ORGANISATIONAL CHANGE

Change is an important and an indispensable part of the organizational life. It is all

pervasive. Organizational change refers to a modification or transformation of the organization's
Structure , processes or goods. Every organization must be open to change in all areas, including
the structure of the organization itself.

TYPES OF CHANGES

A. Change can be planned which means that it evolves slowly.In this case, the
organization and the management have enough time to prepare for change and
reorient themselves accordingly. This kind of change is adaptive which means
that firms have the opportunity to adapt themselves to the change.

B. Change can be unplanned which is rapid, sudden and uncertain. This is the
kind of change that is disruptive and often forces organizations to reorient
themselves without adequate notice and warning.

Consequences of Resistance to change:

(i)Positive consequences
 Resistance may force management to reexamine change proposals so that they are
appropriate.
 Resistance also pinpoints specific problem areas so that management can take corrective
action before problems become serious.
 It also encourages management to communicate change which in the long run ensures
acceptance of change.

(ii) Negative consequences

Change of greater magnitude introduced without gaining employee acceptance may lead to overt
consequence such as employee unrest leading to strike, gherao, sabotage, etc. Implicit reactions
to change may lead to alienation from the job i.e., tardiness, absenteeism and turnover.

Change Process
Kurt Lewin, the father of change process, stated three stages in initiating and establishing any
change unfreezing, changing and refreezing.

Unfreezing: It is a process of preparation for change through disconcontinuation of the old

practice, attitudes, or behaviours. This is the initial stage where change agents sense need for
something new and are impatient with status quo. Thus the system is to be unfrozen
from its complacency.
Changing (or moving): In this stage planned change is initiated and carried out. Change could
relate to any aspect of the organization.With the participation of members affected by change,
changes have to be carefully implemented.
Refreezing: This phase ensures that the planned change introduced is working satisfactorily and
there is a reasonable guarantee that the change will indeed fill the gap and bring the system to the
desired state of equilibrium. If the refreezing phase is neglected, the change swill not bring
desired result and may be even total disaster.

REASONS FOR CHANGES

There are different kinds of change that an organization might undertake or be forced to
undertake because of internal and external factors.

The internal factors for change include reorganization and restructuring to meet the
challenges of the future and also to act proactively to initiate change as a means of
staying ahead of the competition.

The external factors include change that is forced upon the organization because of
falling revenues, changing market conditions and the need to adapt to the ever
changing business landscape.

EXTERNAL FORCES OF CHANGE

Technological Change: Rapid technological innovation is a major force for change in

organizations, and those who fail to keep pace can quickly fall behind.

Social and Political Changes:. Many new legal provisions in the corporate sector get introduced
every time that affects the organizations. The world politics now affects the business very easily.

Competition: Global competitors pose a serious threat inducing the companies to embrace
change.The mergers and acquisitions between the companies also acts as a strong force.

Ethical Behaviour: Employees face ethical dilemmas in their daily work lives. The need to
manage ethical behaviour has brought about several changes in organizations.

INTERNAL FORCES OF CHANGE

Changes in Managerial Personnel: One of the most frequent reasons for major changes in an
organization is the change of executives at the top. No two managers have the same styles, skills
or managerial philosophies.

Changes in Work Climate: Changes in the work climate at an organization can also stimulate
change. A workforce that seems lethargic, unmotivated, and dissatisfied is a symptom that must
be addressed.

Deficiencies in the Existing System: Another internal pressure for organizational change is the
loopholes in the system like unmanageable spans of control, lack of coordination between
departments, non-cooperation between line and staff etc.

Crisis: A crisis may also stimulate change in an organization. Strikes or walkouts may lead
management to change the wage structure.