Change is an important characteristic of most organisations. Nothing is permanent except change. It is the duty of management to change properly. An organisation must develop adaptability to change otherwise it will either be left behind or be swept away by the forces of change. There are many forces which are acting on the organisation which make change not only desirable but also inevitable. These forces include technology, market forces and general socio- economic environments. These are the external forces which necessitate change in internal organisational variables like machinery, equipments and processes, policies and procedures, structural relationship.
Change may be proactive or reaction. A change initiated by the management is called proactive change. On the other hand, a change brought by the management due to pressure by external forces is known as reactive change. For example, when management introduces a new labour welfare scheme to improve employee motivation, it is a proactive change. If such a scheme is introduced due to pressure by the trade union, it is a reactive change.


An organisation is a open system which implies that it is in a constant interact ional relationship with its external environment. Any change in its external environment, such as changes in consumer tastes and preferences, competition, economic policies of the government, etc., make it imperative for the organisation to make changes in its internal system. Further, organisation is composed of number of subsystems which are also in a dynamic relationship of interaction and interdependence with each other. Any change in a subsystem creates a chain of changes throughout the entire system. For instance, if the purchase manager of a company leaves the organisation and the purchase department fails to get timely supplies of raw…...