Introduction to Organisational change

“Change will not come if we wait for some other person or some other time. We are
the ones we’ve been waiting for. We are the change that we seek” – Barack Obama

Everything in this world is changing and technologies change very quickly and
organisations also change very quickly. All organisations need to change no matter they
are large or small organisation they need to change for survival.

First let us understand what not organisational change is. Organisational change is not
about the personal change, it’s not about us as a person changing that will be more domain
psychology of leadership and it is not organisational change. If a person changes his
behaviour or the way of leadership in the organisation it is called as the personal change
it is not organisational change. It is also not about creating new organisation this will be
more domain of Entrepreneurship innovation etc.

Now let us understand what organisational change is, Organisational change is the adoption
of new idea or behaviour by an organisation. It is the way of modifying an existing organisation.
And it is the process in which an organisation changes its structure strategies operational
methods technologies and the organisational culture to affect change within the organization
and the effects of these changes on the organization. Organizational change can be continuous
or occur for distinct periods of time. Managing organizational change is the process of planning
and implementing change in organizations in such a way as to minimize employee resistance
and cost to the organization while simultaneously maximizing the effectiveness of the change
effort. It is very important for every organisation to change, and in today’s world every
organisation undergo changes on them and it is very important for every organisation order to
be competitive in this world. The factors such as rapidly growing technology, globalization of
market will force every business to change. And these changes are not basic changes they are
quite major changes.

Organisational changes also arises from the problems which the company has faced. But in
some cases companies changes because of some rational leaders who first identify and then
they brings changes in the undeveloped pat of the organisation.
Types of change

Changes can be seen in different ways.

1. Evolutionary change:
The evolutionary change do not volatile the traditions and status quo expectations.
These changes takes place one by one. In evolutionary change agent see the opportunity
for organisation to improve and then they follow it by talking with other peoples. A
change agent helps to bring changes and then persons with in the organisation will
understand the change and they follow the change slowly. But the senior level leaders
are less drivers of the change. These changes occur very slowly.
2. Revolutionary change:
It is an immediate change It is a type of change which is which come from the top
management of the organisation, like the boss of the organisation will tell to do
something or he orders to change so the change occur this type of change is called as
the revolutionary Change. Revolutionary changes is relating to political or social
change.
3. Planned change:
It is a scientific way of viewing the change. It is the planned changes within the
organisational system. Planned changes are made by the organisation with the purpose
of achieving something which might be impossible without having a proper plan.
Through planned changes organisation reach new progress more rapidly toward a given
set of goals.

Types of planned change

1. Structural change

Structural change is focused at increasing organisational effectiveness through changing or

modification of the existing organisation structure. The focused should be given more on
changing the numbers of organisational level. Altering the span of management. Changing
one base of department to another base department. Sometimes here manager focus is on
reorganisation. Reorganising involves entirely redesigning the structure of the organisation.
It also calls for remarkable changes in the depart mentation, span of control and
coordination.
2. Redesigning the task
It is increasing the diversity and the scope or depth of the job. It means effective
utilisation of available human resource and proper division of work among those
employees. The employees are given specific job to perform and the redesigning is done
in such a way that it helps to reduce the wastage of human resource and help the
organisation to achieve the desired state.
3. Changing the technology
Technological changes are concerned with the organisations production process.
Competitive forces often compel managers to introduce new equipment, tools or
operating methods. Many companies are changing its technology nowadays.
Introduction of computers to facilitate managerial planning and control.
4. Cultural or people change
Change emphasises increasing organisational effectiveness by changing attitudes,
skills, perceptions, expectations and values of organisation members. Managers
initiates such type of changes when performance gap occur due to employee related
matters.

Forces for change

Internal changes: an organisation may change because someone inside finds a new way
of doing the same things so the internal changes are takes place within the organisation.

1. Increased size: increased changes in the organisation will create more structures within
the organisation. As the organisation prosper and grow in size, they generate more
resources. These resources help them to get new opportunities and enter into new
market and to experiment with the ideas.
2. Performance gaps: when there is a gap between the targets set by the company and
the actual results then it is a time to change for the organisation. And when the
organisation do not changes and shifts itself to new changes, then the company will go
off the track.
3. Employee needs and values: the organisation should understand the requirements of
the employees and they should change their policies and procedures. And the
organisation should also change their procedures in such a way that it should not
provide more freedom to employees.
 4. Change in the chief Executive: the main reasons for the change is changes in the chief
executive officer of the organisation. When the new executive officer is appointed he
will bring changes in the current working of the organisation, so the new appointed
manager might favour different organisational design, objectives, procedures and
policies than a procedures. If it is not so, he indulges in making sweeping changes. Thus
filling the top vacancies where the new person comes I from outside, presents a strategic
opportunity for re-examining the entire structure of the organisation.

