WORK AND JOB SATISFACTION::Class



NEEDS AND EXPECTATIONS AT WORK
McClelands THREE –NEEDS THEORY
McClelland proposed three types of needs common in work life. They are
v  Need for Achievement,
v  Need for Power
v  Need for Affiliation
Need for Achievement:
This refers to the drive to excel, to achieve in relation to a set of standards and to strive to succeed. People with a high need for achievement are striving for personal achievement rather than for trappings and rewards of success. They have a desire to do something better or more efficiently than it has been done before. They prefer jobs that offer personal responsibility for finding solutions to problems, in which they can, receive rapid and unambiguous feedback on their performance in order to tell whether they are improving or not and in which they can set moderately challenging goals. High achievers are not gamblers, they dislike succeeding by chance. They are motivated and prefer the challenge of working at a problems and accepting the personal responsibility for success or failure.
Implications for Need for Achievement Theory:
Too little challenge will bore them since there is no opportunity to satisfy their urge to achieve, and too much challenge would mean that the job is difficult and hence will induce the fear of failure in them. Since their need for achievement and accomplishment are high, high Need for Achievement individuals will not try to work on jobs that are so challenging that successful task accomplishment become doubtful. Also, high achievers avoid very easy or very difficult tasks instead they show willingness to take a moderate level of difficulty which will have much challenge in accomplishing them. They like to set goals that require stretching themselves a bit.
Need for Power:
This refers to the need to make others behave in a way that they would not have behaved otherwise. Individuals high in Need for Power enjoy being ‘in - charge’, strive for influence over others, and prefer to be in competitive and status oriented situations.
McClelland distinguished two types of power –Personal Power and Institutional Power.
Individuals high in personal power like to inspire subordinates and expect that latter to respect and obey them. Such behaviors gratify their own need for power in a personal sense. Managers, who are high in institutional power, tend to exert authority and influence so as to achieve the goals of the organization rather than to gain any personal ego satisfaction. McClelland describes the institutional power managers as “organization minded” and getting things done in the interest of the organization. That is, the institutional power manager exercises power in the interests and welfare of the organization. Institutional power managers are said to be very effective since they are willing to somewhat sacrifice their own interests for the organization’s overall well-being. McClelland feels that institutional or social power is good for the organization and personal power is detrimental to the overall interests of the organization.
Implications for Need for Power:
Persons with high need for power would naturally be turned on by holding positions of authority and influence in the organization. They like to take charge and be in control of situations. Placing such individuals in high level positions will help them to gratify their own needs as well as get many of the organization’s policies and orders followed and carried out by employees.
Need for Affiliation:
This refers to the desire for friendly and close interpersonal relationships. Individuals high in Need for Affiliation like to interact with colleagues in the organization. They have a strong desire for approval and reassurance from others and they are willing to conform to the norms of groups to which they belong.  In effect, they have needs to develop affinity and warm relationships with people in the work system. They are usually gregarious by nature and like to work with others in a friendly atmosphere. Team work, co- operative efforts, and joint problem- solving sessions, and committee assignments are all suited for those high in Need for Affiliation.
Implications for Need for Affiliation:
People high in need for affiliation are said to perform better in their jobs when they are given supportive feedback. Thus, friendly managers and supervisors can influence individuals high in Need for Affiliation and motivate them to work harder
MOTIVATION:
Motivation is defined as individual’s intention or willingness to put maximum effort in his/her work to reach organizational goals and enhance one’s ability to satisfy some individual needs.
To achieve desired level of performance and productivity in organization employees should be motivated. Motivation is concerned with getting organization members to work willingly and enthusiastically towards achieving organization goals.
In general motivation is a term applied to other class of drives, desires needs and wants and such other forces.
To say that managers motivate their subordinates implies that they do those things that they hope will satisfy their drives, needs etc and induce them to act in the desired manner towards the accomplishment of the organization goals.
Since the level performance of a worker or employee is a function of both his capability and motivation the former determines what a worker can do and the latter ensuring what the worker can do.
Definition of Motivation:
Motivation may be defined as willingness to expand energy to achieve a goal or reward[1]. Motivation can also be defined as a set of energetic forces originating from within the individuals that initials positive behaviour and determines its direction, intensity and duration.
MOTIVATION THEORIES
Management theorists differ sharply on why and how employees are motivated.
