Monday, June 2, 2014

Unit 6 (P 44): Organizational Change: concept, forces, planned change & process

Organizational Change

  1. “Change is an alteration occurring the work environment that affect the ways in which employees  must act. (Newstrom and Davis)
  2. These changes may be planned or unplanned, catastrophic or evolutionary, positive or negative, strong or weak, slow or rapid, and stimulated either internally or externally.”
  3. Thus, OC is modification in relationship and behavior patterns of individuals and groups in organization, and organizational level for adaptation to dynamic environment.

Forces for Change

  1. Internal environment: Owners/ shareholder, Board of directors, Employees/ unions, corporate culture, Structure, Rules and regulations, goals, resources.
  2. External environment: 
    • Task or micro or operating environment:
      • Customers, Suppliers, Distributors, Unions, Creditors, Competitors, Regulatory Agency, Strategic allies.
    • General or macro or remote environment:
      • Political: constitution, political parties, government, government – business relationship, International political events.
      • Economic: economic system, economic policies, markets, globalization, unemployment.
      • Social: attitudes and beliefs, religions, language, education, class system, social organization.
      • Technological: choices of technology, need identification, acquisition, up gradation and maintenance, 
      • Legal: competition law, employment law, health and safety law, product safety
      • Environmental: Environment protection laws, waste disposal, Energy consumption.

Planned Change

  • Planned change is a proactive response to anticipated changes in the social/ business/ technological/ political and financial environment. Planned change is a set of activities in an organization that are intentional and goal-oriented.
  • Its goals are to: Improving the ability of the organization to adapt to changes in its environment, and changing the behavior of individuals and groups in the organization to make them responsive to change. 

Need for planned change:

  1. Adapt to environmental change
  2. Change in employees behavior
  3. Meet competition
  4. Fulfill consumers expectation
  5. Innovation of new knowledge
  6. Development of team work
  7. Conflict resolution
  8. Reinforce efficiency

Process of planned change:

  1. Recognition of the need for change
  2. Establishment of goals for the change
  3. Diagnosis of relevant variables
  4. Selection of appropriate change technique
  5. Planning for implementation of the change
  6. Actual implementation
  7. Evaluation and follow up

An alteration of the status quo is carefully formulated program that follows four steps: unfreezing the present level, establishing a change relationship, moving to a new level, and freezing at the new level. The program can be implemented by collaborative, coercive, or emulative means.

Targets of Organizational Change (What can change agents change?)

  1. Structure: organization’s design, standardization, decentralization etc.
  2. Technology: tools and equipment's or methods; automation or computerization
  3. Physical Setting: space configuration, interior design, equipment placement etc.
  4. People: changing attitude and behavior of organizational members through decision making, communication, problem solving processes.


16 comments:

  1. Organizational change is about reviewing and modifying management structures and business processes. Small businesses must adapt to survive against bigger competitors and grow. However, success should not lead to complacency. To stay a step ahead of the competition, companies need to look for ways to do things more efficiently and cost effectively. There is no need to fear change. Instead, small businesses should embrace change as a way to lay the foundations for enduring success

    ReplyDelete
  2. Organizational Change Management is a framework structured around the changing needs and capabilities of an organization. OCM is used to prepare, adopt and implement fundamental and radical organizational changes, including its culture, policies, procedures and physical environment, as well as employee roles, skills and responsibilities.
    Planned Change: A planned change is a change planned by the organization; it does not happen by itself. It is affected by the organization with the purpose of achieving something that might otherwise by unattainable or attainable with great difficulty. Through planned change, an organization can achieve its goals rapidly.

    Process for planned change:

    1. Develop new goals and objectives. The manager must identify as to what new outcomes they wish to achieve. This may be modification of previous goals due to changed internal and external environment or it may be a new set of goals and objectives.

    2. Select an agent of change. The next step is that the management must decide as to who will initiate and oversee this change. One of the existing managers may be assigned this duty or even sometimes specialists and consultants can brought in from outside to suggest the various methods to bring in the change and monitor the change process.

    3. Diagnose the problem. The person who is appointed as the agent of the change will then gather all relevant data regarding the area of problem or the problem where the change is needed. This data should be critically analyzed to pinpoint the key issues. Then the solutions can be focused on those key issues.

    4. Select Methodology. The next important step is to select a methodology for change; employee’s emotion must be taken into consideration when devising such methodology.

    5. Develop a plan. After devising the methodology, the next step will be to put together a plan as to what is to be done. For example, if the management wants to change the promotion policy, it must decide as to what type of employees will be affected by it, whether to change the policy for all the departments at once or to try it on a few selected departments first.

