Professional Documents
Culture Documents
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The term change' refers to any alteration which occurs in the following characteristicsChange results from the pressure of forces which are both outside and inside the organization. The whole organization tends to be affected by change in any part of it. Change takes place in all parts of the organization, but at varying rates of speed and degrees of significance.
External Forces
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Marketing Conditions Market conditions are no more static. They are in the process of rapid change as the needs, desires and expectations of the customers change frequently. There is a tough competition between manufacturers and suppliers in the market. The market is flooded with new products and innovations everyday. All these factors put great pressure on the modern organizations to change their technological and marketing strategies.
External Forces
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Social Change Due to spread of education, knowledge explosion and Governments efforts, social changes are taking place at a faster rate. The drive for social equality e.g., equal opportunity to women, equal pay for equal work, has posed new challenges for the management. The management has to follow social norms in shaping its employment, marketing and other policies.
External Forces
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Political Forces Political forces within and outside the country have an important influence on large business houses, particularly the transnational corporations. The relation between government and business houses has become very complex in modern times. Interference of government in business houses has become very complex. Organizations have no control over the political and legal forces, but they have to adapt to meet the pressures of these forces.
Internal Forces
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Changes in Managerial Personnel Old managers are replaced by new managers due to retirement, promotion, transfer or dismissal. Each manager brings his own ideas and way of working within the organization. The relationships, more particularly informal ones, change because of changes in managerial personnel. As result an organization has to change accordingly. Changes in the organization are quite fast when executives at the top change.
Internal Forces
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Change in Operative Personnel The make up of the workforce is changing fast. New workers have better educational qualifications, place greater emphasis on human values and question authority of managers. Their behavior is very complex and leading them for organizational goals is really a challenge. The changing personnel certainly act as a pressure that has to be handled properly by the organization.
Internal Forces
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Deficiencies in Existing Structures Changes may be needed to rectify deficiencies in the present organizational set up. These deficiencies may be in the form of unmanageable span of management, larger number of managerial levels, lack in coordination between various departments, obstacles in communication, lack of uniformity in policy decisions, lack of co-operation between line and staff. However, the need for change in such cases goes unrecognized until some major crisis occurs.
Internal Forces
4)Changes in employee expectations organizations hire new comers who have a set of expectations which are very different from those expressed by older workers. Today's workforce is more educated & hence also tend to demand more from employers. The new generation is not just career minded, rather they are more concerned about their career as well as family due to which they often seek flexible work timings or opportunities to work at their own pace.
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Reactive change: reactive change occurs when forces to change make it necessary for a change to be implemented. New strategic moves made by competitors, new technological discoveries & performance problems are common reasons for reactive change. Planned change: it occurs when leaders in the organization recognise the need for a major change & proactively organize a plan to accomplish the change. Strategic plans for reorganization are a part of planned change. Incremental/Evolutionary change: incremental change is an ongoing process of evolution overtime during which many small changes occur routinely. Over time, the many small changes may be used to transform the entire organization. It is focused on units & sub units within an organization.
Types Of Changes
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Revolutionary change: this change is rapid & dramatic. Revolutionary change involves a bold attempt to quickly find new ways to be effective which is likely to result in a radical shift of doing things, new goals & new structure of the organization. This process has repercussions on all levels of the organization. Strategic change: it is the change in the very basic mission of the organization. A simple objective may have to be changed to achieve the mission of the organization. For eg: Indian companies are being modified to accommodate various aspects of global culture brought in by the multinational companies.
Types Of Changes
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Process oriented change: these changes are related to the recent technological developments & automation. This will involve retraining personnel, equipment investments & operational changes to accommodate the change brought about due to external forces. All this effects the organizational culture & as a result the behaviour pattern of the employees. People oriented change: these changes are directed towards performance improvement, team building, loyalty towards the organization & developing a sense of self actualization amoing members. This can be made possible by special behavioral training & modification sessions.
