ORGANIZATION CHANGE AND

DEVELOPMENT
 WHAT IS CHANGE?
• It is believed change is that permanent thing in
the face of the earth which is unavoidable and
the universal truth.
• Change is anything different from the
running/current situation or scenario.
• It is the alternation in Business environment. In
today’s world it is either ‘change or die’.
Business has to be dynamic in the market and
change as per the changes in the environment.
 CHANGE MANAGEMENT
• OBJECTIVES OF CHANAGE MANAGEMENT
• 1. To make sure change occurs successfully in the organization
• 2. To make sure the organization can deal with the
uncertainties of external environment
• 3. To make sure Organization can be competitive in the market.
• 4. To make sure employees understand and accept the need of
change.
• 5. To make sure organization can adopt new technologies and
methods.
• 6. To make sure organization keeps on innovating itself and
enhances its creativity.
FORCES OF ORGANIZATIONAL CHANGE
• Forces of organizational changes are the factors that
affect the survival and growth of an organization. As
we know an organization operates in a changing
environment so management must keep closer eye on
the forces of organizational change.
• The forces can be
• 1.Internal Forces
• 2. External Forces
• A. Task/specific
• B. General
 FORCES OF ORGANIZATIONAL CHANGE
• A. Internal force
• All the factors and forces which are within the organization
affecting the business performance are internal forces. We need
to evaluate strength and weakness of the organization to deal
with these forces. These forces are controllable to some extent.
They consists of;
• 1. Change in BOD
• 2. Change in goals
• 3. Change in organization structure
• 4. Change in organizational culture
• 5. Change in work environment
• 6. Change in rules and regulation etc.
FORCES OF ORGANIZATIONAL CHANGE
• B. External forces
• External forces are the factors which are
outside the organization and beyond the
control of the organization. These factors need
to be properly observed and deal with. The
opportunity and the threats of these
environment are to be studied. External forces
are i. Task/Specific and ii. General
FORCES OF ORGANIZATIONAL CHANGE
• i. Task/ Specific
• Task or specific forces are those particular factors
or particular groups or organization which can
affect the performance of the organization such as
Competitors, Suppliers, media, government,
pressure groups, financial institutions etc.
• Such forces can have direct and quick impact on
organization performance so these factors need to
be properly studied and deal with them
accordingly.
 FORCES OF ORGANIZATIONAL CHANGE
• ii. General Forces
• General forces are the General Environment factors which have a
very great impact on the performance of the organization. These
factors are uncontrollable and the management needs to
monitor these factors to be safe from any negative effects that
may come from these forces or environment. Opportunities are
to be grabbed and threats are to be handled well.
• The following are the components of general forces
• 1. Changes in Political-Legal Forces
• 2. Changes in Economic Forces
• 3. Changes in Socio Cultural Forces
• 4. Changes in Technological FOrces
 PARADIGM SHIFTS AND AREAS OF
ORGANIZATIONAL CHANGE
• A. CHANGE IN STRUCTURE
• Organization structure is the tangible and intangible
structure of an organization that holds everything together
or that ensures proper functioning of the organization.
• Organization structure is composed of Hierarchy,
Resources, Authority and Responsibility, Centralization or
decentralization system, departments, rules and
regulations, organization culture, Physical Infrastructure
etc.
• Sometimes change is also required in the organization
structure to enhance efficiency in the organization.
 PARADIGM SHIFTS AND AREAS OF
ORGANIZATIONAL CHANGE
• A. CHANGE IN STRUCTURE (contd.)
• So, a change in the Hierarchy or Department
system, or the need of Decentralization, or
modification of rules and regulations, addition
of capital etc can be brought according to the
need of time and situation.
• Therefore changes in the organization
structure are also necessary to make sure the
organization successfully grows in the market.
 PARADIGM SHIFTS AND AREAS OF
ORGANIZATIONAL CHANGE
• B. CHANGE IN TECHNOLOGY
• Technology is very vital in today’s competitive world. Every
organization is trying its best to bring more innovative
technology to make more qualitative products that can
attract the consumers at reasonable prices.
