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101 MPOB Management of Organizational Change

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Management of

Organizational Change

Puneet Gulati (05)


Ishita Dhingra (30)
Tanvi Jindal (26)
Gaurav Sareen (49)
Nature of Organizational Change
 Organization Change:
 Change refers to an alteration in a system

 Any substantive modification to some part of the


organization. Eg- changes in work schedules,
machinery, people etc

 It implies a new equilibrium between different


components of an organization
Forces for change

Forces for change

External Factors Internal Factors


External Factors
Technological
Changes

Social
Political and
External Factors Changes
Legal changes

Changes in
Marketing
Conditions
Internal Factors

Internal Factors

Change in
Deficiency in
Managerial Personnel existing Organization
Planned vs. Reactive Change

Planned Change Reactive Change


 Change that is designed and  A piecemeal response to
implemented in an orderly and circumstances as they
timely fashion in anticipation of develop.
future events.
 Organization which believe in
 Proactive/conscious managers traditional pattern of working
interact with their environment often opt for reactive change.
and identify new threats and They introduce certain
opportunities. systems and methods when
they are forced to.
 Usually preferred over reactive
changes
Managing Change in Organization
Process Of Change

Unfreezing Individuals

Implementing change

Refreezing change
Models of change process:
1. Lewin Model:
 Behavior is the result of equilibrium between the driving and
the restraining forces
2.Comprehensive Approach to change
Recognizing need for change

Establishment of goals for changes

Diagnosis of relevant variables

Selection of appropriate change tech.

Planning for change implementation

Actual Implementation

Evaluation and follow up


Understanding resistance to change
1. Resistance at Individual Level:
 Economic Factors
 Psychological Factors
 Social Factors

2. Resistance at Group Level:


 Feeling of Loss
 Group dynamics

3. Resistance at Organization Level:


 Stability of system
 Resource Limitations
 Sunk cost
 Counting Past Successes
Managing Resistance to change
 Efforts at Individual Level:
 Involvement

 Obtaining commitment

 Leadership

 Training and counseling

 Efforts at Group Level:


 Participation

 Group contact

 Force-Field analysis
Areas of organizational changes
1. Organization structure and design:
 Organization change focused on the organization’s
overall design.
 Eg – Changes in reporting structure

 Effected Area’s:
• Job Design
• Departmentalization
• Authority distribution
• Culture
• Human resource management
2. Technology and operations:
 Rapid change of technological innovation leads to
increasing rate of technological changes
 Eg: Changes in equipments, machinery

 Effected Area’s:
• Work Processes
• Work sequences
• Information systems
• Control systems
• Equipments
3. Changing People:
 Changes to do with the human resources
 Eg: Changes in skill level of work force

 Effected Area’s:
• Abilities and skills
• Performance
• Perceptions
• Expectations
• Attitudes
• Values
Stages of Organizational change and
growth
Creativity Stage

Direction Stage

Delegation Stage

Coordination Stage

Collaboration Stage
Organization Development
 Techniques
 Planning and goal setting
 Team building
 Trainings

 Activities
 OD for the individual
 OD for teams or groups
 OD for Inter-group relations
 OD for total Organization
Innovation
 Innovation Process:
 Generation of Ideas
 Idea Development
 Implementation of Idea

 Forms of Innovation:
 Radical Innovation
 Incremental Innovation
 Technical Innovation
 Managerial Innovation
 Process innovation
Case study

Organizational Trauma
and Triumph at
QUESTIONS

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