TOPIC 1: CHANGES AS THE
BASIS OF ORGANIZATIONAL
DEVELOPMENT
Subtopic 1.1. THE NATURE
AND SOURCES OF CHANGES
IN THE ORGANIZATION
Date and time: February, 13th, 2022, 10:00
Location: Microsoft Teams
Lecture plan:
1. The essence, place and significance of
changes in the company's activity
2. The main components of organizational
excellence
3. Factors, directions and types of organizational
changes
Lecturer: Klavdiia Yatsyshyna
associate professor of Management department, Ph.D.
Head of local communities and authorities relations
Department of land and community relations
Ukrgasvydobuvannya JSC
1. The essence, place and significance of changes in the company's activity (1)

General objective preconditions for changes:

improvement of production and labor means;

growth in the scale of production concentration;
product improvement;
increase in the complexity of production processes;
the need for synchronization, coordination and integration of the activities
of enterprises from various industries;
emergence of management as a form of social practice;
emergence of need for knowledge about organization and management;
emergence of sciences about organization and management.

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1. The essence, place and significance of changes in the company's activity (2)

Specific objective preconditions for change:

growth of human needs;

social (human) needs for implementing changes;
revolutionary changes in production and tools of labor;
development of management practice;
increasing complexity of production and business processes;
the necessity of synchronization, coordination and integration of human
activity;
turbulent development of the external environment, including transformations
taking place in it, connected with globalization, informatization, demographic
changes.

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1. The essence, place and significance of changes in the company's activity (3)

Why are organizational changes difficult?

do not have sufficient clarity and predictability;

always take place through the nerve nodes of human interests, causing
either passionate support or resistance;
always require changes in existing behavior, habits, and relationships
between employees

Interpretation of the "change" concept today:

1. reorganization

2. rebuilding

3. transformation
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1. The essence, place and significance of changes in the company's activity (4)

PHILOSOPHICAL LEVEL OF CHANGE RESEARCH METHODOLOGY

the new cannot

be expressed in
the old form,
otherwise it
would not be
new
The philosophical paradox the new emerges
of the emergence of from the old forms
something new is a based on the
interaction of
theoretical reconciliation of varieties, thus it is a
2 propositions: synthesis of the
the new cannot
elements of the “old”
appear from the
old form,
otherwise it
would be
considered a
miracle 5
1. The essence, place and significance of changes in the company's activity (5)

Changes in the organization

means changes in how the organization functions, who its members and
leaders are, what form it takes and how exactly it uses resources.
(content!)

transformation of the organization between two points in time.

(process!)

the company's assimilation of new ideas or behavior patterns.

(combination of content and process components!)

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1. The essence, place and significance of changes in the company's activity (6)

The content of change is an empirical observation of the form, quality or state of any
organizational element over time;

The process of change is a sequence of events that would lead to a meaningful change
observed in the organization, that is, a set of reasons that caused the change and the processes
of making a decision about change, its detailed practice and implementation in the
organization.

ORGANIZATIONAL CHANGES will accompany such processes:

learning process;

adaptation to modern conditions that contribute to simultaneous external and

internal changes;

the need to change the way of thinking!

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 1. The essence, place and significance of changes in the company's activity (7)
Stages of organizational changes:
1st stage started after WWII;
most of the early work was focused on the process component of change, as well as on the most
effective methods of implementing change and overcoming personnel change;
for decades, the understanding of mental health according to "Kurt Lewin" (a social psychologist
who proposed in 1951 the three-stage scheme "unfreezing - change - freezing", which remains the
most widespread and optimal even today) dominated.

2nd stage from 1960 to the beginning of 1980 the theory of K.Levin dominates (the new theories only detail
the 3 phases proposed by the author), as well as his concept of overcoming resistance to change,
but most studies consider changes within the framework of the "Organizational Development"
approach.

3rd stage since the beginning of the 1990s, a new wave of organizational change research has appeared,
based on a comparative analysis of other exact sciences and attempts to improve research
tools. In the mid-1990s, the theory of organizational change received a second lease of life
thanks to the emergence of new theoretical models and approaches that have proven their
effectiveness in the practice of well-known companies. 8
1. The essence, place and significance of changes in the company's activity (8)

The desire to change is a manifestation of strength, even if internal changes lead to chaos

Recommendations:

It is pointless to be afraid of change.

Adapt your management style.
Inspire others to transform.
Do not wait, implement changes aggressively.
Challenge tradition.
Think about both close and distant changes.
Constantly reinvents its business.

9
2. The main components of organizational excellence (1)
ORGANIZATION is a group of people whose activities are
consciously coordinated to achieve a common goal or goals
General system model of the organization

Entrance to the Transformational Exits from the

organization process organization

 human resources fulfilling of

External environment

Planning needs

External environment
 material
resources
product
Controlling Organization
 financial
resources profits (losses)

 information Motivation
other results
resources

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 2. The main components of organizational excellence (2)

Characteristics of the organization

1. Any organization is an open system.

2. All organizations carry out horizontal and vertical division of labor.

3. The division of total work in the organization into its component parts is called horizontal
division of labor.
The result of the horizontal division of labor is the formation of separate divisions of the
organization (departments, shops, factories, sites, etc.). Since the work in the
organization is distributed among individual units and performers, someone has to
coordinate their activities.
As a result of this objectively, there is a need for the so-called vertical division of labor,
that is, for the separation of the activity of coordinating actions from the coordinated
actions themselves.

