What is change? organizational environment

Change is an alteration of an organization’s environment, structure, technology, or people If it weren’t for change, the manager’s job would be easy. Planning would be simplified, tomorrow would be no different from today. The issue of organization design would be solved because the environment would be free from uncertainty and there would be no need to adapt. Similarly decision making would be dramatically simplified because the outcome of each alternative could be predicted with near pinpoint accuracy. It would indeed, simplify the manager’s job, for example, competitors did not introduce new products or services, if customers didn’t make new demands, if government regulations were never modified, if technology never advanced, or if employees’ needs always remained the same.

However, change is an organizational reality. Handling change is an integral part of every manager’s job. But what can a manager change? The options essentially fall into one of three categories: altering structure, technology, or people.

Categories of Change:

Structure: Authority relationships, Coordinating mechanisms, Job redesign, Spans of control
Technology: Work processes Work methods Equipments

People: Attitudes Expectations Perceptions Behavior.

Forces of change:

We will point out both external and internal forces constrain managers. These same forces also bring about the need for change. Let’s briefly review these factors.

What External Forces create a need to change?

The external forces that create the need for change come from various sources. In recent years, the marketplace has affected firms such as Indian Airlines and BSNL by introducing new competition. Indian airlines for example, is facing competition not only from other comparable carries like Jet Airways and Kingfishers, but also from low cost airlines like Air Deccan and SpiceJet. BSNL is experiencing competition from private service providers like Airtel, as well as mobile service providers such as Vodaphone, Idea, and Reliance Infocom. Government laws and regulations are also an impetus for change. For example, with the passage of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act in 1956, organizations in India have had to make changes in their recruitment and admission policies, and provide suitable working environments with health and safety measures suitable for employees with disabilities.

Technology also creates the need for change. In the twenty first Century the Internet and e-commerce have changed the way we get information and how products are sold. As we discussed, recent developments in sophisticated equipment create significant economies of scale in many organizations. For instance, Madura Garments after going live on SAP found that their order execution percentage jumped to 92 per cent from 70 per cent reduction to production lead times, export and show room receivables terms, as well as in inventory. In fact, the formerly IT- resistant apparel industry in India is quickly adopting the latest technologies, as more western apparel brand owners are outsourcing their entire process flow — from product development manufacturing, shipping has even design — to Indian companies. Moreover, technology has been making inroads into spaces hitherto unimagined. For example, in Tirupati, the management of (TTD) Tirumala Tirupati Devasthanam the second richest religious body in the world after the Vatican, has roped in JRG Wealth Management Ltd., one of India’s leading commodity brokers to install an online commodity futures terminal at the temple complex. Through the JRG terminal, the TTD management can now view he commodity prices from all the leading commodity and Derivatives exchange Ltd. This has helped in transparency in the purchase of various commodities while also helping the temple authorities to look at the futures trade in gold.

Economics changes, of course affect almost all organizations. The dramatic decreases in interest rates in recent years fostered significant growth in the housing market. This growth meant more jobs more employees hired, and significant increases in sales in their businesses that support the building industry. And changes occurring since September 11, 2001 brought new and unprecedented life patterns to life significantly reduced air travel. New security measures and lower traffic volumes forced airlines to cut staff, redesign routes, and rethink almost very aspect of their business.