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Managing Organizational Changes

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SOURCES OF CHANGE AND THEIR DEALING

Organizational Change
Everything in this universe does not remain in one state. Everything changes with the passage of time.
Whatever the reasons are but they do change. Likewise, Organizations also change their state with time.

The process of change in the state of an organization is known as “Organizational Change”.

Types of Organizational Change


Organizational change occurs for reasons that originate external to the organization, as well as internal to
the organization. Resource dependence theory argues that both environmental and organizational
constraints impact organizational change. However, the interaction of external and internal sources of
organizational change has been under theorized and understudied.

So the types are:

1. External Sources of Organizational Change


2. Internal Sources of Organizational Change

External Sources of Organizational Change


On the basis of how we classify environment, we can determine the areas that are external sources
of change.
The environment has following areas that are external sources of organizational changes:
 Economic. These are competitors, suppliers, interest rates, unemployment, income settlement,
credit policy, gross domestic product, inflation, the level of international trade etc. All these factors
affect on the need for changes in the organization. You need to track them in order to make the right
decisions for change.
 Technology. Technology is the use of knowledge, methods, techniques and means that transform
inputs into the output in one organization. The rate of technology effects as external sources of
organizational change varies from industry to industry. Each entrepreneur must follow the
development of technology in its industrial branch and to use the latest achievements in the
development of their own business. It will ask for organizational changes.
 Socio-cultural. The external environment as a source of organizational change present peoples
values, habits, norms, attitudes and demographic characteristics.
Every society has different sociocultural characteristics based on the region, ethnic basis, settlement,
etc. All these different factors affect the business.
 Political. This area as an external source of organizational change deal with the laws and bylaws
retrieved by the parliament as well as regulations issued by the government. Political area contains
elements such as legislation, the stability of government, strikes, political situation in neighboring
countries, taxation… These sources of change must be respected by entrepreneurs and must be
incorporated in the work of their companies.
 International. Country where exist company is a narrower environmental of that company, but
the wider environment as internationally, recently had an increased impact on the business because of
the increasing globalization of markets. What happens on the global market affects every business.
The global crisis presents an example, which currently holds the whole world.

Internal Sources of Organizational Changes


Internal sources of organizational changes are forces which appear in the interior of the organization.
Controlling these organizational changes is easier for entrepreneurs and managers because they are from
inside the organization, something that according to the function, management control.

As well as in external resources, we can use the same way in defining internal sources of change based on


the internal environment of the organization. What is the internal environment of the organization? Most
simply, the internal environment of the organization is all that is within the organization. Organization as
a system consists:
 People
 Structure
 Process
Peoples are that who carry out all activities in the organization. We can have the best structure and the
best process, but without people in the process of transformation of the input to the output, we will not be
able to perform anything. People in the organization can be managers or employees, but all they represent
a source of organizational change. Employees are they which must take the initiative to change their work
places, or changes in work tasks for more efficient and effective performance.
The structure of the organization does not allow the appearance of chaos in the work. It gives the mutual
relations of all components of the organization. Organizational structure defines the place of employees in
the organization according to the hierarchy and the role of them through the rules, norms and procedures.
Over time, organizational structure cannot answer to the needs for efficient and effective work of
the organization and become internal source of organizational change.
Processes in an organization represent all the activities in order to transform input to output, and that will
have a value for consumers. Processes in the organization can be different, and now we’ll show some of
them that are most relevant to business:
 Technological process is a process that transforms raw materials into the products or services.
 The decision-making process is a choice of direction of the people.
 Communication process is the dissemination of information between people in the organization.
 Management process – management as a process-managing people in the direction of fulfilling
the organizational goals.
These processes are the sources of internal organizational changes, because any problem will seek a
solution, which is a new way of functioning of the process or organizational changes.
Dealing with Organizational Change
Change proves to be a challenge not just for supervisors and managers, but for employees as well. This
adds another dimension to the already difficult situation: guiding the employees through the change. After
all, organizations don’t change, people do.
The following are eight suggestions that will help managers and supervisors guide employees through
organizational change.

1. Involve employees in the change process. Employees are not so much against change as they
are against being changed. Any time managers are going to implement organizational change;
there is always a lag between the time the change has been discussed at the management level and
the time the change is going to be implemented. Managers like to play like an ostrich and believe
that they are the only ones who know about the changes that are going to take place.
Unfortunately, while their heads are stuck in the sand believing that no one else knows,
employees are effectively undermining the future changes with negative informal
communication…the company grapevine. The sooner you involve employees in the process; the
better off you will be implementing the change. A formal communication channel is more
effective at implementing change than a negative informal one.
2. Interview employees regarding their feelings. It is critical that managers and supervisors
understand what employees are feeling regarding the change. It is only when you accurately
understand their feelings that you know what issues need to be addressed. Implementing change
requires the ability to market and to sell. It is difficult to effectively sell without understanding
your buyer’s needs, concerns, and fears.
3. Concentrate on effective delegation. Too often managers and supervisors feel they must use
self-protective measures, especially during organizational change. They start by trying to police
all activities. Don’t try to cover all the bases yourself. You should concentrate on effective
delegation during the early stages of the change process. Effective delegation is particularly good
for two reasons: first, it helps you manage and maintain your workload, and second, it gives your
employees a sense of involvement. Involvement positions employees to share responsibility for
change.
4. Raise levels of expectations. Now more than ever, you should ask more from your employees. It
is expected that more work needs to be done during the change process. While it may be most
practical to expect less in terms of performance, raise your levels of expectations and theirs.
During change, employees are more likely to alter their work habits, so reach for the opportunity
and push them to try harder and work smarter. Require performance improvements and make the
process challenging, but remember to keep goals realistic in order to eliminate frustration and
failure.
5. Ask employees for commitment. Once the change has been announced, it is important that you
personally ask for each employee’s commitment to successfully implement the change. It is also
important that you assure the employee that if there are problems, you want to hear about them. If
a negative employee does not tell you, they will tell other employees why the change will not
work.
6. Expand communication channels. The change process usually means that normal
communication channels in the firm need to be enlarged. At this time, your employees will be
hungrier than ever for information and answers. You can “beef up” communication. First, give
employees an opportunity to give you input. Start by becoming more available and asking more
questions. Get employees’ opinions and reactions to the changes. Maintain your visibility and
make it clear that you are an accessible boss. More importantly, be a careful listener. Second,
keep employees updated on a regular basis. Just letting your employees know that you have no
new information is meaningful information to them. Strive to be specific; clear up rumors and
misinformation that clutter the communication channels. Remember, it is almost impossible to
over communicate.
7. Be firm, committed, and flexible. As you introduce a change, it is important that you see the
change through to completion. Abandoning it halfway through the change process accomplishes
two negative impacts. First, it destroys your credibility. Second, it tells every employee that if
you take the stance of a dinosaur, the change will pass by, even if you lose your job and become
extinct in the process. Remain flexible, because you will have to adapt to situations to
successfully implement the changes.
8. Keep a positive attitude. Your attitude as a manager or supervisor will be a major factor in
determining what type of climate is exhibited by your employees. Your attitude is the one thing
that keeps you in control. Change can be stressful and confusing. Try to remain upbeat, positive,
and enthusiastic. Foster motivation in others. During times of transition and change, try to
compensate your employees for their extra effort. Write a brief note of encouragement on their
paychecks; leave an affirming message on their voice mail; take them aside and tell them what a
great job they are doing; listen to their comments and suggestions. Last, try to instill
organizational change as a personal challenge that everyone can meet…with success!

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