Types Of Changes
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Operational change: this is required when a organization needs to improve the quality of its products or services due to external competition, customers changing requirements & demands or internal organizational dynamics. It focuses on improvement of existing operations to perform better. It includes bringing in new technology, re-engineering the work processes, better distribution & delivery of products etc. Structural change: involves changing the internal structure of the organization. This change is directed towards work relationships, work assignments & authority structure. Total change: this change in necessary to remove the organization from its negative practices due to long term failure of business, employee conflicts , power in the hands of few people who pursue their own interests at the cost of the organization. Total change remodifies the entire system to bring about a positive change.
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Problem Recognition: in this stage, the management acknowledges & recognizes the problems which exists in the organization. Employee turnover, absenteeism, union disputes, employee grievances, role conflicts & declining profits are some of the problems which affects the productivity of the organization. Identifying the cause of the problems: in this stage, the managements tries to find out the root cause of the problems identified in the 1st stage. For eg: is declining profitability is the problem identified, it could be due to reasons such as low employee productivity, reduction in orders from customers etc. Implementing the change: after holding discussions with the employees & analysing the feedback gathered through questionnaires, the management will be able to identify the underlying causes of the problems. The management then designs a change plan to improve the situation & solve the problems.
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Generating motivation for change: management motivates employees to accept change so that employees work willingly towards change management. This can be done by making the employees realise the disadvantages of the current practices, by providing them with role plays in the change process which will promote a sense of ownership& encourage employees to contribute towards the change. Employees can also be motivated by rewarding them for adopting the change. Managing the transition state: change process disturbs the status quo of an organization. For eg: when an organization adopts an informal culture, it leads to changes in job profiles & old rules of reporting. In order to avoid confusion in employees, management must communicate the change effectively
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Supporting the change: to implement the change successfully, management must obtain the support & cooperation of various employee groups. This can be achieved through negotiation, co-optation & compromise. Failure in attaining the support of employee groups may result in strong resistance to the change program. Evaluating the change: after implementation, the changes must be evaluated to check whether the new system has been able to solve the problems identifies in the old system & whether the desired future state has been attained. In case something has gone wrong, al the stages of the change process from the problem diagnosis to evaluation stag must be repeated once again.
One of the most useful frameworks in this area is the three-stage model of planned change developed in the 1950s by psychologist Kurt Lewin. This model assumes that change will encounter resistance. Therefore, executing change without prior preparation is likely to lead to failure. Instead, organizations should start with unfreezing or making sure that organizational members are ready for and receptive to change. This is followed by change or executing the planned changes. Finally, refreezing involves ensuring that change becomes permanent and the new habits, rules, or procedures become the norm
Unfreezing: Unfreezing calls for loosening the emotional link with the old work methods & practices, it leads to unlearning of old things to learn new ones. Individuals are made to feel that they have to give up the old work habits, for learning new types of behavior. The forces which drive change should be strengthened & forces which discourage change should be weakened. Rewards may be offered to those who accept change & the employees who resist change must be persuaded to accept change.
Resistance to Change
The most-needed and best-planned change carries no guarantee that it will be accepted. As common as change is, the people who work in an organization may still not like it. Each of those routine changes can be accompanied by tension, stress, squabbling, sabotage, turnover, subtle undermining, behind the scenes foot-dragging, work slowdowns & needless political battles
Resistance to Change
The sources of resistance to change on the part of individuals are discussed below: a. Economic Factors These factors relate to the basic economic needs of the workers like necessaries of life, job security and safety. b. Social Factors Individuals do have certain social needs like friendship, belongingness, etc. for the fulfillment of which they develop informal relations in the organization. They become members of certain informal groups and act as members of the group to resist change.
Resistance to Change
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Psychological Factors These factors arise when workers perceive that factors relating to their psychological needs will be affected adversely by the proposed changes. These needs are sense of pride of achievement, of self fulfillment, etc. Employees may apprehend boredom and monotony in the new jobs as a result of specialization brought in by the new technology.
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