Management of Organizational Change

Puneet Gulati Ishita Dhingra Tanvi Jindal Gaurav Sareen

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people etc It implies a new equilibrium between different components of an organization  . Eg.changes in work schedules. machinery.Nature of Organizational Change Organization Change:  Change refers to an alteration in a system  Any substantive modification to some part of the organization.

Forces for change Forces for change External Factors Internal Factors .

External Factors Technological Changes Political and Legal changes External Factors Social Changes Changes in Marketing Conditions .

Internal Factors Internal Factors Change in Managerial Personnel Deficiency in existing Organization .

Organization which believe in traditional pattern of working often opt for reactive change. Reactive Change Planned Change  Reactive Change  Change that is designed and implemented in an orderly and timely fashion in anticipation of future events.Planned vs.    . Usually preferred over reactive changes A piecemeal response to circumstances as they develop. Proactive/conscious managers interact with their environment and identify new threats and opportunities. They introduce certain systems and methods when they are forced to.

Managing Change in Organization Process Of Change Unfreezing Individuals Implementing change Refreezing change .

Models of change process: 1. Lewin Model:  Behavior is the result of equilibrium between the driving and the restraining forces .

Planning for change implementation Actual Implementation Evaluation and follow up .2.Comprehensive Approach to change Recognizing need for change Establishment of goals for changes Diagnosis of relevant variables Selection of appropriate change tech.

3. Resistance at Individual Level:  Economic Factors  Psychological Factors  Social Factors Resistance at Group Level:  Feeling of Loss  Group dynamics Resistance at Organization Level:  Stability of system  Resource Limitations  Sunk cost  Counting Past Successes 2. .Understanding resistance to change 1.

Managing Resistance to change Efforts at Individual Level:  Involvement  Obtaining commitment  Leadership  Training and counseling Efforts at Group Level:  Participation  Group contact  Force-Field analysis .

Organization structure and design:    ‡ ‡ ‡ ‡ ‡ Organization change focused on the organization¶s overall design.Areas of organizational changes 1. Eg ± Changes in reporting structure Effected Area¶s: Job Design Departmentalization Authority distribution Culture Human resource management .

machinery Effected Area¶s: Work Processes Work sequences Information systems Control systems Equipments ‡ ‡ ‡ ‡ ‡ . Technology and operations:    Rapid change of technological innovation leads to increasing rate of technological changes Eg: Changes in equipments.2.

Changing People:    Changes to do with the human resources Eg: Changes in skill level of work force Effected Area¶s: Abilities and skills Performance Perceptions Expectations Attitudes Values ‡ ‡ ‡ ‡ ‡ ‡ .3.

Stages of Organizational change and growth Creativity Stage Direction Stage Delegation Stage Coordination Stage Collaboration Stage .

Organization Development Techniques    Planning and goal setting Team building Trainings Activities     OD for the individual OD for teams or groups OD for Inter-group relations OD for total Organization .

Innovation Innovation Process:    Generation of Ideas Idea Development Implementation of Idea Forms of Innovation:      Radical Innovation Incremental Innovation Technical Innovation Managerial Innovation Process innovation .

Case study Organizational Trauma and Triumph at .


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