Showing posts with label Organizational Change. Show all posts
Showing posts with label Organizational Change. Show all posts

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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Approach to Overcome Resistance to Change

Change is a quite complex process. It is the nature of people that nobody instantly becomes ready to change. Resistance to change is the most baffling problem, which the manager has to face.

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The following approaches or techniques are commonly employed by managers in order to overcome resistance to change. 

1. Education and Communication

The useful technique is to educate the employee who resists to change. The concerned manager should clearly explain what the change is, why it is likely to be introduced and why the changes is required. Likewise, they should give special focus to enhance the employee skill. For e.g. give basic computer training, interpersonal development, capacity building and so fourth. 

In other words, the useful technique of overcoming resistance to change is to educate the people who resist change about the advantages of introducing change and the limitations of not having it. The management mostly educates people about the need and objectives of change.
overcome resistance to change

2. Participation and Involvement 

Participation helps to give people involved in the organizational change a feeling of importance. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. This technique calls for a dialogue with the resistors and allow them to participate in the change program. Participation ensures commitment from members. It also creates psychological ownership. 

3. Facilitation and Support 

Another approach to overcome resistance to change is to facilitate and provide support to the employees. This includes providing training in new skills, or giving employees time off after a demanding period of change. Similarly, manager can give emotional support by simply listening to the employees. The change agent listens to the subordinates, provides emotional support and gives training and skills to cope with the change. The agent through emotional support helps the resistors to adjust to the new demands. 

4. Negotiation and Agreement 

Another approach to deal with resistance to change is to negotiate to reach to an agreement for accepting a change. It means that management buys the acceptance of change with incentives. For example, management could offer the union a higher wage or no-layoff contract in return for a change in work procedure or a manager could be given an attractive job assignment if he accepts the change. When the group is resisting change in a strong way, negotiation and agreement will be helpful. The change agent offers incentives to resistors under this method in order to tackle the resistance problem. 

Negotiation particularly deals with a group of powerful individual who resists to change. For this specific reward package can be used to deal with a powerful individual. However, it increases the cost of organization but it is assumed that if powerful individuals are ready to avoid resistance to change, s/he convinced rest of his team mates.

5. Manipulation and Cooperation 

Manipulation is a way to decrease resistance to change. It involves selectively using information and events so as to have some desired effect on employees. For example, a manager may tell another manager "to look at the proposal as I've already gotten the potential go-ahead at the corporate level." Similarly, cooperation involves giving individuals a meaningful role in designing and implementing change programs. When all other techniques have failed, manipulation is usually resorted to by the change agent. 

6. Explicit or Implicit Coercion 

Under this approach, manager may use explicit or implicit coercion or force to handle the resistance to change. Manager may force employees to accept the change by threading with the loss of job, promotion, pay raises, incentives and big projects and so on. The change agent threatens the resistors with the loss of job, or status or promotion possibilities etc. or by actually firing or transferring them.

Last on the list suggests tactics is coercion. The organization as a last resort, can apply direct threats on the resistors to make them ready accept the proposed change. Threats of transfer, loss of promotion, negative performance evaluation, and dis-satisfactory recommendation are the example of coercion.

To sum up, though there are various ways to reduce resistance to change. Thus, above all, consensus, involvement and ownership should be encouraged for overcoming resistance to change.
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Reasons for Resistance to Change (Organizational Change)

Many people and organizations resist to change. Generally employees or individual and management or organization resist to change. Some of the possible reason for why people and organization resist change are as follows:

resistance to change

I. Resistance by the Employees or Individuals 

Individual is considered as the main source of resistance to change due to their perception, personalities and needs, because of the following reason individual resist the change. Individual employees or the trade union generally resist change for the following reason: 

1. Inconvenience or Love for Status Quo 

The introduction of a change in doing a job may disrupt the normal routine of employees. Thus, any change that interferes with the normal work routine is generally inconvenient and is resisted. 

2. Fear of Uncertainties 

Employees perform their job in a normal routine. They are aware of their duties, responsibilities and superior's behavior. Any change may create some uncertainties in the minds of the employees. Employees tend to speculate what would be their new roles and responsibilities and how their superiors will respond to them. Such uncertainties may result in some resistance to change. 

