The world around us is constantly moving at a very fast pace. The social and economic outlook of people is constantly evolving. Moreover, the political scene, economic scenario as well and international relations are also taking rapid twists and turns. Management of change is a very important concept in organisational behaviour. A good manager should always keep up with the changing scenarios to frame appropriate policies to adapt to them, failing which can have consequences for the organisation.
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What is Management of Change?
Management of Change (MOC) can be defined as a structured approach used by organisations to plan, implement, and control changes within their systems, processes, technologies, or organisational structures. The goal of Management of Change is to ensure that changes are carried out efficiently, effectively, and with minimal disruption to the organisation’s operations and its people. Management of change is also known as Change Management. MOC is particularly important in industries where safety, compliance, and risk management are critical, such as manufacturing, healthcare, and energy. It helps organisations ensure that changes do not lead to accidents, compliance violations, or disruptions in operations.
According to Prosci, “Management of Change is the process, tools, and techniques to manage the people side of change to achieve the required business outcome.”
Forces of Change
Forces of change refer to the various stimuli that result in an alteration in the existing work environment within organisations. In other words, these stimuli are the active drivers of change in any policies and strategies in the organisation. Managers should constantly monitor these forces to be able to adapt to the situation. Forces of Change can be classified as External Factors and Internal Factors.
I. External Factors
1. Technology: The world of technology is ever-evolving. Not only is it constantly evolving, but also happening at a very rapid pace. Artificial intelligence, computerisation, etc., have altered the nature of jobs. One such example is Chat-GPT. It not only facilitates the automation of thousands of tasks but also ensures that the quality of the work is not compromised. All such innovations have transformed the way businesses function. They have given rise to the practices of outsourcing, telecommuting, etc. As a result, employees need to be upskilled constantly to evolve to technological changes.
2. Labour Market: The social and economic outlook of the present-day workforce is very high. As a result, they have very high knowledge and expectations from the organisation they work in. The concept of inclusivity is prevalent in all workplaces today. It entails gender equality, social equality, LGBTQIA+ representation, differently-abled people, etc. Managers should frame such employee policies to benefit all these diverse sections of the workforce. Their policies should satiate the changing needs of the workforce.
3. Economic Conditions: The economic scenario today is very volatile. Parameters, such as inflation, purchasing power, Gross Domestic Product, sectoral growth, currency rates, etc., all have a major impact on any organisation. A good manager should monitor these factors regularly to avoid any sudden jolts to the business, as much as possible.
3. Growth of Knowledge: The past two decades have seen a large spurt in the number of schools, higher educational institutions, and research facilities. Moreover, many institutions offer distance learning programs as well. This has made knowledge highly accessible to a huge section of society, leading to a very high scope for innovations. As a result, there is now an abundance of skilled manpower and educated workers. Managers should frame their human resource policies bearing all these changes in mind.
4. Politics and Government: Politics and government policies have a major impact on the way an organisation frames its policies and strategies. Governments set up various norms and regulations to keep corporations in check. When the government changes, these policies also change. So organisations have to constantly look out for changes in the political scenario as well, to be able to adapt to it quickly.
5. Competition: Rapid technological advances and innovations have changed the market landscape forever. Every business is now striving to come up with the most convenient alternative to the existing products and services. This has led to an all-time high level of cut-throat competition.
II. Internal Factors
1. Changes in Managerial Personnel: The managers working in an organisation may resign, get fired, or be transferred to another department. The ones who replace them might have their own set of values and style of working. As a result, they might challenge the existing policies and procedures and try to alter them as per their expertise. Organisations should keep an eye out for such changes as well.
2. Changes in Top Management: Just like lower-level managers, CEOs also get replaced from time to time. The new CEO would also like to steer the course of the organisation as per his own beliefs and values and thus, might change the existing policies and strategies.
3. Internal Inefficiencies: The identification of internal inefficiencies can push managers to look for alternatives or certain modifications in the existing scenarios to maintain productivity and effectiveness levels.