Organisational Change
Organizational change occurs when an oganisation transforms its structure, strategies, methods,
culture and other elements to reorganize and restructure the organisation. It implies alternation of
structural relationship and role of people in an organization. In simple words organizational
change takes place when organisation makes a transition from its current position.
Features of change
It results from outside and inside forces.
A change in any one part of organisation effects the whole organization. For example any
change in production department will effect the finance department, marketing
department, personal department and other departments.
It effects all the parts in the organisation but at varying degree of significance and at
varying speed.
It may effects people, structure, technology, working process, work environment,
organisation policy and other elements of organisation.
Change is inevitable.
It is a continuous phenomenon. Oganisation has to manage it.
Why there is need for Change?
Change is an important characteristic of organization. An organisation must adapt with the
environment otherwise it is left behind. It is important for organisation to assess the dynamics of
external environment as well as internal environment. For better performance of employees,
employees should change by incorporating improved methods of work in their working style.
They require training and change in other work practices. Market conditions are also changing
very fast as the needs, desires and expectations of customers are changing frequently. Similarly
management also has to follow social norms due to spread of education in society. This requires
for change in earlier traditional methods and orthodox thinking of an organisation. In
organisation, technology is very crucial today and is changing very fast, so an organisation has to
adapt itself with new technology. Due to globalization no organisation can work in isolation. It
has to change according to global world. There are also some changes required due to some
emergency. For example due to Coronavirus, new way of online teaching is evolving in place of
class room teaching. Change is also done by change in management as new manager brings his
own ideas and way of working and prefers his own team. Change is also required to correct the
existing deficiencies of existing structure.
Forces that create need for change
Technology
Change in Managerial Personnel and workers
Market conditions
Change in existing structure
Social changes
Crises and emergency
Opportunity and threat
To meet performance gap between goals and achievements
Political, economic, legal environment
Globalization
Levels of Change
Individual Level Change: For example, change in job assignment, physical move to different
location, change in attitude and personality of person. Significant changes at individual level
have its repercussions on the group to which individual belongs and further to the organisation.
Group -Level Change: For example, change in work flow, work design, communication pattern.
Group has powerful influence on Individual. Informal group and formal group may resist for
change. Effective implementation of change at the group level can overcome resistance at the
individual level.
Organisation-Level Change: For example Change in goals and strategies, entry to new business,
change in management, Joint venture, merger. These big changes in the organisation are required
to adapt to environmental changes.
Types of Change
Reactive or Proactive -Change may be reactive or proactive. When change is brought
about due to pressure of external forces it is called reactive change. Proactive change is
initiated by the management on its own to increase organizational effectiveness. For
example if any technology of production becomes obsolete and organisation shifts to new
technology as a consequence, it is r,eactive change but if organisation introduces new
technology of production by its own to improve efficiency, it is proactive change.
Strategic Change – change in priorities, like shift from product to service.
Structural Change- change in whole structure and in the pattern of relationship among
various positions.
Process oriented or people oriented Change- If change in process it is process oriented
change, like introduce new method of digital accounting instead of paper form
accounting methods. If change in training, attitude, behaviour and other personal
characteristics of people, it is people oriented change.
Process of planned Change
Change could be planned as:
• Unlearning
of old things
Unfreezing to learn new
things
• Implement
Change the change
Refreezing • Stabilization
of the
the new implemented
level changes
Force Field Analysis
It is an important tool of planning change in organisation. According to force-Field analysis any
behaviour is the result of equilibrium between Driving and Restraining forces. The driving
force pushes for changes whereas restraining forces resist any change. While planning the
change, manager should identify what forces are likely to push the changes and what forces
are likely to restrain. If the driving forces are stronger than the restraining force, changes will
be accepted by the people but if restarting force are stronger than change will not be easily
accepted by the people...
Resistance to change
Resistance is the usual response to any major change. Individuals normally rush to defend the
current situation if they feel their security and position are threatened. Resistance may be at
individual level, group level or organizational level. The various reasons for resistance to change
are explained below
Individual / Group resistance
Economic factors- Employees feel fear of loss of job, salary, fear of demotion if they could not
meet the requirements of change.
Psychological factors- Employees feel that their psychological needs like pride, achievement,
self-fulfillment, convenience of job, and other related matter will be affected adversely by the
proposed changes.
Social factors: Employees feel that their social needs like friendship, belongingness to informal
group, company will be affected adversely by the proposed changes.
Trust Factors- If in an organisation there is distrust between management and employees, it will
be very difficult to initiate change by the management.
Organizational Resistance
Threat to power: Top management may take change as a threat to their existing power and
therefore they may resist to change.
Resource Constraint: Change may be resisted if oganisation has not adequate resources to
introduce change.
Sunk Cost: Top management resist change if it has already spent huge cost in present system.
Strategies to overcome Resistance to change
Effective communication of Explain workers the justification of change and its benefits.
change Two way communication to deal with fear and apprehension of
workers.
Consultation with leaders of Take opinion leaders and union leaders into confidence before
informal group and union introducing change.
leader
Education and Training Proper training of employees
Facilitation and support Remove physical barrier in implementing change by providing
proper training, tools, and materials. Also provide emotional
support to employees during period of transition phase of
change.
Negotiation Offering extra incentives to those who are resisting change.
Manipulation Manipulate workers to suppress their resistance.
Coercion and pressure Forcing people to accept changes. It is a risky technique and
should be wisely used.
