ORGANISATIONAL CHANGE

The nature of organizational change is explained below,

1) Change is the result of some forces both outside or inside the organisation.
2) It is inevitable and occurs in all parts of the organisation , at all times during the life cycle of an
organisation ,which is continuous.
3) Change is interdependent. Change is one part of the organisation brings about changes in other
parts.
4) it differs in its intensity and degree.
5) organization have to accept change.
DRIVERS OF ORGANISATIONAL CHANGE:
The drivers influencing change in an organization can be external or internal. They are described
below.
EXTERNAL DRIVERS:
External factors of change are those factors that are outside the control of an organization. These
factors include technology, markets, competition, economic growth and development availability of
labor, etc.
a)TECHNOLOGY:
It is the essence of any organization. A change in technology followed by a change in an
organization’s process, goals, plans policies, strategies, and structure. For instance the introduction of
computer has totally modified the structure of many large enterprises besides leading to change in
decision making, delegation, communication and control systems.
b) ECONOMIC FACTORS:
It includes prices demand supply, competition, market segments, availability of finance, and
rate of interest. They also include certain other macro factors like general insurance in costs, scarcity
of resources, growth of national income, GNP,NNP, productivity, etc..
A change in any of the following significantly affects the general planning, cost structure,
production planning and control etc. For example, A general rise in inflation brings about an upward
revision in price of all inputs ,so with an upward revision in price ,it would become unprofitable to run
the organization.
INTERNAL DRIVERS
it consist of factors within the control of management. The factors can be effectively modified through
executive actions.
a) ORGANISATION STRUCTURE:
Organizational structure clearly defines the role of every individual member. while clarity in the
definition results in improved functioning deficiencies considerably increase chances of change due to
frequent redefining and redesigning change of roles.
b) PERSONNEL:
Continued inflow and outflow of managerial and non managerial personnel often causes change.
These changes results in a change in attitude and behavior of employees, authority, informal group
relationships and adaption of different styles of leadership. therefore changes in personnel also bring
about organisational changes. for example in one particular organization,a a new recruitment policy
totally changed the structure of the union ,making it stronger and counter management..
c)ADOPTION OF NEW OBJECTIVES AND STRATEGIES:
As a result of the dynamic environment around an organization ,every organization is compelled to
modify its objectives, goals and strategies. Either external or internal forces may act as the impetus for
modification.
Types of change:
1) Evolutionary or revolutionary changes
2) Planned or unplanned changes.
3) Pro active or reactive changes
4) Directive or participative changes
5) Minor or major changes.
EVOLUTIONARY CHANGES OR REVOLUTIONARY CHANGES:
Evolutionary changes are gradual changes. They occur slowly and gradually over a period of time in
the life of an organization , and automatically become a part of the organiastion’s process without the
employees realizing the changes are being implemented. so by the time employees understand a
change has taken place it has been adopted by them.
Revolutionary changes are radical or emotional changes. They are implemented rapidly and
suddenly. it is not possible to forecast such changes and prepare plans or strategies to implement them.
These changes are brought in immediately due to abrupt changes in the environment. For instance
change in the demand, supply, price, competition, are sudden in nature and often difficult to forecast
beforehand.
PLANNED OR UNPLANNED CHANGES:
Planned changes are strategic changes. They are the result of deliberate actions of the management
to make the enterprise different by introducing new technological, materials, strategies, etc. increasing
the plant capacity, automation of the production process, expansion into new markets etc. are some
examples of planned changes.
Unplanned changes are brought in without any prior planning. They are introduced for a short period.
Sometimes these changes are made to test reactions to a long term change. Unplanned changes are
often resisted.
PROACTIVE OR REACTIVE CHANGES:
Proactive changes are favorable changes that are necessary and desirable for the growth and
development of the organization. These changes are brought in before the actual demand for change.
Reactive changes are unfavorable and unnecessary changes. They are treated as negative undesirable
and frequently resisted. Consider the examples of changes initiated due to liberalization, privatization,
and globalization.
DIRECTIVE OR PARTICIPATIVE CHANGES :
Directive changes are coercive and imposed by an authoritarian management. on the other hand
participative changes are widely discussed and brought to the notice of the subordinates well in
advance. They are developed through effective involvement and participation of all concerned
personnel. While directive changes are restricted, employees have a positive attitude and commitment
towards participative changes.
MAJOR AND MINOR CHANGES :
Major changes are an attempt to change a subsystem of the organization. While the latter is intended
to change all the systems of the organizations.
RESISTANCE TO CHANGE:
People have a natural tendency to resist change. Most changes are resisted due to poor
understanding of the implications of the change. Any organism not responding to the changing
environment faces negative issues due to ill effects on its survival and growth. In spite of this
resistance to change is not common. Resistance to change come from three groups namely.
a) Individuals
b) Groups
c) The organization as a whole
INDIVIDUALS RESISTANCE TO CHANGE:
1) ECONOMIC REASONS: it is closely related to monetary remuneration. people perceive
change as painful and threatening if it brings even a nominal reduction in the salary.
2) DISPLACEMENT OF SKILLS: A technological change normally calls for a certain amount
of new operating and technical skills. A possible displacement of employees by technically competent
persons resulting in loss of employment, or compelling the employee to acquire the required skills
through education and training.
GROUP RESISTANCE TO CHANGE:
Group in organizations develop certain norms of behavior and a code of conduct, which are strictly
adhered by all members of the group.
ORGANISATIONAL RESISTANCE:
1) financial implications: it includes limitation of resources. any change requires modification in
either the physical structure of the organization or human resources. These modification requires
finances.
2) difficulty in designing new structures: structuring involves process of defining authority,
responsibility, delegation, design of communication and control system ,etc..revamping the existing
structure requires time and energy.
MANAGEMENT STRATEGIES TO MANAGE CHANGE:

Managing change effectively requires moving the organization from its current state to a future
desired state at minimal cost to the organization. Key steps in that process are:

1. Understanding the current state of the organization. This involves identifying problems
the company faces, assigning a level of importance to each one, and assessing the kinds
of changes needed to solve the problems.
2. Competently envisioning and laying out the desired future state of the organization. This
involves picturing the ideal situation for the company after the change is implemented,
conveying this vision clearly to everyone involved in the change effort, and designing a
means of transition to the new state. An important part of the transition should be
maintaining some sort of stability; some things—such as the company's overall mission
or key personnel—should remain constant in the midst of turmoil to help reduce people's
anxiety.
3. Implementing the change in an orderly manner. This involves managing the transition
effectively. It might be helpful to draw up a plan, allocate resources, and appoint a key
person to take charge of the change process. The company's leaders should try to generate
enthusiasm for the change by sharing their goals and vision and acting as role models. In
some cases, it may be useful to try for small victories first in order to pave the way for
later successes.

The various strategies adopted to overcome resistance are discussed below.

1) Implicit or explicit coercion
2) Support by top management.
3) Communication
4) Participation.
5) training
2)STABILITY VS CHANGE
Stability is the exact opposite of change. We change constantly in our life, sometimes uphill and
sometimes downhill. We need to stabilize in times when we are going down. And if you are thinking
about stability all the time, then you are not going to improve.
Stability vs change:
Organizations desire change in order to remain competitive, in order to remain harmony, with the ever
changing environment. Organizations also want to achieve internal stability because of the
predictability and certainty it provides .as such Organizations sit on the horns of a dilemma with
reference to change.

Organizations handle the stability change dilemma depending on the amount and type of innovation
required. the organic Organization is for example suitable when frequent technological changes are
required. the organic Organization is always oriented towards change rather than stability. mechanic
Organization on the other hand are oriented towards technological stability . Organization, thus resolve
the stability change dilemma by structuring in a mechanic way whenever possible, to obtain
efficiency. the point is that to resolve the dilemma organizational change process must be changed.
Organizations that have a high requirement for security often favor stability over change. Change is
often seen as bad for security, as it can result in the introduction of new risks or in the invalidation or
bypass of controls to existing risks. If this aspect of security culture is inline with the general
organizational culture, there will be few problems. However, when change is carefully managed such
organizations will need to ensure that their security posture is not static.
Leaders press for change Managers promote stability

REFERENCES:
1)organisational behavior- by sarma v.s .veluri
2) management –vsp rao
V harikrishna