ORGANISATIONAL CHANGE AND INTERVENTIONS (OBH …

1 ORGANISATIONAL CHANGE AND INTERVENTIONS (OBH-413) CONTENTS No. Lesson Name Author Vetter Page 1. ORGANISATIONAL CHANGE : An Overview Dr. Anil Kumar Dr. Punia 2. Models of CHANGE and Approaches to Problem Diagnosis Dr. Anil Kumar Dr. Kundu 3. Major Techniques of Planned CHANGE Dr. Anil Kumar Prof. H. Bansal 4. Managing resistance to CHANGE Dr. Anil Kumar Dr. Garg 5. Introduction of OD and Steps in OD Anju Verma Dr. H. Bansal 6. ORGANISATIONAL Competencies and Skills Anju Verma Dr. Punia 7. Designing and Evaluation of OD INTERVENTIONS Dr. Anil Kumar Prof. H. Bansal 8. Power, politics , Ethics and Future of OD Dr.

2 Anil Kumar Dr. Kundu This subject has been converted into SIM format by Dr. Pardeep Gupta, Reader, Department of Business Management, Guru Jambheshwar University of Science and Technology, Hisar-125 001 (Haryana). 1 LESSON: 1 ORGANIZATIONAL CHANGE : AN OVERVIEW STRUCTURE Objectives Introduction The Importance of CHANGE Types of CHANGE Forces of CHANGE ORGANISATIONAL CHANGE : Some Determining Factors Summary Keywords Self Assessment Questions References/Suggested Readings OBJECTIVES After studying this lesson you should be able to understand- The concept of ORGANISATIONAL CHANGE .

3 The significance and types of changes. Forces of changes. Factors determining ORGANISATIONAL CHANGE . INTRODUCTION CHANGE is one of the most critical aspects of effective management. CHANGE is the coping process of moving from the present state to a desired state that individuals, groups and organizations undertake in response to dynamic internal and external factors that alter current realities. 1 Fortune magazine first published its list of America s top 500 companies in 1956. Sadly, fewer than 30 companies from the top 100 on the original list remain today.

4 The other 70 plus have disappeared through dissolution, merger, or downsizing. Survival, even for the most successful companies, cannot be taken for granted. In many sectors of the economy, organizations must have the capacity to adapt quickly in order to survive. Often the speed and complexity of CHANGE severely test the capabilities of managers and employees to adapt quickly and effectively. When organizations fail to CHANGE , the cost of failure may be quite high. Increasingly, organizations that emphasis bureaucratic or mechanistic systems are ineffective.

5 Organizations with rigid hierarchies, high degree of functional specialization, narrow and limited job descriptions, inflexible rules and procedures, and impersonal management can t respond adequately to demands for CHANGE . Organizations need designs that are flexible and adaptive. They also need systems that both require and allow greater commitment and use of talent on the part of employees and managers. Why is CHANGE important to managers and organizations? Simply stated, organizations that do not bring about timely CHANGE in appropriate ways are unlikely to survive.

6 One reason that the rate of CHANGE is accelerating is that knowledge and technology feed on themselves, constantly creating innovations at exponential rates. Few business leaders would have envisioned in the mid-1990s, the revolutionary impact the Internet and World Wide Web would have on business practices in the early twenty-five century. THE IMPORTANCE OF CHANGE CHANGE will not disappear or dissipate. Technology, an ever-expanding list of applications and the spontaneous combustion of 2 creative thoughts will maintain their ever-accelerating drive onwards.

7 Managers, and the enterprises they serve, be the public or private, service or manufacturing, will continue to be judged by their ability to effectively and efficiently manage CHANGE . Unfortunately for the managers of the early twenty-first century, their ability to handle complex CHANGE situations will be judged over ever decreasing time scales. The pace of CHANGE has increased dramatically; mankind wandered the plant on foot or in horseback for centuries before the invention of the wheel and its subsequent technological convergence with the ox and horse.

8 In other short century man has flown a heavier-than-air aeroplane, piloted spacecraft, and walked on the moon. Satellites orbit the earth, the internal combustion engine has dominated transport and some would say society moves; robots are a reality and state-of-the-art manufacturing facilities resemble scenes from science fiction movies; your neighbour or competitor, technologically speaking, could be on the other side of the planet; and bio-technology is the science of the future. Businesses and managers are now faced with highly dynamic and ever more complex operating environments.

9 Technologies and products along with the industries they support and serve are converging. Is the media company in broadcasting, telecommunication, publishing or data processing on indeed all of them? Is the supermaker chain in general retail, or is it a provider of financial services? Is the television set merely a receiving device for broadcasting messages or is it part of an integrated multimedia communication package? Is the airline a provider of transport or the seller of wines, spirit and fancy goods, or an agent of car hire and accommodation?

10 As industries and products converge, along with the markets they serve, there is a growing realization that a holistic approach to the marketing of goods and services is required, thus simplifying the 3 purchasing decisions. Strategic challenges, designed to maximize the added value throughout a supply chain, while seeking to minimize costs of supply, are fast becoming the competitive weapons of the future. Control and exploitation of the supply chain make good commercial sense in a fiercely competitive global market. The packaging of what were once discrete products (or services) into what are effectively consumer solutions will continue for the foreseeable future.