Organizational Change

Organisational Change
Change is the law of nature Necessary for organisational survival and growth Its common that people resist change (life / work situation) Orgn to operate in a long run, adjustments among people, technology and structure is necessary People adjust with their jobs, working condition, colleagues, supervisors etc., Similarly organisation adjust with external environment

Complexity and fear of adjustment === resistance to change

Proactive (Planned response) Reaction to change Reactive (automatic response)

Types of Change
Work Change

change
Organisational Change Work Change: Change in machinery, working hours, shifts, working days, job enlargement and enrichment, job re-design or re-engineering. Organisational Change: Change in employee due to transfer, promotion, retrenchment, lay-off, restructuring of organisation, introduction of new products or services, imposition of regulation, change in organizational goals or objectives etc.

Reasons for Change

Change in business conditions

Change in managerial personnel

Deficiency in existing organisational patterns Technological and psychological reasons Government policies Size of the organisation etc.

Response to Change
Work change is possible by inducing the employee attitude towards the change. People join together to respond to change though each individual interpret separately. This response makes possible by some illogical action like mass walk-outs. Rather than members the group develop conflicting attitude in employees towards change. Each pressure encourages counter pressure within the group. Every change is likely to have some cost as well as benefits to the organisation. Organisations introduce change when benefits are more than the cost. Benefits not only economical but also social, psychological, environmental etc.,

Resistance to Change
Change is a persistent phenomenon Eg: resistance of employees to computerization during early 1990s. Man always fears the unknown, and the change represents unknown. Reasons for Resistance

Economic Reasons * Fear of reduction in employment * Fear of demotion

* Fear of workload

Personal Reasons * Need for Training

* Boredom & Monotony * No participation in Change

Social Reasons * Need for social adjustment * Taking change as imposed outside * Other considerations

Resistance from the side of managers

Not only employees but sometimes managers also resist change Change sets in new responsibilities and impose new tension, stress and strains over them. The feeling of uncertainty, motivates them to resist. Inviting Change: The days of resisting change are slowly changing due to delaying, downsizing, retrenchment in the name of golden handshake and iron handshake. Employees of 21st century, learned to acquire new skills, knowledge, attitude etc Thus they started going to colleges, educational / training institutes and universities The employees started asking for training from the organisation.

Reasons for inviting change

Retrenchment consequent upon business process reengineering. Job cuts due to information technology Severe competition due to globalization Mergers, amalgamations and joint venture due to market adjustments and readjustments. Change in the work norms, work attitude, work culture due to globalization of companies Customization of business process and organizational activities due to competition and technology Flexible work, working conditions, pay, working hours etc.

Decline in the strength of trade unions after liberalization, privatization and globalization.
Emergence of the concept of change, before change, changes you Change in the employee mindset towards growth, innovation, benchmarking and superior

work standards.

Principles of change
Understanding the change itself (purpose, benefits) and then making employees to understand Estimating the reasons for the possible resistance to change and preparing to allay their fears Mindful of channels of authority Preparedness for all the questions and criticism Listening to the suggestions and criticism of employees and incorporating them in the scheme as far as possible. Creating interest in them, convincing them and preparing them Keeping in touch with the process of change.

Approaches to Organizational change

Management = agent of change, it should realize resistance to change is basically a human problem. Participation of employees Planning for change Protecting employees interest

Group dynamics
Cautions and slow introduction Positive motion

Sharing the benefits of change

Training and development Career planning and development

Organizational development.

Planning and Implementing Change

Management change agent Change usually requires three steps:

Un-freezing (changing old ideas)

Changing (learning new ideas) Re-freezing (implementing new ideas) Implementation is a multi-dimensional process. The end result of implementation is institutionalization and stabilization of change (internationalization) Institutionalization is making change a permanent part of organization The three important stages of implementation of change process are

1) Monitoring the change

2) Taking action in relation to the change 3) Making necessary adjustments in the programme accepted for implementation.

The model of implementation of change in an organisation

Support * Training * Resources * Commitment * linkages
Adaptation Action * General and local * Coping with consequences

Monitoring

Planning

* Implementation Team * Control * Feed back * Communication

Institutionalization

Stabilization

The model of implementation of change in an organisation

Planning (phasing) Temporal phasing Spatial phasing

Strategies
Taking outsiders help Change agent Designing permanent org str Unit / location Openness with environment

Processes Initiation Motivation Diagnosis Information collection Deliberation Action proposal Implementation and stabilization

Monitoring
Monitoring the input, process

and output

Implementation Team (HRD) Minimum Control

Review and Feedback

The model of implementation of change in an organisation

Dissemination of information Action Implementation at diff stages Adaptation At early stage Later stages

Top Management Commitment

Support HRD (training and devlp)

Resources
Linkages (intra & inter dept)

Management support from employees

a) Encouraging and using group force

b) Development of leadership for change

c) Encouraging participation and sharing views d) Maintenance of employees security e) Effective communication f) Participation and working with unions

g) Changing by evolution but not by revolution

h) Adequate attention to human relations

i) Identifying and taking care of post change problems