The following theories give different views on motivation:
1.                  Maslow’s Need Hierarchy
2.                  Alderfer’s ERG theory
3.                  Herzberg’s two factor theory
4.                  Expectance theory
5.                  McClelland’s achievement motivation
6.                  Reinforcement theory.
7.                  Mc Gregor’s theory X and Y
8.                  John Stacy Admans Equity Theory

1.                  MASLOWS NEED HIERARCHY
Abraham Maslow formulated one of the most popular theories of human motivation.
Maslow’s theory is based on the following propositions:
·         The needs are arranged in a hierarchy of importance, ranging from the   lowest need to highest need level
·         All needs are never fully satisfied
·         Once a need is fairly well satisfied, it no longer motivates behavior
·         The needs are interdependent and overlapping
 Abraham Maslow recognized that human needs exists in a hierarchy and composed of 5 categories arranged in ascending order from the lowest to the highest need. He concluded that if one set of need is satisfied it ceases to be a motivator.
Individuals could be concerned with needs as arranged in the hierarchy
Maslow identified the following types of needs:
a)         Physiological needs:
Refers to bodily and unsustainable needs e.g. shelter, food, clothing, health etc until these needs are satisfied to the degree that sustain life other needs will not motivate employees. Employers should ensure that their employees are able to meet their basic needs by providing them with competitive wages and salaries.
b)         Safety/security needs:
Refers to the need to be free from physical danger and fear of loosing job, property or shelter. It includes social security i.e. provision for future e.g. gratuity/retirement benefits paid to employees.
c)         Social/affiliation needs.
Refers to the need of love, feelings of belonging and human relationships at work place. Since people are social beings they need to belong and socialize with other employees. Employers should provide a warm and friendly working environment to motivate employees.
d)         Ego/esteem needs:
Includes the need for self respect and respect from others. Employers should treat their employees with esteem or status they deserve based on their positions and ranks in the organization.
e)         Self-actualization need.
This refers to the desire to become what one is capable of attaining in life. it is the need for self fulfillment and to realize ones potential. Employers should encourage career development and growth programmes by providing their employees with training and development opportunities to realize their full potential.
NB:
In terms of motivation, Maslow argued that each level in the hierarchy must be substantially satisfied before the next level is activated, and that once a need is fully satisfied, it may not motivate people. The next level in the hierarchy will be dominant only after the fulfillment satisfaction level. This theory has a lot of implication for managers. As a manager if you want to motivate an employee, first try to understand what level that person is on in the hierarchy and focus on satisfying those needs at or just above the level.
It is based on three fundamental assumptions
v  Individuals are goals oriented whose needs can influence their behavior. Only unsatisfied needs can influence behavior; satisfied needs do not act as motivator
v  A person’s needs are arranged in an order of importance, or hierarchy, from the basic (eg. Food and shelter) the complex (eg. Ego and achievement) 
v  The person advances to the next level of the hierarchy, or from basic to complex needs, only when the lower need is at least minimally satisfied. That is, the individual worker will first focus on satisfying a need for safe working conditions before motivated behavior is directed toward satisfying a need for achieving the successful accomplishment of a task. 
Maslow classified these five needs into two broad categories as higher order needs and lower order needs. The basic needs such as physiological needs, safety needs and love and belonging needs were classified as lower order needs, where as self esteem, self actualization needs were described as higher order needs. The distinction between these two categories was made based on a single premise whether a person assigns much importance to the internal factors or the external factors. If a person gives much importance to the external factors such as salary, security, company policy, fringe benefits etc. the lower order needs are very dominant in him. On the other hand, if a person assigns challenging assignments, self-esteem, recognition, the higher order needs are very dominant in him. Employees, who are working in government organization likely to have fulfilled the basic needs,
Maslow took a deprivation-gratification approach to need satisfaction. That is, he contended that an unfulfilled or deprived need would activate a person to engage in behavior that would satisfy or gratify that need. Once one level of need is gratified, the next level of needs will emerge as the deprived needs seeking to be gratified. 
Maslow’s need theory received wide recognition, particularly among practicing managers but it lacks empirical support substantially. Managers, who accepted Maslow’s hierarchy attempted to change their organizations and management practices so that employees’ needs could be satisfied.   
Maslow’s theory is built on the framework that unsatisfied needs serve as factors arouse people to behavior. When a need has been minimally fulfilled, it then ceases to be a motivator of behavior. For example, as assembly line worker may have a desire or need to become a supervisor. Through training programs or part-time studies, this employee can be promoted to a supervisory role in the factory in due course of time. The need to become a supervisor no longer exists, and therefore, the behavior of the individual is altered to a new situating. 
