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What are the reasons for organisational changes?
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(1) Change in tools, machines and equipment—Technological and mechanical changes in machines, tools and equipment bring changes in the organisation. For example, an installation of automatic machinery will result in the displacement or replacement of people or some people may lose the job or they may have to go for further training.
(2) Changes in methods and procedures—Sometimes a change occurs in a method or procedure of which employees have been accustomed to use. Employees have a tendency to resist. It creates disequilibrium.
(3) Change in business conditions—Changes in business conditions such as change in quality of the product marketing system, practices, business cycles, change in industrial policy etc. create disequilibrium in the organisation and need adjustments accordingly.
(4) Change in managerial personnel—There may be a change of the managerial personnel in the organisation. Personnel may retire or a director in the Board of Directors may be inducted or replaced. The policies, practices, procedures and programmes may be changed according to the interest, aptitude, ability etc. of the new incumbent.
(5) Change in formal organisation structure-The formal organisation structure establishes a formal line of authority and responsibility in an organisation. There are also created channels of communication and interpersonnel relationship along with this line. When changes in this formal organisation occur, there would be a change in the relationship which creates disequilibrium.
(6) Changes in informal organisation —The informal relationship established between people in an organisation became a very important pan of our existence basically because many of our motivational forces find their satisfaction in these relationship. Our urge to belong, for example, finds satisfaction in many informal groups and cliques with which we associate our desire for recognition is satisfied by the accord given to our skill, talent and abilities by various friends in the organisation. Likewise our needs for prestige, status, achievements and many other basic sociological and psychological motives depend to a great degree on various aspects of informal organisation for their satisfaction. Consequently, when management makes any change that disturbs the informal relationships established between people, there is bound to be a stale of imbalance.
(7) Deficiencies in existing organisation—Organisation, once established cannot be said to be good for all times, many defects appear if there is no change for long. Extension of the plan, change in managerial functions, evolution of complex organisation relationship give birth to so many problems in the organisation. Hence change is necessary to remove these deficiencies in the organisation.
(8) Change in environment—Man is circumscribed by environment. No organisation is an island in itself. Each must continually interact with other organisations and individuals—the customers, suppliers, unions, shareholders, Government and many more. Each organisation has goals and responsibility related to others in its environment. Thus, not only an organisation must deal with its environment in conducting its affairs, but, it must also give consideration to the goals of others. Changes in social, political, economic, technological and legal environment force organisation to change themselves. Such changes may result in organisational changes like changes in production process, labour-management relations, nature of competition, economic constraints, organisation method and other major functions of organisation. In order to survive in the changing environment, organisation must change.
(9) Change to avoid developing inertia—Sometimes, changes lake place just lo avoid developing inertia or inflexibility. Thus, managers take the view that organisation should be dynamic and take steps to incorporate changes to make the organisation dynamic because they think that no single method is not the best tool forever. Ii will develop personal liking for change and there will be no unnecessary resistance when major change in the organisation is brought about.
