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ORGANIZATION

CHANGE
TOPICS TO BE COVERED:
Meaning & Nature of Organization Change

Causes for Organization Change

Types of Organizational Change

Process of Organizational Change


ORGANIZATION CHANGE: MEANING &
NATURE
Meaning:

Planned alteration in the existing organizational system to achieve something desirable.

Nature of Change:

1. It is Planned Change.

2. It can be either Proactive or Reactive Change.

3. Disturbs existing equilibrium.

4. Takes place in all organizations.

5. Organizations change in several ways.

6. Objective of change is to help achieve organizational objectives in the best possible


manner.
CAUSES FOR ORGANIZATION CHANGE

EXTERNAL FORCES INTERNAL FORCES

Market Situation Deficiencies in the existing system

Technology Change in Managerial Personnel

Population Dynamics Other Changes

Political & Legal System


TYPES OF CHANGE

Strategic Responses
 Task Change

 Structural Change

 Technological Change

 People or Behavioral Change

Process Responses
Type of Strategic
Refers to Aims at
Responses

1. Task Change Task  job which varies in terms of Aims at changing the product or service of the organization in
autonomy, variety, task identity, the following ways:
feedback and significance. 1. By expanding the current business.
2. By diversifying business.
3. By merging with a firm in unrelated business.
4. By divesting/ outsourcing a segment to another party.

2. Structural Structure  number of hierarchical Aims at modifying structure by:


Change levels, span of control, ways in 1. Making organization more centralized or decentralized.
which parts are organized & related 2. Reallocating Authority
to one another. 3. Broadening / Narrowing span of control.
4. Adopting a new structure.

3. Technological Technology  refers to the Aims at improving the efficiency of machines and workers by
Change methods, techniques & processes changing:
used to convert input into outputs. 1. Man – Job Relations
2. Job – Job Relations
3. Man – Man Relations

4. People/ People  Refers to the individuals Man can be changed at 3 levels:


Behavioral Change that fill up & perform the jobs in the 1. Knowledge
organizations. 2. Behavior
3. Attitude
THE CHANGE PROCESS

Calm Waters Metaphor – proposed by Kurt Lewin


White-Water rapids metaphor
The Change Process
• The Calm Waters Metaphor
 Lewin’s description of the change process as a break
in the organization’s equilibrium state
 Unfreezing the status quo
 Changing to a new state
 Refreezing to make the change permanent

• White-Water Rapids Metaphor


 The lack of environmental stability and predictability
requires that managers and organizations continually
adapt (manage change actively) to survive.
PROCESS OF ORGANIZATIONAL CHANGE

Unfreezing Changing Refreezing

• Identify the • Individual • Reinforce the


need for Components new behavior
change • Group • Find ‘fits’
• Increase the Components between
driving force • Task organizationa
• Reduce the Components l
resisting • Structural components.
forces Components • Maintain ‘fit’
• Technology between
Components organizationa
l components
RESISTANCE TO
CHANGE
Individual Resistance: Organizational Resistance:

Fear of Economic Loss


Organizational Structure
Obsolescence of Skills
Resource Constraints
Status Quo

Fear of Unknown Threat to Power & Influence

Social Displacement
Sunk Costs
Peer Pressure
DEALING WITH
RESISTANCE TO CHANGE
KOTTER, 2008
Education & Communication

Participation

Facilitation & Support

Leadership

Incentives

Manipulation

Coercion

Group Dynamics
Kotter, 2008
Reducing Resistance to Change

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