Organizational change
Change is something that should be embraced rather than feared. Only with change will businesses be able to lay the foundations for long-term success.
According to Cambridge Dictionary, organizational change is:
“A process in which a large company or organization changes its working methods or aims, for example in order to develop and deal with new situations or markets.”
Many people would disagree with Cambridge Dictionary’s description. They say the definition should not limit organizational change just to something that happens in large companies.
Organisation change is defined as “any alteration in one or more elements of the organisation”. Changes can be made in any of the following: work schedules, basis for departmentation, span of management, overall organisation design, or people themselves.
Nature of Organisational Change:
It is often said that nothing is certain but death and taxes. But a third term has to be added — change. In management, change is expected as part of organisational life. Change refers to an alteration in the present business environment.
Some examples of organisational change are:
(1) A new method of doing the work,
(2) A new product or process,
(3) A new organisation structure and
4) Changes in personnel policy or employee benefits.
Every individual and organisation has to experience change. At times the change is planned for.
Causes of Organisational Change:
(A) External Pressures:
i. Change in Technology and Equipment:
Advancements in technology is the major cause (i.e., external pressure) of change. Each technological alternative results in new forms of organization to meet and match the needs.
ii. Market Situation:
Changes in market situation include rapidly changing goals, needs and desires of consumers, suppliers, unions etc. If an organization has to survive, it has to cope with changes in market situations.
iii. Social and Political Changes:
Organisational units literally have no control over social and political changes in the country. Relations between government and business or drive for social equality are some factors which may compel for organisational change.
(B) Internal Pressures (Pressures for Change from Within the Organisation):
i. Changes in the Managerial Personnel:
One of the most frequent reasons for major changes in the organisation is the change of executives at the top. No two managers have the same style, skills or managerial philosophies.
ii. Deficiencies in the Existing Organization:
Many deficiencies are noticed in the organisations with the passage of time. A change is necessary to remove such deficiencies as lack of uniformity in the policies, obstacles in communication, any ambiguity etc.
iii. Other Factors:
Certain other factors such as listed below also demand a change in the organisation.
- Employee’s desire to share in decision-making
- Employee’s desire for higher wage rate
- Improvement in working conditions, etc.
Response to Organisational Change:
Every change is responded by the people working in the organisation. These responses may be positive or negative depending upon the fact as how they affect people.
Types of organizational change
What type of organizational change a company requires or is going through varies, depending on the person’s point of view.A manager in technology may see it in terms of systems, tools, software, hardware, etc. The CEO will invariably perceive change in terms of structure and strategy.The operations manager, on the other hand, will mainly see it in terms of processes, etc.
Below are some of the common types of organizational change:
Mission and Strategy
This is all about the company’s aims and goals and how it plans to accomplish them. Hardly any change in an organization is not related to its mission and strategy.
Mission and strategy affect every part of a business. Therefore, any change in this area has a company-wide impact.
Policies and Legal Agreements
Changing policies and legal agreements may be highly unpopular with customers and the workforce.Any change in this area, even a minor one, may have a significant impact on a company.
Organizational Structure
The term refers to the hierarchy within an organization, which defines each job and department, their function, and where they report to.
When two commercial enterprises merge, or one takes over another, there are major structural changes. Sometimes the change may be minor, such as when a new team is established.
Processes
This term refers to a collection of linked tasks which find their end in the delivery of a product or service to a consumer.
Processes and tasks are commonly altered during organizational change. In some organizations, changing or upgrading processes is ongoing or occurs on a regular basis.
Personnel
Personnel means staff or human resources, i.e., the employees. It includes hiring, firing, training, roles, responsibilities, and other changes related to the workforce.
Culture
Culture refers to the pervasive beliefs, values, and attitudes that characterize a firm and guide its practices.Any change in these areas can have a profound impact on every aspect of the organiza-tion.It can have an impact on, for example, productivity, compliance, and innovation.
Products
This is all about changes to products, and everything related to encouraging consumers to buy them. Marketing and sales are an essential focus for most organizations.
Knowledge
Knowledge supports every product, process, initiative, project, and program. Change here refers to the knowledge assets of the company.
Knowledge assets are the information or skills within an organization that make it more competitive or valuable.
Technology
Today, virtually every commercial enterprise is a kind of tech company.Sometimes, a company makes changes to its technology infrastructure, automation, systems, hardware, software, etc.
