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March 27, 2021
Reaction Paper 2: Organizational Change
Organizational Change
Modern organizations are highly dynamic, versatile and
adaptive to the multiplicity of changes. It is largely structural
in nature. An enterprise can be changed in several ways. Its
technology can be changed, its structure, its people and other
elements can be changed. It is often said that nothing is certain
but change. In management, change is expected as part of
organizational life. Organizational change refers to the
alteration of structural relationships and roles of people in the
organization. Organizational change is an important characteristic
of most organizations. An organization must develop adaptability
to change otherwise it will either be left behind or be swept away
by the forces of change. Organizational change is inevitable in a
progressive culture. According to Cambridge Dictionary,
organizational change is: “A process in which a large company or
organization changes its working methods or aims, for example in
order to develop and deal with new situations or markets.” Many
people would disagree with Cambridge Dictionary’s description.
They say the definition should not limit organizational change
just to something that happens in large companies.
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Nature of Organizational Change
Change is concerned with making things different. This refers
to an alteration in a system whether physical, biological, or
social. Thus, organizational change is the alteration of work
environment in organization.
Planned Change aims to prepare the total organization, or a
major portion of it, to adapt to significant changes in the
organization’s goals and direction. Bringing change in a planned
manner is the prime responsibility of all managers who are forward
looking. Thomas and Bennis have defined planned change as: “planned
change is the deliberate design and implementation of a structural
innovation, a new policy or goal, or a change in operating
philosophy, climate or style.” Planned change attempts at all
aspects of the organization which are closely interrelated:
technology, task, structure, and people.
Change Agents (People-related Changes). Changes in people in
an organization. These changes may be of two types- skills and
behavior. The magnitude of these changes depends on the type of
change. For example, if there is a change in technology, say from
manual to automated, it requires different type of skills in the
operators as compared to the previously used skills.
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Forces of Change
Kreitner and Kinicki, 2004, elaborate that the concept of
change essentially leads to the organizational development for
appropriate adaptation to the external and internal forces.
External forces are changes that originate outside the
organization. Below are the four external forces for change:
1. Demographic Characteristics. Identify the demographic
characteristics (Age, Education, Skill level, Gender,
Immigration) and managing effectively the diversity would
enable one to get total contribution and commitment from people
at work.
2. Technological Advancement. Change in Technology and Equipment:
Advancements in technology is the major force of change.
Developed technological knowledge and skills of the workers
means increase productivity and market competitiveness. Each
technological alternative result in new forms of organization
to meet and match the needs.
3. Market Forces. Market Situation: Changes in market situation
include rapidly changing goals, needs and desires of consumers,
suppliers, unions, etc. If an organization has to survive, it
has to cope with changes in market situations.
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4. Social and Political Pressures. Social and Political Changes:
Organizational units literally have no control over social and
political changes in the country. Relations between government
and business or drive for social equality are some factors which
may compel for organizational change
Internal forces are changes that originate inside the
organization. Below are the two internal forces for change:
1. Human Resource Problems or Prospects. Problems arising from
people’s perceptions, the manner of treating, congruent needs
and wants between employee and organization, and employee’s lack
of satisfaction. For example, employee’s desire to share in
decision-making, employee’s desire for higher wage rate.
2. Managerial Behavior or Decisions. The cue for a change is the
interpersonal conflict between superiors and subordinates. For
example, No two managers have the same style, skills or
managerial philosophies. One of the most frequent reasons for
major changes in the organization is the change of executives
at the top: Changes in the Managerial Personnel.
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Robbins (2003) pointed out the six major forces acting as
stimulants for change. These are:
Nature of the workforce. The profile of the workforce is also
changing fast. The nature of the workforce has changed with time.
Different work values have expressed by different generations. The
new generation of workers has better education; they place greater
emphasis on human values and questions the authority of managers.