    6. Strategy for the implementation of the plan. In this stage, the management must decide on the ‘when’, ‘where’ and ‘how’ of the plan. This includes the right time of putting the plan to work, how the plan will be communicated to the employees in order to have the least resistance and how the implementation will be monitored.

    ReplyDelete
  3. Organizational change is about reviewing and modifying management structures and business processes. Small businesses must adapt to survive against bigger competitors and grow. However, success should not lead to complacency. To stay a step ahead of the competition, companies need to look for ways to do things more efficiently and cost effectively. There is no need to fear change. Instead, small businesses should embrace change as a way to lay the foundations for enduring success

    Planned Change: A planned change is a change planned by the organization; it does not happen by itself. It is affected by the organization with the purpose of achieving something that might otherwise by unattainable or attainable with great difficulty. Through planned change, an organization can achieve its goals rapidly.

    ReplyDelete
  4. the adoption of new idea or behaviour by organization is called organizational change.

    types :
    1.incremental change
    2.transformational change
    3.strategic change
    4.organizational change
    5.changes to system and processes
    6.cultural change
    7.behavioural change

    areas of organizational change:
    1.technology
    2.strategy
    3.structure
    4.people

    Planned Change

    Planned change is a proactive response to anticipated changes in the social/ business/ technological/ political and financial environment. Planned change is a set of activities in an organization that are intentional and goal-oriented.

    process:
    1.develop new goals and objectives
    2.select an agent of change
    3.diagnose the problem
    4.select methodology
    5.develop a plan
    6.selection of appropriate plan
    7.implementation

    ReplyDelete
  5. Organizational change is about reviewing and modifying management structures and business processes. Small businesses must adapt to survive against bigger competitors and grow.
    Types of organizational change :
    1.incremental change
    2.transformational change
    3.strategic change
    4.organizational change
    5.changes to system and processes
    6.cultural change
    7.behavioural change

    ReplyDelete
  6. Organizational change is about reviewing and modifying management structures and business processes. Small businesses must adapt to survive against bigger competitors and grow. However, success should not lead to complacency. To stay a step ahead of the competition, companies need to look for ways to do things more efficiently and cost effectively. There is no need to fear change. Instead, small businesses should embrace change as a way to lay the foundations for enduring success.

    ReplyDelete
  7. Organizational change is internal as well as external change in the work environment that may be planned or unplanned, catastrophic or evolutionary, positive or negative, strong or weak, slow or rapid.

    Planned Change
    Planned change is a proactive response to anticipated changes in the social/ business/ technological/ political and financial environment. Planned change is a set of activities in an organization that are intentional and goal-oriented.

    ReplyDelete
  8. Organizational change is about reviewing and modifying management structures and business processes. Small businesses must adapt to survive against bigger competitors and grow.

    FORCES FOR CHANGE
    Internal: shareholders,employees, board of directors,organizational rules,policies,objectives,structures

    External:
    Task or micro environment:
    Customers, Suppliers, Distributors, Unions, Creditors, Competitors

    General or macro environment:
    Political: constitution, political parties, government, political events,political beliefs,thoughts and understanding.
    Economic: , economic policies and rules, markets types, globalization, unemployment situation,economic system.
    Social: religions, language, education, costoms,attitudes and beliefs, social organizations,social societies and groups.
    Technological: selection of technology, applicability, updates and maintenance,
    Legal: employment law, health and safety law, product safety,competition law,
    Environmental: protection laws, waste disposal, Energy consumption, optimum use, maximization of resources.


    PLANNED CHANGE:
    Planned change is a proactive response to anticipated changes in the social/ business/ technological/ political and financial environment. Planned change is a set of activities in an organization that are intentional and goal-oriented.


    PROCESS OF PLANNED CHANGE
    Recognize the need for change. Recognition of the need for change may occur at the top management level or in peripheral parts of the organization. The change may be due to either internal or external forces.
    Develop the goals of the change. Remember that before any action is taken, it is necessary to determine why the change is necessary. Both problems and opportunities must be evaluated. Then it is important to define the needed changes in terms of products, technology, structure, and culture.
    Select a change agent. The change agent is the person who takes leadership responsibility to implement planned change. The change agent must be alert to things that need revamping, open to good ideas, and supportive of the implementation of those ideas into actual practice.
    Diagnose the current climate. In this step, the change agent sets about gathering data about the climate of the organization in order to help employees prepare for change. Preparing people for change requires direct and forceful feedback about the negatives of the present situation, as compared to the desired future state, and sensitizing people to the forces of change that exist in their environment.
    Select an implementation method. This step requires a decision on the best way to bring about the change. Managers can make themselves more sensitive to pressures for change by using networks of people and organizations with different perspectives and views, visiting other organizations exposed to new ideas, and using external standards of performance, such as competitor's progress.
    Develop a plan. This step involves actually putting together the plan, or the “what” information. This phase also determines the when, where, and how of the plan. The plan is like a road map. It notes specific events and activities that must be timed and integrated to produce the change. It also delegates responsibility for each of the goals and objectives.
    Implement the plan. After all the questions have been answered, the plan is put into operation. Once a change has begun, initial excitement can dissipate in the face of everyday problems. Managers can maintain the momentum for change by providing resources, developing new competencies and skills, reinforcing new behaviors, and building a support system for those initiating the change.
    Follow the plan and evaluate it. During this step, managers must compare the actual results to the goals established in Step 4. It is important to determine whether the goals were met; a complete follow‐up and evaluation of the results aids this determination. Change should produce positive results and not be undertaken for its own sake.

