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Impact of change in Organizational
Impact of change in Organizational
Organizational change as a concept
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The Feature of Change in Organizations
“The future is not a result of choices among alternative paths offered by the present, but a place that is created- created first in the mind and will, created next in activity. The future is not some place we are going to but one we are creating. The paths are not to be found but made and the activity of making them changes both the marker and the destination.”
John Schaar, futurist
2.0 Introduction
Change is an everyday occurrence. An example of such everyday change is the people coming to richer countries seeking a better life. An organization’s base is its people. Each new person brings something new to an organization.
In a couple previous years were introduced four types of changes:
• “Introduction of major new office technologies
• Introduction of major new plant, machinery or equipment
• Major reorganization of workplace structure
• Major changes to how non-managerial employees do their work”
Source: Morgan, D. and Zeffane, R. (2003) ‘Employee involvement, organizational change and trust in management’. International Journal of Human Resource Management. Vol. 14, No. 1, p.64.
3.0Change versus stability
In a changing world the organization must change to survive and prosper. Moreover, while it is doing so it must still deploy people to produce goods and services as normal, even if extra effort is demanded from them as they experience change. So the dilemma is that of balancing change with stability.
A further issue is how poor countries and weak organizations manage change.
4.0 PEST factors
Influence most of organizations, their strategies, structures and means of operating, including their human resource practices.
ORGANIZATION
Political factors • Government legislation
• Government ideology
• International law
• Rights
• Wars
• Local law
• Taxation
• Trades union activities
Economic factors • Competitors
• Suppliers
• Currency exchange rates
• Wages rates
• Government economic policies
• Other countries’ economic policies
• Lending policies of financial institutions
• Changes from public to private ownership
Socio-cultural factors • Demographic trends
(customers and employees)
• Lifestyle changes
• Skills availability
• Attitudes to work and employment
• Attitudes to minority groups
• Sexual role issues
Organizations operate in a turbulent environment that forces them to change even against their will to do so. Every organization has a fair prediction of its future that is why they all spend time and resources to put in place strategic plans. More often they get challenged not to follow these plans because they fail to appreciate that change is a natural phenomenon which is intimately entwined with continuity and that change-continuity continuum is what defines organ...
In today’s ever changing world people must adapt to change. If an organization wants to be successful or remain successful they must embrace change. This book helps us identify why people succeed and or fail at large scale change. A lot of companies have a problem with integrating change, The Heart of Change, outlines ways a company can integrate change. The text book Ivanceich’s Organizational Behavior and Kotter and Cohen’s The Heart of Change outlines how change can be a good thing within an organization. The Heart of Change introduces its readers to eight steps the authors feel are important in introducing a large scale organizational change. Today’s organizations have to deal with leadership change, change in the economy,
An organization might have a structure in place for change but they must also look at the finances. An organization must have appropriate finances to handle the change and must keep the organization profitable (Nielsen and Abildgaard, 2013). Both finances and the social environment within in an organization are resources that can potentially limit an organization from
Change is a fundamental element of individuals, groups and all sorts of organizations. As it is the case for individuals, groups and societies, where change is a continuous process, composed of an indefinite amount of smaller sub-changes that vary in effect and length, and is affected by all sorts of aspects and events, many of which cyclic are anticipated ones. It is also the case for organizations, where change occurs repeatedly during the life cycle of organizations. Yet change in organizations is not as anticipated nor as predictable, with unexpected internal and external variables and political forces that can further complicate the management of change (Andriopoulos, C. and P. Dawson, 2009), which is by itself, the focus of many scholars in their pursuit to shed light on and facilitate the change process (Kotter 1996; Levin 1947; et al).
Changing situations throughout the world affect all organizations in business today. Therefore, most organizations acknowledge the need to experience change and transformation in order to survive. The key challenges companies face are due to the advancements in technology, the social environment caused by globalization, the pace of competition, and the demands regarding customer expectations. It is difficult to overcome the obstacles involved with change despite all the articles, books, and publications devoted to the topic. People are naturally resistant to fundamental changes and often intimidated by the process; the old traditional patterns and methods are no longer effective.
