Organization change can be defined as, "A concerted, planned effort to increase organizational effectiveness and health through

changes in the organization's dynamics using behavioral science knowledge". Organizational change are the changes of attitude, nature and interest of employees, technological and environmental changes related to an organization and changes in rules and regulations affecting the organization. According to Van de Ven and Poole," Organizational change was expressed as "empirical observation of difference in form, quality, or state over time in organizational entity. The entity may be an individual's job, work group, an organizational strategy, a program, a product, or the overall organization.

Nature/Characteristics of organizational Change

The term changes refer to an alteration in a system whether physical, biological, or social. Thus organizational change is the alteration of work environment in organization. It implies a new equilibrium between different components of the organization technology, structural arrangement, job design, and people. Conceptualizations that help to characterize the organizational change phenomenon are shown in figure below.

Globalization of markets: This requires companies to complete

in international markets and local companies exposed to foreign competition.

Technological changes: This influence both products and

processes. The use of computers has significantly influenced the design and manufacturer of products. Optical fibers as thin as human hair carry as thousand times more information than phone lines facilitating instantaneous communication. Goods are being transported faster, better and at a relatively lower cost from one place to the other.

Political realignments: The forging of trade cooperation among

nations with large markets/emerging economic blocks as in the case of the European markets an the US and Canada. Also there are dozens more of these free trade areas that have come into existence in the last few years.

Changing demographics: This has held to a decline in work

ethics, changing sexual and family mores, and a greater number of minorities and women folk joining the work force.

Changing customer preference: Nowadays customers are

less loyal to particular products or companies. They are choosier, more demanding and better informed. The media explosion is driving the needs of the people who now have more options before them.

Organizational restructuring: This is happening more than

ever before. Organizations are being downsized, resized, and flattened, and so on. Alliances are being formed and mergers are on the rise. Organizational and the employees are under constant pressure to master new challenges., use new tools and keep up with the changing systems and technologies.

Change is a continuous process: organizational change is a

continuous process, however some changes which are of minor type may be aborted by the existing equilibrium; others, which are major onces, may require special change efforts.

Change may be reactive or proactive: when change is

brought about due to the pressure external forces, it is called reactive change. Proactive change is initiated by the management on its own to increase organizational effectiveness.

Change may be planned or unplanned: planned change is

deliberately shaped by those within an organization. Unplanned change is promoted by forces outside an organizational, whose response is reactive rather than proactive. TYPES OF ORGANIZATIONAL CHANGE To change is to move, from the present to the future, from a known state to a relatively unknown state. To be able to adopt or deal with the impact of change forces. Organizations may plan for, experience or undergo change. The possible types of changes are classified here. The classification is descriptive and does not suggest a watertight compartmentalization in view of the complexity and dynamism of the change process.

1. Happened change: this is change that is rather unpredictable and that takes place naturally due to external factors. It is profound and traumatic for it is out of direct control and products a future state that is largely unknown. This type of change occurs when an organization reaches plateau in its lifecycle and falls prey to unwieldy demands from the environment. For example, currency devaluation, over which it has no control adversely, affects the business of a company that has to import its basic raw material. 2. Reactive change: changes that are dearly in response to an event of a series of events are termed reactive. Generally most companies are engaged in reactive, often incremental change. These changes are attempted when the demand for a company's product/service registers an increase of decrease, or a problem/crisis occurs or develops. Technological changes, example, force organizational to investing modern technologies. Incremental changes, made in response to external forces, and limited to a subsystem or a part of the subsystem, are adaptive in nature. Recreation is also a reactive change, but it involves the organization in its entirety and occurs when the organizational is under severe crisis. 3. Anticipatory change: change carried out in expectation of an event or a series of events is called anticipatory change. Tuning in or reorienting themselves to future demand would involve making incremental changes (dealing with a subsystem or a part of the subsystem) of external events. Reorientation is moving from 'here' to there in anticipation of a changing environment. It involves changing the organization form the existing state towards a designed future state, and managing the transition process. 4. Planned change: it occurs when leaders in the organization recognize the need for a major change and proactively organize a plan to accomplish the change. Planned change occurs with successful implementation of a strategic plan for re-organization, or other implementation of a change of this magnitude. It is based on a proactive and well-done plan, often does not occur in a highly organized fashion. Instead, planned change tends to occurs in more of a chaotic and disruptive fashion than expected by participants. 5. Incremental change: incremental change is those which are made with an intention to maintain functioning of organization on its chosen

