Unit 7

organizational change and

development
Alterations in the operations of
organizations that are either planned or
unplanned and are a result of either internal
or external influences, Greenberg and Baron
Forces for change:
A. External forces
Economic force
Political and legal systems
Technology
Social
B. Internal forces:
Changes in organizational strategies
Pressures from unions
Changing attitudes of employees
towards work
 Paradigm shift and Areas of organizational change:
The term paradigm shift has found uses in many
contexts, representing the notion of a major change
in a certain thought-pattern-a radical change in
personal beliefs, complex systems or organizations,
replacing the former way of thinking or organizing
with a different way of thinking or organizing.
The change process affects the companys structure,
technology, business process and human behaviour.
Thus, to introduce change in organization managers
have to concentrate in these four areas. The given
discussion focuses on the main areas of
organizational change:
Structure
Technology
People
Business process
 Managing planned change
Internal planned change
Changes in products and services
Changes in administrative system
Changes in organizational size and
structure
External planned change
Introduction of new technology
Advances in information processing and
communication
 Resistance to organizational change
Individual resistance
Perception
Personality
Habit
Threat to power and influence
Fear of the unknown
Economic reasons
Organizational resistance
Organization design
Organizational culture
Resource limitation
Fixed investments
Inter-organizational agreements
 Reducing resistance to organizational
change
Communication
Training
Employee involvement
Stress management
Negotiation
Coercion
 Organizational development
According to Fisher, Planned, systematic
process of organizational change based on
behavioral science research and theory.
Characteristic of organizational
development:
OD is interdisciplinary
OD seeks to create self-directed change
OD is organization-wide change effort
OD places emphasis on solving immediate and
future problems
OD places emphasis on scientific approaches
Dual emphasis
OD places emphasis on performance
 Objectives of OD
To make system-wide structural change
To redesign task and technology
To change group and individual attitudes
OD process
Initial diagnosis
Data collection
Feedback and confrontation
Planning and problem-solving
Team building
Intergroup development
Follow-up and evaluation