3. Fear of Economic Loss

These include the fear of technological unemployment, fear of reduced work hours and consequently less pay after change, fear of demotion and low wages, obsolesce of skills, etc. Whenever people sense that new machinery pass a threatening challenge for their existence, they resist change. For example, many managers in today’s industries are resisting the introduction of computers. Further, when people perceive any psychological degradation of the job that they are performing, they simply try to maintain status quo and resist change. 

Any change that creates a feeling of fear of economic loss among employees is likely to generate resistance to change. Change may create fear of economic loss due to the following reasons. 
  • Fear of lay-off or retrenchment or termination from the job.
  • Fear of reduced job opportunities due to change in technology.
  • Fear of wage cuts or reduced incentives.
  • Fear of demotion and consequently low monetary benefits and status.
  • Fear of more work-load due to automation and reduced monetary benefits.
  • For all or some of the reasons of fear, employees resist change. 

4. Social Displacement

Change often results in disturbance of the existing social relationships. People in work organizations develop some sort of information relationships and any change breaking these relationships will be strongly resisted. Group pressure also brings about resistance to change in individuals. 

By working with each other employees develop certain patterns of social relations. They feel comfortable in communication and interaction with certain persons. This comfort makes work more enjoyable and helps to develop friendships. Any change in structure, technology or personnel may disrupt these social relations. Hence employees resist change. 

5. Fear of Obsolescence of Skills 

The knowledge is exploding at a fast rate. As a result, knowledge is any field that may become obsolete. When employees feel that the introduction of new technology in place of old one poses a threat of replacing them, they resist such change quickly and violently. For instance, when employees have fear of being phased out of their job by automation, or computerization they resist such change. In cases, when job security is at stake, even a minor change in policy and procedure may evoke resistance to change. 

6. Habits

Once we become habituated on anything, it will be difficult to change that habit. As human beings, we are creatures of habit. Changes in old work habits create resistance. Employees tend to respond in accustomed work. 

Every human being has his own habits. Habits are hard to break. They are sometimes serious constraints to change. Learning a new method of performing a job becomes difficult due to the habits. Hence, most employees do resist change due to their habits that have been developed over the years. 

7. Fear of Loss of Power

Employees may fear loss of job security, reduction in pay and increase in workloads. The cost of change may be higher than benefits of change. Sometimes, change may erode the power of the employees. They may lose some power and influence. Apart from it, the change may force to accept new power position. To enjoy new power position, they may be required to establish new relationship which may be in the time being difficult. Hence, employees resist change. 

8. Lack of Understanding / Clarification 

Some people resist change because they do not understand the nature of the change. It happens due to the lack of clarification or gap of communication. Hence, every person takes or understands the change in his own way. Some persons take the change as an indication of their poor performance on the job while some others may assume that their position would soon be abolished. Some others may take it as a measure of punishment for some personal reasons. Thus, lack of clarifications about the nature of change invites resistance from the employees. 

II. Resistance by the Management or Organization 

Organization itself is another source for resistance to change. Many times, the resistance to change is initiated by the organization as a whole or by the top management. Following are the main reasons for organizational resistance.

1. Resource Transfer or Reallocation

Organizational change usually invoices a huge expenditure and sufficiency of resource usually in a major constraint. In such a situation, change is resisted by the departmental heads and employees. This is true, when government forces the organizations to introduce certain technological, organizational or social changes but does not provide adequate human and physical resources, the organizations oppose such changes. Similarly when trade unions pressurize management to introduce certain changes for the safety, welfare and comforts of the employees, the management put resistance to such changes for lack of availability of funds. 

Sometimes, a change requires transfer of resources from one department to anther department. In other words, resources are reallocated to departments for implementing the change. Any department getting lesser or reduced allocation of resources than in the past would resist the change. 

2. Organization Structure

Some organizational structure has built in mechanism for resistance to change. For instance, in a typical bureaucratic structures when chain of command is clearly spelled out, authority, responsibilities and duties are clearly defined, flow of information is stressed through proper, channel and the entire pattern is highly mechanistic and rigid, and any changes in the organization structure or pattern would either be possible or strongly reputed. 

Some organizational structure has built-in mechanism for resistance to change. For instance, in a typical bureaucratic structure, where chain of command is clearly spelled out, authority, responsibilities and duties are clearly defined, flow of information is stressed through proper channel and the entire pattern is highly mechanistic and rigid and any change in the organizational structure or pattern would either be impossible or strongly refuted.

