Organizational Change

Prof. Mohd. Ashraf Ali

INTRODUCTION
Change is the law of nature
 Man has to encounter change throughout his life
 He has to mould himself continuously to meet new
demands and face new situations
Hence, he has to adopt all changes whether positive or
negative to have longitivity in his life
 Likewise social organizations also experience the
change
Cont
Therefore, mangers need to be skilled in ways to
respond to change to ensure the survival and success
of their organizations
 Organizations which fail to respond appropriately to
environmental changes go out of existence
 As long as the organizations become adoptable to the
changes it will achieve its organic objectives, such as
longitivity, survival, growth and development
Cont
MEANING OF ORGANISATIONAL CHANGE
The term organizational change implies planned
alteration in the existing organizational system
 In other words, organizational change refers to any
alteration that occurs in total work environment
 Changes are made by an organization to achieve
something desirable, e.g. profitability, Employee
satisfaction, Social well-being etc
Cont
In organization many changes takes place such as alteration of
structural relationships, role of people in organizations, changes
in working conditions, changes in the environment (Both
external and internal etc.)
NATURE AND CHARACTRISTICS
Organizational change is planned change because it is a
conscious attempt to modify
Planned change may be of two types
 A change initiated by the organization is called proactive change
 On the other hand, changes implemented by an organization
due to pressure by external forces are known as reactive change
Cont
Organizational change disturbs the existing
equilibrium of the enterprise
 Change takes place in all organizations
An organization may be changed in several ways i.e. in
its structure, its technology, its people or in other
elements
The main objective of organizational change is to
achieve the objectives of the organization
Cont
REASONS FOR CHANGE
Technological or mechanical changes in Machines,
tools and equipments may bring change in the
organizations
Changes in business conditions such as change in the
quality of the product, change in the Marketing system
or practices, business cycles, change in industrial
Policy etc.
Change in the managerial personnel in the
organization may result in disequilibrium
Cont
If there is a change in formal organizational structure,
there will be a change in the formal relationship which
creates disequilibrium
Changes may also occur due to deficiencies in existing
organization
Change may occur because of change in informal
organization
Change may also occur due to change in methods and
procedures
Cont
WHY DO PEOPLE RESIST CHANGE
The reasons why changes are resisted by the people
may be analysed under two heads
a) Resistance by employees and
b) Resistance by employer or management
Causes of resistance to change by employees
Disturbance in existing equilibrium
Imbalance in Need Satisfaction
Insecurity to Jobs
Cont
Fear of Economic Loss
Change affects emotions and sentiments
Lack of clarification
Opposition only for the sake of opposition
Cause of Resistance to Change by Employers and
Management
 Problem of readjustment of equilibrium of situation and
environment
May resist accepting change proposed by Government and labour
union
 Introduced on experimental basis management or employer will
not favour such change
Cont
Overcoming Resistance to Change
An advanced explanation and consultation with the
employees
Free flow of information and communication
An advanced planning
 Introduced at proper time
 Convince about the need and utility of change
 Logical dimension, psychological dimension and
sociological dimension
Cont
Economic loss protected
 Training at employer’s cost
Seniority rights, opportunities for promotions safe
guarded
Grievance system should be framed
 Prevent unnecessary change to harass the workers
Management of Change
Identifying Need For Change
Define the Elements to be Changed
Cont
Planning the Change
Assessing Change Forces
Implementing the Change
Follow-Up and Feedback