Organizational change and development

2. • Organizational change is defined as change that
has an impact on the way work is performed and
has significant effects on staff.
• Organizational change is the process by which
organization move from their present state to
some desired future state to increase
effectiveness.

3. • Change happens for the pressure of both internal
and external forces in the organization.
• Change in any part of the organization affects
the whole organization.
• Change may affect people, structure, technology,
and other element of the organization.
• Change also affects the rate of speed and
degree of significance of the organization.
• Change may be reactive or proactive.

4. • Change management is a structured
approach to shifting individuals, teams and
organizations from a current state to a
desired future state.
• It is an organizational process aimed at
helping employees to accept and embrace
changes in their current business
environment.

5. • To minimize the change impacts on
workers and avoid distractions.

6. • They are responsible for managing change
activities.
Change agents can be:
• managers or non-managers,
• current or new employees,
• or outside consultants.

8. • Change is beneficial to some organizations
EXAMPLE:
The Evolution of Starbucks
• In the beginning they had only just a shop that
sold some selected coffee beans.
• As Starbucks growing, they realized that the
informal techniques were not sufficient and
needed to have a more formalized with people
and places.

9. • Now Starbucks is the biggest coffee chain
network in the world with more than 15000
shops in over 44 countries. And they grow
too fast.
• They adopting the Italian culture and make
some important changes in organization.

11. • It is a change resulting from a
deliberate decision to alter the
organization.
• It is an intentional
• It is a goal – oriented activity.

12. • It is imposed on the organization and
is often unforeseen.
Example:
Changes in government regulations
and changes in the economy.

14. The major external forces for change
are:
1. Nature of the workforce
2. Technology
3. Economic shocks
4. Competition
5. Social trends

15. 1. Nature of the workforce: Almost every
organization must adjust to a multicultural
environment, demographic changes,
immigration and outsourcing.
2. Technology is continually changing jobs
and organization. Ex: faster, cheaper and
more mobile computers and handheld
devices.
3. Economic shocks: rise and fall of global
housing market, financial sector collapse,
global recession.

16. 4. Competition is changing- Competitors
are as likely to come from across the ocean
as from across town
5. Social trends don’t remain static.
Companies must continually adjust product
and marketing strategies to be sensitive to
changing social trends.

17. 1. 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.
2. A crisis situation also may stimulate change in an
organization.
Example:
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.

18. 3. 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.