3. Non-cooperation or Threat by Experts 

Sometimes, a change results in the transfer of responsibility to perform a specialized task to a new individual or group of experts. The expert person or group loosing the responsibility for performance may resist the proposed change. Moreover, if the change is to be affected through the cooperation of those loosing experts, it would even be more difficult to affect the change successfully. 

4. Fear of Increase in Responsibility 

Sometimes, a change may result in increase in responsibility of managers. In such a situation, managers may oppose the change. 

5. Threat to Power and Influence

Managers occupying top, key and prestigious positions resist change when they perceive that the change may thereafter affect their position, power or influence. Introduction of new technology, reshuffling in organizations structure (levels, departments, authority or responsibility) or reallocation of resources may disrupt the existing power relationship and may adversely affect some of the top executives. They initiate resistance in order to safeguard their interest by maintaining status quo. 

6. Fear of Loss of Investment

In case when organizations have invested a huge capital in their permanent assets and training of employees, they are afraid of their capital being sunk, if they introduce a new technology. 

7. Group Inertia 

Sometimes, long standing group norms or group inertia may resist the change. In such a situation, an attempt to change the job of one individual is opposed by all group members. 

8. Chain of Effects

Sometimes, one change may lead to a series of changes. For instance, change in the data processing technique in accounting department may require change in data processing technique in all the departments. If the other departments are not willing to change, change in accounting department cannot be implemented.

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Steps Involved in the Organizational Development

Steps / Processes Involved in the Organizational Development

OD (Organizational Development is a complex process of behavioral interventions. OD responds to unique problems of a specific organization. It is designed and implemented systematically.

Organizational development processes may differ from organizations to organizations depending upon the culture of the society in which it is being applied. For example, where trade unions have poetically bent, the workers are on the board of directors. There are also more industrial government interactions. In such climate, organizational development is more concerned with power and political implications of the action plans. The OD process consists of following steps.

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1. Initial Diagnosis / Consultation

The first step in the organizational development process is to approach the organizational development consultant to determine the types of OD programme to be developed. The consultant may be a professional consultant from outside or he may internal service personnel, expert in organization development programmes. At this point, the consultant may have consultation with person from various levels in the organizations in order to gain the knowledge of imports. For this purpose, he may interview such persons or he may adopt any other way to be acquainted with the necessary information.
organization development process

2. Data collection

The next step in the process is data collection. The consultant meets various groups away from the work in order to determine the organizational climate and behavior problems faced by the organization. They gather information through surveys and develop information through interviews etc.

3. Data Feedback and Confrontation

Data, so collected are made known to work groups concerned and are asked to review the data collected. They so through the data and locate the points of disagreement, discuss such points and take the decision and then suggest the priorities for change.

After having an initial diagnosis and solution to problems, data will be given back to employees for collecting their viewpoints. The situation of confrontation may arise at the time of discussion on solutions of problems.

4. Action Planning and Problem Solving

Data are made known to work groups concerned and are asked to review the data collected. They so through the data and locate the points of disagreement, discuss such points and take the decision and then suggest the priorities for change.

Data are used by the groups to suggest specific recommendations for change. They discuss the problems faced by the organizations and stretch specific plans including who is responsible for problems and at what time.
 
5. Team Building

During the whole process, group meetings are convened to discuss the programme and the consultant in the whole process as a team. The consultant helps them to see the value of open communication and trust them. These are essential prerequisites for improved group functioning. Consultant also encourage team building through organizing meeting with managers and their immediate subordinates so that they can improve the functioning of the work group with the guidance of consultant.

6. Inter Group Development

With the development of natural team (i.e. a manager and his subordinates), the larger groups comprising several team may be developed. Understanding and co-ordination will be developed among different groups to achieve the objectives. In other words, with the development of natural team (a manager and his sub-ordinates), the larger groups comprising several teams may be developed. In this way, it will include the whole organizations.

7. Appraisal and Follow up

The consultant further helps the organization in making an appraisal of the programmes and find out deficiencies if any. He can develop additional programmes in are where the original programme is felt ineffective and results are poor and that requires improvement. Thus, the consultants advise follow up for better understanding.

