Lesson37OrganizationalChange - Lesson-37 ORGANIZATIONAL...

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Lesson:-37 ORGANIZATIONAL CHANGE Dear students, today we shall learn about change and its impact of change on organizations. Perhaps the only thing constant within organisations is now change. Traditionally, analysis of organisational change has been built around the organism metaphor in which organisations are analyzed as if they were living organisms operating in an environment to which they need to adapt to ensure survival. For an organisation, its environment may be broken down into: * Societal factors * Environment factors and * Internal factors. This is an era of globalization and the organizations need to cope up with the dynamic and inevitable changes which take place very often. Because of this changes the competition among firms is becoming intense and every organization should be flexible enough to implement the changes whenever required for its survival. There are two basic forms of change in organizations. Planned change is change resulting from a deliberate decision to alter the organization. Companies that wish to move from a traditional hierarchical structure to one that facilitates self-managed teams must use a proactive, carefully orchestrated approach. Not all change is planned, however. Unplanned change is imposed on the organization and is often unforeseen. Changes in government regulations and changes in the economy, for example, are often unplanned. Responsiveness to unplanned change requires tremendous flexibility and adaptability on the part of the organizations. Managers must be prepared to handle both planned and unplanned forms of change in organizations. Forces for Change Forces for change can come from many sources. Some of these are external, arising from outside the company, whereas others are internal, arising from sources within the organization. External Forces
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The four major external forces for change are globalization, workforce diversity, technological change, and managing ethical behavior are challenges that precipitate change in organizations. Internal Forces Pressures for change that originate inside the organization are generally recognizable in the form of signals indicating that something needs to be altered. Declining effectiveness is a pressure to change. A company that experiences its third quarterly loss within a fiscal year is undoubtedly motivated to do something about it. Some companies react by instituting layoffs and massive cost – cutting programs, whereas others look at the bigger picture, view the loss as symptomatic of an underlying problem, and seek the cause of the problem. A crisis also may stimulate change in an organization. Strikes or walkouts may lead management to change the wage structure. The resignation of a key decision-maker is one crisis that causes the company to rethink the composition of its management team and its role in the organization. A much-publicized crisis that led to change with Exxon was the oil spill accident with Exxon’s Valdez oil tanker. The accident brought about
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Lesson37OrganizationalChange - Lesson-37 ORGANIZATIONAL...

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