An important point for managers to consider is that highly deficient needs, or needs that have gone unsatisfied for long period of time, serve to cause such behavioral responses as frustration, conflict and stress. Individual’s reaction to frustration, conflict and stress differs from individual to individual depending upon environmental, organizational and personal factors. These reactions to need deficiency take the form of at least four different ‘defensive behaviors’
v  Aggression: It is a physical or verbal defensive behavior that can be directed toward a person, object or the organizational. Physical aggression can take the form of such things as stealing or equipment sabotage. Verbal aggression can be the emotional outburst of an employee directed toward the supervisor concerning unsafe working conditions. 
v  Rationalization: It is defensive behavior that takes the form of such activities as placing the blame on other or having a “take ir or leave it” attitude. An employee may rationalize a small pay increase by attributing it to poor supervision or inadequate resources, when in fact it was the particular individual’s unsatisfactory performance that caused the small pay increase. 
v  Compensation: It concerns the behavior of a person going overboard in one area to make up for problems or need deficiency in another area. A person whose need for interaction with fellow employee’s goes unsatisfied during normal working hours may compensate by being extremely active in company related social, recreational or civic activities.
v  Regression: It is defense that significantly alters the individual’s behavior. After being turned down for promotion to the position of a loan officer, the head cashier may change her behavior from being friendly and open to being tense, highly task oriented or temperamental. 
These defensive behaviors can result from the inability of an employee to satisfy a personally important need. These behaviors are realties in any organizational setting, and it’s the responsibility of the manager to understand the cause, and if resources are available, provide a solution to correct defensive behavior.  
Implications of Maslow’s Hierarchy of Needs Theory
This model helps the managers to understand and deal with issues of employee motivation at the workplace. This model can be applied to motivate people at all levels in the organization. Managers who understand the need patterns of their staff can help the employees to engage in the kinds of work activities and provide the types of work environment that will satisfy their needs at work. For instance, the employees love and belonging needs can be fully satisfied by organizing yearly dinner and dance program, office week end parties, creating recreation clubs or social clubs etc.   Fortunately, the workplace has the potential to offer need gratification for several different types of needs, and mangers can motivate employees by giving appropriate organizational support which will gratify individual’s needs. Thus, despite its drawbacks, Maslow’s theory offers managers a good technique on understanding the motives or needs of individuals and how to motivate organizational members.
2.                  ALDERFER’S E.R.G THEORY
Clayton Alderfer’s created existence, relatedness and growth theory which revised Maslow’s theory to make it consistent with recent research findings concerning human needs;
Since studies have found that people have 3 sets of needs other than five, Alderfer reduced Maslow’s needs as follows;
v  Existence needs; refers to all forms of material and physical needs e.g. physiological and social needs
v  Relatedness needs; refers to all needs that involve relationship with other people we interact with e.g. social and esteem needs
v  Growth needs; refers to individuals making creative effort to achieve their full potential i.e. self-actualization needs.
3.                  HERZBERG’S TWO-FACTOR THEORY
Fredrick Hertzberg tried a different approach to the study of employee motivation and reasoned that if managers could understand what causes employees to be satisfied or dissatisfied they could know ways to motivate them.
In developing this theory, Hertzberg interviewed engineers and accountants several companies in U.S.A by asking them to describe past work experience that were critical in the sense of being exceptionally good or exceptionally bad.
Hertzberg analyzed the interview results and concluded that there are 2 relatively distinct set of factors in organization e.g.
ü  Satisfiers/motivators
ü  Dissatisfiers/hygiene factors.
ü   
Satisfiers/motivators
They are concerned with the job itself rather than the job environment.
Operate primarily to build strong motivation and job satisfaction e.g.
v  Job feelings of achievement
v  Recognition and status-
v  Authority responsibility and power
v  Advancement opportunity
v  Growth
v  Challenging tasks
These factors result in satisfaction/motivation when adequately provided for by the management. When inadequately provided, they will reduce the level of satisfaction, motivation would not cause dissatisfaction.
Dissatisfiers/hygiene factor
They are known as hygiene factors because they support the mental health of a worker. They are related to the work environment and therefore are expected to the job e.g.

v  Wages and salaries
v  Fringe benefits
v  Company’s policies
v  Working condition
v  Supervision
v  Status
v  Interpersonal relationships etc

Hence according to Hertzberg, to motivate employees, managers should pay special attention to job related factors which improve satisfaction and motivation rather than concentrate on traditional hygiene factors.