Thus, the above social process and the steps discussed are not the same with every type of organization. They may differ from organization to organization depending upon culture of the society in which it is being applied.
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Various kinds of Reactions of People for the Organizational Change

Various kinds of Reactions of People for the Organizational Change
Different people react differently for a given change depending upon their attitude. The perception of the individual about the change may lead to one of the following reaction.
  1. Acceptance: If the employee perceives that the change is largely beneficial to him and he is capable of adjusting himself to the change without any overwhelming scarifies, he accepts the change. His attitude is positive and he looks enthusiastic, supportive and cooperative towards the change. 
  2. Resistance: If the employee feels that the change will affect him adversely and he will not be able to adjust it or the change requires extraordinary personal effect or sacrifice on his part, he starts opposing the change through active protests, sabotaging or committing unwanted activities. His attitude becomes negative. He looks worried, afraid and may become non co-operative or vindicate.
  3. Tolerance: If the employee perceives that the change is neither very much beneficial nor poses nay danger, he becomes indifferent and tolerates the change without offering any resistance. 
  4. Rejection: If he finds that the change may result in serious losses (i.e. loss of job, demotion, abdication of power, etc.) without expectation of any gain in return, he totally rejects the change and fights it back to tooth and nail. The response to a change may range from complete acceptance to the active resistance and complete rejection of the change.
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Forces to Lead Organizational Change

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. 

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Organizational Change : Concept and Nature

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. Generally, the pressure for organizational change may be created by internal and external factors which are described below.

organizational change

I. External Forces

External forces are those that emerge from the sources external to the environment i.e. the macro environment. These forces directly and indirectly affect the working of an organization. These forces are for beyond the control of an organization. Hence, an organization is bound to change itself as warranted by these forces. Such forces are as follows:

1. Market forces of change

Market conditions are constantly changing. Consumer tastes and preferences are changing. Changes in it may include changes in the nature and extent of demand caused by varying consumer needs, goals and preferences; changes in nature and volume of supply caused by the entry of new suppliers, new products and substitutes and new competitors; changes in the factors of production and changes in other market conditions relating to prices, quality, transport, packaging, warehousing, financing, etc. These changes call for necessary adjustments, alteration, expansion or contraction in the organizations.

2. Socio-culture forces of change

Social values, customs, traditions, living patterns, food habits, clothing patterns, conditions of women etc. are constantly changing. Such changes have a great bearing on the organizations relations and system. Political philosophy (capitalism, socialism or communism) move for social injustice and equality, upliftment of the downtrodden and many other such social factors would influence organizations systems of recruitment and selection, technology and structural relationships. It also  influences such as in delayed marriage, people's attitude, norms and value toward society.

3. Technological forces of change

Technology is changing at a very rapid speed. Technological changes have even affected the social conditions of work. Mechanization, computerization and automation have greatly affected the functioning of the modern organizations. New processes and methods have become imperative for promoting organizations efficiency, economy, safety and welfare. Similarly, sophisticated information technology, robotics, faster and cheaper computers, innovation and experimentation have reshaped the jobs arising from new developments in technology.

4. Political forces of change

Change in political and legal factors also required change in organizations. The political system, philosophy of the political party in power, the working of judiciary etc. affect the business system. Similarly, changes in labor, corporate and taxation laws; economic policies relating to industry, business, agriculture and export import controls and regulations and incentives and concessions, all of which have a great bearing on the organizations and compel the organizations to change itself accordingly. The change in political forces as changing world political such as SOVIET UNION, reunification of GERMANY, collapse Saddam Hussein regime in IRAQ. The increase in the activities of pressure groups also lead organizational change.
 
5. Economic forces of change

The economic condition of a country may cause changes in organizations. State of inflation, deflation, recession, boom, saving rate, rate of investment, availability of resources (raw-materials, energy etc.) infrastructure facilities etc. decide the economic condition of a country. 

Similarly, the economic policy plays a major role in shaping the pattern of change. The industrial and licensing policy, import-export policy, monetary policy, taxation policy, policy of globalization and liberalization, backward area development policy etc. are the major factors that may cause change in many business organizations. 

II. Internal Forces

Internal forces or causes arise from the internal or micro environment of the organization. These forces can largely be controlled by the management but they do cause certain changes in the organization. Such forces include the following:

1. Change in Organizational Goal

The goals of employees change; organizational goals also experience succession and displacement. Sometimes, organizational goals or objectives are changed. The organization may like to change its business or add more and new lines of product, diversify product, start new business and so on. In such a situation, change in organization is inevitable.

