Change is a law of nature; we live in a dynamic world where nothing remains static. Everything around us keeps on changing.
Organization change refers to the alteration of structural relationships and role of the people in the organization. It is largely structural in nature. These changes may be pressurized by internal or external forces, may affect only one or all the levels and departments or may be related to the organizational structure (hierarchy), people, technology, working or social environment. The change in task and other component sometimes change in organizational structured too. Organization change is required due to dynamism of external variables. To make an adjustment with external environment, organizational changes takes place.
Organization has to survive and operate in an environment. Environment is dynamic and changing fast. Both the external and internal environment forces encourage organization to change. External forces are located outside the organization. They are not control by top management. They bring opportunities and threats to the organization. The external forces of change consist of following factors.
1. Economic forces of change
- Economic condition of country
- Inflation and exchange rate
- Income distribution and resource availability
- Government liberalization and privatization policy
- Growth of e-commerce
- Work force diversity in terms of culture, gender, age, skills and professionalism etc.
- Sophisticated information technology, robotics, faster and cheaper computers.
- Innovation and experimentation
- Reshaping of jobs arising from new developments in technology
- It influence such as delayed marriage, people attitude towards society
- People’s norms and value toward society.
- The change in political forces as changing world political. Such as SOVIET UNION, reunification of GERMANY, collapse Saddam Hussein regime in IRAQ.
- Increasing activities of pressure groups.
Internal Factors are as follows:
- Goal change: The goals of employees change; organizational goals also experience succession and displacement.
- Sequential change: Every organizational change requires readjustment, sequential changes and supportive change. For example, creation of new department may cause the appointment of some new managerial position which in turn may necessitate reallocation of authority, responsibility and duties of the concerned department.
- Employees pressure: Every increasing demand of the employees for better job security and job satisfaction, better salary and welfare, congenial working environment, higher wages and prerequisites, participation in managerial process and more authority and power also precipitate changes in the organization structure and pattern.