What is Organisational Change?
Change is to modify in present condition due to situations or environment.
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Organisational Change is change in organisation due to its environment.Change is very important & compulsory for every organisation.Change is inseparable in the life of organisation because in today's business are fastly changing due to its internal and external environment.Evey organisation should change his organisation according to its environment.Because today every organisation facing dynamic and changing business environment,there is no other alternative except to change his organisation.Organisation which cope up according to his changing environment get success and reach the top .
Internal factors affects changes due to following reasons:-
1)Due to change in his personnel brings changes in organisation like promotion,transfer, retirement, resignation.
2) Change in management also brings changes in organisation ,new management make change in policies, rules, working methods.
3) Organisation change also takes place due to change in work in nature.
4) Organisation change also takes place when demand of changes arises within organisation.
External Factors affects changes due to these reasons:-
External Factors are those factors which directly and indirectly affects the working of business.So every organisation continuously analysis the environment and make changes according to it .
1) Political & Legal environment-Political environment leads necessary change in organisation.Political party in power affect the business system.Business laws, industrial, economic and corporate laws made and amended by the Government time to time, according to that laws organisations also makes changes in its behaviour and business policies.
2) Technological environment-Today revolutionary changes takes place in technology.Modern technology use of new techniques makes work easy in organisation.
3) Economic Environment-Economic Environment also brings changes in organisation.Inflation , deflation, recession,boom brings changes in cost of materials, infrastructure facilities.
4) Social and Cultural conditions-Social and cultural brings changes in organisation like social values,customs , tradition, festivals, living standard etc affects organisation.
Changes are two types:-
Process of Planned change..
In business we can get success when every work is performed in planned and systematic way .So Change is also performed in planned way .For makes changes every manager had to perform these functions and then follow the change process..
1)First manager had to see what are changes takes place in our products in market .
2)What the consumer like to buy his tastes, preferences,income level etc.
3)How much we should make changes in our products.
4) Available work force for making changes in product.
Process of Planned change..
1) Identify the forces of demanding change-The first & foremost step is to identify the forces which demand for the change.Forces are internal or external.Internal forces includes workers skill, demanding high salary,strike, labour problems cost of inputs etc demand for change in the organisation.
External Factors like Government policies,rules,lauching new technology,new product,tax policies, social customs, tradition, festivals living standard,labour laws etc
2) Identify the need of change within organisation-Second step is to identify the need of change within the organisation,it means identify the which things are required to be changed compulsory and which changes can be avoided.for this purpose manager consult the external consultant.
3) Recognising the problem-Next step is to diagnose the problem within organisation carefully.For this purpose data is collected and reason behind the problem and also problem solve measures also taken into consideration,it means what changes can solve the problem for eg problem is product sale decrease so that manager see the new product fashion run in the market so manager also make changes and decide to make product accordingly.
4) Planning the change-After make sure to change in the organisation he make plan for change for this purpose he make changes in organisation structure , authority, responsibility etc ,change in job qualifications,job training,job specification etc ..
5) Implement the Plan - After making plan for change manager implement the plan for change.For implementation the change plan manager has to pass through these stages..
1) Unfreeezing-Nobody like changes ,so for making changes in organisation manager has to motivate the employees for changes and prepare them for it ,So they willing and ready and accepting change.
2) Changing and moving-After prepare them for change plan is implement .After that changing and moving process begins it means manager give training to learn new pattern of behavior or experience for change for eg -New technology, methods etc.After giving training reward and punishment strategy is followed it means worker who work efficiently get reward otherwise get punishment.
6) Review and Feedback- After implement the change plan manager review the performance after change it means how much change is profitable for organisation . whether change in organisation is effective or not , whether it maximise profits or not then corrective actions is taken .
Points to be noted...
⭐ Organisation that learn and cope up with the changes in Environment will get success and earn more profits.
⭐ Organisation change is make alteration in present condition due to internal and external forces .
⭐ Change are of two types 1) Proactive 2) Reactive.
⭐Change is never ending process.
⭐Change is directive and participative.
