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OD and Change

OD and Change

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Published by Teju Patil

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Published by: Teju Patil on Aug 09, 2012
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12/17/2013

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 MBA –H4010 Organisational Development And Change
1
ORGANISATIONAL DEVELOPMENT ANDCHANGE
UNIT – ILEARNING OBJECTIVES
The
 
student is expected to learn the following concepts after going through thisunit.1.
 
Change 2. Stimulating Forces3.
 
Planned Change 4. Change Agents5.
 
Unplanned Change 6. Lewin’s Three Step ModelThe 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 orexternal force, the change may occur. The change is modification of thestructure or process of a system, that may be good or even bad. It disturbs theexisting equilibrium or status quo in an organization. The change in any part of the organization may affect the whole of the organization, or various other partsof organization in varying degrees of speed and significance. It may affectpeople, structure, technology, and other elements of an organization. It may bereactive or proactive in nature. When change takes place due to external forces,it is called reactive change. However, proactive change is initiated by themanagement on its own to enhance the organizational effectiveness. The changeis one of the most critical aspects of effective management. It is the copingprocess of moving from the present state to a desired state that individuals,
 
 MBA –H4010 Organisational Development And Change
2groups and organizations undertake in response to various internal and externalfactors that alter current realities.Survival of even the most successful organizations cannot be taken forgranted. In some sectors of the economy, organizations must have the capabilityto adapt quickly in order to survive. When organizations fail to change, the costof failure may be quite high. All organizations exist in a changing environmentand are themselves constantly changing. Increasingly, the organizations thatemphasize bureaucratic or mechanistic systems are ineffective. Theorganizations with rigid hierarchies, high degree of functional specialization,narrow and limited job descriptions, inflexible rules and procedures, andimpersonal management can’t respond adequately to the demands for change.The organizations need designs that are flexible and adaptive. They also needsystems that require both, and allow greater commitment and use of talent on thepart of employees and managers. The organizations that do not bring abouttimely change in appropriate ways are unlikely to survive. One reason that therate of change is accelerating is that knowledge and technology feed onthemselves, constantly making innovations at exponential rates.Organizational change is the process by which organizations move fromtheir present state to some desired future state to increase their effectiveness.The goal of planned organizational change is to find new or improved ways of using resources and capabilities in order to increase an organization’s ability tocreate value and improve returns to its stakeholders. An organization in declinemay need to restructure its resources to improve its fit with the environment.IBM and General Motors, for example, experienced falling demand for theirproducts in the 1990s and have been searching for new ways to use theirresources to improve their performance and attract customers back. On the other
 
 MBA –H4010 Organisational Development And Change
3hand, even a thriving organization may need to change the way it uses itsresources so that it can develop new products or find new markets for itsexisting products. Wal-Mart, Target, Blockbuster Video, and Toys “” Us, forexample, have been moving aggressively to expand their scale of operations andopen new stores to take advantage of the popularity of their products. In the lastdecade, over half of all Fortune 500 companies have undergone majororganizational changes to allow them to increase their ability to create value.Change may be regarded as one of the few constants of recorded history.Often society’s “winners”, both historical and contemporary, can becharacterized by the common ability to effectively manager and exploit changesituations. Individuals, societies, nations and enterprises who have at some timebeen at the forefront of commercial and/or technological expansion haveachieved domination, or at least ‘competitive’ advantage, by being innovative inthought and/or action. They have been both enterprising and entrepreneurial. Itis said that management and change are synonymous; it is impossible toundertake a journey, for in many respects that is what change is, without firstaddressing the purpose of the trip, the route you wish to travel and with whom.Managing change is about handling the complexities of travel. It is aboutevaluating, planning and implementing operational, tactical and strategic‘journeys’ – about always ensuring that the journey is worthwhile and thedestination is relevant. The Industrial Revolution, which developed in Europebetween 1750 and 1880, accelerated the rate of change to an extent neverpreviously thought possible. Other economies followed and the rate of changehas never declined; indeed, many would claim it has now accelerated out of control. The spear and sword gave way to the gun; the scribe to the printingpress; manpower to the steam engine of James Watt; the horse and cart to thecombustion engine; the typewriter to the word processor; and so the list goes on.

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