ORGANIZATIONAL CHANGE

Organizational Change





Organizational Change

Introduction

Change is defined as the response to various physical or emotional stimuli. This concept is complicated in the area of human resource management because people do not easily accept the unknown. In today's business environment they are conscious about the job competencies, financial security and the existing peculiar processes they perform daily. But, in response to the changing technological, social and cultural factors, organizations have to go through a transformation process at least once in their life time. Organizational change occurs when a company replaces its current business processes and practices to the new or improved ones. There are many examples of companies which were forced to reorganize their practices and structure following the technological and environmental change.

This paper addresses the question of importance of reorganization. To explain the pros and cons of reorganization, a company's restructuring example is discussed. The transaction stages, challenges and strategic planning involved in the process is also detailed out.

Discussion

Why Organization change?

Business environment today requires companies to adopt reorganization perpetually to remain competitive. The globalization and technological evolution force companies to improve their business practices in order to survive. The changes may be minor, for instance installation of new software or major, such as revamping an overall marketing strategy. Many people consider reorganization as the inability to perform effectively and getting things done due to

continuous change. For them, this process shifts the organization from product development and customer support (Balasco Stayer, 1994).

After the relaxation in global trade barriers, new competitors emerge and new substitute products become available quickly. Following this trend, companies take advantage of new opportunities and perceived competitive advantage. Therefore, better to establish a corporate culture that enables companies to promote the organizational change (Connors, Roger, 2011).

Visionary organizations intelligently respond to factors which can bring change. Economic conditions, political changes, varying consumer demands, management policy and employment levels are always are active to brush aside the steady organizations. At the same time, successful organizations keep their basic philosophy intact. Because, “If an organization is to meet the challenges of a changing world, it must be prepared to change everything about itself except (its basic) beliefs as it moves through corporate life……the only sacred cow in an organization should be its basic philosophy of doing business.” (Collins, 2002, p.81).

Cultural Change

Change in culture is the first priority in the organizational change. Every organization has the reason for existence and philosophy that is embed in the employee's attitude and work. Organization change makes it difficult to re invent this culture. Due to this, resistance is shown by the workforce. The change should be brought about in accordance to organization culture and core values. Deviation from the culture may result in ambiguities and obstruction in the change process.

The Forces of Change

Primarily the drive for progress is initiated by internal forces. Smart organizations do not wait for external forces to force the change. As Collins, in his book states, “you do not create, Disneyland, build the 747, pursue six sigma quality, ...