For this reason managing change has now become a crucial part of competitive edge (Clarke, 2002).
Organisational change is the alternation of work environment in the organisation. It implies a new equilibrium between different components of the organization i.e. technology, structural arrangement, job design and people. Thus organisational change may have the following features.
When change occurs in any part of the organization, it disturbs the old equilibrium necessitating the development of a new equilibrium depends on the degree of change and its impact on the organization.
Newstrom and Davis (1997) have explained the impact of a change in any part of the organization of the total organization. They have illustrated it by comparing an organization to an air filled balloon. They have concluded that the whole organisation tends to be affected by the change in any part of it.
It is also important that the change is conceptualised and managed holistically. Increasingly, therefore, organisations need to take a proactive and holistic approach to change. The systems view of management suggests that all the parts of an organisation must be viewed as a system in which all the parts are inter-dependent; in other words, every change will affect another aspect of the organisation, which itself will need to be changed. A well-known model, developed by the McKinsey consultancy, is known as Mackinsey 7-S model represent the seven basic parts of an organization and change in any part of the organization affects the other part as well.
The 7S McKinsey model
(Adopted from the website http://www.buildingbrands.com/didyouknow/14_7s_mckinsey_model.php)
However, the change in the organization does not occur purely on mechanical relationship. While managers as a change agent want to bring changes in the organization employees want to maintain a status quo.
Factors in Organizational Change:
Organizational changes are required to maintain equilibrium between various external and internal forces to achieve Organizational goals. Therefore, various factors, which may be important for necessitating Organizational changes, may be grouped into two categories External & Internal.
Every Organization exists in some context. The present day environment is dynamic and will continue to be dynamic. Changes are social, political, economic, technological and legal environment force the Organizations to change.
1.Change in technology and marketing conditions: