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Organizational Change BY RAMKRISHNA PRAMANIK

Why change?Organizational change implies planed alteration in the existing organization system.It is made by the organization to achieve something desirable( ex: profit, HR satisfaction etc.)Change is demanded by clientele citizens and customers.Technology is moving so quickly that today's work practices may become outdated almost overnight.

Features Of ChangeOC is a planed change since it is a conscious attempt to modify certain functions or process. Change can be of two types: A. Pro-active change B. Re-active changeChanges take place in all organizations but at varying speeds & degrees.Changes may be made in structure its technology, its people etc.

Change AgentOutside consultant(OD consultant) can be a change agent,Newly haired employees,Current employees at the organization,Manager-non managers also can be a change agent.

The Manager as a change-agentThe manager change at structural level as a change agent.Manager change at perceptual, attitudinal and behavioral levels.

Forces for ChangeForceExamplesConsumers

Purchasing AgentsInstant gratificationonline shopping for price and factsconfigurable modular productsexperience economy

Global sourcing and sourcing hubsCustomized goods and servicesShared profits, lower pricesseeking collaboration for low cost

Technology

Economic Shocks

CompetitionFasterCheaperMobile-computers

Rise and fall of global housing Global recessionFinancial sector collapse

Global competitorsIncreased govt. regulation of commerce

Social trends

World politicsIncreased environenmental awarenessMore multitasking and connectivity

IraqU.S. warOpening of markets in ChinaWar on terrorism following 9/11/01

Forces/causes for changesExternal Forces:- 1. Market situation 2.Technology 3.Political & legal systemInternal Forces:- 1.Loopholes in the existing system conflict 2.Crises(ex:-strikes) 3.Changes in the workforce culture

Continuous Change Process Model of Organization Change

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Resistance to ChangePeople may respond to change in three ways:- 1.Acceptance, 2.Indifference & Resistance 3.Depending on how they perceive the changeResistance to changes may come from individuals as well as from the organization.

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Sources of Individual Resistance to Change

Sources of Organizational Resistance to Change

Overcoming Resistance to ChangeSeven tactics used by change agents in dealing with resistance to change: 1. Education and communication:- Resistance can be reduced through communicating to help employees see the logic of a change. The assumption is that the source of resistance lies in misinformation or poor communication. If employees are given the full fact about the change then resistance can be reduce. 2.Participative decision making:-When employees are involve in the change they are more lightly to accept the change rather than resist it. So, employees can be involve in the decision making.

3.Counselling Employees:- Talking to the most resistant employees on one to one basis is also help reduce the resistance.

4.Negotiate with employees:- Manager can reduce resistance by offering incentive to the employees not to change. Even a certain reward package can be negotiable that will need the employees.

5.Manipulation:-Twisting or distorting facts to make them appear more attractive to the employees with holding undesirable information and creating false rumors to get the employees accept to change.

6.Co-operation:-It is a from of both manipulation and participation. It involves buy-off the leaders of the resistance group by giving them a key position in the change decision. But in reality the leaders advice are not taken. 7. Coercion:- It involves application of direct threats or force upon the resisters. EX-Threats of transfer, loss of promotions, negative performance evaluation, loss of job etc.

The Politics of ChangeChange threatens the status quo, making it an inherently political activity.

Internal change agents typically are individuals high in the organization who have a lot to lose from change. 1.What if they are no longer the ones the organization values? 2. This creates the potential for others in the organization to gain power at their expense.

Politics suggests that the impetus for change is more likely to come from outside change agents.