Understanding Organizational Change

Understanding Organizational Change

• 1.
  Organizational Development Organization Change
• 2.
   Understanding Organization Understanding what is a change  Understanding types of change What are we attempting…
• 3.
   A purposeto 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
• 4.
   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
• 5.
   “…in itssimplest 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 cont rolling resources within an entity with the overall aim of achieving its objectives. Organization definition
• 6.
   Vision  Membersof 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
• 7.
  Organization – Growth
• 8.
  Organization - Transitions
• 9.
  Organizational - Leadership
• 10.
  Organization - Maturity
• 11.
  Change…  Is adeviation 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
• 12.
  Types of Changes PLANNEDCHANGE 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
• 13.
   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
• 14.
   Vital toavoid 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
• 15.
  Organization-Context
• 16.
  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
• 17.
  Government Force Newlaws, 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
• 18.
  Nature of workforceMore 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
• 19.
   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
• 20.
   Change inan 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…