Why do organizations change? With time goes by, rapid development of science and technology had led us to a world full of competitions. Change and stay alert to keep up with the current trend is essential asset to survive in this aggressive global economy. As the framework indicated by Pettigrew, there are two key context factors makes a great deal of effects on the reason for companies to change. Those are outer context and Inner context. Outer context could refer to the surrounding environment around the firm and the global economics status, etc. Inner context could be downsizing, restructuring the Gestalt, or the problem with coherent design archetype. Under the stress of the outer and inner context, forces or triggers will bring out the revolution. Change can be seen in a short term way and also in a long term way. Short term change could be a sudden, discontinuous and frame-breaking rupture which has an impact on the whole organisation, or new forms of management ad structure of the firm itself, or the breakthrough created by the major innovations or even can refers to the impact of new product and new market opportunities. Normally, financial crisis will be an initiative as a trigger to revolution. At first of the revolution, there would probably already has small changes in normal management and structure. As a long term way to apply the change, change agents are needed to do an ongoing, continuous and gradual progression or give some simpler initiatives such as improvements to existing products and product range.
When organizational change proves necessary, all people at all levels of the organization should address change as a “how,” “what,” and “why” problem in order for the change to be sustained over time.
Individuals when faced with any major change will be inevitably resistant and will want to preserve the status quo, especially if they think their status or security within the organization is in danger (Bolognese, 2010). Folger and Skarlicki believe that organizational change produces skepticism in employees which make it problematic and possibly even impossible to contrive improvements within the organization (as cited in Bolognese, 2010) Therefore, management must understand, accept and make an effort to work with resistance, since it can undermine even the most well-conceived change efforts (Bolognese, 2010). Furthermore, Coetsee states for organizations to achieve the maximum benefits from change they must effectively create and maintain a climate and culture that does not support resistance and rewards acceptance and support ( as cited in Bolognese, 2010).
Change in an organization occurs when an organization identifies an area of where necessary change must be undertaken, examines it thoroughly and adapts to it. This may lead to gaps where employees may not adapt to a certain change and therefore it is important that an organization takes into considerati...
The idea of change is the most constant factor in business today and organisational change therefore plays a crucial role in this highly dynamic environment. It is defined as a company that is going through a transformation and is in a progressive step towards improving their existing capabilities. Organisational change is important as managers need to continue to commit and deliver today but must also think of changes that lie ahead tomorrow. This is a difficult task because management systems are design, and people are rewarded for stability. These two main factors will be discussed with reasons as to why organisational change is necessary for survival, but on the other hand why it is difficult to accomplish.
...ess of the organizations inclination to change; the staffs skills and competency; magnitude of revolution capability and decision-making strategy. This change must be pertinent to the organizations objectives and to its members; opportunities for the members of the organization to make informed and prudent choices for a prudent decision-making.
It is apparent that the only thing constant in business is change. Organizational change is often an overwhelming challenge for business leaders, managers and employees alike. The need for change may be the result of market shifts, economic environment, technology advancements or changing work force skill-set demands. Today Organizational change occurs for reasons that originate external to the organization (Chandler, 1996: Hannan & Freeman, 1984), as well as internal to the organization (Baker 1990: Prechel 1994). Thus, External constraints, internal constraints, resource dependency and increasingly growing competitive markets force organizations to change in order to maximize economic potential. Although organizational changes are usually a response in reaction to an event, companies and leaders should still expect to encounter issues. Organizations need to be more proactive and contingent on how to handle the problems that will inevitably come about. This will make the process of organizational change go smoothly as well as reduce resistance through proper management techniques. Resource dependency argues that both environmental and organizational constraints impact organizational change (Pfeffer & Salancik, 2003).
Both employing organizations and individuals must be prepared for the coming changes or fund their success limited. As for businesses, globalization and a rapidly evolving workforce are redefining how we think about competence, creativity, productivity, and the structuring of organizations.
Robbins et al. (2011, p. 186), states ‘Change is an organizational reality and affects every part of a manager’s job’. Today’s wave of change primarily created by economic condition so change is now such a constant feature of organization life (Goodman, E. 2011, p.243). Organizations need to be changed at one point or another in structure, technology or people. These changes are defined as organizational change (Robbins et al. 2011, p.18). Organizational change is important because changes can increase effectiveness and efficiency, the innovation of products, services as well as dealing with changes in external and internal forces (Goodman, E. 2011, p.243). However, ‘the bottom line is that organizational change is difficult because management systems are design and people are rewarded for stability’ (Lawler, E.E. & Worley, C.G. 2006, p.11).
Organisations as machines, political systems, organisms, and flux and transformation are particularly common assumptions that are often used by managers, writers and consultants to make sense of how organizational change works. In reality most organizations use combinations of approaches to tackle change and not just one of the above, however these provide useful insights into the process of organizational change (Cameron and Green, 2012). This essay will try to make sense out of these assumptions to understand what organisational change is. By doing so, insights will be drawn on how organizational change can be managed and led.