Planned internal change can be regarded as a strategic move
by the organization implemented with the objective of changing the nature of
the business itself or the way in which an organization is doing its business.
This can be administered in one of the following ways: by changing the services
or the products, bringing a change in the administrative systemic framework and
also by changing the organizational structure or its size.
Changes in the Services or the Products: An
organization usually goes ahead with the decision of a Planned Internal Change,
if the management decides to diversify it’s range of business or a need is felt
by the management for providing a new direction to the business or reviving the
business by adding new service or product lines. Such a planned internal change
will require a fair amount of pre-planning, effective coordination and resource
distribution as well for meeting the objectives of change.
Changing the Administrative Systems: Changes in
the administrative systems are implemented or enforced by an organization for
enhancing administrative efficiencies, or for improving the company’s image or
for gaining the advantage of being a political power within an organization.
The pressure to change the administrative systems comes from the top level of
the management (top-down approach). On the other hand, if there is a
requirement for changing the very nature of work itself in an organization
(changing the technical core), bottom-upward approach for the change is usually
adopted. Previous studies have identified that organizations which are more
mechanistic instead of being organic in its approach, in other words, which are
more centralized and formal in nature, tend to achieve a greater degree of
success in successfully implementing administrative change.
Changes in the organizational structure and size: Organizational
restructuring or changes in the hierarchical framework is introduced in an
organization for the realization of pre-defined objectives or goals.
Planned External Change: Organizations as a
system is governed by both internal factors as well as external factors of
change. Various factors like technological innovation and advancements in the
communication and information processing field come under this category. These
factors are external in nature but somehow are introduced in an organization in
a planned manner with the objective of enhancing work efficiencies and
improving the overall productivity.
Technological Innovation: Rapid technological
changes have necessitated a change in the ways in which the contemporary
organizations function. Technological development has altered the ways in which
people handle their jobs. For example, in the automobile industry, a large part
of the design and manufacturing process has been automated and equally depends
on IT. Siemens (Germany) holds the credit for being the world’s first paperless
Advancements in Communication and Information Processing: In
the present era, with the revolution in the communication technology and
advancements in the information processing technologies like satellite
communication technology, fibre optic cables, wireless technology and
networking, etc, it has become much easier and convenient for the businesses to
communicate with the business partners and also with the clients.
Unplanned internal change can be regarded as a change which
takes place within an organization not in a planned manner or as a strategic intervention
but are introduced in an unplanned manner in response to either a change in the
demographic composition of an organization or due to performance gaps.
Change in the Demographic Composition: With an increasing number of women workforce joining the organization and in addition
to this older employees joining private sector jobs after completing their
tenure in public sector or government sector and also increasing composition of
diverse workforce in organization’s as a result of globalization of worldwide
economies, the demographic compositions of the workforce has undergone a sea
change in the present scenario. The rapid change in the demographies will
compel organizations to change.
Performance Gaps: Performance gaps associated
with an organziation either in the form of depleting profit margins or
non-performance of a product line or service in the market or slowdown in sales
due to unexpected reasons, can compel an organization to change. Research
studies have proven that performance gaps act as propellants for organizational
Unplanned External Changes: Two crucial factors
like economic uncertainties and changes in the government regulations, play a
crucial role in compelling organizations to change.
Governmental Regulation: Changes in the
governmental regulations greatly influence the very nature of business of an
organization and how the organizations operate in a highly competitive
environment. Due to economic globalization and liberalization, government has
enforced changes in the regulations in the form of de-licensing, currency
conversion, etc, for supporting the domestic organizations to stay competitive
and achieve the expected profit margins.
Global Economic Competition: Global economic conditions
create competitive pressures on the organizations and force them to change for
capturing a decent market share, achieve a winning edge in the international
marketplace and expansion of customer base through aggressive advertisement and
communication campaigns. In the era of globalization, the formidable challenge
for the organizations for staying ahead in the competitive race is to remain
innovative and to position itself as a unique brand.
To conclude, it can be interpreted that managing
organizational change is one of the most essential pre-requisite for adapting
with the competitive challenges and transitioning from the present state of
business to a desired futuristic course of action. It is vital to develop and
implement a plan of action for managing change successfully.