Management is a universal phenomenon. It is a very popular and widely used term.

All organizations - business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. According to Harold Koontz, Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals. According to F.W. Taylor, Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way. Management is a purposive activity. It is something that directs group efforts towards the attainment of certain pre determined goals. It is the process of working with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. Of course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may be launching of new products by conducting market surveys and for other it may be profit maximization by minimizing cost. Management involves creating an internal environment: - It is the management which puts into use the various factors of production. Therefore, it is the responsibility of management to create such conditions which are conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules & regulations etc. Therefore, we can say that good management includes both being effective and efficient. Being effective means doing the appropriate task i.e, fitting the square pegs in square holes and round pegs in round holes. Being efficient means doing the task correctly, at least possible cost with minimum wastage of resources. Management can be defined in detail in following categories : 1.Management as a Process 2.Management as an Activity 3.Management as a Discipline 4.Management as a Group 5.Management as a Science 6.Management as an Art 7.Management as a Profession

1.It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of predetermined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals. 2.Optimum Utilization of Resources - Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources. 3.Reduces Costs - It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction. 4.Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone. 5.Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization. 6.Essentials for Prosperity of Society - Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.

What is Organizational Change? Organization Development (OD) is a planned process of change in an organizations culture through the utilization of behavioral science technology, research, and theory. OD refers to a long-range effort to improve an organizations problem-solving capabilities and its ability to cope with changes in its external environment with the help of external or internal behavioral-scientist consultants. OD is an effort (1) planned, (2) organization-wide, and (3) managed from the top, to (4) increase organization effectiveness and health through (5) planned interventions in the organizations processes, using behavioral science knowledge. a systemwide application and transfer of behavioral science knowledge to the planned development, improvement, and reinforcement of the strategies, structures, and processes that lead to organization effectiveness. It is generally considered to be an organization-wide change, as opposed to smaller changes such as adding a new person. (See first slide of this section for examples) It includes the management of changes to the organizational culture, business processes, physical environment, job design / responsibilities, staff skills / knowledge and policies / procedures. When the change is fundamental and radical, one might call it organizational transformation.

The Nature of Organizational Development OD is a lifelong, built-in mechanism to improve immunity of organization's health to renew itself, often with the assistance of a "change agent" or "catalyst" and the use of enabling appropriate theories and techniques from applied behavioral sciences, anthropology, sociology, and phenomenology. More importantly, the terms "change agent" or "catalyst" are synonymous with the notion of a leader who is engaged in leadership a transformative or effectiveness process as opposed to management, a more incremental or efficiency-based change methodology. Although behavioral science has provided the basic foundation for the study and practice of OD, new and emerging fields of study have made their presence felt. Experts in systems thinking and organizational learning, mind maps, body mind synchronicity, structure of intuition in decision making, and coaching (to name a few) have emerged as OD catalysts. These emergent perspectives see the organization as the holistic interplay of a number of systems that impact the process and outputs of the entire organization. Nature of Organizational Change The organization change takes place because of internal and external forces. The internal forces may create instant change, whereas the external forces may results in the gradual change. The effect of change in any one part of the organization creates about the fundamental change in the entire organization. 3. The effect of change on various parts takes place in varying degree and rates. 4. The means the effect of change will not be similar in every part of an organization.

Factors in Organizational Change Efforts by employees to block the intended change is referred to as Resistance to Change.

Resistance to Change has been defined as Resistance is a natural and inevitable reaction in an organization. You can expect it Resistance is sometimes hidden, so it may be necessary to take active steps to find it There are many reasons for resistance; it is important to understand it We manage resistance by working with people, and helping them deal with their concerns There are many ways to build acceptance. It is important to be flexible. But persist! The key to successful management of organizational change lies in the people. They are the agents for successful transformation of the organization. They determine the Return on Investment from this process So lets have a look at where Resistance to Change comes from and how to best manage it Resistance to Change Why people resist change: Resistance to change can be a defense mechanism caused by frustration and anxiety Individuals may not be resisting the change as much as they are resisting a potential loss of status, pay, comfort, or power that arises from expertise In many case there is not a disagreement with the benefits of the new process, but rather a fear of the unknown future and about their ability to adapt to it, e.g. fear that one will not be able to develop new skills and behaviors that are required in a new work setting

Why people resist change: There may be resentment in disgruntled employees due to a perceived unfairness of the change. This can be strong enough to lead to sabotage. Some employees may see the change as a violation of "personal compacts" management has with their employees. This can involve elements of mutual trust, loyalty and commitment and go very deep An employee may have a competing commitment that is incompatible with the desired change An employee may be operating on the basis of a desire to protect what they feel is the best interests of the organization An employee may provoke insightful and well-intended debate, criticism, or disagreement in order to produce better understanding as well as additional options and solutions.

