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What is large scale organizational

change? Why do companies attempt it?


Organizational change is the process in which an organization changes its
structure, strategies, operational methods, technologies, or organizational
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.
As societies continue to evolve and changing demand creates the need for
new products and services, businesses often are forced to make changes to
stay competitive. The businesses that continue to survive and even thrive
are usually the ones that most readily adapt to change
Unplanned change usually occurs because of a major, sudden surprise to
the organization, which causes its members to respond in a highly reactive
and disorganized fashion. Unplanned change might occur when the Chief
Executive Officer suddenly leaves the organization, significant public
relations problems occur, poor product performance quickly results in loss of
customers, or other disruptive situations arise.
Planned A process involving deliberate efforts to move an organization or a
unit from its current undesirable state to a new, more desirable state.

Process of Planned Change


Unfreezing A phase in the change process in which leaders help
managers and associates move beyond the past by providing a rationale
for change, by creating guilt and/or anxiety, and by creating a sense of
psychological safety concerning the change.
Tactics for unfreezing include:
Reminding individuals that they have successfully changed in the
past
Communicating to individuals that managers and associates in
other organizations in similar circumstances have successfully
changed
Letting individuals know that support and training will be available
for the specific changes to be made
Moving A phase in the change process in which leaders help to implement
new approaches by providing information that supports proposed changes
and by providing resources and training to bring about actual shifts in
behavior.
Refreezing - A phase in the change process in which leaders lock in new
approaches by implementing evaluation systems that track expected

behaviors, by creating reward systems that reinforce expected behaviors,


and by ensuring that hiring and promotion systems support the new
demands.

Forces that affect Change


External Forces
Technological change
Globalization
Social & Political changes
Workforce diversity

Internal Forces
Changes in managerial personnel
Declining effectiveness
Changes in work climate
Deficiencies in existing system
Crisis
Employee expectation

Competitive Edge:
Changes in the competitive landscape, such as new incumbents, mergers
and acquisitions, new product offerings, and bankruptcies, can substantially
impact a company's strategy and operations. For example, if a competitor
releases a new product that threatens to steal market share, an organization
must be ready to change and adapt to retain their customer base.

Organizational Development
OD is a planned approach to improve employee and organizational effectiveness by
conscious interventions in those processes and structures that have an immediate
bearing on the human aspect of the organization.
Features of Organizational Development
1. OD is an educational strategy that attempts to bring about a planned change.
2. OD related to real organizational problems instead of hypothetical cases.
3. OD related uses sensitivity training methods and lay emphasis on the
experiment of based training.