Forces for change - Organizational Change and Development - Manu Melwin Joy
- 1. Forces for change Organizational Development
- 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – manu_melwinjoy@yahoo.com
- 3. Forces for change • Given a choice, most organizations prefer stability to change because the more predictable and routine activities are, the higher the level of efficiency that can be obtained. Thus, the status quo is preferred in many cases. • But organizations are not static; they are continuously changing in response to a variety of forces coming from both inside and outside. For leaders, the challenge is to anticipate and direct change processes so that the performance is improved.
- 4. Forces for change FORCES FOR CHANGE EXTERNAL FORCES INTERNAL FORCES
- 5. External forces • The major external forces for change are:- – Nature of the workforce: Almost every organization must adjust to a multicultural environment, demographic changes, immigration and outsourcing. – Technology is continually changing jobs and organization. Ex: faster, cheaper and more mobile computers and handheld devices. – Economic shocks: rise and fall of global housing market, financial sector collapse, global recession.
- 6. External forces • Competition is changing. Competitors are as likely to come from across the ocean as from across town. Ex: increased government regulation of commerce. • Social trends don’t remain static. Companies must continually adjust product and marketing strategies to be sensitive to changing social trends. The State Bank of India did the same when it started a zero-balance bank account program for villagers.
- 7. Internal forces • Declining effectiveness is a pressure to change. • A company that experiences its third quarterly loss within a fiscal year is undoubtedly motivated to do something about it. • Some companies react by instituting layoffs and massive cost – cutting programs, whereas others look at the bigger picture, view the loss as symptomatic of an underlying problem, and seek the cause of the problem.
- 8. Internal forces • A crisis situation also may stimulate change in an organization. • 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 organization. • A much-publicized crisis that led to change with Exxon was the oil spill accident with Exxon’s Valdez oil tanker. The accident brought about many changes in Exxon’s environmental policies.
- 9. Internal forces • Changes in the work climate at an organization can also stimulate change. • A workforce that seems lethargic, unmotivated, and dissatisfied is a symptom that must be addressed. • This symptom is common in organizations that have experienced layoffs. • Workers who have escaped a layoff may grieve for those who have lost their jobs and may find it hard to continue to be productive. • They may fear that they will be laid off as well, and many feel insecure in their jobs.