path. Example, incremental change might include continuous improvement as a quality management process or implementation of new computer system to increase efficiencies. Many times, organizations experience incremental change and its leaders do not recognize the change as such. 6. Operational change: this is necessitated when an organizational needs to improve the quality of its products or services due to external competition, customers changing requirements and demands or internal organizational dynamics. Improvement of production and service capabilities could centre on quality, quantity, timeliness, cost saving and such other factors. The organization's goals remaining the same, intended change focuses on how to improve existing operations to perform them better, operational changes include bringing in new technology, re-engineering the work processes, quality management, better distributions and delivery of products, and enhancing interdepartments coordination. 7. Strategic change: strategic change is the change in the very basic objectives or mission of the organization. A simple objective may have to be changed to multiple objectives. For example, a lot of Indian companies are being modified to accommodate various aspects of global culture brought in by the multinational or transnational corporations. 8. Directional change: a change in direction may become imperative for an organizational due to severe competition or regulatory shifts in government policy and control (e.g., on pricing, import, export restrictions) directional change is also critical when the organizational is developing a new strategy or incapable of executing effectively its current strategy. The question of quo Vadis or where the organization is headed could be facilitated by organizational re-thinking, research and development (R&D) activities, competitive analysis, information management, and adequate management control systems. 9. Fundamental change: Fundamental change entails a re-definition of the current purpose or mission of the organization. It may be necessitated by drastic changes in the business environment, the failure of the current corporate leadership, problems with employee's morale or a low turnover.

10. Total change: for total change, the organization is constrained to develop a new vision, and a strong link between its strategy, employees, and business performance. The organizational has to achieve a turnaround or perish. Total change is necessary to extricate the organization from the rot that has set in due to long-failure of business, employee-organization value incongruence, estrangement of operations from the reality of the business environment, and power concentrated in the hands of few people who could be furthering their own personal interests at the cost of the organization. A new vision and drastic surgery could be the only way out for the organization. 11. Transformational change: This change occurs after the transition period. Transformational change may involve both developments and transitional change. it is common for transitional and transformational change to occur in tandem. When companies are faced with the emergence of radically different technologies, significant changes in supply and demand, unexpected competition, lack of revenue or other major shifts in how they do business, developmental or transitional change may not offer the company the solution they need to stay competitive. Instead of methodically implementing new processes, the company may be forces to drastically transform themselves. 12. Revolutionary change: sometimes, change may be cataclysmic. A revolutionary change results in overturning the status quo arrangement and causes violation, rejection, or suppression of old expectations. The revolutionary churning generally faced strong resistance and sometimes only an exercise of power can implement such changes. Revolutionary change are rarely introduced expect where the situation becomes highly intolerable and there are no other acceptable options. 13. Recreational change: the word recreation is derived from the Latin word recreare, which means "to create a new, to become refreshed". It is the refreshment of strength of spirit, revigoration or rebirth, recreation is essentially a "renewing "experience a refreshing change from work and the daily routine.

FORCES OF ORGANIZATIONAL CHANGE Change has become the norm in most organizations. Business failure, plant closures, mergers and acquisitions, downsizing, re-engineering,

productivity improvement, globalization, cycle-time reduction, and other efforts for survival are common among most Indian companies. Organizations are in a state of tremendous turmoil and transition and all members are affected.