• Introduction of new tools, techniques, methods, machines,
equipments, extensive use of computerization and
robotics, internet has greatly helped the organizations to
compete in the market.
• Thus the changes in technology from time to time as per
the need makes the organization more competitive
 PARADIGM SHIFTS AND AREAS OF
ORGANIZATIONAL CHANGE
• C. CHANGE IN PHYSICAL SETTING
• Physical setting means how things are placed and
arranged in the organization such as Machine layout,
office layout interior design, equipment placement etc.
• Layout of machines, equipments, furniture etc should
be in such a way that it takes minimum space and
makes the work more easy. So changes in the physical
setting should also be done from time to time to make
the work easy and make the workers more
comfortable.
 PARADIGM SHIFTS AND AREAS OF
ORGANIZATIONAL CHANGE
• D. CHANGES IN PEOPLE/BEHAVIOR
• Human resources are one of the vita/important
resources of the organization. If people are not efficient
then no matter how much advance technology or no
matter how much capital the organization brings would
not be useful.
• Changes in people means changing their attitude,
perception, behavior and skills. Worker’s skills should be
enhanced from time to time. Team spirit should be
developed, training conference, seminar should be
conducted.
REASONS FOR RESISTANCE TO CHANGE
• One of the major problems of organization is
resistance to change. When people or
organization resist change then organization
efficiency slows down, innovation stops and
creativity falls apart. There are two reasons of
resisting the change;
– INDIVIDUAL RESISTANCE TO CHANGE
– ORGANIZATIONAL RESISTANCE TO CHANGE
 Individual resistance to change
• Individual resistance to change means the causes of resisting
or denying or avoiding change by the people themselves
working in an organization.
• 1. HABIT
• People have a nature to do regular work or work in a way or
process which has been continuing since a long time then
they do not want to change that way. People’s habit is a very
strong reason not to accept change because the workers are
already used to their habit. So, they deny change. They
accept change when they calculate the cost and benefit and
if they find benefit more then they change their habit.
 Individual resistance to change
• 2. Job and Financial Security
• People want security in life or their job. They think
if a new change is brought in organization by
management then they feel they will loose their
job security. So they resist or avoid change. People
want to be sure that at any cost nothing will affect
their job.
• When computer was first introduced to the
government offices in Nepal, people were
threatened and resisted in the primary stage.
 Individual resistance to change
• 3.Economic factors
• Whatever benefit or gain the workers are getting
today, the workers perceive(think) they will loose it
all if change is implemented. They fear that change
will harm their economic gain or benefit.
• For eg. They will think if new changes are brought for
example computerization will cut off their
responsibility and their working hour so they think
their salary would be reduced so they try to deny the
change without knowing the actual fact.
 Individual resistance to change
• 4. Fear of Unknown
• As we know the future is uncertain, and the workers
with limited knowledge and capabilities always fear of
the things which are uncertain.
• Bringing a new change in the organization is an
unknown thing coming to the workers they are afraid to
handle such things, they remain happy of what is going
on or they are satisfied with the ongoing job methods
and working culture and environment. They fear of
anything new coming to them so they try to defend the
new changes in organization.
 Individual resistance to change
• 5. Selective Information Processing/Lack of complete
or detail information
• Workers may hear what they want to hear and see
what they want to see because they have limited
information and because of their limited information
they want to avoid the new changes because those
new changes would challenge their limited information
and knowledge. They do not want that to happen so
simply they remain in the limited world they created by
their limited knowledge and information by denying
change.
 Organizational resistance to change
• Sometimes the organization and its structure or culture
may itself be the reason to avoid or resist change which is
known as organizational resistance to change.
• 1. STRUCTURAL INERTIA (INACTIVE/DISINTEREST)
• Sometimes the organization structure itself may come as a
blockage or barrier to bring new changes in the
organization. Every organization structure has certain
rules regulation, Departmental protocols, principles by
following which the organization moves forward, in that
case sometimes those structural factors itself may create
problem to bring new changes in the organization.
