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Organizational change

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Organizational change

  1. 1. NATURE OF ORGANIZATIONAL CHANGE Organizational change is about the process of changing an organization’s, •strategies, •processes, •procedures, •technologies, and •culture as well as the effect of such changes on the organization
  2. 2. FACTORS AFFECTING ORGANIZATIONAL CHANGE • EXTERNAL FACTORS: Technology: a change in technology makes the organization less cost effective and its competitive position weakens ,therefore it should adopt new technology. Marketing condition: any changes in the competitors marketing strategy ,forces the organization to change its own strategy so as to maintain its market position.
  3. 3. – Social changes: social changes refer to the change in peoples behavior due to forces like level of education ,etc.. ,it is required to make adjustment in organizations working so that it matches with people. – Political and legal changes: any changes in political and legal factors may affect the organization operation.
  4. 4. • INTERNAL FACTORS: – Changes in the managerial personnel: when old managers are replaced by new managers ,each new manager bring his own ideas .the result is that the organization has to change accordingly. – Deficiency in Existing organization : deficiency may be in the form of lack of coordination and cooperation ,to remove these deficiency changes need to be brought in organization.
  5. 5. PLANNED CHANGE
  6. 6. Human response to change • People may totally deny the change: If this happens the organization may gradually lose its effectiveness. • People may ignore the change: Managers may temporarily ignore the change with the expectation that the problems will soon disappear. • People may resist the change: Resistance may be emotional, economical, personal, and social.
  7. 7. CHANGE AGENT: • Is anyone who has the skill and power to stimulate, facilitate, and coordinate the change effort. • Change agents may be either external or internal.
  8. 8. ROLE OF CHANGE AGENTS: • Consulting: The purpose is to help employees find solutions to problems through analysis of valid data. • Training: To provide organization members with a new set of skills- the ability to retrieve, translate and use new data to solve future problems. • Research: The manager may train the members in skills needed for valid evaluation of the effectiveness of action plans that have been implemented.
  9. 9. Process of planned change in organization Need for change Development of goals of change Selection of change agent Diagnosis Selection intervention method Development of a plan Planning for implementation Follow-up and evaluation
  10. 10. 1. 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.
  11. 11. 2. 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.
  12. 12. 3. 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.
  13. 13. 4. 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 the 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.
  14. 14. 5. 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.
  15. 15. 6. 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.
  16. 16. 7. 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.
  17. 17. 8. 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.
  18. 18. 1. Job Loss 2. Poor Communication and Engagement 3. Lack of Trust 4. The Unknown 5. Poor Timing Resistance to change.
  19. 19. • Job loss is a major reason that employees resist change in the workplace. In any business, there are constantly going to be things moving and changing, whether it is due to the need for more efficiency, better turnaround times, or the need for the employees to work smarter. With all these needs comes the opportunity for the company to downsize or create new jobs, and this is where the fear of job loss comes into play. 1. Job Loss
  20. 20. • This is another crucial reason why employees oppose change. If the process of what needs to be changed, how it needs to be changed and what success would look like cannot be communicated, then resistance should be expected. Employees need to understand why there is a need for change, because if they are just thrown the notion that what they have been used to for a long time is going to be completely renovated, with that will come much backlash. 2. Poor Communication and Engagement
  21. 21. • Trust is a vital tool to have when running a successful business. In organizations where there is a lot of trust in management, there is lower resistance to change. Mutual mistrust between management and employees will lead to the company going into a downward spiral, so trust is a must. 3. Lack of Trust
  22. 22. • We already mentioned communication, and a lack of it causes employees to feel like they don’t know what’s going on. If companies are constantly experiencing times where the future is unknown, there is also a good possibility that employees won’t respond to change well. When the thought of change is brought up in this case, it would come as a surprise, leading to employees being caught off guard, which makes the situation much worse. 4. The Unknown
  23. 23. • Timing is one of the biggest problems when it comes to change. A lot of the time, it’s not the act itself that creates the resistance, but how and when it is delivered. 5. Poor Timing
  24. 24. 1. Overcome opposition 2. Effectively engage employees 3. Implement change in several stages 4. Communicate change effectively Overcoming resistance to change
  25. 25. An explanation for why the change is needed is always a good idea. By helping employees better understand why a change is important for the company, it’s easier to get them on board with the change, and it can also encourage them to become an advocate for change. With this, an explanation of “what’s in it for me?” helps employees see the big picture and the benefits of the change, instead of only giving them a narrow view of what is to happen in the near future. 1. Overcome opposition
  26. 26. Ask employees probing questions: Is the change working? What can we do to make it work better? Do employees have any questions or concerns? These are all great questions to ask, but if feedback is going to be collected, it actually needs to be read and utilized. These answers can be used to change the plan accordingly, and show employees that their ideas and concerns are being heard. 2. Effectively engage employees
  27. 27. Change doesn’t happen all at once. Companies should first prepare for the change, then take action on the change and make a plan for managing the change, and third, support the change and assure that all is going as planned 3. Implement change in several stages
  28. 28. The best way that you as an employer can communicate change is to explicitly tell employees what is going on. Using a blend of formal and informal communication allows you to ensure that all employees receive the news about the change in some way or another. With all the communication outlets such as email, company intranets, town halls, and face-to-face meetings, the message is going to get across the company. Employing several different ways to communicate change helps explain the vision, goals and expectations for what needs to happen and why. 4. Communicate change effectively
  29. 29. • Companies of all types constantly experience change, because as industries grow, businesses have to evolve. Changes such as switching to a new HR plan can affect your business in every way, but that doesn’t necessarily mean that it has to change for the worst. Change needs to be dealt with in an effective and responsible manner, and if done correctly, it will seriously benefit the company and make it a smooth transition. Conclusion
  30. 30. • Presented to: – Dr. Subhashish Chatterjee • Presented by: – Bhavin Zanje – Komal Panchal – Divya Chandana – Pritesh Jain – Maitri Patel

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