1) External forces: These are arising from outside the

organization. These include: a. Technology: it is a major external force which calls for change. The rate of technological change is greater today than any time in the past and technological changes are responsible for changing the nature of jobs performed at all levels in the organizations. The computer technology and automation have made a remarkable impact on the functioning of organizations in the recent times. Technological advancement is thus a permanent fixture in the business world and it continues to demand a manager's attention as a pressure for change. Japanese firms have progressed rapidly because they are very fast in adopting new technological innovations. b. Marketing conditions: marketing conditions are no more static. They are in the process of rapid change as the needs, desires and expectations of the customers change frequently. Moreover, there is tough competition between manufacturers and suppliers in the market. The market is flooded with new products and innovations every day. New media of advertisement and publicity are being used for influencing the customers. All these factors put great pressure on the modern organizations to change their technologies and marketing strategies. C.Social changes: because of spread of education, knowledge explosion and government' efforts, social changes are taking place at a fast speed. The drive for special equality (e.g., equal opportunity to women, equal pay for equal work etc.) has posed new challenges for the management. The management has to follow social norms in shaping its employment, marketing and other policies. D .Political changes: Political forces within and outside the country have an important influence on large business houses, particularly the transnational corporations. The relation between government and business houses has become very complex in the modern times. Many laws have been passed to regulate the activities of the corporate sector. The organizations have no control over the political and legal forces, but they have to adapt to meet the pressure of these forces.

2)

Internal Forces: these are arising from sources within the

company, these include: A. changes in managerial personnel: old managers are replaced by new managers, which is necessitated because of retirement, promotion, transfer, etc.. Each manager brings his own ideas and way of working in the organization. The relationships, more particularly informal ones, change because of changes in managerial personnel. Moreover, attitudes of the personnel change even through there are no change in them. The result is that an organization has to change accordingly. B. changes of operative personnel: the profile of the workforce is changing fast. The new generations of workers have better educational qualifications, place greater emphasis on human values and question authority of managers. Their behavior is very complex and leading them for organizational goals is really a challenge. The turnover of personnel also puts great strains on the organizational and so it has to be handled properly by the organizational. C. Deficiencies in Existing Structure: changes may be needed to make up deficiencies in the present organizational set up. These deficiencies may be in the form of unmanageable span of management, larger number of managerial levels, lack of coordination among various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of co-operation between line and staff, and so on. However, the need for change in such cases goes unrecognized until some major crisis occurs.

Models of Organizational Change

Kurt Lewin wan an American social psychologist. He has contributed to science group dynamics and action research, and he is regarded one of the founders of modern psychology. But Lewin is perhaps best known for developing Force Field Analysis and Force Field Diagrams

Kurt Lewin's Three Step Model According to "Kurt Lewin's" Force Field model, effective change occurs by unfreezing the current saturation, moving to desired conditions, and then refreezing the system so that it remains in this desired state. Popularly called three-state model of change, Lewin's theory is highly useful in understating the ways of managing change. Kurt Lewin introduced two ideas about change that have been influential since the 1940's. The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. That is, the status quo-whatever is happening right now-is the result of forces pushing in opposing directions. For examle, we can think of the production level of a manufacturing plant as a resultant equilibrium point in a field of forces, with some forces pushing toward higher levels of production and some forces pushing toward lower levels of production. The production level tends to remain fairly constant because the field of forces remains fairly constant. Likewise, we can think of ht level of morale in that plant as a resultant equilibrium point. Although morale may get a little better of a little worse on occasion, it generally hovers around some equilibrium point that is the resultant in a field of forces, some forces pushing toward higher morale and some pushing toward lower morale.

REPREEZ E

FREEZE UNFREEZ E
Lewin's three stage model is a powerful tool for understanding change situations. Edgar Schein took this excellent idea and improved it by specifying the psychological mechanisms involved in each stage.

In stage 1, unfreezing, disconfirmation creates pain and discomfort, which cause guilt and anxiety, which motivate the person to change. But unless the person feels comfortable with dropping the old behaviors and acquiring new ones, change will not occur. That is, the person must develop a sense of psychological safety in order to replace the old behaviors with new behaviors. Unfreezing occurs when the driving forces are stronger, weakening or remove the restraining forces or a combination of both. Change rarely occurs by increasing driving forces alone; however, because the restraining forces often adjust to counter balance the driving forces. It is rather like the coils of a arrases: The harder corporate leaders push for change, the stronger the restraining forces push back. This antagonism threatens the change effort by producing tension and conflict within the organization. So the preferred option is both increase the driving forces and reduce or remove the restraining forces. Increasing the driving forces creates urgency for change. In stage 2, moving, the person undergoes cognitive restructuring. The person acquires information and evidence showing that the change is desirable and possible. This motivating evidence is gained by, for example, identifying with ex-smokers and learning about the health risks of smoking. The primary task in stage 3, refreezing because unfreezing and changing behavior patterns won't result in lasting change. Refreezing is to integrate the new behaviors into the person's personality and attitudes. That is, stabilizing the changes requires testing them to fit with the individual, and fit with the individual's social surroundings. The phrase significant relationships refer to important people in the person's social environment. Do these significant others approve of the changes.

