1
Part
Organisational Change
Introduction
Change is one of the most critical aspects of effective
management.
 Change is the coping process of moving from the
present state to a desired
state
that
individuals,
groups and organizations undertake in response to
dynamic internal and external factors that alter
current realities.
 All organizations exist in a changing environment
and are themselves constantly changing.
1
Part
Organisational Change
The Importance of Change

Change will not disappear or dissipate. Technology,
combustion and
creative thoughts will maintain their
ever-accelerating drive onwards.
 Managers, and the enterprises, they serve, be they
public or private,
service
or
manufacturing,
continue to be judged upon their ability to
will
effectively
and efficiently manage change.
Cont….
1
Part
 Designing,
Organisational Change
evaluating
and
implementing
successful change strategies largely depend upon
the quality of the management team, in particular the
team’s ability to design organisation in such a
way as to facilitate the change process in a
responsive and progressive manner.
1
Part
Organisational Change
Forces of Change
External Forces of Change

Political Forces

Economics Forces

Technological Forces

Government Forces

Increased global competition

Changing Customer Needs and Preferences
Cont….
1
Part
Organisational Change
Internal Forces of Change

System Dynamics

Inadequacy of administrative process

Individual/Group Speculations

Structure Focused Change

Technological Changes

Persons focused change

Profitability Issues

Resource constraints
Change
Making things different.
Planned Change
Activities that are
intentional and goal
oriented.
Change Agents
Persons who act as
catalysts and assume the
responsibility for managing
change activities.
Goals of Planned Change:
Improving the ability of
the organization to adapt
to changes in its
environment.
Changing the behavior of
individuals and groups in
the organization.
1
Part
Organisational Change
Organisational Change: Some Determining Factors
The large variety of determinants of organisational change – forces
dictating change – can be organized into 4 major categories. These
categories are created by combining two key distinctions:
(1) whether the organisational change is planned or unplanned by
the organisation, and
2) whether it derives from factors internal or external to the
organisation.
Cont….
1
Part
Organisational Change
Some Determining Factors of Change
Planned
Unplanned
Internal
Internal planned change
Internal unplanned change
External
External planned change
External unplanned change
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Part
Organisational Change
Variations of organisational change
Is the change
based on internal
or external factors
Is the change planned or Unplanned change
Planned
Unplanned
Internal change
 Changes in products or service
 Changes in administrative
systems
 Change in organization size or
structure (e.g. downsizing,
outsourcing etc.)
 Changing employee
demographics
 Performance gaps
External changes
 Introduction and new
technology
 Advances in information
processing and
communication.
 Government
regulation
 External competition
 HR Management in
Recession
1
Part
Organisational Change
Methods to handle recession

Restructuring of Business

Manage Poor Performers

Focus on Training and Development

Nurturance of talents

Rewarding employees

Manage Employee Motivation
Cont….
1
Part
Organisational Change
Types of Change

Happened Change

Fundamental Change

Reactive Change

Total Change

Anticipatory Change

Transformational Change

Planned Changed

Revolutionary change

Incremental Change

Recreation

Operational change

Strategic change

Directional Change
Cont….
1
Part
Organisational Change
Types of Change
Types of Change
Nature
Directional
Occurs under conditions of severe competition, regulatory shifts in government policy, and unsuccessful
business strategy.
Fundamental change
Redefinition of current purpose or mission.
Operational change
Improvement of quality, quantity, timeliness unit cost of operations in developing products/services
Total Change
Developing a new vision, achieving a turnaround. A drastic surgery of the existing system.
Planned Changed
Basically an operational change on a calculated basis as responses to internal and external demands e.g.
downsizing.
Happened change
Unpredictable occurs due to external causes over which one may have no control. Has profound/traumatic
effect on the organization.
Transformational Change
Change involving the entire or a greater part of the organization due to a severe threat to its survival. The
threat may occur from industrial discontinuities, shifts in the products life-cycle or internal changes.
Revolutionary changes
Abrupt change in the organizations strategy and design.
Recreation
Tearing down the old structure and building a new era. A metamorphosis – becoming not just better, but
different.
Strategic Change
Change of all or most of the organization component.
Anticipatory Change
Changes carried out in expectation of an event. In anticipation of such change, the organizations may tunein (incremental change) or reorient itself.
Reactive Change
Response to an event or series of events. Adaptive changes are limited to a subsystem or part of the
subsystems. Recreation can also be reactive but involves the whole organization.