What Is Organizational Change

PRESENTATION ON ORGANISATIONAL CHANGE

What is Organizational Change?  

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The change means the alteration of status quo or making things different. It may refer to any alteration which occurs in the overall work environment of an organization. When an organizational system is disturbed by some internal or external force, the change may occur. An alteration of an organization’s environment, structure, culture, technology, or people  A constant force  An organizational reality  An opportunity or a threat Change agent  A person who initiates and assumes the responsibility for managing a change in an organization

Basic Questions for Change Agents 

What are the forces acting upon me? 

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What should we change? 

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What are the pressures I should take into consideration as I decide what to change and how I should change it? Should the changes be strategic and companywide or relatively limited?

How should we change it? 

How should we actually implement the change?

What is to be changed? 

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Strategies, positions, policies, programmes, patterns  Performances: competitiveness, added values, responsiveness, productivities, results, innovations  Alliances, sustainability, movement  Structures and groupings  Processes, work arrangements  Resource allocations, savings People – individual and groups  Behaviours: performances, conformities, creativities  Competencies: mastery in performance  Attitudes, Values, Beliefs Distributions of opportunity

TYPES OF CHANGE Proactive change is initiated by the management on its own to enhance the organizational effectiveness  Reactive change When change takes place due to external forces, 

Forces for Change External Forces

Internal Forces

Competition Laws and regulations

Strategy modifications

New technologies

New equipment

Labor market shifts

New processes

Business cycles

Workforce composition

Social change

Job restructuring Compensation and benefits Labor surpluses and shortages Employee attitude

Three Categories of Change Organizational Culture

Why People Resist Change

Prenl, 2002

Is a New Structure Really Required?

When you identify a problem with your design, first look for ways to fix it without substantially altering it. If that doesn’t work, you’ll have to make fundamental changes or even reject the design. Here’s a step-by-step process for resolving problems. Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a Well-Designed Organization?” Harvard Business Review, March 2002, p. 124.

Is a New Structure Really Required? (cont’d)

A Nine-step Process For Leading Organizational Change 1. 2. 3.

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Create a Sense of Urgency Decide What to Change Create a Guiding Coalition and Mobilize Commitment Develop and Communicate a Shared Vision Empower Employees to Make the Change

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Generate Short-Term Wins Consolidate Gains and Produce More Change Anchor the New Ways of Doing Things in the Company Culture Monitor Progress and Adjust the Vision as Required

G.Dessler, 2003

Dealing with Change

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