2. Existing Organizations Deficiencies

In organizations, certain deficiencies and adjustments become apparent in due course of time. There are some of the common organizational deficiencies which obviously call for their removal and hence, necessitate changes in the existing organizations pattern: 
  • Unnecessary lengthy chain of command
  • Unmanageable span of control
  • Lack of coordination between the departments
  • Barriers in communication
  • Disparity in authority and responsibility
  • Multiplicity of unnecessary committees
  • Lack of uniformity in policies
  • Lack of cooperation between line and staff

3. Change in Policies
 
The organizational policies including production, marketing, personnel and financial policies are changing with needs of the environment. Hence, change in organization becomes inevitable.

4. Sequential change

Every organizational change requires re-adjustments, sequential changes and supportive changes. For example, creation of a new department may cause the appointment of some new managerial positions, which in turn may necessitate reallocation of authority, responsibility and duties of the concerned departments. Other departments might have to realign their structure, tasks, objectives and staffing. It is, therefore, necessary that before any significant change is made, the possible consignment of the change must be identified and evaluated and the problem of change should be examined in its total perspective.

5. Changes in Top Management 

Change in top management in the organizations may take place on account of new appointments, transfers, promotions or may be caused by expansion and technological changes. Change in the top level managers invariably involves certain organizational changes. Top management introduces sweeping changes in the organizations to suit his style of working. 

6. Change in Personnel 

The personnel in an organization change very often. It may be due to promotions, transfers, resignations, retirement and so on. 

7. Employee Pressure 

Every increasing demand of the employees for better job security and job satisfaction, better safety and welfare, congenial working environment, higher wages and incentives, participation in managerial process and more authority and power also appreciate changes in the organizational structure and pattern.

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Organizational Change : Concept and Nature

Organizational Change

Change is a quite complex process. It is the nature of people that nobody instantly becomes ready to change. Resistance to change is the most baffling problem, which the manager has to face. The resistance to change may be caused by a host, economic, social or psychological factors. It may be implicit and explicit and individual or collective. Implicit resistance may be manifested through resignation, tardiness, low morale, and lack of motivation, increased absenteeism and increased requests of transfer. Explicit response on the other hand may assume the form of strikes, go slow tactics, violent behavior and sabotaging activities. There may be the resistance on the individual level as well as on organizational level.

We know that, change is the law of nature. Similarly, change is a necessary way of life in the most organization. The term 'organizational change' implies the creation of imbalances in the existing pattern of situation. When a business organization operates and functions for a long times an adjustment between its technical, human and structural setup is established. Organization change refers to the alteration of structural relationships and role of the people in the organizations. It means alternation of the status quo of the organization. In other words, organizational change means planned change or alteration in the role and relationships of the people, technology and environment in the organization in order to improve its overall performance. People get adjusted and get used to a set of working relationships, social groups and a set pattern of organizations and individual life. So long as this equilibrium exists, it is easier for the people to adjust in organizations. But when a change is introduced, the existing equilibrium of relationships is disturbed and the problem of new adjustment is created. 

The following definitions given by various experts are as follows:
"Organizational change is a rational response to changing requirements for organizational survival, growth and effectiveness." – Albanese

"Organizational change is the intentional attempt by management to improve the overall performance of individuals, group and the organization as a whole by altering the organization's structure, behavior and technology." – Invancevich et. al. 

"Organizational change is alterations in the operations of organizations that are either planned or unplanned and are a result of either internal or external influences." – Greenberg and Baron 

From the above definitions, change refers to an alteration in a system whether physical, biological and social. In other words, organizational change is the alteration of work environment in the organization. It implies a new equilibrium between different components of the organization like technology, structural arrangement, job design and people. 

Nature and Characteristics of Organizational Change 

  • Change takes place in all parts of the organization but at varying rates of speed and degrees of significance.
  • Organizational change aims at improving overall performance of the organization. More specifically, it aims at organizational survival, growth and effectiveness.
  • Change results from the pressure of forces which are both outside and inside the organizations. It disturbs the existing equilibrium in the organizations.
  • Organizational change takes place through change in individual members of the organization.
  • Change may affect people, structure, technology and other elements of the organizations.
  • Organizational change means any planned or intended change.
  • Organizational change means the alterations that take place in the entire organization i.e. its people, their relationships, technology and internal environment.
  • Organizational change process implies learning as well unlearning certain things.

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