Change Management and Organizational Development

Topics: Management, Change management, Ford Motor Company Pages: 6 (1820 words) Published: April 12, 2011
Change Management and Organizational Development
C. Samuel, Lecturer in Business Administration,
C.S.I. Jayaraj Annapackiam College, Nallur, Tirunelveli District. 627 853.

For effective survival in the industry, adaptability is an essential component for every organization. Every organization should change according to the external environment and influences. In adaptable organizations, employees are given more freedom in decision-making process. The management also sets broad goals and objectives. Learning is a continual process in adaptable organizations. Change in general refers that an act of making something innovative. Organizations have learnt that change is ultimately a necessary component to survive in business. The concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, etc. Organizational Development is a system of planned change. It is an organizational improvement strategy which emerged in late 1950’s. Organizational Development has its origin in the theories related to planned change and their applications. Organizational Development models values human and organizational growth. The organizational Change agents may be directive in Organizational Development. This article titled “Change Management and Organizational Development” reveals the importance of Organizational Change in the scenario of Organizational Development. Ford Motors has been taken as a live example to show that organizational change management leads to organization development.

Organizational Change
Curtis W. Cook, Phillip L. Hunsaker and Robert E. Coffey define change as “the coping process of moving from the present state to the desired state that the individuals, groups and organizations undertake in response to dynamic internal and external factors.” There are a number of forces that are acting as stimulants for change.


According to Stephen P. Robbins, there are six specific forces, Nature of the Workforce, Technology, Economic Shocks, Competition, Social Trends, and World Politics. In every organization, employees differ in their attitude towards their work, expectations of remunerations and their interpersonal relations. Organizations are in a condition that they should change their human resource policies in order to magnetize a diverse workforce. Technology is changing jobs as well as the organizations, the substitution of computer results in wider span of control which harmonize the organizations. Economic shocks have continued to impose changes in organizations. Heightened competition means that established organizations need to defend themselves against traditional competitors. Successful organizations will be the ones that can change in response to the competition. Social trends suggest changes to which organizations have to adjust.

Change Management
Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level. A somewhat ambiguous term, change management has at least three different aspects, including: adapting to change, controlling change, and effecting change. In 1903, Henry Ford turned the American economy upside down with his moving-assembly-line approach to building automobiles, which offered high wages and drew young men from rural areas to the city. As an innovative change the moving assembly line at Highland Park was perhaps Ford Motor Company's single greatest contribution to automotive manufacturing. To improve his manufacturing process, Henry Ford latched onto a concept that was, for manufacturing, instead of bringing the man to the work; the work must be brought to the man. After the success of the moving assembly line, Henry Ford had another transformative idea: in January 1914, he surprised the world by announcing that Ford Motor Company would pay $5 a day to its workers. After Ford’s announcement,...

References: Luthans, Fred. “Organizational Behavior”, 8th edition. (India: Irwin McGraw-Hill, 1998) Robbins, Stephen P., “Organizational Behavior”, 9th edition (New Delhi: Prentice Hall of India Private Ltd.) Wendell L. French and Cecil H. Bell, “Organization Development – Behavioral Science Interventions for Organization Improvement”, 5th edition (New Delhi: Prentice Hall of India Private Ltd., 1996) Robert H. Rouda & Mitchell E. Kusy, Jr. “Organization Development - the management of change”, Details of Ford Motors,
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