BRAC University

BRAC Business School

HRM 660-1
Management of Organizational Change
and Sustainability
Lecture four
Today’s lecture outline

Types of change
 Types of change
1.Happened change
Unpredictable & takes place naturally due to external
factors;
Out of direct control & produces a future state that is
largely unknown;
Occurs when an organization reaches a plateau in its
life-cycle & falls prey to unwieldy (huge/heavy)
demands from the environment;
…currency devaluation…political & social changes
(Zimbabwe, Egypt, Libya, India, Venezuela
[hyperinflation],…;
94% of Venezuelans lived in poverty, &
by 2021 almost twenty percent of
Venezuelans (5.4 million) had left their
country. In 2019, 25% of Venezuelans
need some form of humanitarian
assistance (UN report, March 2019).
Prolonged economic crisis in Venezuela has led to dollarization
 Types of change
2. Reactive change
Changes that are clearly in response to an
event or a series of events;
Made in response to external changes
Companies are engaged in reactive, often
incremental change;
Such as forcing organizations to invest in
modern technologies;
 Types of change…
3. Anticipatory change
 Change carried out in expectation of an event
or a series of events;
 Organizations, may tune in or reorient
themselves to future demands;
 Changing the organization from the existing
state towards a designed future state, &
managing the transition process;
 Types of change…
4. Planned/Developmental change
 Undertaken to improve upon the current way(s) of
operating;
 Calculated change, initiated to achieve a certain
desirable output/performance & to make the
organization more responsive to internal &
external demands;
 Such as enhancing employees’ communication
skills & technical expertise, changing the
incentive system;
 Types of change…
5. Incremental change
Changes directed at the micro level & focused
on units/subunits/components within an
organization;
Changes are brought in gradually & are
unusually adaptive in nature;
An opportunity to learn from its own
experiences;
Cause less damage to the total system;
 Types of change…
6. Operational change
This is necessitated when an organization
needs to improve the quality of its products or
services due to external competition,
customers’ changing requirements &
demands, or internal organizational dynamics;
 Such as reengineering the work processes,
better distribution & delivery of products,
enhancing interdepartmental coordination
[platform business];
 Types of change…
7. Strategic change
Change that is addressed to the
organization as a whole or most of the
organization’s components;
Affect the entire organization & will
influence its performance;
Such as…a change in the organization’s
management style;
 Types of change…
8. Directional change
A change in direction may become
imperative for an organization due to severe
competition or regulatory shifts in
government policy & control, Such as…
pricing, import/export restrictions…MNP in
BD [mobile number portability]);
 …is critical when the organization is
developing a new strategy or incapable of
executing effectively its current strategy;
 Types of change…
9. Fundamental change
A redefinition of the current purpose or
mission of the organization;
Necessitated by drastic changes in the
business environment, the failure of the
current corporate leadership, problems
with employee morale, or a low turnover
 Types of change…
10. Total change
The organization is constrained to develop a
new vision, & a strong link between its
strategy, employees & business performance
The organization has to achieve a
turnaround/change or perish;
A new vision & drastic surgery could be the
only way out for the organization;
 Types of change…
11. Transformational change
Involves the entire or greater part of the organization;
A change in the shape (size & complexity) structure
(ownership), or nature (culture, technology) of the
organization;
A change in what drives the organization;
Takes time to occur & will not happen unless people are
uncomfortable in the current state & think & feel change is
a must ;
 Conditions...
o The experience or anticipation of a severe threat to
survival;
o Inadequacy in current organizational strategy, design &
functions to meet external threats;
 Types of change…
12. Revolutionary change
Abrupt changes in organizational strategy & design
represent revolutionary change;
 Such change comprises 3Es…
a) Envisioning…to articulate a clear & credible vision & a
new strategy to realize the vision;
b) Energizing…mobilizing the employees, individually &
collectively, as well as demonstrating & inculcating the
excitement for change;
c) Enabling…is to provide the necessary resources,
support structures & processes…such as appropriate
information systems, suitable changes in administrative
policy & procedures…;
 Types of change…
13. Recreation
A significant or drastic change in an organization’s
strategy, design, or a radical departure from its
current practices to achieve a total transformation;
Tearing down the old structure & rebuilding a
new one;
Becoming not just better, but different;
The retooling of an organization’s core
competencies which include its design, structure,
functions & people skills [new GM…GMC];
Organisational Organisation Transformational Revolutionary Change
Level Change Example Change
Individual Recruitment, Operational: place Strategic: place people in
selection, people in positions positions that are key to
replacement. as a consequence of the overall change
changes that are effort.
underway.
Training and Facilitate targeted Facilitate large-scale
development. change (i.e. people culture change.
management skills).
Group Team-building. Conduct team- Conduct team-building
building activities with the top executive
throughout the group initially to model
Organisation. behavior desired for an
overall change effort.
Organisation Change focus. Systems, work unit Purpose, mission,
climate, motivation, strategy, leadership.
performance
management.
Types of change Nature
Directional change Occurs under conditions of severe competition,
regulatory shifts in government policy, & unsuccessful
business strategy.
Fundamental Redefinition of current purpose or mission.
change
Operational change Improvement of quality, quantity, timeliness, and unit
cost of operations in developing products/services.
Total change Developing a new vision, achieving a turnaround. A
drastic surgery of the existing system.
Planned change An operational change on a calculated basis as a
response to internal & external demands, e.g.,
downsizing.
Happened change Unpredictable. Occurs due to external causes over which
one may have no control. Has a profound/traumatic
effect on the organization.
Revolutionary Abrupt changes in the organization’s strategy & design.
change
Types of change Nature
Recreation Tearing down the old structure & building a new one. A
metamorphosis-becoming not just better, but different.

Strategic change Change of all or most of the organization’s components.

Anticipatory Changes carried out in expectation of an event. In

change anticipation of such change, the organization may tune in
(incremental change) or reorient itself.
Reactive change Response to an event or series of events. Adaptive
changes are limited to a subsystem or part of the
subsystem. Recreation can also be reactive but involves
the whole organization.
Transformational Change involves the entire or a greater part of the
change organization due to a severe threat to its survival. The
threat may occur from industrial discontinuities, shifts in a
product’s life cycle, or internal changes. Change occurs in
what drives the organization.