    ReplyDelete
  9. A planned change is a change planned by the organization; it does not happen by itself. It is affected by the organization with the purpose of achieving something that might otherwise by unattainable or attainable with great difficulty. Through planned change, an organization can achieve its goals rapidly. The basic reasons for planned change are:

    -To improve the means for satisfying economic needs of members
    -To increase profitability
    -To promote human work for human beings
    -To contribute to individual satisfaction and social well being

    The planned organizational change process may comprise, basically the three following steps:
    -Planning for change
    -Assessing change forces
    -Implementing the change

    ReplyDelete
  10. Whether the result of a merger, or just the demands of a tough marketplace, significant organizational change is one of the most difficult strategies to implement.
    Organizational change is modification in relationship and behavior patterns of individuals and groups in organization, and organizational level for adaptation to dynamic environment.

    FORCES FOR CHANGE
    Internal: shareholders,employees, board of directors,organizational rules,policies,objectives,structures

    External:
    Task or micro environment:
    Customers, Suppliers, Distributors, Unions, Creditors, Competitors

    General or macro environment:
    Political: constitution, political parties, government, political events,political beliefs,thoughts and understanding

    Economic: , economic policies and rules, markets types, globalization, unemployment situation,economic system

    Social: religions, language, education, costoms,attitudes and beliefs, social organizations,social societies and groups

    Technological: selection of technology, applicability, updates and maintenance

    Legal: employment law, health and safety law, product safety,competition law

    Environmental: protection laws, waste disposal, Energy consumption, optimum use, maximization of resources.

    ReplyDelete
  11. Organizational change:Company or organization going through a transformation. Organization change occurs when business strategies or major sections of an organization are altered. Also known as reorganization, restructuring and turnaround.

    Forces for change:

    -Internal: shareholders,employees, board of directors,organizational rules,policies,objectives,structures

    -External:
    -Task or micro environment:
    Customers, Suppliers, Distributors, Unions, Creditors, Competitors

    General or macro environment:
    -Political: constitution, political parties, government, political events,political beliefs,thoughts and understanding.
    -Economic: , economic policies and rules, markets types, globalization, unemployment situation,economic system.
    -Social: religions, language, education, costoms,attitudes and beliefs, social organizations,social societies and groups.
    -Technological: selection of technology, applicability, updates and maintenance,
    -Legal: employment law, health and safety law, product safety,competition law,
    -Environmental: protection laws, waste disposal, Energy consumption, optimum use, maximization of resources.

    Planned change:Planned change is a proactive response to anticipated changes in the social/ business/ technological/ political and financial environment. Planned change is a set of activities in an organization that are intentional and goal-oriented.

    Process for planned change:
    -Recognize the need for change. Recognition of the need for change may occur at the top management level or in peripheral parts of the organization. The change may be due to either internal or external forces.
    -Develop the goals of the change. Remember that before any action is taken, it is necessary to determine why the change is necessary. Both problems and opportunities must be evaluated. Then it is important to define the needed changes in terms of products, technology, structure, and culture.
    -Select a change agent. The change agent is the person who takes leadership responsibility to implement planned change. The change agent must be alert to things that need revamping, open to good ideas, and supportive of the implementation of those ideas into actual practice.
    -Diagnose the current climate. In this step, the change agent sets about gathering data about the climate of the organization in order to help employees prepare for change. Preparing people for change requires direct and forceful feedback about the negatives of the present situation, as compared to the desired future state, and sensitizing people to the forces of change that exist in their environment.
    -Select an implementation method. This step requires a decision on the best way to bring about the change. Managers can make themselves more sensitive to pressures for change by using networks of people and organizations with different perspectives and views, visiting other organizations exposed to new ideas, and using external standards of performance, such as competitor's progress.
    -Develop a plan. This step involves actually putting together the plan, or the “what” information. This phase also determines the when, where, and how of the plan. The plan is like a road map. It notes specific events and activities that must be timed and integrated to produce the change. It also delegates responsibility for each of the goals and objectives.
    -Implement the plan. After all the questions have been answered, the plan is put into operation. Once a change has begun, initial excitement can dissipate in the face of everyday problems. Managers can maintain the momentum for change by providing resources, developing new competencies and skills, reinforcing new behaviors, and building a support system for those initiating the change.
    -Follow the plan and evaluate it. During this step, managers must compare the actual results to the goals established in Step 4. It is important to determine whether the goals were met; a complete follow‐up and evaluation of the results aids this determination. Change should produce positive results and not be undertaken for its own sake.

