Change Management

CHANGE MANAGEMENT

Change management is one of the most keenly studied management disciplines today, keeping in mind the fact that the organizations, which embrace change, are likely to be most successful one.  For this reason, many firms and institutions are alert to the need of continually monitoring their structure and procedures with a view of improving them.

DEFINITIONS OF CHANGE

• ‘As a society, we have been moving from old to the new. And we are still in motion. Caught between eras, we experience turbulence.’ - JOHN NAISBETT

• According to Stephen P. Robbins- change is concerned with making things different. Things must be different because they change constantly.

• Change can be defined as – when an organizational system is disturbed by some internal or external force, change frequently occurs. Change as a process, is simply modification of the structure or process of a system. It may be good or bad, the concept is descriptive only.

REASONS/FORCES FOR CHANGE

Organizations change because of several reasons some of which are external to the company & others are internal to it.

External Forces

1. Government policies

2. Changes in the economy

3. Competition

4. Cost of raw materials

5. Pressure groups

6. Technology push

7. Scarcity of labor

8. Social pressures

9. Legal requirements, etc

Internal Forces

1. Change in leadership

2. Implementation of new technology

3. Decline in profitability

4. Changes in employee profile

5. Union actions

6. Low morale etc.

The organizational changes that are commonly seen in today's modern world are Downsizing, Introduction/ implementation of new technologies, Mergers & acquisitions & technological changes.

TYPES OF BUSINESS CHANGE

The business changes can refer to a vision, mission, values and strategy of an enterprise, organizational structure and development, refinancing loans, human resources, promotion and communication with customers, sales policies and marketing,...