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Organizational change

November 2, 2010 Leave a comment Go to comments

Organisational Change


Contributor: Shubham Jhandei (shubham.jhandei@gmail.com) 2K9 batch

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Organisational change refers to relatively enduring alteration of the present state of an organisation or its components or interrelation amongst the components and their differential and integrated functions in totality in order to attain greater viability in line context of the present and anticipated future environment.

Forces/factors of organisational change

External factors:-

1. Technology: – The adoption of new technologies, such as computers, telecommunication systems, robotics and flexible. Manufacturing operations have a profound impact on organisations that adopt them.

2. Social changes:- After globalisation there is a radical change shift In one value placed on higher education, lifestyle, views on marriage, joint family system and shopping preferences.

3. Marketing conditions:- The need, wants, appreciations, liking, disliking and preferences of customers are changing frequently. Consumer is emerging as a ‘king’ who is a actually deciding factor of market forces.

4. Globalisation:-  Global economy refers that competitors ae likely to come from different countries. Organisations will encounter a wide variety of dynamic changes – merger, acquisition, down rising etc.

5. Political forces:- As long as currencies fluctuate and some economies outperform other, assets will flow across borders.

Internal forces:-

1. Changes is managerial personnel:- Changes in the functioning of top level professional manager bring changes in one organisation in terms of organisation design, delegation of authority, allocation of work, firing responsibility and installation of supervision and contact etc.

2. Shift in social cultural values:-  workers are more educated, less conservative and more women are joining the work force. They place greater emphasis on human values, such as dignity recognition, social status, equality etc.

3. To have a dynamic environment:- if one organisation is not moving forward, then it will not survive and grow. Flexibility, specialisation, standardisation, modernisation and automation are the necessities of the time. Required changes should be incorporated so that employees modify their attitude towards changes.

4. Deficiency in the existing structures:- Changes may be required in the present setup of the organisation to meet the challenges imposed by the workforces and technology. These deficiencies may be in the form of more no of levels, lack of cooperation and coordination, poor system of committee, lack of uniform policy decisions, multiplicity of committee autocracy in decision making, centralisation and so on.

Nature of Organisational Change


Organisational Change is the alteration of work environment in organisation. It implies a new equilibrium b/w different component of the organisation-technology, structural arrangements, job design and people.

Features of Organisational Change:-

1. When change occurs in any part of the organisation, it distributes the old equilibrium, necessitating the development of new equilibrium depends on the degree of change and its impact on the organisation.

2. Any change may affect the whole organisation: some parts of the org. may be affected more, others less, some parts are affects directly, others indirectly.

3. Organisational Change is a continuous process. However, some changes which are of minor type may be absorbed by the existing system equilibrium; others, which are major ones, may require special changes efforts.


Planned change


According to Thomas and Bennis, “planned change is one deliberate design and implements of a structural innovation, anew policy or goal, or a change in operating philosophy, climate, or style.” Planned change attempts at all aspects of one organisation which are closely interrelated; technology, task, people, structure.

Technology related changes may include:-

-> Introduction of automated data processing devices like computers to facilitate managerial planning and control.

-> Change in methods of production like conversion of unit production to mass production.

Task related changes   more focuses on:-

-> High internal work motivation and

-> High quality work performance.

Structure related changes:-

-> Changing the no hierarchical levels.

-> Changing line-staff to functional authority.

People related changes:-

-> Skill change and

-> Behaviour change.

Process of planned change


Resistance to change


Can be understood In two ways:-

Resistance as a cost:-

e.g. in order to above its manufacturing capacity of two wheelers, one Bajaj auto ltd. Procured land near its old plant site but later shifted the new plant site away from the old plant because of resisting work culture of the old plant which was expected to percolate to the new plant also. On this phenomenon Madhur Bajaj, MD of Bajaj Auto commented that “ The Pune plant is fully saturate. We wanted a new plant culture and new layout. We saw resistance to change at the existing plant.

Resistance as benefit:-

1. It may signal the need for more effective communication about the meaning and purpose of a change or need to rethink precisely how a proposed change will affect one org. and its members.

2. It also highlights real inadequacies in one proposed change and suggests better ways for developing and introducing change.

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  1. Anurag
    November 2, 2010 at 5:26 pm

    great man, you saved my day.

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