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2. The main components of organizational excellence (3)

Characteristics of the organization

4. All organizations have a structure (a set of units and connections between them, as
well as relationships between management levels and functional areas of activity),
which gives them integrity and the ability to realize their purpose.

5. The global goal of any organization is to achieve success. An organization is

considered successful when it achieves its goals.

Components of the organization's success:

development, which is achieved through the improvement of activity
and its results;
effectiveness and efficiency;

readiness and adaptation to changes.

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2. The main components of organizational excellence (4)

CHANGE MANAGEMENT
is a process that makes it possible for an organization to modify any part of its content in
order to function effectively in a constantly changing environment, to preserve the
integrity, completeness and quality of the functional load that identifies it in the production
environment.

in an organization is the ability to achieve set goals by using the work, intelligence, and
motivations of other people's behavior.

CHANGE MANAGEMENT is a set of works consisting of:

defining and implementing new values, relationships, norms, and behavior within the
organization that support new ways of doing work and overcome resistance to change;
reaching a consensus between consumers and stakeholders regarding certain changes
implemented to better meet their needs;
planning, testing and implementation of all aspects of the transition from one organizational
structure or business process to another. 13
2. The main components of organizational excellence (5)

Reasons for changes by organizations:

compliance with market demands,

increase in shareholder value,
mastering new ideas or models of behavior by the organization,
own new strategies implementation,
maintaining stability,
achieving balance,
continuity of economic growth and development and globalization.

14
2. The main components of organizational excellence (6)
Typical organizational changes:
bringing the characteristics of organizations into compliance with the requirements of laws, state
norms, and the position of social organizations;
development and implementation of complex programs and development plans, which involve
modernization of the organizational structure, redistribution of roles between managers, etc.;
transition to automated systems for controlling social and production processes, collecting and
processing information;
introduction (implementation) of science and technology achievements into production;
introduction of modern management tools, new means of work organization, which require new
skills and abilities (including delegating responsibility, organizing teamwork, etc.);
training employees to work in the conditions of a new organizational culture, collective
responsibility, loyalty in relation to the company.

The development of the organization is

a constant response to the need for changes under the influence of its main subsystems and
the external environment - by modifying its behavior (as a reaction to current events). 15
3. Factors, directions and types of organizational changes (1)

Factors of organizational changes:

External Internal

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3. Factors, directions and types of organizational changes (2)

External factors of changes in the organization

Economical
• Globalization of the economy and
increased competition
• Transition from a mass economy to a
knowledge-based economy
Technological
• New information technologies (electronic
systems, etc.)
• Integrated enterprise resource management
systems (for example, SAP, PeopleSoft, etc.)
• Knowledge management (knowledge-based
organizations, etc.)

Political
• Market deregulation
• Variability of controlling structures
Social
• Workforce diversity
• Changing traditions and social hierarchies
• Increasing independence and freedom of
choice in society

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3. Factors, directions and types of organizational changes (3)

Internal factors (factors):

Areas of organizational change:
Decisions of higher level managers Changing the organizational
For example, the decision of a microelectronics manufacturer to structure of management
conquer the domestic computer market or the decision to increase and design
sales volumes by 3% also lead to many organizational changes.
Change of production
technology and product
Change in socio-cultural values of employees
as a reflection of external factors
Changes in the field of
Internal factors are the internal impulses of the organization's personnel (skills and
development, manifestations of fresh views, ideas, and a caring knowledge of the
attitude. Employees' attitudes towards their work may also organization's employees,
change, as a result of which they will demand changes to work which give them the
schedules or working conditions. In this case, despite the fact that opportunity to acquire a
the factors are of external origin, the organization is faced with special competence
solving internal problems. characteristic only for them)
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 3. Factors, directions and types of organizational changes (4)

FORCES OF ORGANIZATIONAL CHANGES

Driving: political and economic stabilization in
society
urgent need for accelerated development
privatization of property
formation of a competitive environment
drop in demand and changes in its structure
new consumer needs
potential increase in investment attractiveness
powerful potential for professional growth
diffusion acceleration and doom unchanged
sufficient level of personnel qualification
Brakes: Insufficient legal protection of the institution of
ownership
Inadequate labor legislation
Inconsistent state policy in relation to business
Inconsistent protectionist policy of the state
Limited awareness of business owners
Lack of trust between owners and employees
Very slow development of partnership between
employers and staff
Authoritarianism as a dominant type of management
Lack of basic organizational resources
Insufficient level of professionalism of management
personnel
Backlog of information infrastructure
Low level of labor discipline, work culture and
work ethics 19