organizational change- 27 oct

8/3/2019 Organizational Change- 27 Oct.

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What is organizational change? which factorsforce to change in an organization? And How doyou change?

• Substantive modification to some part of theorganization is known as change. So, change caninvolve any aspect of the organization: work

schedule, bases for departmentalization, span ofcontrol, organizational design etc.

• Generally organizational change takes place

due to change in the relevant factors. Change isobvious in such situation because of failure tocope change. Factors which force to change are:



External Forces

Governmental laws and regulations are a frequent impetus(force) for change.

Technology . Example - technological improvements indiagnostic equipment.

The fluctuation of labour markets. Example - organizations thatneed certain kinds of employees must change their human

resource management activities to attract and retain skilledemployees in the areas of greatest need.

Economic changes affect almost all organizations. Examples -uncertainties about interest rates, budget deficits, and currency

exchange rates.



Internal Forces Internal forces tend to originate primarily from theinternal operations of the organization or from theimpact of external changes.

– A redefinition or modification of anorganization’s strategy .

– An organization’s workforce is rarely static. Itscomposition changes in terms of age,

education, ethnic background, sex, and so forth. – The introduction of new equipment.

– Employee attitudes such as job dissatisfactionmay lead to increased absenteeism, more

voluntary resignations, and even labour strikes.



• When a manager needs to change in its organizationhe needs to go through the following process:

- Recognition of the need for the change.- Potential of

new market- Establishment of goals for change.- To increasemarket share , to restore employee morale.

- Diagnosis of the relevant variables- Go through turn

over, absenteeism, working condition etc.- Selection of appropriate change technique: Ifabsenteeism is due to low pay , new pay scheme isneeded.

- Planning for implementation of change- cost,additional manpower requirement.

- Actual implementation

- Evaluation and follow – up.



What will lead to resist change? And how amanager can manage resistance to change?State the areas of organizational change.

• When a manager brings change in theorganization , employees and otherstakeholders may resist change. The causesbehind resist to change are:

- Uncertainty: It is the biggest cause to resistchange. If employees feel that their job isinsecure due to failure to meet the new job

demand.- Threatened self-interest: Some of the changes

threatens to the interest of the managers. A

change might potentially diminish power.



- Different perceptions: A manager may perceivethe situation differently but other stakeholdersperceived the situation differently and

threatened the change.- Feeling of loss: Many changes alters work

arrangements in ways that disrupt existingsocial network. Other intangibles threatened bythe change include status, security, familiaritywith existing procedures and self-confidence.

A manager can cure the resist to change

using following techniques:- Participation : If the employees are participated

in the planning and decision making to change

then they will understand the need to change.



Uncertainty is reduced and self-interest and socialrelationship are less threatened .

- Education and communication: Educating employees

about the need for change and expected results afterthe change.

Open communication is maintained during thechange process then uncertainty can be minimized.

- Facilitation: Making only necessary change,announcing those change in advance and allowingtime to adjust with change.

- Force-field analysis: In every change, some forces areacting in for and against the change. Manager listensto each set of forces and trying to balance so that theforces facilitating the change.



• Areas to change are:

- Structure and design- Job design,departmentalization, authority distribution,coordination mechanism, culture, HRM

- Technology and operation process – Newprocess and methods, equipments, informationsystem, control system

- Changing people – Skill level of its work forcethrough training and setting new criteria for

selection, performance, perceptions,expectations, attitudes, values



• As an executive of your organization what sortof issues do you face in managing change?

1.Changing Organizational Culture

The Road to Cultural Change

Conduct a cultural analysis to identify cultural elements needing change.

Make it clear to employees that the organization’s survival is legitimately threatened if change is not forthcoming.

Appoint new leadership with a new vision.

Initiate a reorganization.

Introduce new stories and rituals to convey the new vision.

Change the selection and socialization processes and the evaluation and rewardsystems to support the new values.



2. Handling Employee Stress

Stress –

The physical and psychological tension anindividual feels when he or she is facing or

experiencing extraordinary demands,constraints, or opportunities and for whichthe outcome is perceived to be both

uncertain and important.



Symptoms of Stress

SYMPTOMS

OFSTRESS

Psychological

Physical

Behavioural

Job-related dissatisfaction,tension, anxiety, irritability,

boredom, and delay.

Changes in productivity, absenteeism, job turnover, changes in eating habits,increased smoking or consumption of

alcohol, rapid speech, restlessness,sleep disorders.

Physical disorder, increasedheart and breathing rate,raised blood pressure,headaches



Reducing Stress

• Match the job requirements with the

employee’s abilities • Do a realistic job preview

• Improve organizational communication

• Clarify job responsibilities with a performanceplanning program such as MBO

• Provide clear performance goals

• Reduce ambiguity through feedback

• Redesign the job to increase the challenge orto reduce the workload



• Redesign the job that increases opportunities

for employees to participate in decisions andto gain social support

• Provide employee counseling

• Introduce a time management program • Run organizationally sponsored wellness

programs such as fitness facilities, massage

therapy, nutrition and fitness programs• Especially designate a room to take naps for

busy or stressed executives



3. Making Change Happen Successfully

Link the present and the future. Think of work

as more than an extension of the past; thinkabout future opportunities and issues andfactor them into today’s decision.

Make learning a way of life . Change-friendly

organizations excel at knowledge sharing andmanagement.

Actively support and encourage day-to-day

improvements and changes. Successfulchange can come from the small changes aswell as the big ones.

Ensure diverse teams . Diversity ensures thatthings won’t be done like they’re always done.



Encourage individualism. Since their ideasand approaches are outside the mainstream,

maverick can help bring about radicalchange.

Integrate technology. Use technology to

implement changes. Build and deepen trust. People are more

likely to support changes when the

organization’s culture is trusting andmanagers have credibility and integrity .

organizational change- 27 oct

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