CHANGE MANAGEMENT

CHANGE
Alternation which occurs in the overall
work environment of an organization
Change is the law of nature
Nothing is permanent except change

ORGANIZATIONAL CHANGE
Organizational change is the process by
which organization move from their present
state to some desired future state to
increase effectiveness.
When an organization system is disturbed
by some internal or external forces change
frequently occur or any alteration which
occur in the overall work environment of an
organization.

CHANGE

Change often results from the pressure

of forces which are both outside and
inside the organisation;
The whole organisation tends to be
affected by the change in any part of it;
Change takes place in all parts of the
organisation, but at varying rates of
speed and degrees of significance.

CHANGE IN AN ORGANIZATION

It is in a constant interactional and interdependent

relationship with its environment

Change in its external environment, such as changes in

consumer tastes and preferences, competition, economic
policies of the Government, etc., make it imperative for an
organisation to make changes in its internal system

Composed of a number of subsystems which are

also in a dynamic relationship of interaction and
interdependence with one another

Any change in a subsystem creates a chain of changes

throughout the entire system

FORCES FOR CHANGE

External Forces
Customer

tastes and preferences,

Technological advances,
Economic factors
Social
political pressures
Globalization and government policies
Inclusive growth
IT/ICT Issues
Social media
Security threats - terrorism

FORCES FOR CHANGE

Internal Forces
System

dynamics
Structure focused change
Technological changes
Administrative processes
Individual /group expectations
Person focused change
Resource constraints
Profitability issues
Strategic flexibility: operational, financial, structural, and
technological.

Strategic

excellence: sensibility and creativity

Autonomy and flexibility for employees
Corporate Entrepreneurship / Intrapreneurship
Employee welfare: safety and security

Unethical practices by employees.

SPEED OF CHANGE
Urgency
Degree of support

Criteria to
Consider

Amount and complexity of change

Competitive environment
Knowledge and skills available
Financial and other resources

TYPES OF CHANGE
Change

as incremental and intrinsic to

an organization
Change as extrinsic and revolutionary
Change as patterned and predictable
vs. change as complex and
unpredictable
Duality or bipolarity of change

MACRO-ORGANIZATIONAL CHANGE
THEORIES VAN DE VEN & POOLE
Life-cycle theory
Teleological theory
Dialectical theory
Evolutionary theory

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LIFE-CYCLE THEORY
Life cycle theory assumes that change is immanent;
The typical progression of events in a life cycle model is
a unitary sequence (it follows a single sequence of
stages or phases), which is cumulative (characteristics
acquired in earlier stages are retained in later stages)
and conjunctive (the stages are related such that they
derive from a common underlying process)
Greiner model:

Creativity

(starting up)
Direction (more focused)
Delegation (growth)
Coordination (differentiation of function, integration)
Collaboration (total entity)

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TELEOLOGICAL THEORY
the explanation of phenomena by the purpose they
serve rather than by postulated causes.
According to teleology, development of an
organizational entity proceeds toward a goal or an
end state.
proponents of this theory view development as a
repetitive sequence of goal formulation,
implementation, evaluation, and modification of goals
based on what was learned or intended by the entity.
The theory can operate for an individual or for a
group of individuals or organizations.

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DIALECTICAL THEORY
Based on assumption that the organizational
entity exists in a pluralistic world of colliding
events, forces, or contradictory values that compete
with each other for domination and control.
Conflict may be internal or external
stability and change are explained by reference to
the balance of power between opposing entities.

EVOLUTIONARY THEORY
As in biological evolution, change proceeds
through a continuous cycle of variation, selection,
and retention
Variations, the creation, are often viewed to
emerge by random chance; they just happen.
Selection occurs principally through competition
among forms, and the environment selects those
forms that are best suited to the resource base of
an environmental niche.
Retention involves the forces (including inertia
and persistence) that perpetuate and maintain
certain organizational forms.