University of Nairobi
College of Education and External Studies
School of Continuing and Distance Education
Department of Extra Mural Studies
MASTER OF ARTS IN PROJECT PLANNING AND MANAGEMENT
LDP 601: FUNDAMENTALS OF MANAGEMENT
Question: Using examples explain the concept of organizational change? What is the role of a manager in reducing employee resistance to change?
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Introduction: What is organizational change?
Organisational change refers to fundamental and radical reorientation of the way an organization operates. Another definition of organizational change is wider changes that affect the organization as a whole, as opposed to smaller changes in some sections of the organization. Organisational change is also referred to as organizational transformation. (steve to provide website url)
Some of the key types of organizational change include:
- Change in mission
- Restructuring operations (lay-off)
- New technologies;
- Major collaborations;
- Right sizing;
- New programmes e.g. Total Quality Management (TQM) and Business Process Re-engineering (BPR). .
Organisations change what they want to achieve and how. Some organizations change mainly in response to external circumstances (reactive change), while other change principally because they have decided to change (proactive change) (Cole,1996).
Change in organizations can be triggered by a number of external and internal factors (Cole,1996), which are discussed briefly below, using familiar local examples.
External – These are changes triggered by factors outside the organization . Some of the external factors that can result in change within an organization are: i) Changing consumer preference – When the needs of consumers change, an organization must change to cater for the needs. For example, many food restaurants in Nairobi are introducing healthy alternatives in their menus to cater for the health conscious needs of consumers. ii) Action by competitors – What an organizations’ competition does may sometimes lead to change within an organization. A good example locally is the impact competition in the mobile phone industry has had on the previously dominant Safaricom, whereby the latter is always looking for new products and services to counter the actions of competitors. iii) Reduction in funding – A decrease in funding for organizations could trigger changes in objectives and activities. For example due to the current global financial crisis, reduced funding for some NGOs has led to a reduction of their activities. iv) New demand for products – This refers to changes an organization makes in order to meet a new/emerging demand sector that previously did not exist. A case in point is Nakumatt and Equity Bank who have expanded their mission to cover new countries. Takeover by more power partner – When an organization is taken over by a more dominant organization, changes are made to the way the less dominant organization operates to conform with the mode of operation of the more dominant firm, e.g. when OiLibya took over mobil, a lot of changes in Mobil happened, including rebranding of all major projects. v) Mergers – When two organizations merge, it is inevitable that some changes would occur in the operation of the merged organizations. For example, the merger of CFCStanbic undoubtedly led to some changes in both organizations); vi) Failure of key client/suppliers to meet organization requirements; vii) Change in trade regulations, exchange rates and taxes (e.g. removal of taxes on motorbicycles);...
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