Probably every organization aims to implement a management strategy that enables the firm to maintain strength, competitiveness, and generate revenue as well. This raises the need for the management team and the organization to stay open to innovation and embrace whatever changes are required to be at par with the other firms. The economic crisis experienced by the world shows that many organizations were not well prepared to adapt to new conditions and make changes swiftly (Yukl, 2006, 90). Change management must be established with comfort, support and commitment of the organization, and secure environment. New research reveals that there is a direct relationship between how organizations manage change and organizational success.
Gigantic number of companies that felt threatened by the crisis, decided to focus exclusively on cutting costs as a desperate measure to survive. Organizations work to change the system in order to be competitive and meet more effectively the needs of customers.
In the organization, management systems, business and other significant events management changes are necessary, especially when faced with problems of their current system or to perform on strengthening and improving the overall performance of an organization. Internal or external drive is the force to change; innovation may take in any organization and reform the structure. Change the internal driver can include the development of business requirements, organizational restructuring or amendments to corporate strategy / business objectives. External drivers could include: technology development, the impact of economic trends, and the relationship among money, electronic or technical service and profitability.
Change management can be seen as a substantial activity to achieve the goals and objectives of any organization, even if the implementation is employing innovative intellectual or physical steps. To improve the recognition of the road, but excellent change process, from the integration of rational solutions to resolve conflicts and problems identified are follow. Action is held in these sections of an independent status within the organization (Hamel, 2007, 30).
Change Theories
Lewin's force field theory demonstrates that organizational change is seldom the basic linear process of “unfreezing transforming refreezing.” In fact, some organizations are unable to contemplate substantial change as they suffer from inertia; others may end up with what the authors call aborted or unresolved excursions. Only a few will experience successful reorientations (transformations). Inertia describes organizations whose original paradigm remains coherent throughout, substantial transformations are not contemplated, and the changes accomplished are only minor adjustments in the organization. Aborted excursions refer to situations in which there has never been a full unfreezing of the original paradigm. Organizational performance declines as uncertainly about the change prevails. Ultimately, the change experiment is aborted and the original paradigm is reinstated. In the case of unresolved excursions, the organization is “locked between the gravitational pulls of competing” paradigms. The old paradigm is no longer coherent, but the new paradigm has not yet been accepted reflecting the tension between the two contradictory sets of ideas. The organization continues operating in conditions of high uncertainty (Baum, 2001, ...