Change Management

The term change refers to an alteration in a system whether physical, biological,

or social. Thus, organizational change refers to an alteration in the working
environment. It sets the new equilibrium between different components of the
organization.


Why Change is required:

There are two forces that arises the need for change in an organization:



External Forces: Due the dynamic environment there are some forces that lie
outside the organization system. These external forces need to be adopted in an
organization.

Internal Forces: It is not only the change in external factors which may
necessitate organizational change; any change in organizations internal factors
may also necessitate change.

There are two reasons that needs change in internal environment

1. Change in Managerial Personnel: Employees those who are working in the
organization get changed due to retirement, resignation, promotion, transfer etc.
And each manger has its own ideas and way of performing the job.

2. Deficiency in Existing Organization: Sometimes, change is necessary
because of deficiency in the present organization system. Deficiencies may be
in the form of unmanageable span of management, lack of coordination etc.

Why there is Resistance for Change

In the management of change effectively, managers have to face problem of
resistance to change. People tend to resist many types of changes because new
habits or sacrifices are required. If the change is minor then it does not affect
much to the organization. But if the change is major, then people in the
organization may often resist change in organization.


Causes of Resistance to Change

There are three factors that cause resistance to change:

Economic Factors

1. Skill Obsolescence: When new technology introduced in an organization this
creates a fear of degrading the skills of people that resist change.

2. Reduced incentive Opportunity: Whenever there is change, people think
that new system will lower down their incentives opportunities.

Psychological Factors

1. Status Quo: People do not want any disturbance in their existing equilibrium
of life and work pattern.

2. Fear of Unknown: Change that has been introduced is unknown for the
people in an organization. Lack of uncertainty creates stress in the minds of the
people that resist change.

Social Factors:
1. Desire to Maintain Existing Social Interaction: When there is any change,
their existing social interaction is likely to be changed which people do not
want.

2. Feeling of Outside Interference: Due to the interference from the outside
factors, people resist change in an organization.