Their behavior has also become very complex and leading them
towards organizational goals is a challenge for the managers. The
employee turnover is also very high which again puts the strain on
the management.
Technology. Technological advances can create enormous
economic and other benefits, but can also lead to significant
changes for workers. IT and automation can change the way work is
conducted, by augmenting or replacing workers in specific tasks.
This can shift the demand for some types of human labor,
eliminating some jobs and creating new ones.
Economic Shocks. The unexpected or unpredictable event that
affects an economy, either positively or negatively. Technically,
it is an unpredictable change that has lasting effects on the
economy.
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Competition. Competitive factors cover how businesses who
offer similar products or services affect each other. This
includes: imitators, price wars, and product differentiation.
Imitators. When a successful product is introduced, rival
organizations will often respond by trying to undercut it by
quickly producing cheaper alternative versions.
Price wars. Companies may start a price war in order to gain
customers and increase market.
Product differentiation. Businesses can become more
competitive by making products that stand out from the competition
in terms of price, quality or service.
Social Trends. There is no doubt that society is continually
changing. The tastes and fashions are a great example of this
change. The younger generation prefers to use digital technology
to shop online. Older people will perhaps stick to their
traditional methods. The effect of changing society is often
discussed. You must also understand that these changing factors
have a toll on businesses too. Changes in social factors can impact
a firm in many different ways.
World politics. Changes in world politics can also have an
impact in many different ways.
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Moohead and Griffen (2004) also stressed that an organization
is vulnerable to pressures for change from various complex events.
People, Technology, Information Processing and Communication, and
Competition are the four areas which the pressures for change
indicate most powerful.
Technology. Forces that acts as stimulants to change
Establishing a sense of urgency: - when within company, group of
employees start to think about financial performance, technology
upgradation, company’s position in market, competition in market
and problems. They have done healthy discussion about company’s
profit, company position in market and how to tackle the problems
of company.
People. Developing a guiding group: - when an initiative is
taken by few employees. Some senior employees also join that group
for the success of that group. Because the senior employees may
lead and direct the group and they will form the core guiding
group. Implementing the change: - Change become successful in an
organization when new behavior becomes incorporated in social
norms and shared values, that is, new behavior has to be
implemented.
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Information Processing and Communication. Creating a new
vision: - The guiding group comes with a vision. The vision should
be easy to communicate. The guiding group also develops a strategy
for achieving the vision. Communication of vision should come both
in words and deeds. It is very necessary that it is clearly
understood by employee. Removing obstacles to the new vision: -
The group is only successful when employee being work according to
vision and also apply the new ways to do the work, only then they
can free serious from obstacles along with the work.
Competition. Creating short term successes: - When the group
not gets the long term success, than the company celebrates the
short term success so that moment is not lost. Declaring victory
change initiator and resister both should take time to declare
change programme in organization successfully until they sink
deeply into organizational culture. As in the new way of working
are sensitive so the process can take five to ten years. So, the
company should resist temptation to declare victory after few
improvement and clear performance of the new programme.
Therefore, change refers to any alteration that occurs in
total work environment whether physical, biological, or social.
Thus, organizational change is the alteration of work environment
in organization. It implies a new equilibrium between different
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components of the organization- technology, structural,
arrangement, job design, and people. Organizational change calls
for a change in the individual behavior of the employees.
Organizations survive, grow or decay depending upon the changing
behavior of the employees. Most changes disturb the equilibrium of
situation and environment in which the individuals or groups exist.
If a change is detrimental to the interests of individuals or
groups, they will resist the change. Any change may affect the
whole organization; some parts of the organization may be affected
more, others less; some parts are affected directly, others
indirectly. Change is something that should be embraced rather
than feared. Only with change will businesses be able to lay the
foundations for long-term success. Many deficiencies are noticed
in the organizations with the passage of time. A change is
necessary to remove such deficiencies as lack of uniformity in the
policies, obstacles in communication, any ambiguity etc.