We can define an “Organizational Change” after we have an idea of why it occurs:
Organizational change occurs when a company evolves from the current state to some desired future state.
It follows any changes in business strategies or dominant sectors of an organization which are also known as reorganization, restructuring and turnaround.
Now we can define what an Organizational change is:
It is the elemental strategy for ensuring that an organisation remains pertinent in a varying environment and thus is able to adapt to the changes. It includes analyzing and updating management structures and business processes.
One very important thing to keep in mind is that:
Managing organizational change is the process of critical planning and realizing the change in organizations in such a way that any resistance and cost to the organization is minimum and concurrently making the effectiveness of the change effort maximum.
The Organizational change often arises out of problems faced by a company. Few of the many stimuli for changes are:
• Sometime companies change under the influence of new enlightened leaders who recognize and then exploit new potentials which were dormant earlier in the organization. It is often referred to as "performance gap".
• In some cases a competitive environment, advanced technologies, consumer demand, economic situations and government policy actions play a vital role in driving a change.
• Recessions are mostly followed by layoffs, which require restructuring, where mergers and acquisitions lead to changes in an organization.
Why is it necessary for contemporary organisations to appreciate the scale and scope of the change they are facing?
It is necessary for contemporary organisa...
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...nging the world, but no one thinks of changing himself.”
Example 2- It is responsibility of the leadership to create an atmosphere so that the employees buy into the new corporate vision. But if employees feel alienated or don’t trust their seniors, getting them to accept any new change becomes a challenge.
Poor communication gives rise to more difficulties. One of those is the staff members who resist the change due to ego and unethical self-interest. Without being able fully understand why a change is necessary, some employees are threatened by it and thus become resistance because of perceived self-interest in turn protecting their little perceived freedom.
If the change is a top-down hierarchy where the team has no real chance to give their input or values, the result will likely be people who don’t agree or participate in the change and therefore resist it.
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