ORGANIZATION

An organization or organisation is an entity

comprising multiple people, such as an institution or an
association, that has a collective goal and is linked to
an external environment.
The term change refers to any alteration which occurs in
the overall work environment of an organisation
Organisation change

Organizational change is about the process

of changing an organization's strategies,
processes, procedures, technologies, and
culture, as well as the effect of
such changes on the organization
01 External factor 02 Internal factor
External environment affects the Internal forces are too many and
organizations both directly and it is very difficult to control them
indirectly
External factors

Technology Marketing conditions

Calls for change Rapid changes

Organisation Important Impact

Social changes have to adjust on business Political forces
 Internal Factors
Nature of the workforce

To avoid developing inertia

Deficiencies in
existing management
structure

Change in managerial personnel

Types of changes

Proactive Reactive

Anticipation Forced

Changes taken in Internal or external

anticipation

Fire fighting situation Most organisations

 INDIVIDUAL LEVEL CHANGE
Change in job assignment
Transfer of employee
Change in maturity level

GROUP LEVEL CHANGE ORGANIZATIONAL LEVEL CHANGE

Major effects at group level Major programs
Formal or informal group Individual and the group
Affect job flow, work design, Require considerable
social organisations etc. planning
 Strategic changes

Structural changes

Process oriented
change

People oriented
change
Planned change

01 02 03 04

To improve the To increase To promote human To contribute to

means for profitability work for human individual
satisfying beings satisfaction and
economic needs of social well being.
members
Planned change process steps
Planning for change Implementing the change

01 02 03

Assessing change forces

Planning for change

Developing new
goals and objectives Strategies for
implementation of plan

Selecting an agent Selecting

of change methodology

Diagnose the Developing the plan

problem
 Assessing change forces
(i)If the driving forces far out weight the
restraining forces, management can push driving
forces and overpower restraining forces.

(ii) If restraining forces are stronger than driving

forces, management either gives up the change
programme or it can pursue it by concentrating
on driving forces and changing restraining forces
into driving ones or immobilizing them.

(iii) If driving and restraining forces are fairly

equal, management can push up driving forces
and at the same time can convert or immobilize
restraining forces.
 Favorable conditions
 Right timing
 Right channels of communication
 Gains acceptance
 feedback
Stages for implementing organizational changes

1 Unfreezing

2 Changing

3 Refreezing
Michael Beer prescribes five sources of power for the change agent:
(i) High status given by the members of the client organisation, based on their perception that the change
agent is similar to them in behaviour, language, values etc.
(ii) Trust in the change agent based on his consistent handling of information and maintaining a proper role
in the organisation.
(iii) Expertise in the practice of organisational change.
(iv) Established credibility based on experience with previous clients or previous projects with the client
organisation.
(v) Dissatisfied constituencies inside the organisation who see the change agents as the best opportunity to
change the organisation to meet their needs.
 What can change agent change ?

Physical settings

decide space
configurations interior People
design, equipment
placement etc. inspire the employees to
change to adapt to the
environment
Technology
Structure
Change agents
introduce new defined by how the tasks
tools and are formally divided,
techniques. grouped and coordinated
 Action research
Action research is another view of the
organisational change process. It is an

Step
organisational change process that is based
on a research model specifically one that
1
contributes towards the betterment of the
sponsoring organisation
2

Step
3

Step
Process of action 4

Step
Action
research
5

Step
Human reaction to change

Acceptance Resistance

01 If an employee
perceives that a
02 Resistance means
opposition to change.
change is likely to
affect him favorably,
he accepts it

Forced
acceptance Indifference

04 if change forces are

stronger than the 03
resistance forces, people
have to accept the
change
Sometimes, the employees
fail to realize the impact of
change
The process of translating an idea or invention into a good or service that creates value or for
which customers will pay

01 Company perspective 02 Customers perspective

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