Page 23 - DMGT520_ORGANIZATION_CHANGE_AND_DEVELOPMENT

Organization Change and Development

Notes According to Barney and Griffin, “The primary reason cited for organisational problems is the
failure by managers to properly anticipate or respond to forces for change.”
Thus, in a dynamic society surrounding today’s organisations, the question whether change will
occur is no longer relevant. Instead, the issue is how managers cope with the inevitable barrage
of changes that confront them daily in attempting to keep their organisations viable and current.
Otherwise the organisations will find it difficult or impossible to survive.

2.1 Meaning of Change

Unlike other concepts in organisational behavior, not many definitions are available to define
the term “change”. In very simple words we can say that change means the alternation of status
quo or making things different.

“The term change refers to any alternation which occurs in the overall work environment of an
organisation.”
To quote another definition “when an organisational system is disturbed by some internal or
external force, change occurs frequently. Change, as a process, is simply modification of the
structure or process of a system. It may be good or bad, the concept is descriptive only.”
From the above definitions we can conclude that change has the following characteristics:

 Change results from the pressure of both internal and external forces in the organisation.
It disturbs the existing equilibrium or status quo in the organisation.

 The change in any part of the organisation affects the whole of the organisation.
 Change will affect the various parts of the organisation in varying rates of speed and
degrees of significance. Changes may affect people, structure, technology and other
elements of the organisation.
 Change may be reactive or proactive. When change is brought about due to the pressure
of external forces, it is called reactive change. Proactive change is initiated by the
management on its own to increase organisational effectiveness.

2.2 Forces for Change

There are a number of factors both internal and external which affect organisational functioning.
Any change in these factors necessitates changes in an organisation. The more important factors
are as follows:

2.2.1 External Forces

External environment affects the organisations both directly and indirectly. The organisations
do not have any control over the variables in such an environment. Accordingly, the organisation
cannot change the environment but must change themselves to align with the environment.
A few of these factors are:
1. Technology: Technology is the major external force which calls for change. The adoption
of new technology such as computers, telecommunication systems and flexible
manufacturing operations has profound impact on the organisations that adopt them.
The substitution of computer control for direct supervision is resulting in wider spans of
control for managers and flatter organisations. Sophisticated information technology is
also making organisations more responsive: Both the organisations and their employees

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