Change Management

Introduction

Week-1
 Overview

• What is Change?
• Definition of Change Management.
• What is organization?
• System View of Organization.
• Elements/components of an organization?
What is Organizational Change?

Any
alteration/variation/adjustment/adaptation
in the
process, structure, technology, strategy or culture (people’s
attitude, behavior etc.)
to
respond and adopt to environmental changes.
 Change Management
• “A systematic activity to prepare an organization for and implement ongoing
environmental changes in a business operations”.
• “Change management refers to the process by which an organization move from
existing state to some desired state to increase their efficiency and effectiveness”.
• Efficiency: refers to getting the most output from the least amount of inputs.
Because managers deal with scarce resources (people, money, and equipment)—
they’re concerned with the efficient use of those resources.
• It’s often referred to as “doing things right”—that is, not wasting resources.
• Effectiveness: Attainment of organizational goals
• doing those work activities that will help the organization reach its goals. It is
often described as “doing the right things”.
• Through change management an organization respond and adopt to internal and
external environmental forces/changes.
 What is organization?
• Individuals and groups interact within a formal structure. Structure is
created by management to establish relationships between individuals and
groups, to provide order and systems and to direct efforts to carry out goal
seeking activities.(Mullins, 2005, p. 32)
• An organization consists of people trying to influence others to achieve
certain objectives that create wealth or well-being through a variety of
processes, technologies, structures and cultures. (wps.prenhall.com, 2004)
• A social arrangement for achieving controlled performance in pursuit of
collective goals. (Buchanan and Huczynski, 2004, p. 5)
• A group of people brought together for the purpose of achieving certain
objectives. As the basic unit of an organization is the role rather than the
person in it the organization is maintained in existence, sometimes over a
long period of time, despite many changes of members. (Statt, 1991, p. 102)
What is organization?....
• Common themes– people interacting in some kind of structured or
organized way to achieve some defined purpose or goal.
• The interactions of people, as members of an organization, need some kind
of managing, that is there will be elements of coordination and control of
these activities.
• In organizations with more than ten or so people this implies some kind of
structuring of their activities that picks up the idea of organizational roles
mentioned in Statt’s definition.
• In addition, the activities of individual organizational members and their
interactions with one another imply a process through which work gets done
in order to achieve the organization’s purposes or goals.
• Above all, there is the requirement for decision taking about the
processes/resources (the means) by which the goals (the ends) are achieved.
 System View of Organization
• In 1938, Chester Barnard, a telephone company executive, first wrote in his book, The Functions of
an Executive, that an organization functioned as a system.
• A system is a set of interrelated and interdependent parts arranged in a manner that produces a
unified whole.
• The two basic types of systems are closed and open.
• Closed systems are not influenced by and do not interact with their environment.
• Open systems are influenced by and do interact with their environment.
• All organizations receive inputs from their environments and provide outputs back into that
environment.
• Today, when we describe organizations as systems, we mean open systems.
• The boundaries of organizational systems are, therefore, permeable.
• This means that organizations are significantly influenced in their strategies and activities by both
historical and contemporary environmental demands, opportunities and constraints.
Elements/Components of Organization
Elements/Components of Organization…
• Two main subsystems in organization– the formal and informal subsystem.
• Formal subsystem: the tangible or visible aspects/elements of organization.
Include: organization’s strategy, organization’s goals, operational activities (such
as the production of goods or provision of services), service component (set of
activities which help and facilitate the core operational activities to happen.
Examples are the personnel departments, accounting and finance, information
technology services and clerical and administrative support), Management and
organizational structure.

• Informal subsystem: the ‘shadow system’ that describe less predictable and
intangible aspects of organizational life.
• the more hidden elements of organizational.
• culture, politics and leadership
 Elements/Components of Organization….
• These subsystems interact with each other in some kind of transformation
process.
• This means taking inputs such as materials and other resources from the
organization’s environment and transforming them into outputs, which are
received back into the environment by customers and clients.
• However, while these outputs can be thought of as the legitimate reason for
the organization’s existence, an output that is relevant, in particular, to the
informal subsystem is employees’ behaviour and their satisfaction with their
jobs.
• This is reinforced by Storey, Edwards and Sisson’s (1997, p. 1) statement that:
‘Given that technology and finance are increasingly internationally mobile and
that innovations can be copied rapidly, it is the unique use of human
resources, which is especially critical to long-term organizational success.’
Processes in Organizations