Organizational Development

Organization Change

Understanding Organization Understanding what is a change Understanding types of change

What are we attempting…

A purpose to exist, survive, serve, to be served An identity of itself People, process, products or services Manufactures or have them manufactured Procures, Uses, Manufactures and Distributes Laws and rules, code and guidelines Policies and Procedures …

Organization – Consists of

A unit, an association, a company, a conglomerate A territory, a vision Markets and it’s constituents Law of the land Environment and it’s use Economic development – domestic and

international A private or public organization …

Organization - Covers

“…in its simplest form is a person or group of people intentionally organized to accomplish an overall, common goal or set of goals…”

“…the process of organizing, planning, leading and controlling resources within an entity with the overall aim of achieving its objectives.

Organization definition

Vision Members of the organization often have some image in their minds about how the

organization should be working, how it should appear when things are going well. Mission

An organization operates according to an overall purpose, or mission. Values

All organizations operate according to overall values, or priorities in the nature of how they carry out their activities. These values are the personality, or culture, of the organization.

Strategic Goals Organizational members often work to achieve several overall accomplishments, or goals,

as they work toward their mission. Systems and Processes that (Hopefully) Are Aligned With Achieving the

Goals Organizations have major subsystems, such as departments, programs, divisions, teams,

etc. Each of these subsystems has a way of doing things to, along with other subsystems, achieve the overall goals of the organization. Often, these systems and processes are define by plans, policies and procedures.

Culture A methods, defined or otherwise, by which people and process interact with each others to

deliver an outcomes and in cases of difference manage / resolve the conflict, problem People

The “human” performers

Organization - Features

Organization – Growth

Organization - Transitions

Organizational - Leadership

Organization - Maturity

Change…

Is a deviation from the current path and performance

Is a problem, is a challenge Is an opportunity, is growth Is a force that influences the impacting body

adopt the force and transition, transform to what is required in the context

Types of Changes

PLANNED CHANGE

UNPLANNED CHANGE

RADICAL CHANGE

TRANSFORMATIONAL CHANGE

Planned change It is a change resulting from a deliberate

decision to alter the organization. Unplanned change

It is imposed on the organization and is often unforeseen. Changes in government regulations and changes in the economy, for example, are often unplanned.

Radical Change It is a process by which firms regain

competitive advantage after it has been lost or threatened significantly. Radical change is divergent, meant to fundamentally change the firm’s processes, systems, structures, strategies, and core values.”

Transformational change Transformational change occurs when

organizations incur drastic changes and must essentially transform themselves.  This can occur when an organization faces different technologies, significant changes in supply and demand, unexpected lossesz 

Strategic Change Change in the mission (when acquired)

Structural Change Decentralization

Process-oriented Change In manufacturing operations, in process industry like

pharmaceuticals, chemicals, etc. People-oriented Change

Self – actualization (Motivation, Loyalty, Training, Relationships)

Types of Change

Vital to avoid stagnation inside and outside (markets, etc.)

Process not a event, not something that is short Fast especially in present competitive scenario (look

at companies that are not there) Can be directive or participative Natural or adaptive, influenced by nature, by

external forces Incremental or step, not necessarily transformational Interdependent on organizational environment or

culture, allows for change in people

Characteristics of change

Organization-Context

External Forces Macro environment (PEST factors) Micro Environment (Consumers, Suppliers, Stake Holders)

Opportunities & Threats (SWOT)

Internal Forces Internal Environment (Men, Money, Machinery, Materials, Minutes)

Strengths & Weaknesses (SWOT)

Forces of Change

Government Force New laws, rules, guidelines

Technology Faster ,cheaper & more mobile computer

Economic factor Fluctuating interest rate, declining productivity, uncertainties due to inflation or deflation, oil prices etc.

Competition Global competition, mergers & acquisitions, growth of e commerce

Social Trends Internet chat room, retirement of body boomers

Customers Changing need & preference

External Forces for Change

Nature of workforce More cultural diversity; aging population; many new entrant with inadequate skill

System dynamics Technology, dominant group, formal or informal relationship

Inadequacy of admin processes Revision of org goal & objective; rules ;regulations, procedures.

Individual/group speculations Positive factor need, ambitions, potentialities, capabilities, career growth etc.

Structure focused change Downzing,rightsizing,job redesign

Technological changes Changes in equipment, work process, sequence, information processing system, automation

Resources constraints Depletion, non-availability

Internal Forces for Change

On Individuals Job assignment, Job Role, Location, New Skills Redundancy, Promotion, Challenges, New S

On Teams, Groups of People New focus areas, new sets of process, new

sets of tools, New sets of practices, new functions

On Division, ORG New markets, new partners, new territory, etc. New sets of leaderships, new rules and

regulations New sets of leadership,s

Depth of Change

Change in an organization is Necessary as the environment in which it operates is

constantly under focus or pressure to innovate or re-organize or constrained to perform, unable to delivery, etc.

Akin to how humans have evolved and changed and this is contributory too

… Organization evolve

Through an external stimuli or a need generated or through forces of continuous improvement within

And change to provide economic advantage to the society with the changing face of demand-supply

…

In Summary…