Organization implication of Hertzberg’s two-factor theory of motivation
Hertzberg theory has profound implications for organizations. It says that such things as pay, fringe benefits and working conditions do not cause workers satisfaction/motivation below a certain level, they may cause dissatisfaction but once improved to a desirable level they will have little positive impact. As a result it would make sense for the organizations to direct attention from dissatisfiers and towards satisfiers such as opportunities for achievements, challenging tasks and recognition.
According to Herzberg, the factors that led to job satisfaction were separate and distinct from those that led to job dissatisfaction. Therefore, manages who sought to eliminate factors that created job dissatisfaction could bring about workplace harmony but not necessarily motivation. Because they do not motivate employees, the extrinsic factors that create job dissatisfaction were called hygiene factors. When these factors are adequate, people will not be dissatisfied; but at the same time they may not be fully satisfied. They will be in neutral state.  If we want to motivate people on their jobs, it is suggested to give much importance on those job content factors such as opportunities for personal growth, recognition, responsibility, and achievement. These are the characteristics that people find intrinsically rewarding. 
Herzberg model sensitizes that merely treating the employees well through the good company policies is not sufficient to them motivated. Managers should utilize the skills, abilities, and talents of the people at work through effective job designing. In other words, the work given to employees should be challenging and exciting and offer them a sense of achievement, recognition, and growth. Unless these characteristics are present in the job, employees will not be motivated. 
In Herzberg’s framework, these managerial reactions have focused primarily on the hygiene factors surrounding the job, which has resulted in bringing individual to the theoretical “zero point” of motivation. The two-factor theory would predict that improvements in motivation would only appear when managerial action focused not only the factors surrounding the job but on the inherent in most assembly line jobs and developing jobs that can provide increased levels of challenge and opportunities for a sense of achievement, advancement, growth and personal development.
Main criticism of Hertzberg’s two-factor theory
According to Hertzberg, satisfaction and motivation are essentially the same. It’s however known that motivation is as a result of dissatisfying factors. It’s therefore dangerous to draw conclusions about what motivates on basis of what satisfies than on what would reduce dissatisfaction level.
4.  VROOM’S EXPECTANCY THEORY OF MOTIVATION.
These theory was developed by Victor Vroom in 1964.it states that employees are motivated by expectancy of rewards which results from the efforts they put at the place of work e.g. if a worker feels that greater efforts will translate directly into higher performance and he values higher performance because of the expected rewards e.g. promotion, salary increases, esteem of co workers etc. his level of expectancy would be the driving force. (Motivating factor to the employee).
The theory analyses the links between effort, performance and rewards. This theory can be explained with the help of the following expectancy model.
1.      McGregor’s Theory X and Theory Y
McGregor’s theory is based on how a manager feels about human nature. In general, people tend to have either positive or negative assumptions about human nature. Based on these assumptions, McGregor proposed two sets of theories as Theory X (negative assumptions) and Theory Y (positive assumptions).
Theory X
Theory X represents the traditional approach to managing and is characterized by the following basic assumption about human beings. 
·         The average human being has an inherent dislike of work and will avoid it if he can
·         Because of human characteristic of dislike of work, most people must be coerced, controlled, directed, and threatened with punishment to get them to put forth adequate effort towards the achievement of organizational objectives. 
·         The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all.  
Once the team leaders tend to have the above- mentioned negative assumptions about their members, consequently, they will adopt the following strategies to influence them.
·         Control measures or strict supervision are properly exercised to get results from them 
·         Such control can be achieved by the appropriate use of rewards and punishment. 

Implications of X Theory:
The implication for a manger working in an organization with these premises is that the group will be strictly controlled and supervised. Decisions will be made largely by the manager and communicated in writing or verbally in a formal situation. Members of the group will rarely be involved in determining their own tasks. Theory X usually operates in traditional, highly centralized organizations.   
Theory Y
Theory Y is more people oriented. It refers to Maslow’s hierarchy of needs, particularly the higher-order needs and the motivation to fill these needs at work. It is based on the following assumptions. The following are some of the assumptions of Theory Y.
·         The expenditure of physical and mental effort is as natural as play or rest.
·         External control and threat of punishment are not the only means for bringing about effort toward organizational objectives. People will exercise self-direction and self-control in the services of objectives to which they are committed.
·         Commitment to objectives is a function of rewards associated with their achievement. 
·         The average human beings learn, under proper condition, not only to accept but to seek responsibility.
·         The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population.
·         Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized. 