Kurt Lewin's Force Field Analysis

The force Field analysis is model built on this idea that forces are both driving and restraining change. These forces include: Persons, habits, customs, and attitudes. A force field diagram can be used at any level: personal, project, organizational, network, to visualize the forces that may work in favor and against change initiatives. The diagram helps its user to picture the "war "between forces around a given issue .usually, a planned change issue is described at the top. One side the forces are represented as driving forces that push organization towards new state of affairs. Some of the driving forces from the external environment include globalization, information technology and a changing workforce. Along with these external forces some corporate

leaders create driving forces within the organization; they may increase competition across company departments and encourage new practices and values that the leader believes are inherently better, for instance. The other side of the model represents the restraining forces that maintain status quo. These restraining forces are commonly called as resistance to change because they appear as employee behaviors that block the change process. Stability occurs when the driving and restraining forces are roughly in equilibrium, that is, they are of approximately equal strength in opposite directions. Below this, there are two columns. The driving forces are listed in the left column, and the restraining forces in the right-hand column. Arrows are drawn towards the middle. Longer arrows indicate stronger forces. The idea is to understand, and to make explicit, all the forces acting on a given issue. Force Field Diagram Change Issue Driving forces Restraining Forces

Weak Weak Moderate Strong force

No change

Equilibrium

Change

Use of the force field analysis method: Investigate the balance of power involved in an issue Identify the most important players(stakeholders) and target groups for a campaign on the issue. Identify opponents and allies

 Identify how you can influence each target group Steps in a force field analysis: Process, 1. Describe the current situation. 2. Describe the desired situation 3. Identify where the current situation will go if no action is taken 4. List all the forces resisting change toward the desired situation 5. Discuss and interrogate all of the forces; are they valid? Can they be change? Which are the critical ones? 6. Allocate a score to each of the forces using a numerical scale e g., 1 is extremely weak and 10 is extremely strong 7. Chart the forces List the driving forces on the left. And list the restraining forces on the right 8. Determine whether change is viable and progress can occur 9. Discuss how the change can be affected by decreasing the strength of the restraining forces or by increasing the strength of driving forces 10. Remember that increasing the driving forces or decreasing the restraining forces may increase or decrease other forces or even create new ones.

SYSTEM APPROACH
There is wide impact on the organization by the decisions made by the top management as they affect the internal and the external groups in a significant way. Since when management takes a decision of change, it must understand and anticipate its repercussions on the entire organization and its environment. It should be taken into account that the organization is a totally interrelated, inter dependent parts, put together for achieving certain objectives. This is a nutshell, is the very essence of the systems concepts. Systems theory tries to solve the problems by diagnosing them within a framework of inputs, transformation and outputs and feedback. It

attempts to view an organization as a single unified, purposeful entity, composed of interrelated parts. Rather than dealing separately with the various parts of an organization, the systems theory gives managers a way of looking at an organization as whole and as a part of the activity of an organization affects the activity of every other part. A system view of management, for instance would recognize that, regardless of how efficient the production departments might be, if the marketing department in creating what consumers want, the organization' several performance will be hammered. Systems theory makes organization theorists search for integrative rather than be satisfied with making lists of unrelated principles. It also emphasizes looking at the forest rather than the trees. It uses a way of thinking that highlights underlying relationships, the practical implications of systems mentality even though they may not be consciously aware of it. As a matter of course, executives ask what effects a decision will have on others. They think before they act, implying a process of evaluating the impact of their actions will have. A conscious commitment to system thinking requires explicit responsibility for forming decisions in terms of the entire organization. Instead of merely looking at the technical side, executive side or even the human side, executives are now forced to look at the totally of the situation and arrive at decisions. They can now easily maintain a good balance between the needs of the various parts of the enterprise and goals of the firm as a whole. They can respond, in short to situational requirements in an effective way.

