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Subject Management of Change

Subject Management of Change

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Published by napema.educ4790
Assignment in Management of Change, a Subject in Masters in Government Management
Assignment in Management of Change, a Subject in Masters in Government Management

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Published by: napema.educ4790 on Jul 19, 2012
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04/27/2013

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Page 1 of 5
THE NEED TO UNDERSTAND CHANGE
INTRODUCTION
Organizational change is the essence of adaptation and innovation. Peopleand organizations need to be flexible in order to respond to changes in theenvironment or otherwise, take advantage of them. Often, the need for changeoverlooked. Lulled into the false sense of security, they plod along in their oldways. They fail to make the corresponding adjustments to environmental changesuntil they suffer in mediocrity or lose their competitive edge entirely. Eventually,the result is organizational failure.As the necessity for change looms larger than ever, a more positive attitudetoward it is essential. Managers need to plan and control change to give directionand consistency to it. As change agents, their aim is to raise the level of performance by people and group. Managers must themselves be open tocontinuous change if they are able to cause change in others.Complacency is the enemy of effectiveness. In order for people ororganizations to succeed, they must be willing and able to change. Changing forthe better seems nothing else will suffice. The role of the manager is to managechange skillfully.
THE NATURE OF CHANGE
A change
 – 
is any shift or alteration in the present state of a system or inwork environment. The shift or change may be in a way we perceive things or inhow items are organized, processed, created, or maintained. Every individual andorganization experiences change.In social organizations, change is initiated, implemented and maintained toachieve a new and higher level of performance by the system. Changing involvesthe deliberate introduction and management of discontinuity. The purpose is to
increase the organization’s level of adaptation to its environment.
 
 
Page 2 of 5
Dimensions of ChangeThe three Major Areas of Change:
Strategic Change
.
In the course of business operations it is necessary to change the strategy toachieve goals or even to change the mission of the organization. Changing themission of the organization in essence results in changing the culture.Organizations that decide to focus on a single mission often need to change themission and divest themselves of unrelated business.
Structural Change
Organizations often find it necessary to change the structural design of thecompany. As the plans change the organization changes. But structural design alsorelates to other areas of structure. When a company changes its procedures,policies, and rules it is changing its structure. This includes policies inemployment, pay, and evaluation, and the procedures associated with vacations,grievances, and sick leave.
 People-Centered Change
This type of change focuses on changing the attitudes, behaviors, skills, orperformance of employees in the company. In changing the skills and performanceof employees this can be done through training, replacing present employees, orincreasing the job performance expectations of new hires.
SOURCES/FORCES OF CHANGE
An organization may find it necessary to change for a number of differentreasons. These reasons surface from outside the company and inside the company.
 External Sources of Change
External source of change may include technology, competition, governmentactions, economic variables, and social values. Government regulations on health,safety, and the conduct of business affect an organization. Equal EmploymentOpportunity Commission guidelines that have been enacted that influencing hiring,pay, training, and promotion decisions. Tax Law Change. Economic conditions,such as recession, inflation, and interest rates are sources of changes. Lastly, thecultural changes in such areas as modes of dress, reasons for people working,composition of workforce, and changes in traditional female and male roles canaffect the organizational environment.
 
 
Page 3 of 5
 Internal Sources of Change
Internal sources of change might include managerial policies and styles,systems, and procedures; technology; and employee attitudes, with their resultantbehavior. Example, if a manager develops a new set of expectations for jobperformance, this change will influence the values and behaviors of the employeesaffected. The employees could adapt to these expectations or resist them.
IDENTIFYING THE NEED FOR CHANGE
How do an organization know that there is a need for a change? Themanagement must be sensitive to the external sources of change. They will able tosee the need for change through diagnosis.
Diagnosing the need for change:
 Phase 1: Creativity
. This is the birth stage of an organization. It is marked byconcerns for product and market, informal and internal relationships, and anentrepreneurial style of management. But soon the need for capital, new products,new markets, and new employees forces the organization to change. A crisis of leadership occurs when management becomes incapable of reacting to thedemands for structure as it grows. The organization enters a new phase.
 Phase 2: Direction
. This phase is characterized by the implementation of rules,regulations, and procedures. Additionally, a functional organization structures isintroduced; an accounting system for inventory and purchases is created;incentives, budgets, and work standards are established; and communicationsbecome more informal and impersonal. Eventually, there is a demand by lower-level managers for greater delegation in decision-making. This prompts anothercrisis and a change in organization.
 Phase 3: Delegation
. Decentralization is the key to this phase. This is shown bygreater accountability being exacted form territorial managers, profit centers beingcreated, top-level management beginning to practice management by exception
(the conscious decision by a manager to enter into a situation on a “needs” basis),
and communication from top-level management becoming infrequent. A crisisoccurs when top management senses that is losing control over the organization.This leads to another major change.

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