Management

Assignment



Organizational Change

Organizational Change

Organizations are facing dynamic changes due to globalization. The term organizational change signifies the internal organization modification due to change in the environment. In this process, an organization revises its working criteria, procedures and methods to deal with the different situations. Organizational changes are undertaken to enhance the overall processes and working performance of the organization.

The concept behind the organizational change is the transformation of organizations structures, business strategies and organizational culture. Organizational change can also be termed as organizational restructuring, reorganization, transformation and turnaround. It is a strategy that of getting best outcomes from the organizational restricting.

Factors that promote change in organizational culture

Organizations need to go for the change process in order to cater the changing needs of the organization as well as to stay competitive. There are so many factors that cause the organizations to undergo organizational change that are as follows:

Technology: Due to rapidly increasing technological change, it has become a necessity to be updated with the new technology to keep up pace with the dynamic environment. Technological changes enforce organizations to undergo change. Technological induction benefits the organization and streamlines the overall operations of the organization.

Innovation or improvement: organizations need restructuring at the time of adopting new processes to become more efficient. Such as implementation of lean systems such as six sigma or kaizen for improved processes and eliminates inefficiency.

Competition: organizations need to review their strategies and make changes in order to cater the increasing competition.

Growth: organizations need to restructure their operations when they want to expand their business and want to achieve growth.

Government regulations: government regulations also lead organizations to change their business conducts. At times when government restricts some process or practices for no longer use might change the cost of doing businesses. This situation leads the organizations to revisit their conducts.

Financial Changes: organizations go through the transformational change at times of economic changes. Organizations need to examine their cost structure in order to cope up the change. It can also involve staff cutting. At times of recession, companies go for eliminating their excess staff that is producing the duplicate work.

Culture Change: organizations need to reconsider their internal culture such as creating the sense of urgency and making their culture more customers responsive.

Change management models

There are so many models to address organizational change. Some of them are as follows:

Lewin's Three Step Model : according to Lewin that change management is a continuous process, and long term change can never be sustained (1947). There are three steps to achieve change that are:

Unfreezing: this involves determining the need for change and preparing the organization to admit the change. Here, you need to tell people about the need for change and how it will benefit the organization.

Moving: in this step people begin to look out for ideas to align them with the new direction. This step primarily deals with the execution of plans and strategies that are made to improve operations.

Freezing: this is the last step where people have embraced the ...