Planned Organizational Change

PLANNED ORGANIZATIONAL CHANGE
*Planned change is the process of preparing the entire organization, or a significant part of it, for new goals or
a new direction. This direction can refer to culture, internal structures, processes, metrics and rewards, or any
other related aspects.
ORGANIZATIONAL ENVIRONMENT
*Organizational environment is defined as a set of characteristics which describe the organization and
distinguish it from other organizations within a given time period affecting behaviour of the employees
therein. These characteristics affect the functional behaviour of the employees, their trends and motives.
These characteristics basically interconnect the internal work environment in the organization and make it a
distinct feature of the organization. Organizational environment also differentiate the organization with other
organizations. It also provides relative stability to the organization.
Principles of Organizational Theory
*Organizational theory is the study of the structures of organizations. Four major theories contribute to this
study – classical organizational theory, human relations or neo-classical theory, contingency or decision theory
and modern systems theory.
-Classical Organizational Theory

*Classical organization theory represents the merger of scientific management, bureaucratic theory and
administrative theory. Scientific management theory has four basic principles: a scientific method exists to
perform each task; select, train and develop workers for each task; closely supervise employees; and
management's role is planning and control.
-Human Relations Theory

Human relations theory also is referred to as neoclassical theory. It uses some of the beliefs of classical theory
as its base but expands those beliefs to incorporate other principles.
-Contingency/Decision Theory
Followers of contingency theory, also referred to as decision theory, view conflict as manageable. This theory
espouses the principle that organizations act rationally to adapt to environmental changes. Contingency
theory assesses management effectiveness by management’s environmental adaption abilities.
-Modern Systems Theory

The foundation of the modern systems theory is the principle that all of an organization's components
interrelate nonlinearly, therefore making a small change in one variable impact many others.
A small change can cause a huge impact on another variable or large changes in a variable can cause a nominal
impact. Another principle is that organizations operate as open systems in dynamic equilibrium as they
constantly adjust and adapt to changes in their environment.
*WHAT IS ORGANIZATIONAL CHANGE MANAGEMENT?

Organizational change management is the method of leveraging change to bring about a successful resolution,
and it typically includes three major phases: Preparation, implementation, and follow-through.
*WHAT CAUSES ORGANIZATIONAL CHANGE?

Many factors make organizational change necessary. Some of the most common faced by managers include:
1. New leadership at the helm of the company or within its departments
2. Shifts in the organizational team structure
3. The implementation of new technology
4. The adoption of new business models
*WHY IS ORGANIZATIONAL CHANGE MANAGEMENT IMPORTANT?

Organizational change is necessary for companies to succeed and grow. Change management drives the
successful adoption and usage of change within the business. It allows employees to understand and commit
to the shift and work effectively during it.
Without effective organizational change management, company transitions can be rocky and expensive in
terms of both time and resources. They can also result in lower employee morale and competent skill
development. Ultimately, a lack of effective change management can lead the organization to fail .
A MANAGER’S ROLE IN ORGANIZATIONAL CHANGE

Within an organization, every employee has a different role in assisting with change. While many staff
members may complete heavily detailed work, senior-level executives with longer tenure might have different
goals. Even within management, leaders and managers perform different tasks.
Leaders, for example, have to be courageous by taking on risks. They need to look at the big picture and
articulate high-level change to the company, explain why it’s occurring, and motivate people to support the
transition. To be successful as a leader, you must be insightful and know who to put in charge of carrying out
change processes.
Managers are more concentrated on making business transitions successful. They focus on implementing
change by determining the discrete steps that need to happen and their sequence. Managers are also typically
responsible for allocating resources, such as personnel, and determining how success is measured.
Ideally, leaders will also be managers, but it’s the primary responsibility of a manager to know how to design,
direct, and shape change processes.
To achieve this, managers must have a wide array of skills, such as:
-The ability to communicate clearly and effectively—this includes actively listening to their team and
colleagues
-A highly developed level of emotional intelligence
-Strong organizational skills
-An eye for detail
-Problem-solving and decision-making skills
-Delegating without micromanaging

Planned Organizational Change

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PLANNED ORGANIZATIONAL CHANGE

Principles of Organizational Theory

-Classical Organizational Theory

-Human Relations Theory

-Modern Systems Theory

*WHAT IS ORGANIZATIONAL CHANGE MANAGEMENT?

*WHAT CAUSES ORGANIZATIONAL CHANGE?

*WHY IS ORGANIZATIONAL CHANGE MANAGEMENT IMPORTANT?

A MANAGER’S ROLE IN ORGANIZATIONAL CHANGE

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