Organizational Change

Meaning
• Organizational Change refers to a modification or
transformation of the organization’s structure,
processes or goods.
 Definition

• OC is defined as change that has an impact on

the way work is performed and has significant
effects on staff
 Organizational Changes can be:

• In the structure of an organization

• In the structure of an organizational operation and
size of a workforce
• In working hours or practices
• In the way roles are carried out
• In the scope of a role that results in a change in the
working situation, structure, terms and conditions
or environment.
 LEVELS OF CHANGE•
• Individual Level Change
– Job assignment, physical Move, Change in maturity of a person
– Not significant on organisation, but significant on group
• Group Level Changes
– Major effect because organizational activities are done in groups
like departments or informal groups
– affect workflows, job design, social organisation, influence and
status systems, and communication patterns.
– Managers must consider group factors
• Organization Level Changes
– involves major programs that affect both individuals and groups
– Decisions regarding these changes are generally made by senior
management and are seldom implemented by only a single
manager
 Forces of Change

1. External Forces

2. Internal Forces
 Internal Forces
• Changes in managerial personnel
• Declining effectiveness
• Changes in work climate
• Deficiencies in existing system
• Crisis
• Employee expectation
 External Forces

• Technological change
• Globalization
• Social & Political changes
• Workforce diversity
 TYPES OF CHANGE
• Strategic Change – Change in the mission (when
acquired)
• Structural Change – Decentralization
• Process-oriented Change – In manufacturing
operations
• People-oriented Change – Self – actualization
(Motivation, Loyalty, Training, Relationships)
 CHANGE CAN BE
• Planned Change
– Planned Change is change resulting from a
deliberate decision to alter the organization.
– It is an intentional, goal oriented activity
• Unplanned Change
– Unplanned Change is imposed on the organization
and is often unforeseen
 STEPS IN
MANAGED/PLANNEDCHANGE
• Develop new goals and objectives
• Select an agent for change
• Diagnose the problem
• Select methodology
• Develop a plan
• Strategy for implementation of the plan
• Implementation of the plan
• Receive and evaluate feedback