extent controllable to the management.
 The component of internal forces consist of:
1. Change in owners: Owners are the investors who have direct interest in the
welfare and prosperity of the business organization. So, change in the owners
effect on business activities of an organization.

2. Change in Goals: Goals of organization refers to the motives and plans of

business. What does organization want to achieve at the end. Goals of an
organization may be short term goals , medium , or long term goal. Management
brings change in goals to adapt with the changing environment. Such changes in
goals also affect the performance of organization.
3. Change in Board of Directors: The members of board of directors are the
representative of shareholders who directly involve in day to day operation of
the company. Their responsibility is to run business in best interest of
shareholders and others stakeholders. They are also involved in preparation of
long term plan &business strategies of the organization.

4. Change in plans and strategies: Management needs to change the plans and
strategies on basis of changing objective of the organization. Besides, it is also
essential to modify plans and policies in accordance of changing environment
of the society. Such change in plans and policies bring change in organization.
5. Change in organizational resources: For effective operation of the
business, organization needs resource like human resources, financial
resources, materials and information. The success and failure of the
organization depends upon the effective and efficient utilization of these
resources.

6. Change in Organizational Structure: Organizational structure is the

foundation of organization which consists of job definition, division of work,
hierarchy of authority and job responsibility. It helps to coordinate activities of
all department and its smooth functioning. If change occurs in organizational
structure, it also bring some change in functioning.
7. Change in work Environment: Good working environment is essential
for smooth performance of the organization. For this purpose, there must be
proper division of work, two way communication and friendly work
environment. If any change occurs in working environment it brings change
in organization.

8. Change in Job Technology: Technology is ever changing process. So,

management should have information of changing new technology and they
should introduce new job technology to maximize productivity. Thus, the
change in job technology also brings change in organization.
 EXTERNAL FORCES

The external forces refers to environment and institutions outsides the

organization that potentially can effect the organizational performance.Change
in external forces provides great impact on organizational performance.
Management cannot control the change in external forces, it needs to adapt
itself by modifying its goals, plans, policies and strategies on the basis of
changing external forces.
 The external environment is made of two component
● Task/Specific Forces
● General forces

Task/Specific Forces:The task environmental forces consists of specific

organizations or group that influence an organization performance. Such
forceshas direct and immediate impact on managerial decision and actions.
The task forces consists of:
1.Cutomers: Customers are the main source of revenue for business
organization as they pay money for good and services. A satisfied customers
of today may not be satisfied tomorrow through the same types of goods and
services. Therefore, it is necessary to collect information about preference
and demand of customers through market research.

2. Suppliers: The suppliers are the parties that supply materials, machine
and other resources to the organizations. The management seek to ensure
regular flow of inputs at reasonable price to timely supply them to their
respective customers. However, if supplier do not supply resources in time
and also charge high price it will reduces organizational effectiveness.
3. Competitors: Competitors are the rivals that compete with the
organizations. They are the major forces that can effect our business
organizations. Management should not ignore its competitors and their
strategy. The managers should be aware of competition as well as should know
changing need of their customers so that they can develop new strategy to
retain old customers and attract new customers.
4. Government: Government is concern with regulating rules and regulations
for the welfare of society. It also enacts various rues to control unfair business
practices. All the business activities should be perform within rules and
regulations enacted by government. A new legislation enacted by the
government may create new challenges to business organization as it have to
modify its business schedule as per changed governmental rules so it might
create great challenge.

5. Pressure Groups: Pressure groups are the special interest groups, which may
also create problems and difficulties in the business activities. These pressure
groups consists of labor union, consumers association, human right activates,
environmental association, media, social institution etc.
6. Financial Institution: Financial institutions consist of commercial banks,
development banks, finance companies, insurance companies etc. They
supply short and long term credit to the business firms. Their credit policies
directly affect in operation, expansion, and the diversification of business
activities.

7. Strategic Alliance: When two or more companies work together in joint

venture or partnership form is known as strategic alliance. Such alliance
helps to establish agile startup , create unique market opportunity and helps
in market expansion. On other hand you will have to share profits and
possibly expose all trade secrets. This will also create our potential
competitors and have to give up our opportunities.
GENERAL FORCES

• Board external condition that may affect business activities of

organization
• Uncontrollable and require proper monitoring to adopt emerging
changes
• Theses forces create both opportunity and threats to business
COMPONENTS

1. Change in political forces:

• It refers government regulation, the legal system, and the influence of
three institutions: the legislature, executive, and judiciary.
• It involves constitutional, political, and legal institutions having a
major role in directing, developing, and controlling business activities.
2. Change in Economic forces:
• It involves the economic system, economic policies, economic
condition, capital markets, and globalization
• It shape and form the development of economic activities.

3. Change in Socio-culture Forces:

• The social forces involves tradition, social values, belief, norms,
attitudes, custom, and demographics composition which operate
organization.
• These elements are adoptable, shared and inter-related.
4. Change in Technology:
• The inovation of automation, robotics, and computeraization bring
tremendous change in production and distribution system.
• Internet and mass communication brings revolution in comunication
system of the world.
RESISTANCE TO CHANGE

• It is the important source of functional conflict.