Factors That May Cause Change in an Organization

Change is inevitable in the life of an organisation. In todays business world, most of the organisations are facing a dynamic and changing business environment. They should either change or die, there is no third alternative. Organizations that learn and cope with change will thrive and flourish and others who fail to do so will be wiped out. The major forces which make the changes not only desirable but inevitable are technological, economic, political, social, legal, international and labour market environments. In very simple words, we can say that change means the alteration of status quo or making things different. The term change refers to any alterations which occurs in the overall work environment of an organisation. When an organizational system is disturbed by some internal or external force, change frequently occurs. Change, as a process, is simply modification of the structure or process of a system. It may be good or bad, the concept is descriptive only. There are a number of factors both internal and external which affect organizational functioning. Any change in these factors necessitates changes in an organisation. The more important factors are as follows: External Forces Every organization exists in some context; no organization is an island in itself. Each must continually interact with other organizations and individuals- the consumers, suppliers, unions, shareholders, government and many more. Each organization has goals and responsibilities related to each other in the environment. The present day environment is dynamic and will continue to be dynamic. Changes in social, political, economic, technology, and legal environment force organizations to change themselves. Such changes may result in organizational changes like major functions production process, labour-management relations, nature of competitions, economic constraints, organizational methods etc. In order to survive in the changing environment, organization must change. How the change in various environmental, organizations, must change. How the changes in various environmental factors necessitate change in the organization may be seen in following context:-

Competition: The entrance of a new competitor into a market can cause a business to change its marketing strategy. For example, a small electronics store that was the only game in town might have to change its image in the marketplace when a large chain store opens nearby. While the smaller store might not be able to compete in price, it can use advertising to position itself as the friendly, service-oriented local alternative.
Technology: When there is a change in technology in the organizational environment and other organizations adopt the new technology, the organizations under focus become less cost effective and its competitive position weakens. Therefore, it has to adopt new technology, its work structure is affected and a new equilibrium has to be established. Marketing conditions: Since every organization exports its outputs to the environment, an organization has to face competition in the market. There may be two types of forces which may affect the competitive position of an organization other organizations supplying the same products and, buyers who are not buying the product. Any changes in these forces may require suitable changes in the in the organization. For example, when Indian economy was liberalized, there were many foreign organizations that entered the Indian market. This forced many Indian organizations to realign themselves with the new situations. The result in that there have been many cases of divesting the business and concentrating on the core business, acquiring core business, and developing competitive competence to face competitive threats. Similarly, there may be changes in buyers in terms of their needs, liking disliking and income disposal for a product. These changes from the organizations to bring those products which meet buyers requirement.

Social changes: Social changes reflect in terms of peoples aspirations, the needs, and their ways of working. Social changes have taken place because of the several forces like level of education, urbanization, feeling of autonomy, and international impact due to new information sources. These social changes affect the behavior of people in the organization. There, it is required to make adjustment in its working so that it matches with people. Political and legal changes: Political and legal factors broadly define the activities which an oganisation can undertake and the methods which will be followed by it in accomplishing those activities. Any changes in these political and legal factors may affect the organization operation. Internal Forces It is not only the changes in external factors, which may necessitate organizational changes; any change in organizations internal factors may also necessitate changes. Such a change is required because of two reasons: changes in managerial personnel and deficiency in existing organizational practices. Changes in the managerial personnel: Besides environmental changes there is a change in managerial personnel. Old managers are replaced by new mangers, which necessitated because of retirement, promotion, transfer or dismissal. Each new manager brings his own ideas and way of working in the organization. The relationships, more in the organization. The relationships, more particularly informal ones, changes because of changes in managerial personnel. Moreover, attitude of the personnel change even though there is no changes in them. The result in that an organization has to change accordingly. Deficiency in Existing organization: Sometimes, changes are necessary because of deficiency in the present organizational arrangement ad process. These deficiencies may be in the form of unmanageable span of management, large number of managerial levels, lack in co-ordination between various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation between the line and staff, and so on. Beside these internal factors, there are two more internal factors that give rise to organizational changes. Nature of the work force: The nature of work force has changed over a passage of time. Different work values have been expressed by different generations. Workers who are in the age group of 50 plus value loyalty to their employers. Workers in their mid thirties to forties are loyal to themselves only. The youngest generation of workers is loyal to their career. The profile of the workforce is also changing fast. The new generation of workers has better educational; they place greater emphasis on human values and questions authority of managers. Their behavior has also become very complex and leading them towards organizational goals is a challenge for the managers. The employee turnover is also very high which again put strain on the management. To avoid developing inertia: In many cases, organizational changes take place just to avoid developing inertia or inflexibility. Conscious manager take into account this view of organization that organization should be dynamic because any single method is not the best tool of management every time. Thus, changes are incorporated so that the personnel develop liking for change and there is no unnecessary resistance when major change in the organization are brought about.