Implications of Y Theory:
Leaders operating under these assumptions will be more likely to consult the group, encourage members to contribute to decision making and work without strict supervision. Communication between the group and the leader will be two of the members of the group. The acceptance of the Theory Y approach, with its tenets of participation and concern for worker morale, encouraged managers to begin practicing such activities as
i)                    delegating authority for many decision,
ii)                  enlarging and enriching jobs of workers by making them less repetitive,
iii)                increasing the variety of activities and responsibilities and
iv)                improving the free flow of communication within the organization. 
The major criticisms are that too much emphasis was put on informal group process with knowledge of the complexities of group dynamics. Also the strategies evolved based on
Theory Y may be successful in one organization and may not be successful in another.
JOB DESIGN
Jobs can be designed to range from highly simple to highly complex tasks in terms of the use of the workers skill. Some of the job design options are as follows:
I.            Job Simplification:
The jobs are broken down into very small parts as in the assembly line operations where a fragmented task is repeatedly done over and over again by the same individual.
II.            Job enrichment (vertical job enlargement)
This is a deliberate, planned process to improve the responsibility, challenge and creativity of a job. This involves building in motivating factors into the job, giving the workers more responsibility and control over work, and offering learning opportunities for the individual on the job. Examples include delegation or problem solving. e.g. where an accountant’s responsibilities for producing quarterly management reports ends at the stage of producing the figures, they could be extended so that they included their preparation and submissions to senior management. This alteration leads to not only enriching the job, but also increasing the workload hence delegation.
III.            Job enlargement (horizontal job enlargement)
It involves the widening of the range of jobs and so developing a job away from narrow specialization. This involves simply adding more tasks to the job so that the workers have a variety of simple tasks to perform rather than doing just one task repetitively. Two or more tasks are combined and the individual does the combined tasks altogether. There is no element of enrichment. Hertzberg contends that there is little motivation value in this approach
IV.            Job rotation
This involves moving employees among different tasks over a period of time to alleviate monotony and provide fresh job challenges. Management does not have to bother with combining tasks, but at the same time, the workers do not get bored with doing one simple task over several years. The employee is periodically rotated from one job to another within the work setting
Hertzberg suggests that this will help to relieves monotony and improve job satisfaction but this is unlikely to create positive motivation.
Other strategies include;
  • Providing better terms and conditions of services i.e. competitive wages and salaries and fringe benefits.
  • Job enrichment measures e.g. involving employees in decision making (employee empowerment)
  • Instituting human relations elements at the work place i.e. laying emphasis on the human side of management by creating a team spirit
  • Improving physical working conditions
  • Fair rules and regulations i.e. organizational rules should be reasonable and have some degree of flexibility.
  • Internal recruitment policy and opportunities for advancement
  • Equity in the application of rules and regulations and in the administration of work benefits
  • Opportunities for growth and development through training and development programmes
  • Recognition of employees on their outstanding performance e.g. prize awards to the best employees in the year.
Job satisfaction
It refers to an individual’s overall attitude towards his or her job. It is a positive state resulting from the appraisal of one’s job or job experience. It is regarded both as a general attitude as well as satisfaction with specific dimensions of the job such as pay, the work itself, promotion opportunities, supervision, co- workers etc. The degree of satisfaction may vary with how well outcomes fulfill or exceed expectations.
There are various theories of job satisfaction. The human relations movement suggested that real satisfaction with job could only be provided by allowing individuals enough responsibility and freedom to enable them to grow mentally while physical/ economic school emphasized the role of the physical arrangement of work, physical working conditions and pay. In recent years, the attitude of job satisfaction has come to be linked with broader approach to improve the job design, work organization and quality of life.
Measuring Job Satisfaction,
Measuring job satisfaction has been a challenging process to managers. Several techniques have been developed over the years which are used extensively and are of great importance for practitioners. For instance individuals are made to recall some of the important and critical incidents which have caused satisfaction or dissatisfaction to them and conclusions are drawn from such exercises. In another method a small group of employees are brought together and encouraged to openly share their feeling regarding their job. In group environment people feel free to talk about various things.
Researchers have identified several factors leading to job satisfaction which are broadly divided into two categories, namely,
ü  Organizational Factors
ü  Individual Determinants.
