'Organizational Change' is the planned or unplanned transformation of the structure, style, infrastructure, human resources and other managerial
patterns of the organization targeting future aims and objectives of the organization. There may be a change in structure of the organization. Change can be felt within the Culture of the organization, among
different departments, units and subunits of the organization. Organisations, be it small or medium or large in size, need to accept the change with a flexible attitude.
Reasons of Change:
Reasons of Change can be classified into two groups. They are
A) Lacking in Resources: Organizations will have to assess their positions.
They would have to ask themselves whether they are lacking in human and material resources to target the needs and requirements of the organization and also the industry.
B) Lacking in Motivation:
Low employee motivation and low employee morale affect the organizations badly. Immediate change is required in the mind set of the employees otherwise it will badly affect the productivity of workforce.
Low productivity: Low productivity or decrease in productivity will have a bad impact on the growth of the organization. It is also an important reason for changing the organizations.
Lack of Coordination among the departments: It affects the organizational day-to-day activities. To establish better coordination change is required.
E) Pressure of the Trade union:
Continuous pressure of the trade union affects the organizational activities on a continuous basis. Organisations are sometime forced to bring certain changes targeting the betterment and welfare of the employees.
A) Lower Sales: Lower sales are one of the main reasons of organizational change. It compels the organization to change its strategy, policies etc.
Negative Work Culture: Negative work culture is also one of the reasons of organizational change. It destroys the natural flow of work of the organizations.
C) Rapid Technological Development
: Technological development is one of the causes of organizational change. Along with the change of the technology the organizations will have to change itself.
Huge Competition in the National and International Market: The high competition in the national and international markets instigates the organizations to bring positive change. The Indian companies are facing huge
competition from the MNCs operating in Indian market.
Change – A challenge before the corporate:-
There is a big challenge before the corporate to bring and manage 'change' timely, effectively and
productively. Many stakeholders of the organizations are creating many problems in the process of implementing the change activities. Different types of problems are there.
1. Leadership Problem: Sometimes
organizational leaders are unable to understand the trend of the society, the flow of the business activities. Thus commanding type of leadership is to be replaced by motivational and cooperative style of leadership.
Problem of Commitment: Different stakeholders are lacking in their commitments. Thus they are unable to change themselves according to the need of the time.
3. Resistance: People are resistance to
change fearing the loss of their present position. They do not want to accept anything which is new and untested in their known domains.
4. Lack of vision: If the organization is lacking in vision, it
will resist the change and will create a lot of problems. This problem is their with the Indian Jute Mills.
5. Lack of up-to-date information and knowledge: Employees, organizations themselves sometimes lack
in information and knowledge. They do not have the technical know-how to manage any change activities effectively.
6. High Political influence: None can ignore the influence of politics on the day to day
activities of the organizations. Most of the trade unions in Indian organizations have political affiliation to different political parties having different ideologies. They do not always welcome the new change.
In the age of knowledge-based industry the contributions mostly come from the human resources. Service industries have taken the leading roles. Business Process Outsourcing, Knowledge Process
Outsourcing, Legal Process Outsourcing, insurance, telecom are the future sunshine industries. Along with the change of the shift from manufacturing to servicing, different types of changes will be required to achieve
organizational effectiveness. Thus competency development of the work force is of utmost important in today's business world. So the performance, skills and abilities of these people need to be harnessed to bring improvement
in their performances. The mindset, attitude of the people need to be changed to cater to the needs and requirements of the future corporate world.
Organizations will have to take a strategic
role to bring 'change' in their activities and also to manage the change activities effectively. To take a strategic role management will have to analyze different components of the organisations carefully. The components
a) The Product or the service: Companies should always analyze the product or service they offer.
b) Human resources of the organizations:
Organisations need to know their working force, its strengths and weaknesses.
c) Physical resources (machinery, infrastructure etc.):
Organisations must be aware of their physical resources. Employees should know the different components of these machines and other equipments.
d) Process (operation style, method, technology): Employees must
know to operate the machines. The technology should be known to the workers.
e) Customers (present, future):
Customer is the god of any business organization. The company must understand the needs and requirements of the present customers and also the potential customers of the organization.
Only after analyzing these, the
authority would be able to collect information and that would help the organization to manage 'change' productively.
Activities to follow:-
Organisations can follow few activities one after another for
making management of 'change' easier as well as strategic in nature. They have the license to be creative but it is always desirable to follow the time tested paths of managing the change activities. Otherwise it will take some
time to taste the success.
Create a 'Goal':
Organisations need to create a 'goal' after analyzing their strengths and weaknesses, their resources. The organizations
should understand the competition of the market.
Make a 'Plan':
The are to make a 'plan' to show it before the higher authority. This plan also will help the management to
influence different stakeholders of the organisations.
'Delegate' the job:
Organisations are to delegate the jobs so that every task is given equal importance. It also will help
the employees to know the job in a better way.
Pick the Right Time and the Right Job:
Organisations are to pick up the right time and also the right job. They need to assign the
job to the persons who are best suited for that job.
Create 'small targets' and achieve one after another:
Organisations are to create small targets for each unit of the
organizations and achieve the targets one after another.
Engage a change –agent:
Organisations will have to engage either an internal change-agent or consultant or external change
agents to manage the change affairs.
Management will have to control the change activities taking the consent of the employees of the organization.
Take the 'Feedback' and required action:
Organisations will have to take the feedback from the employees' side, from the internal and external consultants, from the employers and if possible
from the customers. If they are giving any suggestions that must be considered in the future time.
Conclusion: In conclusion it can be said that 'change' is highly needed to break the routine continuing for a
long period of time. It helps the organization to curb the manpower as well as technological redundancies. It gives the organisations the edge to achieve sustainability in the ever-changing competitive business world thus making
the organisations better equipped to future challenges. Indian business houses must give special importance to this issue. Particularly the manufacturing and service providers should think about this so that they can make the
change management process an enjoyable journey.
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