Steps in Planned Change

Once managers and an organization commit to planned change, they need to create a logical step-by step approach in order to accomplish the objectives. Planned change requires managers to follow an eight-step process for successful implementation.

Recognize the need for change. Recognition of the need for change may occur at the top management level or in peripheral parts of the organization. The change may be due to either internal or external forces. Develop the goals of the change. Remember that before any action is taken, it is necessary to determine why the change is necessary. Both problems and opportunities must be evaluated. Then it is important to define the needed changes in terms of products, technology, structure, and culture. Select a change agent. The change agent is the person who takes leadership responsibility to implement planned change. The change agent must be alert to things that need revamping, open to good ideas, and supportive of the implementation of those ideas into actual practice. Diagnose the current climate. In this step, the change agent sets about gathering data about the climate of the organization in order to help employees prepare for change. Preparing people for change requires direct and forceful feedback about the negatives of the present situation, as compared to the desired future state, and sensitizing people to the forces of change that exist in their environment. Select an implementation method. This step requires a decision on the best way to bring about the change. Managers can make themselves more sensitive to pressures for change by using networks of people and organizations with different perspectives and views, visiting other organizations exposed to new ideas, and using external standards of performance, such as competitor's progress.

 Develop a plan. This step involves actually putting together the plan, or the what information. This phase also determines the when, where, and how of the plan. The plan is like a road map. It notes specific events and activities that must be timed and integrated to produce the change. It also delegates responsibility for each of the goals and objectives. Implement the plan. After all the questions have been answered, the plan is put into operation. Once a change has begun, initial excitement can dissipate in the face of everyday problems. Managers can maintain the momentum for change by providing resources, developing new competencies and skills, reinforcing new behaviors, and building a support system for those initiating the change.

The Human Element in Organizational Change The Importance of the Human Element Most projects designed to change the organization are initiated with minimal attention given to the human aspects of change and to the resistance which generally occurs during the actual implementation. Administrators display little understanding about the critical role that the human element plays in influencing the orderly transition phase of a change effort. Typically, they focused on the operational and technical aspects of accomplishing change within their institutions. Focusing on fulfilling traditional administrative functions, they use the common management approach of tell and sell to implementing change (Fossum, 1989, p. 3). When confronted with the uncertainty caused by change, most people attempt to maintain a sense of control over their lives. This sense of control is created when people feel they understand their environment and can adapt to it as changes occur. This understanding derives from an individual's frame of reference (or perceptual schema of reality) that allows one to interpret and understand what is occurring in the present and what to expect in the future. When change disturbs an individual's pattern of expectations of the future, uncertainty increases and disrupts the individual's sense of control. If the change is minor (one which does not significantly threaten expectations) the individual makes psychological adjustments to his or her expectations and adapts to the change. If the change is major (one which causes old expectations to become invalid) individuals react with feelings of uncertainty, disorientation, confusion, and loss of equilibrium. These feelings result from inconsistencies between what was expected and what is perceived. Individuals no longer know what to expect from themselves or others. Major change in an organization that results in a disruption of expectations of its members always causes a level of crisis. Human beings, and consequently their organizations, exhibit certain limits to the amount of change that they can assimilate over a given period of time. Beyond these limits, individuals can no longer effectively adapt to change within their organization. Healthy coping behaviors are replaced with dysfunctional behaviors (e.g., increased anxiety, confusion, miscommunication, low morale, defensiveness, and territoriality) that prevent the adoption of the new behaviors required by the change. To avoid these symptoms, administrators responsible for the implementation of major organizational change need to know what impact change efforts will have on those individuals or groups who need to alter their knowledge, skills, attitudes, and behavior to accommodate the change. The Psychological Nature of Change Human beings experience change when they are faced with a situation that they perceive is beyond their current capabilities. To deal with the situations they normally encountered, human beings have to believe that they have the capability to deal with it. The capability of individuals to deal with change consists of not only having the ability to deal with the change, but also the willingness to apply that ability while understanding both the risk and opportunity the change poses. Most individuals develop the abilities and willingness to use them in solving the challenges they have previously encountered successfully. They do not see these challenges as representing any significant change in their lives because they are usually able to accurately predict what the outcome of a situation will be. Their expectations of the outcome are upset, however, when they encounter a challenge that they perceive as beyond their capabilities. The resulting disruption in the balance between their perception of their capabilities and the demands of the challenge encountered represents the discomfort posed by change. An individuals perception of a change situation determines whether resistance will occur. The same situation can be perceived as a positive change by one person and a negative change by another. The perception of whether individuals perceive a change as positive or negative depends not only on the difference in how people perceive the nature of eventual outcome of the change, but also the degree of influence and control people believe they have in determining the outcome. Persons are more comfortable with change when they not only possess the ability and willingness to change, but also from the degree they feel able to predict and control it. Individuals perceive change as negative when they are unable to anticipate it, dislike its implications and feel inadequately prepared for its effects. Where once they experienced emotional equilibrium because they had some control of the situation, they now experience the anxiety because they are unable to predict and feel they have no, or little, control over a situation they