    ReplyDelete
  12. Organizational development efforts, whether facilitated by an outside expert or institutionalized
    and conducted on an ongoing basis, bring about planned change within organizations and teams.
    However, they are but one type of change that occurs in organizations, for change can be both planned
    and unplanned and can occur in every dimension of the universe. A change in chief justice,
    appropriations, or staff support can dramatically alter the character of a judicial education organization.
    Institutional alignment of the state bar, local law schools, area colleges and universities, and judicial
    professional associations may yield similar impacts.
    Planned change takes conscious and diligent effort on the part of the educator or manager. Kanter
    (1983) originated the concept of the
    change master
    :
    a person or organization adept at the art of
    anticipating the need for and of leading productive change. As a way to reinforce the judicial educator’s
    role in the change process, this term will be used to refer to educators and managers who are interested
    in effecting change in their organizations or work teams.

    Planning for Change
    Before embarking on an organizational change initiative, it is wise to carefully plan strategies and
    anticipate potential problems. One useful method of planning comes from an early researcher on
    change, Kurt Lewin (1947), who developed the concept of
    force-field analysis
    . The term describes
    analysis that is deceptively simple and can be used to help plan and manage organizational change.
    Lewin believed that behavior within an organization was a result of the dynamic balance of two
    opposing forces. Change would only occur when the balance shifted between these forces.
    Driving
    forces
    are those forces which positively affect and enhance the desired change. They may be persons,
    trends, resources, or information. Opposing them are the
    restraining forces
    , which represent the
    obstacles to the desired change. As these two sets of forces exist within an organization, they create a
    certain equilibrium. That is, if the weights of the driving and restraining forces are relatively equal, then
    the organization will remain static. As changes occur and affect the weight of either one of the forces, a
    new balance will occur, and the organization will return to what Lewin called “quasi-stationary
    equilibrium.” Individuals practicing their vocation in the context of a political organization may
    intuitively employ these concepts in defining and redefining what change is possible. Judicial educators
    operate in such a context.

    ReplyDelete
  13. Organizational change:Company or organization going through a transformation. Organization change occurs when business strategies or major sections of an organization are altered. Also known as reorganization, restructuring and turnaround.

    types :
    1.incremental change
    transformation change
    3.strategic change
    4.organizational change
    5.changes to system and processes
    6.cultural change
    7.behavioral change

    areas of organizational change:
    1.technology
    2.strategy
    3.structure
    4.people

    ReplyDelete
  14. Organizational change is internal as well as external change in the work environment that may be planned or unplanned, catastrophic or evolutionary, positive or negative, strong or weak, slow or rapid.

    Process for planned change:

    1. Develop new goals and objectives. The manager must identify as to what new outcomes they wish to achieve. This may be modification of previous goals due to changed internal and external environment or it may be a new set of goals and objectives.

    2. Select an agent of change. The next step is that the management must decide as to who will initiate and oversee this change. One of the existing managers may be assigned this duty or even sometimes specialists and consultants can brought in from outside to suggest the various methods to bring in the change and monitor the change process.

    3. Diagnose the problem. The person who is appointed as the agent of the change will then gather all relevant data regarding the area of problem or the problem where the change is needed. This data should be critically analyzed to pinpoint the key issues. Then the solutions can be focused on those key issues.

    4. Select Methodology. The next important step is to select a methodology for change; employee’s emotion must be taken into consideration when devising such methodology.

    5. Develop a plan. After devising the methodology, the next step will be to put together a plan as to what is to be done. For example, if the management wants to change the promotion policy, it must decide as to what type of employees will be affected by it, whether to change the policy for all the departments at once or to try it on a few selected departments first.

    6. Strategy for the implementation of the plan. In this stage, the management must decide on the ‘when’, ‘where’ and ‘how’ of the plan. This includes the right time of putting the plan to work, how the plan will be communicated to the employees in order to have the least resistance and how the implementation will be monitored.

    ReplyDelete
  15. Organizational Change Management is a framework structured around the changing needs and capabilities of an organization. OCM is used to prepare, adopt and implement fundamental and radical organizational changes, including its culture, policies, procedures and physical environment, as well as employee roles, skills and responsibilities.

    ReplyDelete
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    ReplyDelete