 Organizational resistance to change
• 2. LIMITED FOCUS ON CHANGE
• In an organization there are so many sub systems
that makes an organization a whole complete
system. The sub systems may be individual levels,
department, sections or branches. Sometimes, a
department or a branch may want a certain change
but the change may affect other departments and
those departments may not accept the change
which creates problem for that single department
as well.
Organizational resistance to change
• 3. GROUP INERTIA
• Simply to put, a member of a group, which may be a
union, a department or a section may want a certain
change to be implemented in an organization but the
group as a whole may deny that change so due to the
force or pressure of the group the individual who wanted
that change also resist the change. For instance, a worker
may want a new regulation regarding working hour to be
implemented but if the labor union resists that change
then he too being the member of the union can not go
against the decision of the union and resists the change.
 Organizational resistance to change
• 4. THREAT/CHALLENGE TO EXPERTISE
• In an organization, the superiors sometimes
deny the changes because of their traditional
attitude where they perceive (think) the new
changes brought to the organization may
challenge their expertise or knowledge and
they might loose their value in front of the
subordinates. So they deny the changes.
 Organizational resistance to change
• 5. THREAT/CHALLENGE TO AUTHORITY OR SUPERIORITY
Change is also denied when the superiors think any
changes brought in the organization would make them
loose their grip in the organization i.e they think they
could loose whatever authority or superiority they are
holding today when changes are implemented in the
organization. They perceive workers would turn more
knowledgeable and could challenge their authority so
they deny change.
For eg. Managers denying Participative Decision making with
fear of their authority could be challenged.
 Organizational resistance to change
• 6. THREAT TO RESOURCE ALLOCATION
• Sometimes the individuals or the groups resist the
changes with the fear of loosing the budget or the
resources they are getting. They see changes as a
threat to their resources which they do not want
to loose so they try to avoid the changes. This
happens mostly in case of decentralized
organization where there are various levels,
branches, departments and sections.
 OVERCOMING RESISTANCE TO CHANGE
(SOLUTION)
• 1. Education and communication
• Unarguably, the solution to any problem is the education
or knowledge required and the two way communication
process. As we know most of the causes of resistance to
change, both individual and organizational are due to
lack of clear understanding or wrong perception so if we
can educate or communicate with the management and
the workers about the need of change and the
advantages it brings to the organization and the
employee then workers can build positive perception and
welcome change without fear and threat.
 OVERCOMING RESISTANCE TO CHANGE
(SOLUTION)
• 2. PARTICIPATION
• Participation encourages the two way
communication, it encourages the members to
freely express their opinions and problems. In such
scenario both the superiors and subordinates can
live the misunderstanding behind and move
forward to accept change willingly. Most of the
misconceptions about the change are due to fear or
lack of thorough knowledge which can be sorted
out via participation.
 OVERCOMING RESISTANCE TO CHANGE
(SOLUTION)
• 3. Negotiation
• Sometimes when the employees resistance to
change is more stronger then a feasible
solution may be Negotiation. Most of the
Management-labor problems are sorted out
through Negotiation. It helps to provide
certain rewards or incentives to the people
resisting change to make them accept the
need of change.
 OVERCOMING RESISTANCE TO CHANGE
(SOLUTION)
• 4. COERCION
• A strict method of implementing the change is coercion.
The people who resist the change are forced to accept
the change by threatening or warning the people who
are unwilling the change. They do not want to disagree
as their authority or financial gain may be challenged if
they disagree and keep resisting the change. For
instance manager threatening employee to accept
change or give resignation. This is a strict and negative
method of making people accept change and is only
used in extreme situation.
 OVERCOMING RESISTANCE TO CHANGE
(SOLUTION)
• 5. Cooptation and Manipulation
• This is a technique of overcoming the
resistance to change where management tries
to manipulate the workers by twisting the
facts or falsifying information to create a kind
of threat or confusion and make the workers
accept the change.