perceive as chaotic. Thus, it is not the magnitude of change, but the degree to which ones expectations are met and the ability to predict the outcome that determines peoples perception and emotional response to change. Change is considered minor when it does not significantly disrupt what people anticipate will happen. In such circumstances, they simply adapt to the change by making minor adjustment in their expectations and readily lose any feelings of minor stress that initially appear. When a change is major, however, peoples expectations are no longer valid and they believe they have lost control over some important aspect of their lives. A feeling of being in their comfort zone disappears to be replaced by their experiencing confusion, anxiety, fear, anger and a loss of emotional equilibrium. Before planning (or even contemplating) an organizational change project, change sponsors and agents should try to systematically anticipate participants perceptions and identify who might resist the change and why. Some common categories of reasons people resist change are: A desire not to lose something of value Misunderstanding of the change and its implications Belief that the change doesnt make sense for the organization A low tolerance for change

The Emotional Response of Change. Persons leading a change effort need to understand what to expect at the emotional level of the change experience and the psychological phases people must go through to adapt successfully to changes affecting their work patterns. Emotional responses of participants typically accompany major institutional change and affect acceptance of that change. These responses develop as the emotional cycle of change that consists of predictable phases (Kelley and Conner, 1980). Understanding the emotional cycle process allows individuals leading the change project to interpret and deal with current behavior of those affected by the change and to help them to develop more realistic expectations of the change's outcome. When these phases are ignored or not taken seriously, resistance to change usually increases. Change projects are not likely to be successful when participants only understand what to expect in terms of the project's goals and rewards. It is also important to prepare those affected by the change for any emotional shifts that might occur in themselves or others because of the project. During the change process, the emotional responses of change participants shift from feelings and attitudes of the certainty of success in the early stages to satisfaction at the project's completion. When an individual becomes voluntarily involved in the significant change activity or project, the level of positive feeling (optimism) concerning that venture is often directly related to the person's expectations of what will be involved. Although individuals may become pessimistic about their ability or willingness to accomplish the task, the more they learn about what is involved in the project the more likely they are to eventually come to accept and support it. Positive response to change - As persons make the transition from the state of unfreezing to the state of refreezing, persons who have a positive response to the change typically go through the following five emotional phases shown in Figure 3. Uninformed optimism. At the beginning of a change project, there is frequently a "honeymoon period." Hopes and optimism are high among the individuals involved. It appears that all the major obstacles have been identified and planned for. Feelings are running high and morale is at a peak. Informed pessimism. When the change project has developed further, problems increasingly surface. Few solutions are apparent or available. The project may seem unattainable or unrealistic. Morale drops, and people ask themselves why they ever got involved or thought they could accomplish the change project in the first place.

Hopeful realism. Participants in change usually begin to perceive the project differently in this phase, and pessimism declines. They begin to feel a sense of realistic hope based on solid reality testing and develop a new confidence in their capability to handle whatever new problems may surface. Informed optimism. During this phase, optimism continues to develop, based on the growing confidence in self and project. Typically there is a fresh burst of energy linked to overcoming problems and uncertainty and sensing that completion is near. Rewarding completion. Once a successful change has been made, the experience processed, and the project formally closed, participants experience a sense of satisfaction. Negative response to change - Persons who have a negative response to the change experience a different cycle of eight emotional phase.

Change agent:
a person responsible for managing a change effort Assists management with problem recognition/definition Can be involved in generating/evaluating potential action plans Can be from inside or outside of the organization Implements the change Measures, evaluates, controls the desired results