Even though, any organizational change affects people in some form, it is important that the behaviour and attitude of the members be predictable and in accordance with the expectations of the organization and be consistent with the missions and policies of the enterprise.
These changes are directed towards performance improvement, dedication and loyalty to the organization as well as developing a sense of self-actualization among members. These can be developed by closer interaction with employees and by special behavioural training and modification sessions.
In this area, managers may consider implementing strategies that would bring about change in the nature of interpersonal relationships between managers and subordinates or the relationships within work groups.
This may require changes in leadership styles, group composition or in the process of decision making. The objective is to make the groups more cohesive and interpersonal relationships among the group members more cordial. This will result in motivation for the employees and enhancement of organizational effectiveness.
At the organizational level, the change can be in the very mission of the organization, if such change is required due to environmental changes. A single mission may have to be changed into multiple missions.
For example, when British Airways acquired a major part of U.S. Air, the culture of the entire organization had to be modified to accommodate various aspects of American organizational culture into the British organizational culture. This required changes in the mission statements.
The organizational change may also include structural changes. Decentralized operations and participative management style have been more recent trends in the organizational structure. Since these structural changes shift the authority and responsibility to generally lower level management, it has a major impact on the organization’s social climate and members have to be prepared to develop a team spirit as well as acquire skills to make on-the-spot decisions at points of operations.
Organizations can also be prepared for a process oriented change. These changes relate to technological development, information processing, automating and use of robotics in the manufacturing operations. This means replacing or retraining personnel, heavy capital equipment investment and other operational changes.
Some of these organizational changes were incorporated by Navistar International®. By redesigning its organizational structure and making it more streamlined, it was able to revitalize its competitive advantage.