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Culture and Process of Change (Organizational Change)

Creating Culture for Change

According to some OB (Organization Behavior) scholars, a culture for the change should be created. Culture for the change can be created with the help of following two approaches:

1. Stimulating a Culture of Innovation 

An innovation is a new idea that applies in initiating or improving a product, process or service. Although there is no guaranteed formula, certain characteristics surface repeat when researchers study innovative organizations. These can be grouped as structural, cultural and human resources categories. Change agents should consider introducing these characteristics into their organization to create an innovative climate. 


2. Creating a Learning Organization 

Creating a learning organization is another approach that is used to facilitate or develop climate for the organizational change. Learning organization is an organization that has developed the continuous capacity to adopt the change. All organizations learn for their sustained existence in a competitive business environment. A learning organization has following characteristics on the basis in which climate for the organizational change can be created: 
  • People openly communicate with each other (across vertical and horizontal boundaries) without fear of criticism or punishment.
  • People sublimate their personal self-interest and fragmented departmental interests to work together to achieve the organization's shared vision.
  • People discard their old ways of thinking and the standard routines they use for solving problems or doing their jobs.
  • There exists a shared vision that everyone agrees on.
  • Members think of all organizational process, activities, functions and interactions with the environment as part of a system of interrelationship.

Process or Steps of Change 

Organization must maintain a viable relationship with a changing environment. To achieve long term viability, an organization must turn out good performance by managing changes in the environment intelligently. Modern organizations are learning to cope with changes. They are beginning to realize the importance of managing change in a planned way. Generally speaking, management of change involves a series of steps which is shown in the following figure.
process of change
1. Recognition of the Forces Demanding Change 

The first step in the management of change is the recognition of forces necessitating change urgently or over a period of time. Forces may be internal or external. External changes include changing technological levels, changing market situations, changing products, changing consumer tastes and preferences etc. Internal forces comprise launch of a new product mix, erection of a separate departmental unit, etc. All forces certainly do not demand change. At least some require careful attention from management. The concerned manager should find out the discrepancy between what is and what should be. He should also find out the real forces demanding change. 

2. Identifying the Need for Change 

There are many forces, many demands for change but all changes may not be important and possible. Therefore, management must try to analyze the reasons of demand for change accurately. In this connection, the help of external consultant or unconnected internal staff may be sought for objective analysis of the causes demanding change. In any way, management must come to know the need for change and its true causes. 

3. Diagnosis of the Problem 

Diagnosis leads to locating the specific problem areas and identifying of the source of problem/s. It also enables a manager to know which activities need further improvement and systematization. A manager may use various diagnostic techniques such as interviews, questionnaires, present observations, etc. Diagnosis helps the change agent to see what changes are needed in the structure, system or in people. Actually, the initial diagnostic focus of a manager is on the organizations variables rather than on the psychology of individuals. 

4. Planning the Change 

Change can be made from one of (or all of, or some of) the four ways – change in structure, change in task, change in people, change in technology. A change agent has to consider the following points during the planning phase: 
  • He should be in a position to convince the members of the benefits of payoffs from change and also alerts them to the negative consequences and adverse effects in the absence of change.
  • He should select appropriate strategy - whether to change structure or people or technology or task. Normally all the changes include the change in behavior of people.
  • He should try to involve the subordinates in decision-making.
  • He should enlighten the need for change to the organizations participants.

5. Implementation of Change

The next step in the process of change is to implement the change plan successfully. While implementing change, the change agent encounters resistance from members of organization. Research supports the view that creating and implementing change is more difficult than planning the change. In addition to the problem of resistance, manager also confronts the problem of control. Change disrupts normal course of events and during change, it is quite likely that organizations lose control and many activities easily. 

6. Feedback

To ensure smooth implementation of change in the given direction, it is necessary to make review and evaluation of progress made regarding implementation of change. Without proper feedback, management of change is rendered incomplete and useless. A manager or change agent must compare the standards present during the pre-change period with actual performance after implementing the change and ensure whether the change has been fruitful or wasteful.

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