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Organizational Change- Essay Example

According to the present scenario, the organizations worldwide are facing an exponential increment in the competition, slower growth rates, price pressures. For overcoming all of the issues as well as for successful growth several changes are regularly made within the organization & also to gain competitive advantages and attain its goals. In this way, organizational change has become a very essential part of a business as well as business development courses.

The educational programs in the field of business management provide profound knowledge about the organizational goals, process, competition as well as changes in the organizations too. Above all this, they also get various assignments in which they have to write essays, reports, articles about “organizational changes” and other topics as well.

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What is Organizational Change?

Organizational changes refer to all the ups and downs, growth or decline, and every transformation in the organization or its processes by doing modifications in its operation management system, human resource department, marketing management unit etc. It is basically the movement of an organization for a particular state of affairs to a different one heading towards success by doing some improvements.

Change in an organization occurs when there is any issue regarding the various factors affecting business and they can either be internal or external in order to cope with change in the way organisation do business.

Why is Organisational Change Required?

In the modern period economy, organizational change is important so as to adapt and to remain to exist in the business, it happens persistently because of fast change in a business condition either interior or outer. It is viewed as significant for an association point of view regarding achievement, for better consumer loyalty and making new competitive advantages, killing those exercises which add an excuse to association activity. Change isn’t in every case simple and organization’s people may oppose if their voice stifled and subsequently an opposition is made.

A change is often needed when there is any change in the environment of the business. The modifications are needed to be done in the organization so that it will be able to cope up with the competition otherwise it will be left behind or be swept away by the forces of change. The importance of organizational change can be understood by the reasons for the need for changes.

There are various reasons for the requirement of organizational changes: –

No. 1 – External Pressures Factors

  • Change in technology and equipment
  • Transformation in the market situation
  • Social and political changes

No. 2 – Internal Pressure Factors (within the organization)

  • foibles in the Existing Organization
  • Changes in the Managerial Personnel

No. 3 – Other Factors

  • In order to enhance customer loyalty by the virtue of effective customer relationship management providing easy, flexible and reliable interactions with the organization
  • Eradicate the cost of rework
  • Provide the new competitive edge
  • Optimize employee productivity and satisfaction by utilizing the right data and tools from the evolving technology
  • Improvement in working conditions
  • Personnel wish to participate in decision making
  • Employee’s yearning for a higher wage rate

Levels of Organisational Change Programs

There are different levels of the organizational changes programs which can chiefly be categorised into 3 categories: –

1. Individual Level Change Programs

Individual-level changes may happen because of changes in a work task, relocation of a worker to an alternate area or the adjustments in the development level of an individual which happens over due course. The general sentiment is that change at the individual level won’t have noteworthy ramifications for the association. Yet, this isn’t right since individual-level changes will affect the groups which thus will impact the entire association. Accordingly, a supervisor ought to never treat the representatives in segregation yet he should comprehend that the individual level change will have results beyond the person.

2. Group Level Change Programs

The executives must consider bunch factors while performing any change, on the grounds that the vast majority of the organizational changes have their significant impacts at the group level. The groups in the corporation can be formal groups or casual groups. Formal groups can generally oppose the change for instance, the worker’s guilds can unequivocally oppose the changes proposed by the administration. Casual groups can represent a significant obstruction to change due to the inborn quality they contain. Changes at the group level can influence the work processes, work structure, social organisation, impact and status frameworks and communication patterns.

The groups, especially the casual groups impact the individual people on the group. As such by successfully executing change at the group level, opposition at the individual level can be usually surpassed.

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3. Organization Level Change Programs

The organizational level change includes significant projects which influence both the individuals and the groups. Decisions in regards to such changes are made by the senior administration. These progressions happen over significant periods and require substantial scheme for execution.

A couple of various sorts of organizational-level changes are:

Types of organizational change

There are various types of organizational changes that are made in the organization for its betterment and maintain its position in the market.

These are some general types of organizational changes-

  • Strategic change
  • Transformational/radical change
  • Developmental change
  • Process & system change
  • Structural change
  • Relocation change
  • Merger/acquisition change
  • De-merger change
  • Incremental change
  • Remedial change
  • Downsizing change
  • People & culture change

Out of all these changes, these few are the most common and critical organizational changes: –

Strategic Change

All changes will influence a few parts of an organization, yet not all progressions are transformational.

Minor adjustments to existing instruments or arrangements will impact however not totally redefine a business. Huge changes, however, change organizations. Regardless of whether that change is positive or harmful relies upon the strategy used to make it.

In the event that you need genuine outcomes, you’ll have to do some substantial strategic planning. You have to recognize what an absolute objective is and afterwards structure a plan to accomplish it. Willingness and continuous change management are basic for executing these huge scope kinds of authoritative change.

Structural Change

Organizational structure is an example of connections among different positions and different position holders. The basic structural change includes changing the interior structure of the association. This change might be in the entire system of relationships, work task and authority structure. Change in organisational structure is required in light of the fact that former connections and communications no longer stay substantial and valuable in the changed conditions.

Process-Oriented Change

These improvements identify with the ongoing technological developments, data handling and computerization. This will include supplanting or retraining faculty, overwhelming capital hardware speculation and operational changes. This will influence the organizational culture and thus the overall organizational behaviour.

People-Oriented Change

People-oriented changes are coordinated towards performance improvement, group cohesion, devotion and loyalty to the association just as building up a feeling of self-realization among individuals. This can be made conceivable by closer communication with representatives and by special behavioural training and remodelling conferences. To finish up, we can say that changes at any level influence different levels. The quality of the impact will rely upon the level or source of improvement.

Organizational change Resistance & the Rationale behind It

All of the changes done in the organizations are indeed supportive as well as advantageous but there are always some conflicts arrive against the term “change”.

The resistance arose in during the organizational changes can be classified as industrial resistances, personal resistances and organizational resistances.

Here are some of the resistances in front of different types of organisational change as well as causes behind these resistances.

These are-

  • Obsolescence of Skills
  • Fear of Economic Loss
  • Ego Defensiveness
  • Status Quo
  • Fear of Unknown
  • Social Displacement
  • Peer Pressure
  • Threats to Power and Influence
  • Organizational Structure
  • Resource Constraints
  • Sunk Cost
  • Disrupted Habits
  • Feelings of Uncertainty
  • Personality
  • Fear of Failure
  • Personal Impact of Change
  • Prevalence of Change
  • Perceived Loss of Power
  • Organisational politics
  • Inappropriate use of power
  • Lack of understanding of change
  • Management failure
  • Lack of cooperation

Methods to ensure successful organizational Change

Although the organizational changes are very beneficial for the business there somehow it leads to some conflicts, imbalance and company-wide confusion. So, it is needed to consider some ways for the proper implementation of the changes in order to achieve glowing results.

These are some crucial ways-

  • Set the goals clearly and develop an effective strategy
  • Overcoming the resistances and staff management
  • Offer management support
  • Carry out sessions for contextual learning for new technologies
  • Invest in agility training
  • Decentralize the organisation and empower people
  • Rewarding those who manage change well
  • Encourage creativity, innovation and experimentation

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Organisational change and transformation are an essential part of a business in order to cope up with the ever-evolving market and competition. This way, by managing change in organizations the business can fully utilize the features of organisational change and achieve the goals.

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