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What is Organizational Change

What is Organizational Change


Change is concerned with making things different and change agent is a person or group of persons who act as catalysts to bring about change. Say, managers and outside expert consultants can be called as change agents.

organizational change and development

What is Organizational Change?

This is how you have to Strategise in order to Win

Organizational development refers to the overall development of an organization in terms of improving the ability of that organization in tandem with the needs of the external environment and involves a system oriented approach to change.

Organizational change: All the elements of a social system like people, formal organization, informal organization, operational environment, communication, decision making and patterns of co-operation are bound to change when there is change in the external environment but this gives rise to a positive pressure which acts like a self-correcting mechanism to modify and set right the bottle-necks or loop-holes in the working system.

CAUSES FOR CHANGE:

Work force: The increasing awareness and educational qualification among the workforce is responsible for the attitude change. You can expect loyalty from workers above fifty but not workers who fall under the age category thirty. This is because their loyalty is oriented towards their career and not to the employer.

Technology change: Internet, telecommunication systems, computers, robotics, flexible manufacturing operations have created a great impact on the working style of firms and necessitated the work force to be tech-savvy in order to survive in the job market.

Economic, social, political, and physical environmental changes:

  • Economic– Business cycles, inflation, recession, stock market crash
  • Social– Changing life styles and preferences of customers is the key
  • Physical– Consumers, suppliers, employees, union, shareholders and the government
  • Political– Political decisions affecting the market, pressure, legal hassles:- all these affect the working of a firm.

Changes in competition: Global economy has brought big players from countries like USA, Japan, Germany and the like to compete in the same market and successful organizational are those who have adapted to competitive environment.

When we talk about organizational change, we emphasize on “PLANNED CHANGE OR DELIBERATE CHANGE” in order to suit ourselves to the changing environment. Otherwise, according to Darwin’s theory of “Survival of the fittest” you will fade away in due course of evolution.

This Infographic clearly reveals the fact that “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”

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