Men Materials Machine Methods Money

Transformation
Productivity Activities Productivity Efficiency

Outputs

Inputs

Limitations:

It is true that systems theory provides a broad philosophical perspective that brides academic disciplines and mounts integrated attack on a variety of problems. It is objective and is not influenced by catch phrases like 'One Best Way' and simplistic prescriptions like,' a manager decides things for other'. It does not attempt to identify situational differences and factors. Also ,it tends to overpass oneness, coordination and harmony when, an organization have many natural, in built conflicts.

SEVEN STAGE MODEL

Another modification of Lewin's model was proposed by Ronald Lippitt, Jeanne Watson, and Bruce Westley. They expanded the three stage model into a seven stage model representing the consulting process. Their seven stages are as follows: Phase 1. Developing a need for change. This phase corresponding to Lewin's unfreezing Phase. Phase 2. Establishing change relationships. In this phase a client system in need of help and a change agent from outside the system establish a working relationship. Phase 3. Clarifying or diagnosing the client system's problem Phase 4. Examining alternative routes and goals; establishing goals and intentions of action. Phase 5. Transforming intentions into actual change efforts. Phases 3, 4, and 5 correspond Lewin's moving phase

Phase 6. Generalizing and stabilizing change. This phase corresponds to Lewin's refreezing phase Phase 7. Achieving a terminal relationships, that is, terminating the clients consultant relationships. Lewin also stated, "To break open the shell of complacency and selfrighteousness it is sometimes necessary to bring about deliberately an emotional stir up" Kotters' model suggests a similar three-part framework. Defrost the status quo

 Take actions that bring about change Anchor the changes in the corporate culture

ACTION RESEARCH MODEL

That planned change is a cyclical process; this model proposes that organizations, if order to change, need to undertake research initially so as to have adequate information that may guide their future action. The results of the action are then assessed to provide information to guide further action and this cycle is repeated as an ongoing process. The eight steps elaborated by Cummings and Huse under this model are as follows: Problem Identification: At this Stage, a key Executive Senses the existence of problem(s) that can be alleviated with help of an organization development (OD) practitioner. Consultation with an expert: once the problem has been sensed, it is understood that there is a solution to such problem; the help of an OD expert is sought. Data Gathering and Preliminarily Diagnosis: using various tools such as interviews, questionnaires, organizational performance analysis, and data is gathered by the OD consultant. The consultant works in collaboration with organizational members. Feedback: The gathered data is passed on to the key client/group to determine the strengths and weakness of the area under study, with the consultant providing the client all relevant and useful data. Joint Diagnosis of the Problem: after discussing the feedback, the group focuses on additional relevant research that might be required. The results of this additional research are then summarized and submitted to the group again so that they are validated for further diagnoses and identification of problem. Joint action planning: the consultant and the management team jointly agree on problem-solving methods. Depending upon

the cultural, technological, and work environment, specific courses of action are taken in order to solve the problem. at this stage, the time and cost of the intervention is also taken into consideration. Actions: this is the stage at which the actual change from its present state to its desired state takes place and may involve installation of new methods and procedures,re-organizing structures and work design, or reinforcing new behavior. Data Gathering after action: New data is gathered again so as to determine the amount of change that has taken place Vis a Vis the effects of the action. This affirms the cyclical nature of the process. Further feedback is sought and based on this; situations are re-diagnosed and new action taken. Apart from brining about change, this model helps the organization in developing general knowledge that may be useful and applied across other situations.

Diagnose the change

Establish Client

Introduce intervention Implement desired Incremental or Quantum change

Consultant
relationship s

Gather data, Analyze data, and Decide intervention objectives

Evaluation and stabilize change Determine effectiveness of change and refreeze now condition
Disenga ge Consult ant's services