External changes: Modern manager is change-conscious and operating in the constantly

changing environment. Many external changes bombard the modern organizations and
make change inevitable. In recent years, far-reaching forces for change have included
developments in information technology, the globalization of competition, and demands
that organizations take greater responsibility for their impact on the environment.

1. Technological Change: fast technology development is the major force for the change.
And those companies who fail to follow the change will fall back in the race and
technological changes brings the profound changes which are not just changes the way
of work but also changes the organisational structure and the work relationship. It also
helps to bring more open communications between leaders and the team members.
2. Globalization: globalisation means the competitions to the organisation comes from the
foreign countries. The main players of the globalisations are multinational and
Transnational organisational. Globalisation change means efficient use of the available
resources and obtaining the information to develop the people.
3. Social and Political Changes: social and political changes are also influence the
organisational change. Many new political and social changes are introduced in the
organisation which affects the organisation.
4. Workforce Diversity: diversity in the work force is also affects the organisation in
different ways. If the workforce in more culturally driven or the work force is ageing
etc. affects the organisation.
Case study Change Management at General Motors:
General motor established in 1908. That time the company was the sole carmaker dealer
in the region. till 1920 it was becoming the world largest motor manufacturing
company, the company got a tremendous success in time of Alfred salon, due to his
leadership the company was producing new style and design car every year, and he had
given such concept to the company. The other brand of the company is Chevrolet,
Pontiac, Buick, and Cadillac. These were the different brand cars which were producing
by company that time, and this way there were no other competitors to compete in the
company different cars. But with emerging of the japans automakers the company felt
threatened, specially the emerging of Toyota Japan, who with great extent disturbed the
profitability of the GM, especially in the North American market. In 2001 the sale graph
of the GM was in declined trend, because the Toyota had captured the market, this way
the GM received loan form American government and Canadian government to support
the company in that crises period. During 2009 the company had faced a bankruptcy
and had closed several brand and sold out to china based company. Now the company
again got his position in market by restructuring and making change in the company.
Now the company is again operating business in the core brands in America such as
Chevrolet, GMC, Buick, and Cadillac.

Forces for change:

a. External forces:

In external forces the GM which was greatly affected by the japans based company
Toyota was the emerged competitors in that time, the north America is still the biggest
market place for GM where the company sold out in recent year round about 2.9 million
and the nearest competitor is Toyota and china based companies, these competitors with
great extent disturbed the total profitability of the general motor, and the second
external forces which the company faced a huge problem was financial crises which
with great extent collapsed the cash flows of the company.

b. Internal forces:

The another force for change to GM was the high wages cost to employees as the
company was paying $74 per hour as compared to Toyota $44 per hour, because GM
was an agreement with trade union. And the GM was compelled to run the plant with
minimum 80% capacity whether it was needed or not, these things play an important
role in the bankruptcy of the company.

Types of changes:

While going on change management the GM, the company took some steps to adopt
change these are the most recent change which the company had taken.

a. Cost cutting

First change that the organisation undergo is cost cutting. The company reduced its cost
for some of its products to maintain the profit level. Similarly the company also cut off
employees which is major drawback for the organisation. But the company achieved
the cost cutting up to 15 billion in the year.

b. Cultural changes

The general motor also changed the culture of the company, the GM removed it
automotive product board, and automotive strategy and the team leaders are asked to
report directly to the CEO. The main objective of this change is to bring speed up the
daily activities and to improve the efficiency of the employees.

Problems of change:

a. Problems of cultural change:

Cultural change is based on the top down approach which ignored totally the
involvement of the employees.
b. Problems of cost cutting:
The cost cutting was favourable to the organisation because they are able to cut the
cost efficiently, but the organisation faced huge problems from the different unions
like trade union, employee union
Conclusion:

Every organisation need to undergo changes in order to be more competitive in the business
world. And every organisation should inform their employees about the changes they are doing
and it should be in such a manner that the employees should have a feeling that the change will
help them to grow. And the organisation should fill positive feeling among the employees for
the change.

The change might be a good thing for the organisation or it can take the organisation to decline
stage also, so every organisation should think in such a manner that if the changes are taken
place what could be the results of it.