Page 340 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Unit 16: Organisational Culture

beneficial or even necessary. Pressures for change that originate inside the organisation Notes
are generally recognizable in the form of signals indicating that something needs to be
altered. These internal forces are discussed below:
(a) Changes in Managerial Personnel: One of the most frequent reasons for major changes
in an organisation is the change of executives at the top. No two managers have the
same styles, skills or managerial philosophies. Managerial behaviour is always
selective so that a newly appointed manager might favour different organisational
design, objectives procedures and policies than a predecessor. Changes in the
managerial personnel are thus a constant pressure for change.

(b) Declining Effectiveness: Declining effectiveness is a pressure to change. A company
that experiences losses is undoubtedly motivated to do something about it. Some
companies react by instituting layoffs and massive cost cutting programmes, whereas
others view the loss as symptomatic of an underlying problem, and seek out the
cause of the problem.
(c) Changes in work climate: Changes in the work climate at an organisation can also
stimulate change. A workforce that seems lethargic, unmotivated, and dissatisfied
is a symptom that must be addressed. This symptom is common in organisations
that have experienced layoffs. Workers who have escaped a layoff may find it hard
to continue to be productive. They may fear that they will be laid off as well and
may feel insecure in their jobs.

(d) Deficiencies in the Existing System: Another internal pressure for organisational change
is the loopholes in the system. These loopholes may be unmanageable spans of
control, lack of coordination between departments, lack of uniformity in politics,
non-cooperation between line and staff etc.
(e) Crisis: A crisis also may stimulate change in an organisation; strikes or walkouts
may lead management to change the wage structure. The resignation of a key decision
maker is one crisis that causes the company to rethink the composition of its
management team and its role in the organisation.
(f) Employee Expectations: Changes in employee expectations also can trigger change in
organisations. These forces may be:
(i) Employees' desire to share in decision-making.
(ii) Employees' demand for effective organisational mechanism.
(iii) Higher employee expectation for satisfying jobs and work environment.
(iv) Employees' desire for higher wages.
All these forces necessitate change in organisations. Besides these forces, a company that hires a
group of young newcomers may be met with a set of expectations very different from those
expressed by older workers.

Although organisational changes are important, managers should try to institute changes only
when they make strategic sense. A major change or two every year can be over-whelming to
employees and create confusion about priorities. A logical conclusion is that managers should
evaluate internal forces for change with as much care as they evaluate external forces.

16.7 Forms of Change

Change has become the norm in most organisations. Adaptiveness, flexibility and responsiveness
are terms used to describe the organisations that will succeed in two basic forms of change in

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