Organizational Change

Organizational Change, Forces of Organizational change,Planned change, process of planned change

Organizational change:

Change is one of the most challenging events an organization will go through. This lesson describes the steps of the planned changed process, which include recognizing the need for change, developing change goals, appointing a change agent, assessing the current climate, developing and implementing a change plan and evaluating the plan’s success.

Organizational Change refers to relatively enduring alteration of the present state of an organization 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 of Organizational 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 organizations that adopt them.
  2. Social changes: After globalization there is a radical change shift In one value placed on higher education, lifestyle, views on marriage, joint family system and shopping preferences.
  3. 3. Marketing conditions: The need, wants, appreciations, liking, disliking and preferences of customers are changing frequently. Consumer is emerging as a ‘king’ who is actually deciding factor of market forces.
  4. Globalization:-  Global economy refers that competitors likely to come from different countries. Organizations 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. 1. Changes is managerial personnel:- Changes in the functioning of top level professional manager bring changes in one organization in terms of organization 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 organization is not moving forward, then it will not survive and grow. Flexibility, specialization, standardization, modernization 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 organization 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, centralization and so on.


Planned Change:

Planned Change is constituted with intentional and goal oriented change in activities to adapt with changing environment of business. 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 organization which are closely interrelated; technology, task, people, structure.

Process of Planned Change:

Change is often one of the most challenging events an organization will go through. At times it may seem like trying to climb the Himalayan  mountains barefoot! From the moment a change becomes necessary through its implementation, a great deal of factors come into play. To maximize the success of any organizational change, managers need to create and follow a logical sequence of steps to ensure the objectives of the change are accomplished. The planned change process is typically made up of the following steps:

  • Recognize the need for change
  • Develop change goals
  • Appoint a change agent
  • Assess the current climate
  • Develop a change plan method for implementation
  • Implement the plan
  • Evaluate the success of the plan at reaching the change goals

1) Recognize the Need to Change & Determine Goals: In today’s business environment there are many factors that force an organization to change. These factors can be internal to the organization (such as employees, culture, policy or procedures) or external (such as customers, competitors, the economy or politics). Managers at all levels (top, middle and low level) must be aware of these internal and external forces that potentially compromise the success of the organization and promptly respond by changing some aspect of the organization. Recognizing the need for change is pivotal to the long-term sustainability of an organization.

2) Establishing a Sense of Urgency :

Once a manager recognizes that a change should happen in the organization, he or she must be certain to understand why the change is needed. Developing change goals provides managers with the objective or expectation of how a change will respond to whatever internal or external forces are driving the need to change. For example, when Redbox made its explosive entrance into the marketplace with its movie kiosk service, Blockbuster was forced to duplicate this offering in order to stay in business. Redbox essentially created a service that literally stole the customer base from many traditional movie stores by offering the same product at a fraction of the price and at a convenient location. This required traditional movie stores like Blockbuster to recognize they needed to change what they offered as well to meet their goal of staying in business.

3) Appointing a Change Agent:

Once a manager recognizes that a change must happen in the organization and develops the change goals, he or she needs to select somebody to carry out that change. The change agent is someone who serves as a leader during change development and implementation. They are typically forward-thinking individuals who are highly charismatic, good with people and capable of inspiring the workforce to accept the change and even aid in the implementation. It is important to note that while change agents are leaders, not all leaders are change agents. In fact, many organizations will hire someone outside of the company to serve as a change agent due to their expertise and unique abilities to drive change.

4) Assess the Current Climate:

One thing that change agents are particularly good at is assessing the current climate of the organization to determine how ready the organization and its members are for the change. Some organizations are better equipped to handle change, while others take a lot more work. The change agent will spend time gathering information relating to the organizational culture, available resources, employee attitudes, possible training needs and leadership. This data is then used by the change agent to prepare people for change by offering information relating to why the change is needed, what the desired future state will be, how it is better than the current state of the organization and how the change will affect the members of the organization.

5) Developing, Implementing & Evaluating the Change:

Now that the organization has been prepared for the change, a plan is needed. Developing the change plan provides the roadmap for how the change will be implemented in such a way that the organization is able to achieve the change goals. Questions relating to who, when, where and how should all be answered in the change plan. Responsibilities are delegated, specific events and milestones are identified and the action plan is set to provide the methods and procedures that must be completed to implement the change. After the plan is written, it needs to be communicated and implemented.

Implementing the change puts the change plan into action. This is a critical time for the change agent, as he or she must maintain momentum and monitor the progress of implementation. The change agent will also pay attention to the distribution of resources, knowledge and level of employee support to ensure that barriers to successful implementation are removed. New behaviors relating to the change should also be reinforced by the change agent as a part of the implementation process.


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