ODC Handouts # 2
"Change is the only constant in the universe". --Heraclitus, 500 BC
What is change?
Change implies the following:
To make or become different.
Dissatisfaction with the old and belief in the new.
A qualitatively different way of perceiving, thinking, and behaving to improve over the past and present. Continuity without change leads to stagnation, and change without continuity leads to conflicts. The rate of change is faster than our ability to comprehend and cope with it.
What is organizational change?
Organizational change implies changes in the following:
Goals, Vision and Mission
Pattern of activities/administrative practices
Assumptions, values and belief
"Organizational change consists of goal-oriented and to a degree, pre-planned actions, the final result of which can be, more or less, clearly formulated in advance". --Van der Vlist
What is planned change?
"Planned change is a conscious, deliberate and collaborative effort to improve the operation of a system -whether it be a self-system, a social system, or a cultural system -through the utilization of scientific knowledge". --Bennis, Benne & Chin.
"...conscious, deliberate and collaborative effort to improve the operation of human system through utilization of valid knowledge". --Lippit
Elements of Planned Change
Outcome: goals, results, direction, improvement, renewal
History: causes, need, motive, context
Phases: steps, sequences
Communication: interaction, cultural aspects
Steering: monitoring, directing, guiding
Taxonomy of Change
Directional Change: Occurs under conditions of severe competitions, regulatory shifts in government policy, and unsuccessful business strategy. Fundamental Change: Redefinition of current purpose or mission. Operational Change: Improvement of quality, quantity, timeliness, unit cost of operations, in developing products and services. Total Change: Developing a new vision, achieving a turnaround; a drastic surgery of the existing system. Planned Change: Basically an operational change on a calculated basis as a response to internal and external demands e.g. downsizing. Happened Change: Unpredictable. Occurs due to external causes over which one my have no control. Transformational Change: Change involving the entire or a greater part of the organization due to a severe threat to its survival. The threat may occur from industrial discontinuities, shifts in a product’s life cycle or internal change e.g. union-management conflicts. Revolutionary Change: Abrupt changes in the organization’s strategies and design. Recreation: Tearing down the old structure and building a new one. A metamorphosis –becoming not just better but different. Strategic Change: Change of all or most of the organization’s components. Anticipatory Change: Changes carried out in expectation of an event. In anticipation of such change, the organization may tune-in (incremental change) or re-orient itself. Reactive Change: Response to an event or series of events. Adaptive changes are limited t a sub-system or apart of the sub-system. Recreation can also be reactive but involves the whole organization. [Source: Management of Organizational Changeby K Harigopal (Response Books)]
External Factors of Change
Political forces: Political environment is an importnat trigger for organizational change. Managers need to understand the political system of the country where they work. During the 1990s, an all-emcompassing phase of globalozation began throughout the world. Globalization in turn facilitated free markets. Governments began to withdraw their stake from the business enterprises. A number of countries de-regulated industries and thus created new opportunities for entrepreneurs. From regulators, the governments have become facilitators. As a result of new thrust given to free market and foreign direct investment, the companies...
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