Chapter three

Overview of Organizational Change

3.1. Meaning and implications
Organizational change is the adoption of a new idea of behaviour by an
organization.
Why change?
• change is demanded by clientele citizens and customers
• technology is moving so quickly that today's work practices may become
outdated almost overnight
• change is difficult for most people
– Either in our personal or in our work lives

Need for Change

 Performance gap = disparity between existing and desired performance
levels.
● Current procedures are not up to standard
● New idea or technology could improve current performance
3.2. Forces of Change

The forces of changes are divided in to two: External Forces and Internal
Forces
External forces for change :- originate Internal forces for change: - Originate
outside the organization inside the organization.
● Demographic characteristics ● Low job satisfaction
● Technological advancements ● Conflicts
● Shareholder, customer and market ● Strikes
changes ● Low productivity
● Social and political pressures

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3.3. Steps leading to organizational change
See the below diagram

3.4. Resistance to change

-An emotional or behavioral response to real or imagined threats to an

established work routine.
• Self-Interest: fear of personal loss is perhaps the biggest obstacle to
organizational change
• Lack of Understanding and Trust: do not understand the intended
purpose of a change or distrust the intentions
• Uncertainty: lack of information about future events
• Different Assessments and Goals: people who will be affected by
innovation may assess the situation differently.

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  Additionally;

• An individual’s predisposition toward change

• Surprise and fear of the unknown
• Fear of failure
• Loss of status and/or job security
• Peer pressure
• Past success
3.5. Tactics for Overcoming Resistance to Change
• Communication
• Clearly communicating about the importance of change.
• Change is technical; users need accurate information & analysis
• Participation
• Users need to feel involved; design requires information from others;
have power to resist.
• Negotiation
• Group has power over implementation; will lose out in the change.
• Coercion
• Crisis exists; initiators clearly have power; other techniques have failed.
• Top management support
• Involves multiple departments or reallocation of resources; users doubt
legitimacy of change.
Structural Changes
• Any change in the way in which the organization is designed and
managed
● Hierarchy of authority
● Goals
● Structural characteristics
● Administrative procedures
● Management systems

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