 OVERCOMING RESISTANCE TO CHANGE
(SOLUTION)
• 6. FACILITATION AND SUPPORT
• Most of the times people resist CHANGE because of
lack of proper understanding, fear, ego, habit and so
on. Management should focus on providing facilities
and supportive services that helps the workers to
overcome those problem. Training, Participation,
Emotional Support, rewards and Incentives,
Interaction programs, good leadership are some of
supportive program that a management can provide
to help people to accept change.
 ORGANIZATIONAL DEVELOPMENT
• Organizational development is a long term process
of having efficiency and productivity by bringing a
properly planned change.
• OD is also that management function which not
only brings efficiency but also brings positive
attitude and behavior of people.
• It not only brings organizational growth but also the
Human growth.
• OD makes sure that the required changes occurs in
the organization.
 ORGANIZATIONAL DEVELOPMENT
• Feature of OD
• 1. Long term Plan
• OD is not a short tem process. To bring changes in
organization and human behavior needs a long term
vision and for that it needs a good planning for change.
• 2. Broad Based
• OD is not a narrow concept, it tries to focus on the
overall aspect/areas of the organization. Bringing
changes in a limited or certain area will not help in the
overall organizational growth.
 ORGANIZATIONAL DEVELOPMENT
• 3. Dynamic Process
• Developing the organization in a long term is a dynamic
process because it has to be done according to the
changing environment. So the management needs to be
prepared to face the environmental changes.
• 4. System Perspective
• A system is composed of various sub systems which are
related to each other such as Departments, Sections,
Branches, Levels etc. So, for organizational Development
all the system should be developed by bringing
appropriate changes.
 ORGANIZATIONAL DEVELOPMENT
• 5. Focus on Behavior
• In order to develop the organization, the behavior of
people has to be progressed. ‘X’ mentality has to be
changed to ‘y’.
• 6. Research Based
• OD needs research because without information
and data we can not know about the environment
and without the knowledge of the environment we
can’t ensure change in the organization and without
which development is not possible.
 ORGANIZATIONAL DEVELOPMENT
• 7. Empowered Process
• OD is also the process of making people empowered.
Making people empowered means to increase their
capabilities and skill so they can ensure prosperity in
organizational development.
• 8. Team Work
• No organization can be developed by a single person.
Team work is that force which makes people use their
creativity and ability to a maximum level, conflict can be
sorted, misunderstanding can be cleared out so
Organizational Development can be ensured.
 ORGANIZATIONAL DEVELOPMENT
• OD values
• OD values are the requirement for the long term
development of the organization.
• 1. Respect for People
• To develop the organization for a long term, there
should be respect for people. People are the main
resource of the organization so without giving
proper respect, value and dignity to people
development of organization is not possible.
 ORGANIZATIONAL DEVELOPMENT
• 2. Trust and Support
• To develop the organization there needs to be trust and
support, in absence of that there will be Conflict,
misunderstanding and the performance will be slow. In
organization trust, support and co-operation leads
productivity and efficiency.
• 3. Power Equalization/Empowerment
• OD is also the process of making people empowered.
Making people empowered means to increase their
capabilities and skill so they can ensure prosperity in
organizational development.
 ORGANIZATIONAL DEVELOPMENT
• 4. Confrontation
• OD needs confrontation. Confrontation means coming
forward and expressing their problems, grievances,
ideas, misunderstanding etc. Hiding problems will not
help in the development of organization.
• 5. Participation
• No organization can be developed by a single person.
Team work is that force which makes people use their
creativity and ability to a maximum level, conflict can be
sorted, misunderstanding can be cleared out so
Organizational Development can be ensured.
 ORGANIZATIONAL DEVELOPMENT
• OBJECTIVES OF OD
• 1. To increase trust and Understanding
• 2. To increase participation
• 3. To increase open communication and
confrontation
• 4. To increase motivation and enthusiasm
• 5. To increase positive behavior of people