Organizational Factors
v  Reward System: The organizational reward system has been found to be related to job satisfaction. This pertains to how fairly pay benefits and promotions are distributed.
v  Work: The nature of work contributes heavily. The factors such as flexibility, freedom and discretion available in the performance of one’s job bring a lot of job satisfaction.
v  Supervisory Behavior: Satisfaction tends to be higher when employees believe that their supervisor is competent and considerate.
v  Working Conditions: Overall working conditions in an organization have a direct bearing on the level of satisfaction. Comfort, salary, challenge and resource availability are main components of working conditions.

Individual Factors
Various individual and socio-economic variables are linked to job satisfaction. Researchers have found that younger people are more satisfied. Similarly men are more influenced than women if they are provided more autonomy in their work (Malini 2001).
There is a direct link between job satisfaction and performance of an employee. Job satisfaction makes an employee to put more effort leading to increased performance.
There is higher outcome, decreased absenteeism, creativity and better mental health in an organization if employees are more satisfied.
Effective Reward Management
Employee recognition is a communication tool that reinforces and rewards the most important outcomes people create for your organization.
When you recognize people effectively, you reinforce, with your chosen means of recognition, the actions and behaviors you most want to see people repeat. This can be explained by reinforcement theory we learnt in topic one.
An effective employee recognition system is simple, immediate, and powerful tool.
When you consider employee recognition processes, you need to develop recognition that is equally powerful for both the organization and the employee.

FLEXIBLE WORKING ENVIRONMENTS
Meaning of Organizational Change
Change generally implies innovation, the basic sense of introducing something new into organizational environment.
Organizational change in the sense of improvement therefore refers to activities aimed at strengthening and developing organization, performance as well as sustaining its existence.
It refers to any alteration of activities in the organization. The alteration of activities may involve changes in the structure of the organization, modification of the work tasks, introduction of new product introducing of new technology or a change in attitude among employees.
Forms of Organizational Change
Organizational change may take any of the following forms:-
1)         Reactive change
This is a type of change largely introduce in response to external pressure from the environment.
2)         Proactive change
Change introduced because of its usefulness and because an organization feels the change is necessary.
Once an organization senior management begins to think strategically it follows that some changes will be made because of changes in external environment and are hence reactive. Other changes will be introduced proactively because they are seen to be useful in their own right and not because they have been dictated as a result of external pressure.
Forces for organizational change
External Environmental forces
  • Competition i.e. activities of competitors
  • Political – legal i.e. government laws and regulations
  • Economic environment i.e. interest reates, GNP cost reduction measures, buyer purchasing power
  • Socio-cultural environment
  • Technological
  • Physical environment

Internal Environmental forces
i) The personnel
Change in work attitude and commitment – ways to improve relationship, recruitment techniques.
This refers to changes occurring in workers attitudes, values and levels of motivation. An organization may for example have inappropriate/ineffective people in key posts, employees unwilling to accept change introduced, key individuals using their power against the corporate interest etc.
ii) Organisational structure
Existing structure may not be meeting pressure of implementation of a strategy.
There may be too many organization layers leading to stifling of managerial initiative and slow decision making process. The head office may be exercising too much power over branches and other operational decisions. (i.e. decentralisational).
iii) Systems
There may be inadequate procedures for tracking progress of organizational activities eg  ineffective control systems.
iv) Technology
Changes may be introduce in the organizations manufacturing system because the existing technology may be obsolete.
v) Financial
The company may be facing cash flow problems or increase in the cost of capital budgets      hence the need for a change on the budgeting activities of the company.
vi) Marketing and sales
Marketing research may fail to give early notice of key development in consumer tastes/competitors behaviours. Sales personnel may also fail to meet agreed targets.
vii) Products/services
This is where new products are introduced which would require different production, marketing and accounting methods.
Process of Introducing change in an organization
Organisations managers must learn to respond to both external and internal forces for change. Pressures for change come froms so many factors that many managers spend most of their time planning or reacting to change.
1  Planned Change:-
Occurs when managers develop and implement a program that serves to alter organization activities in a timely and orderly way. In many instances planned change is instigated because the managers anticipate the development of a force for change and therefore seek to prepare the organization to adjust activities with minimal disruption.
Planned change is generally regarded as the superior approach to change. It is often used when the change process in the organization is to be extensive and lengthy. Hence it requires a greater commitment of time and resources and requires additional expertise in formulating and implementing the change.
2.  Reactive change
Occurs when managers simply respond to pressure for change when that pressure comes to their attention. Usually this involves a piece-meal approach to change as managers only alter activities in a way that provides for immediate solution of problems.
Reactive change is usually hurried and less expensive than planned changed. It is most effective when applied to small or day to day problems in the organization


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