ORGANIZATIONAL CHANGE

AND DEVELOPMENT
Class 1

LEARNING OBJECTIVES
In this chapter we will discuss few aspects of management of change in
organisations:
a. Meaning and importance of change in organisations.
b. Nature of change.
c. Types of change.
d. Environment factors or forces for organisation change.

MEANING AND IMPORTANCE

Any alteration or modification of status quo, which occurs in the overall
work environment of an organisation, is change.
Change is making things different.
Organisation change refers to alterations in structural relationships and
role of the people in it.

SOME VIEWS ABOUT CHANGE ARE:

The only thing constant and consistent
is a change.
Individuals and organisations have to
adapt to environment and must
change. Darwin

Internet (IT) is second industrial

revolution, which will have same
effect on companies as first
industrial revolution, except that it
will be over in two or three decades.
The changes that used to take place
in one or two decades will occur in
one or two years.

NATURE OF CHANGE CAN BE AS

UNDER:
Keith Davis has stated that lithe whole organisation tends to be
affected by change in any part.
Individual Change and Organisation Change:
Organisations introduce change through people, people learn to adapt their
attitude and are willing to meet changing environment.
Organisational change refers to process of growth, decline and transformation
within the organisation.

Organisation Change can be either through:

a. Behavioural approach through individuals and groups.
Changing the attitudes and behaviours of employees through processes of
communication, decision-making, problem-solving. Here focus is changing the
people work relationships (OD).

NATURE OF CHANGE CAN BE AS

UNDER:(CONTINUED)
b. Non-behavioural approach through:
Change in policies, structure, and
Technology, physical layout of work space.
Both kinds-behavioural and non-behavioural changes are interdependent.

Reactive Change or Proactive Change:

Reactive forces make it necessary and it is passive compliance to demands.
Proactive change means, particular change is desirable and initiated in a planned
manner. Planned change activities are intentional and goal oriented.

TYPES OF CHANGE
CONTINUOUS OR INCREMENTAL CHANGE OR GRADUAL SLOW CHANGE.
DISCONTINUOUS OR RADICAL CHANGE.
PARTICIPATIVE CHANGE.
DIRECTIVE CHANGE.
They further state that the first two types of change refer to overall nature of the change
process,
while the last two refer to the way in which the change process is brought about.
Knowledge of these types of change help the change agentto use appropriate strategies. How
to select right type of change approach.
A change programme will depend on theanalysis of the environment.
The specific changes which take place in the environment can be seen as opportunities or
threats such as change in organisation markets may grow, and organisation may need
revitalisation towards greater market orientation.

TYPE OF CHANGE(CONTINUED)
Type of change can be participative or consultative.
Other types of changes can be change by exception and paradigm change.
Organisational Growth and Organisational Transformation:
Organisational change refers to process of growth, decline and transformation within the
organisation.
The organisational growth differs from organisational transformation in the focus in the
organisation.
In case of growth, focus is more on the outside, i.e. markets, customers, segments, what
product/ market facilities to be set-up, joint ventures, certification, etc.

While in the case of transformation, the focus is more on the inside, i.e. cultural
issues are given more importance. For example, existing relationships, people,
systems, departmental positions, power structures, information sharing, etc.

LINDA ACKERMAN DISTINGUISHES BETWEEN

THREE TYPES OF
CHANGE.
The first type of change is development change.
This refers to improving what already exists in the organisation. This is the
same as convergence, incremental or evolutionary change.

The second type of change is transitional change.

which involves moving from the current state to a known new state
through a transition state. Restructuring, mergers, introduction of new
processes M technologies, systems and procedures are examples of
transitional change. In transitional change the organisation retains
some of its old aspects and adds on new ones.

LINDA ACKERMAN DISTINGUISHES BETWEEN

THREE TYPES OF
CHANGE.(CONTINUED)
The third type of change is called transformational change.
This type of change is a fundamental re-invention of the organisation by
changing its leadership, mission, culture, structure, strategy, human resource
practices and so on.
Transformational changes the fundamental image of business as seen by
customers and employees. Transformational focuses on creating mind share
more than market share.