The study regarding organizational change shows that to be successful an organization must not only sustain itself on the inside, but it should also adjust itself to the environmental needs. For an organization to be effective it is important that it is stable and is able to change suitably. Organizational health is a theory which is used to explain the extent to which an organization is proficient of dealing with these two, slightly opposing forces. It is observed by Owens that as time passes organizations try to maintain themselves, increase the bureaucratic rigidity and try to adopt the traditional practices. He called this an organizational climate which is unhealthy and lays emphasis on maintaining the organization at the cost of its requirement for continuous flexibility to meet with the varying demands and expectations of the external environment (Owens, 1981). In his observation about the Pakistani Universities, S. Mehmood says that there are various reasons like; lack of funding, lack of political will, acute centralization, low–quality teachers, and the absence of a conductive teaching and research environment which unable the universities in Pakistan to grow (Mehmood, 2010). Institutions responding to environmental needs and these reasons can be viewed as healthy institutions. This description closely resembles to the cause of low intake of the students in NUML Peshawar. Organizational change can be produced by organizational self-renewal. Such an organization which is able to self-renewal is described by: 1. An environment that beliefs in flexibility and openness to change, increasing communications, and problem-solving. 2. A clear and common techniques through which participants can participate in orderly, methodical, cooperative problem-solving 3. A capacity to reach out suitably for ideas and resources that help to solve problems (Owens, 1981). Smith has reported that institutions which have been able to adopt...
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