The Effect of Change on Organizations

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Change is a constant factor in someone’s personal or professional life and is a never ending process that must be implemented in everyday work and life. Although there are many people who are excited about the likelihood of change, some changes are painful and difficult. Change is challenging, invigorating, and must be understood in order for the dynamics of change in today’s environment can be explored. It is very upsetting to employees and has the greater possibility to bring about failures, risks of damaging production, or falling attributes. Change is important to the survival of an organization and according to history there are many examples in which organizations are no longer in business due to the failure of change. In order for an organization to be successful at change, the employees must have understanding of the change because the resistance that is presented by the employees is due to the fear of the unknown. The employees’ resistance to change depends on how they comprehend it and how well they are prepared to handle it (Hamric, Spross, and Hanson, 2005). Since in the late 90’s through the early 2000's, companies benefited from increasing revenues, outside resources, and expansion of their facilities and staff. In contrast, during 2004 they labored through reduction of 401k contributions, substantial layoffs, poor economic performance, and facility closures, which all resulted from a decrease in staff morale. Now when an organization announces a change, the employees’ reaction is not as enthusiastic as it was over a decade ago when it once was positively spirited and committed. As more jobs become available today and the economy improves, hopefully employees’ morale will improve because it is strategically... ... middle of paper ... ...ganizations to set future goals and develop a plan to reach those goals. Strategic planning also examines factors both externally and internally by evaluating the strengths, weaknesses, opportunities and threats (S.W.O.T.) to the organization. Although there are many theories and models that organizations utilize in strategic planning, such as equity theory, expectancy theory and reinforcement theory assist them in doing a better job, there isn’t much literature on how strategic planning affects fast pace businesses such as health care organizations. Without these types of models in place, many businesses would suffer. Whether it is someone’s personal life or an organization, a good plan is needed for guidance and success. By possessing the tools and competency about change management, leaders will be able to implement an effective change within their organization.

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