Marketing

The term change refers to an alteration in a system whether physical, biological, or social. Thus, organizational change refers to an alteration in the working environment. It sets the new equilibrium between different components of the organization.



Why Change is required:



There are two forces that arises the need for change in an organization:



External Forces: Due the dynamic environment there are some forces that lie outside the organization system. These external forces need to be adopted in an organization.

Internal Forces: It is not only the change in external factors which may necessitate organizational change; any change in organization’s internal factors may also necessitate change.



There are two reasons that needs change in internal environment



1. Change in Managerial Personnel: Employees those who are working in the organization get changed due to retirement, resignation, promotion, transfer etc. And each manger has its own ideas and way of performing the job.



2. Deficiency in Existing Organization: Sometimes, change is necessary because of deficiency in the present organization system. Deficiencies may be in the form of unmanageable span of management, lack of coordination etc.



Why there is Resistance for Change



In the management of change effectively, managers have to face problem of resistance to change. People tend to resist many types of changes because new habits or sacrifices are required. If the change is minor then it does not affect much to the organization. But if the change is major, then people in the organization may often resist change in organization.



Causes of Resistance to Change



There are three factors that cause resistance to change:



Economic Factors



1. Skill Obsolescence: When new technology introduced in an organization this creates a fear of degrading the skills of people that resist change.



2. Reduced incentive Opportunity: Whenever there is change, people think that new system will lower down their incentives opportunities.



Psychological Factors



1. Status Quo: People do not want any disturbance in their existing equilibrium of life and work pattern.



2. Fear of Unknown: Change that has been introduced is unknown for the people in an organization. Lack of uncertainty creates stress in the minds of the people that resist change.



Social Factors



1. Desire to Maintain Existing Social Interaction: When there is any change, their existing social interaction is likely to be changed which people do not want.



2. Feeling of Outside Interference: Due to the interference from the outside factors, people resist change in an organization.



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