ORGANIZATIONAL CHANGE

Shweta Nahar

What is Change?
Moving from an unsatisfactory present state to a desired state

Adapting to Change
Individuals, teams and organizations that recognize the inevitability of change, learn to adapt to it, and attempt to manage it, will be the most successful.

Management of change
Process by which organizations moves from their present state to some desired future state to increase their effectiveness.

ORGANIZATIONAL CHANGE
Organization change refers to process of growth, decline and transformation within the organization. Change is complex because it involves tension.

ORGANIZATIONAL CHANGE

GEs change acceleration process: E= QXA E stands for effectiveness of change Q stands for quality of the analysis A stands for acceptance for the change.

ORGANIZATIONAL CHANGE
Forms of Organizational change

may change their strategy or purpose. introduce new products or services or change the way they produce and sell. change their technology, enter new markets, close down dept or plants. acquire other organizations or become acquired by other organizations. Liberalization of economies leading to deregulation of industries and global competition.

Organizational change in India

Reached in India in 1991. Announcement of series of policy measures aimed at removing restriction and barriers to economic activities. Indian companies have transformed themselves and adopted a global mindset.

Planned Change
Results from deliberate attempts by managers to improve organizational operations.

Change factors

External factors
Technology Marketing

Internal Factors
Changes

conditions Social changes Political and legal changes

in the managerial personnel Deficiency in Existing organization Nature of the work force To avoid developing inertia

Unfreeze

Change

Three Phases of Planned Change

Refreeze

Unfreezing

Help people accept that change is needed because the existing situation is not adequate

Changing

Involves rearranging of current work norms and relationships to meet new needs

Refreezing

Reinforces the changes made so that the new ways of behaving become stabilized

Managing the Planned Change Process

Improving the organizations ability to cope with unplanned changes that are thrust upon it Modifying employees attitudes and behaviors to make them more effective contributors to the organizations goals

Initiating the Planned Change Process

Recognize the need for change Diagnose and plan change Formulate Goals Determine stakeholders needs Examine driving and restraining forces

Force-Field Analysis

Process of analyzing the forces that drive change and the forces that restrain it

Driving Forces

Factors that push toward the new, more desirable status quo

Restraining Forces

Factors that exert pressure to continue past behaviors or to resist new actions

Reasons for Resistance to Change

Selective Perception Lack of Information Fear of the Unknown Habit

Resentment Toward the Initiator Structural Stability

Overcoming Resistance to Change

Education and Communication Participation and Involvement Facilitation and Support Negotiation and Agreement Manipulation Coercion Promote Positive Attitudes Toward Change

Case-let
You run the IT department in an organisation. You are about to install some new software on everyones PC. The 1st part of our project, to develop the new software, was a great success. The work you have done so far is ahead of the schedule and below budget, so you are feeling very pleased. However, you are concerned because of the new software works in a very different way to previous versions and by installing it, you will be changing considerably the way people in the organisation have to work. Unless everyone understands and prepares for the new software in the correct way, the overall project will not be a success. You are not sure how to face this challenge.