1

Organizational Change

• Change is the coping process of moving from the present state to a desired state that individuals, groups and organization undertake in response to dynamic internal and external factors.

• There are many giant organizations in the country which hold big names like Adamjee Jute Mills, Chittagong Still Mills do not exist any more because they could not cope up with the changes

2

Importance of Organizational Change

• Change is important for the management that if the organizations does not bring the changes then it may not survive

• One reason that the rate of change is accelerating is that knowledge and technology feed on themselves constantly creating new innovations at exponential rate

3

Factors Cause Change

• Technology

• Economic conditions

• Global competition

• Politics

• Social and demographical changes

• Internal problems

4

Organizational Change and Development

• Organizational development is a systematic process of applying behavioral science principles and practices in organizations to increase individual and organizational effectiveness.

• The focus is organizations and making them function better that is total system change. The orientation is action achieving results as a result as a result of planned activities

5

The major goals of organizational development programs are:

1. To improve the functions of individuals, groups and total organization

2. To teach organization members how to continually improve their own functioning

6

Organization development deals with people problems in organization; where individuals teams and organizations are not realizing their potential OD can improve following situations:

1. Poor morale2. Low productivity3. Poor quality4. Interpersonal conflicts5. Unclear or inappropriate goals6. Inappropriate leadership styles 7. Poor group performance8. Inter group conflicts9. Inappropriate organizational structure10. Poorly designated tasks11. Inadequate response to environmental demands12. Poor customer relations13. Inadequate alignment among the organizational strategy14. Integration of structure culture and processes

7

Planned Change

• Change means the new state of things ids different from the old state of things

• The field of organizational development was established to help leader address and embrace change

• To view change as an opportunity rather than a threat

• Demand for change comes from external forces such as regulator, competitor, market forces, customers, technology and larger society

• Demand for change comes from also comes from internal forces e.g. obsolesce of product and services, new strategic directions, increasing diverse work force

8

• Change can be deliberate or planned

• Magnitude can be large

• Can effect many elements

• Slow evolutionary

• Modifications

• Change can be accidental or unplanned

• Magnitude can be small

• Can effect few elements

• Abrupt revolutionary

• Complete change

Early OD efforts were primarily addressed first order changemaking moderate change to the organization people and its process

•Early OD efforts primarily addressed first order change making moderate adjustment to its people and its processes.

•Today the demand to a great extent secondary organizations are reinvented such as fundamental, quantum, reengineered

•Second order change can have nature with some modification incremental first order change

9

OD Distinctive Consulting Method

• Fundamental difference between OD and organization improvement program is consultants role and relationship to clients

• OD consultants establish a collaborative relationship of relative equality with organization members

• They together identify problems and opportunities • OD consultants are co learners and collaborators

with members of the organization to discover what are the needs for change and how to achieve those

10

OD Distinctive Consulting Method

• The role of OD consultants is to structure activities to help organization members learn to solve their own problems

• OD consultant do not give substantive solution to the problem

• Rather they create learning solutions in which problems are identified and solutions are developed

• OD consultants are experts on organization change and organization dynamics and on structuring learning for problem solving

• It is self renewal or organizational learning and continuous self improvement

11

OD as a Process

• OD is an identifiable flow of interrelated events moving over time toward some goal or end

• OD programs are identifiable flows of interrelated events moving over time toward the goals of organizational improvement and individual development

• Major events in the process include sensing – something is wrong and should be corrected; – diagnosing the situation to determine what is happening,– planning and tasking actions to change the problematic conditions– evaluating the effect of the actions,– making necessary adjustments

12

• Specifically organization’s culture, processes and structure are key leverage points for determining how well or how poorly the system function

• Organizational culture defined as values, assumptions and belief held in common by members that shape how they perceive think and act

• Important processes in organizations include communication, problem solving and decision making, resource allocation, conflict resolution, allocation of rewards, human resource practices, strategic management, self renewal or continuous learning

• Organizational structure is overall design of organization, grouping of work, power and authority relationship, span of control or any new types of organization such as matrix, virtual and how it interact with the environment

Goals actions redefined goals action

13

Action Research Model•Action research is essentially a mixture of three ingredients (1) highly participative in nature (2) the consultants role of collaborator and co- learner (3) interactive process of diagnosis and action•The action research model consists of1.A preliminary diagnosis2.Data gathering from the client group3.Data feed back to the client group4.Exploration of the data by the client group5.Action planning by the client group6.Action taking by the client group7.Evaluation and assessment of the results of client’s actions. •Action research yields both change and new knowledge. Change occurs based on the action taken and new knowledge from results of the actions.

14

OD as a Consulting Method

• OD consultants are experts on organizational change and organizational dynamics and organizational learning situations for problem solving and decision making

• This process is called as self renewal or organizational learning means teaching clients key skills and knowledge require for continuous improvements

• The role of OD consultants to help organization members learn to solve their own problems and learnt to do it better over time.

15

• Early OD efforts primarily addressed first order change making moderate adjustment to its people and its processes.

• Today the demand to a great extent secondary organizations are reinvented such as fundamental, quantum, reengineered

• Second order change can have nature with some modification incremental first order change