Introduction

An institution can be regarded as a biological organism which, in an ever vibrant environment, requires effective focus on continuous improvement, through transformation, so as to remain survive and grow. To absorb the current days´ tough corporate competition, organizational change management is considered as a vital solution to carve out smart organizational transformational plans. Organizational change management is not only to maximize the collective benefits for the people involved in the change process but for the overall change process sustainability. Organizations cannot operate in the same way always. This explains why most of the top performing organizations in the world have strong Research and Development Units – to monitor industrial change.

Institutional change refers to any adjustments or alteration (in terms of behaviours, policies, procedures, outcomes, etc) that occurs in total work environment. Generally people are accustomed to a well-established way of life and any variation in or deviation from that life may be called a change. Change may be very simple just like to shift the location of a desk in an office or it may be a more complex technological change which may even threaten the very existence of some people in the organization. Change automatically sets in an organization system is disturbed by either and external or internal force thereby calling for a modification of the existing practices, procedures and behaviours.

Drivers of Institutional change

Most often times, changes are necessitate in an organization because of forces either external or internal to the organization.

Some External Drivers of Change in an Organization

1. Technology: Technology is the major external force which calls for change. The adoption of new technology such as computers, telecommunication systems and flexible manufacturing operations have profound impact on the organizations that adopt them.The substitution of computer control for direct supervision, is resulting in wider spans of control for managers and flatter organizations. Sophisticated information technology is also making organizations more responsive. Both the organizations and their employees will have to become more adaptable. Many jobs will be reshaped. Individuals who do routine, specialised and narrow jobs will be replaced by workers who can perform multiple tastes and actively participate in decision making. Managements will have to increase their investment in training and education of the employees because employees’ skills are becoming obsolete more quickly. Japanese firms have progressed rapidly because they are very fast in adopting new technological innovations.

2. Marketing Conditions : Marketing conditions are no more static. They are in the process of rapid change as the needs, desires and expectations of the customers change rapidly and frequently. Moreover, there is tough competition in the market as the market is flooded with new products and innovations everyday. New methods of advertising are used to influence the customers. Today the concept of consumerism has gained considerable importance and thus, the consumers are treated as the kings.
3. Social Changes: Social and cultural environment also suggest some changes that the organizations have to adjust for. There are a lot of social changes due to spread of education, knowledge and a lot of government efforts. Social equality, e.g., equal opportunities to women, equal pay for equal work, has posed new challenges for the management. The management has to follow certain social norms in shaping its employment, marketing and other policies.
4. Political Forces: Political environment within and outside the country have an important impact on business especially the transnational corporations. The interference of the government in business has increased tremendously in most of the countries. The corporate sector is regulated by a lot of laws and regulations. Organizations do not have any control over the political and legal forces, but they have to adapt to meet the pressure of these forces. In our country, the new economic, policy has liberalised the economy to a large extent. Many of the regulatory laws have been amended to reduce the interference of the Government in business.

An organizations is also affected by the world politics. Some of the changes in the world politics which have affected business all over the world are e.g., the reunification of Germany, Iraq’s invasion of Kuwait and the break of Soviet Union.

Some Internal Drivers of Change in an Organization

Internal forces are too many and it is very difficult to list them comprehensively. However, major internal drivers of change in an organization include the following:

2. Nature of the Work Force: The nature of work force has changed over a passage of time. Different work values have been expressed by different generations. Workers who are in the age group of 50 plus value loyalty to their employers. Workers in their mid-thirties to mid-forties are loyal to themselves only. The youngest generation of workers is loyal to their careers.The profile of the workforce is also changing fast. The 1990s has been described as a decade where organizations will have to learn to manage diversity. The new generation of workers have better educational qualifications, they place greater emphasis on human values and question authority of managers. Their behaviour has also become very complex and leading them towards organizational goals is a challenge for the managers. The employee turnover is also very high which again puts strain on the management. The work force is changing, with a rapid increase in the percentage of women employees, which in turn means, more dual career couples. Organizations have to modify transfer and promotion policies as well as make child care and elder care available, in order to respond to the needs of two career couple.
3. Change in Managerial Personnel: Change in managerial personnel is another force which brings about change in organization. Old managers are replaced by new managers which is necessitated because of promotion, retirement, transfer or dismissal. Each manager brings his own ideas and way of working in the organization. The informal relationships change because of changes in managerial personnel. Sometimes, even though there is no change in personnel, but their attitudes change. As a result, the organization has to change accordingly.
4. Deficiencies in Existing Management Structure: Sometimes change are necessary because of some deficiencies in the existing organizational structure, arrangement and processes. These deficiencies may be in the form of unmanageable span of management, larger number of managerial levels, lack of co-ordination among various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation between line and staff and so on. However, the need for change in such cases goes unrecognized until some major crisis occurs.
5. To Avoid Developing Inertia: In many cases, organizational changes take place just to avoid developing inertia or inflexibility. Conscious managers take into account this view that organization should be dynamic because any single method is not the best tool of management every time. Thus, changes are incorporated so that the personnel develop liking for change and there is no unnecessary, resistance when major changes in the organization are brought about.

Conclusion

From the foregoing discourse, it is obvious that organizations are always under pressure to change due the forces discussed above. Organizations must be proactive and anticipate change by building a strong research and development units so as closely monitor the trends in their respective industries. This statement is mentioned because we all know what happens to NOKIA.

The knowledge in organizational change management is very important, especially to the leadership of an organization, and it is because of this that the Chartered Institute of Leadership and Governance, as part of its members’ continuing professional development, provides seminars on change management, organizational behaviour and other self-help topics that enhance corporate performance.

About the Author:
Mr. Ibrahim Alhassan, FCILG is the Editor of Leadership and Governance Magazine. He is also a Data Analyst at University for Development Studies (UDS), Tamale, Ghana.

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