• It brings obstacles in change adoptation and progress.
• Resistence to change seen in terms of overt and covert.
• Overt involves work slowdown, complaint voice, and threat for
strike,etc. which is not so difficult to manage and deal.
• Covert involves loss of loyalty and motivation to organization,
increases error and absenteeism due to sickness,etc. which are
more subltle and difficult to recognize.
 Sources of Resistence to Change

Individual Resistance Organizational Resistance

• Habit • Structural Inertia
• Security • Limited Focus on Change
• Economic Factor • Group Inertia
• Fear of Unknown • Threat of Expertise
• Selective Information • Threat to Established Power
Processing Relationship
• Threat to Established
Resource Allocation
INDIVIDUAL RESISTANCE
2. ORGANIZATIONAL RESISTANCE
ORGANIZATIONAL CHANGE

Organizational change is the process by which organization

moves from their present status to some desired future
state to increase effectiveness.
Organizational changes are those that have a significant
impact on the organization as a whole.

Organizational change can be classified into

four categories they are :
CHANGE IN STRUCTURE

Strategic change refers to a change made to important

features of an organization’s business to mitigate new threats
or leverage new opportunities in the market.
When the current strategy is no longer suitable for the
company’s situation, strategic change can be implemented to
improve an organization’s strategy.
CHANGE IN TECHNOLOGY

The increasing market competition and constantly evolving

technology lead to technological change within organizations
These types of organizational change are related to changes in
technologies that the business uses or the processes it follows.
Technology change management is all about identifying new
technology and implementing a digital strategy for improved
productivity and profitability.
CHANGE IN PHYSICAL SETTING

• It’s involves proper layout of work place for convenience to

work.
• Layout of machines, equipment , furniture etc should be
made in such way that it takes minimum space and bring
ease in work.
CHANGE IN PEOPLE / BEHAVIOUR

Employees are the main propagators of change, and they are

involved in every step of the process.
This type of change also occurs when a company undergoes mass
hiring or layoffs, forcing the organization to change its culture and
operations.
If the company is laying off employees, it must ensure that the
employee has enough time to rehabilitate and move out of the
company without any financial or emotional turbulence.
APPROACHES TO MANAGING
ORGANIZATIONAL CHANGE
• A particular approach may not become effective at all the
time. These are the common approaches that facilitates in
managing the change in the organizations for the managers.
They are;

•  Lewin’s Three Steps Model

•  Action Research
•  OD Interventions
LEWIN’S THREE STEPS MODEL

For change to occur, employees must be unfrozen from their usual

behaviour and new change occurs following by refreezing new
behaviour.

The three steps of Lewin’s model are:

•  Unfreezing
•  Changing
• Refreezing
• Unfreezing
 In the unfreezing process, employees must be convinced to discard old process or
outdated technology.

• Changing
•  In this process, organization must transition or move into new state of activities.
• Refreezing
•  In this process, new behaviour is reinforced and becomes the part of the work
routine.
•
• Action Research
•  Action research is also known as participatory research as it is the process of
learning by doing.

• It consists of four steps;They are:

• Diagnosing
• Analysis
• Taking Action
• Evaluation
• Diagnosing
•  Actual problem is identified to start the research.
Analysis
•  It is detailed examination of anything complex in order
to understand its nature.

• Taking Action
• In this step, specific alternative is selected to solve the
issue for transforming objectives into reality
• Evaluation
•  It facilitates to know that impact of change is happening in accordance of
expectation or not.
• Organization Development Interventions
• It is a structured program designed to solve a problem that enables an
organization to achieve the goal.

• The common OD interventions are as follows:

•  Survey Feedback
•  Process Consultation
•  Team Building
•  Counseling and Coaching
•  Inter-group Relationship
•  Survey Feedback
•  Initiate Questionnaire, receive feedback on results and take
appropriate actions.

•  Process Consultation
•  Collaborative approach aimed at helping organization and
individuals improve problem-solving and decision-making
processes.
•  Team Building
 It includes planned team activities that helps an organization’s
members to improve how they accomplish tasks.

•  Counseling and Coaching

•  It facilitates to change an attitude, perception, belief and value
of employees.

•  Inter-group Relationship
•  Unhealthy competition between groups are found and eleminated
 ORGANIZATIONAL DEVELOPMENT
• Organizational development is a long run plan to change attitudes and
behavioral performance of the organization.
Characteristics of Organizational Development:

1) Long term plan:

2) Dynamic process:

3) Research based:

4) Focus on behavior:

5) Broad Based:

6) System Perspective:

7) Empowered process:

8) Teamwork:
ORGANIZATIONAL DEVELOPMENT VALUES:

1) Respect for people:

2) Trust and support:
3) Power Equalization:
4) Confrontation:
5) Participation:
ORGANIZATIONAL DEVELOPMENT
INTERVENTIONS
Organizational development interventions are the programs
and processes designed to solve a specific problem.
These intervention activities are designed to improve the
organization’s functioning and enable managers and leaders
to better manage their team and organization cultures.

OD intervention can be studied under the three

different levels they are :
INDIVIDUAL LEVEL

The first is the individual level. These interventions encourage

people who are at high risk for a particular disease to do something
about it.
Examples are programs to encourage smokers to quit,
hypertensives to take medications, or diabetics to exercise.

Common tools of individual level OD intervention are :

- Survey feedback -Sensitivity
training
-Counseling and coaching
GROUP LEVEL INTERVENTION

Group-level OD interventions can be simply described

as planned, systematic approaches which focus largely on
employee groups within organizations and the processes through
which they accomplish organizational goals.
The main motive of group intervention is to improve group level
activity.

Tools of group level OD intervention:

-Process consultation -Team building
-Inter group development
ORGANIZATIONAL LEVEL INTERVENTION

Organizational level intervention emphasizes on developing

organizational rules, regulations, working procedures, technology
and whole organizational structure.
The main motive of organizational level interventions is to improve
organizational level activities.

Tools of organizational level OD interventions:

-Goal setting and planning -Organizational
Restructuring
-Technological changes -Quality of work life