Management of Organizational Change

Puneet Gulati (05)Ishita Dhingra (30)Tanvi Jindal (26)Gaurav Sareen (49)

Nature of Organizational Change

Organization Change: Change refers to an alteration in a system

Any substantive modification to some part of the organization. Eg- changes in work schedules, machinery, people etc

It implies a new equilibrium between different components of an organization

Forces for change

Forces for change

External Factors Internal Factors

External Factors

Political and Legal changes

Changes in

Marketing

Conditions

Social

Changes

Technological Changes

External Factors

Internal Factors

Internal Factors

Change in

Managerial PersonnelDeficiency in

existing Organization

Planned vs. Reactive Change

Planned Change Change that is designed and

implemented in an orderly and timely fashion in anticipation of future events.

Proactive/conscious managers interact with their environment and identify new threats and opportunities.

Usually preferred over reactive changes

Reactive Change A piecemeal response to

circumstances as they develop.

Organization which believe in traditional pattern of working often opt for reactive change. They introduce certain systems and methods when they are forced to.

Managing Change in Organization

Process Of Change

Unfreezing Individuals

Implementing change

Refreezing change

Models of change process:1. Lewin Model:

Behavior is the result of equilibrium between the driving and the restraining forces

Recognizing need for change

Establishment of goals for changes

Diagnosis of relevant variables

Selection of appropriate change tech.

Planning for change implementation

Actual Implementation

Evaluation and follow up

2.Comprehensive Approach to change

Understanding resistance to change

1. Resistance at Individual Level: Economic Factors Psychological Factors Social Factors

2. Resistance at Group Level: Feeling of Loss Group dynamics

3. Resistance at Organization Level: Stability of system Resource Limitations Sunk cost Counting Past Successes

Managing Resistance to change

Efforts at Individual Level: Involvement Obtaining commitment Leadership Training and counseling

Efforts at Group Level: Participation Group contact Force-Field analysis

Areas of organizational changes

1. Organization structure and design: Organization change focused on the organization’s

overall design. Eg – Changes in reporting structure

Effected Area’s:• Job Design• Departmentalization• Authority distribution• Culture• Human resource management

2. Technology and operations: Rapid change of technological innovation leads to

increasing rate of technological changes Eg: Changes in equipments, machinery

Effected Area’s:• Work Processes• Work sequences• Information systems• Control systems• Equipments

3. Changing People: Changes to do with the human resources Eg: Changes in skill level of work force

Effected Area’s:• Abilities and skills• Performance• Perceptions• Expectations• Attitudes• Values

Creativity Stage

Direction Stage

Delegation Stage

Coordination Stage

Collaboration Stage

Stages of Organizational change and growth

Organization Development

Techniques Planning and goal setting Team building Trainings

Activities OD for the individual OD for teams or groups OD for Inter-group relations OD for total Organization

Innovation Innovation Process:

Generation of Ideas Idea Development Implementation of Idea

Forms of Innovation: Radical Innovation Incremental Innovation Technical Innovation Managerial Innovation Process innovation

Case study

Organizational Trauma

and Triumph at

QUESTIONS

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