Organizational Changes Meaning, Causes, Response and Process
Organizational Changes Meaning, Causes, Response and Process: Any change in the overall work environment is referred to as organisational change. Organizational transformation is a common occurrence in most businesses. An organization’s capacity to adapt to change must be developed or it will be left behind or carried away by the forces of change. In a progressive culture, organisational change is unavoidable. Modern companies are extremely dynamic, adaptable, and responsive to a wide range of changes.
The term “organisational change” refers to changes in the structure and functions of employees inside an organisation. The majority of it is structural in nature. A business may be altered in a variety of ways. Its technology, structure, personnel, and other factors are all subject to change. Individual employee behaviour must change as a result of organisational transformation.
Employees’ shifting behaviour determines whether or not an organisation will survive, thrive, or perish. The majority of changes disrupt the individuals’ or groups’ equilibrium in their status and surroundings. If a change is harmful to the interests of people or organisations, they will fight it.
Organizational Changes Meaning, Causes, Response and Process
External Factors
(a) Technological and equipment advancements
Technology advancements are the primary driver of change (i.e., external pressure). Each technological advancement necessitates the creation of new organisational structures to meet and match the demands.
b) Current Market Situation
Consumers, suppliers, unions, and other market participants have frequently shifting aims, requirements, and ambitions. If a company is to thrive, it must be able to adapt to changing market conditions.
c) Changes in the Social and Political Environment
Organizational entities have no power on the country’s social and political developments. Organizational change may be compelled by issues such as government-business relations or a desire for social equity.
Internal Pressures (Internal Organizational Change Pressures):
- Changes in Management Personnel
The shift of senior executives is one of the most common causes of large organisational changes. No two managers have the same management style, talents, or philosophy.
- Inadequacies in the Current Organization
With the passage of time, many flaws in organisations become apparent. A modification is required to address flaws such as policy inconsistency, communication barriers, ambiguity, and so on.
- Additional Factors
Other variables, such as those mentioned below, need a change in the organisation.
Employees want to be a part of the decision-making process.
Employees’ desire for a better salary
Workplace improvements, for example.
Organizational Change Response
The employees who work in the company react to every change. These reactions may be either favourable or negative, depending on how they influence individuals.
Before implementing a change, the management should research and understand the attitudes of the employees to ensure a good reaction. People’s attitudes are governed by three kinds of factors: psychological, personal, and societal.
Organizational Change Process
Unless the workers’ behaviour patterns change, the adjustment will have minimal influence on the organization’s performance.
Kurt Lewin proposed a three-phase strategy for bringing about change in individuals, which is now widely accepted:
- Unfreezing
The purpose of the unfreezing phase is to make the individual realise that his or her beliefs, feelings, and actions are no longer appropriate or relevant to the current situation in the organisation. People’s behaviour may alter if they are persuaded. Rewarding those who are eager to change and punishing those who are not may assist in this situation.
- Changing
During this phase, a person learns to act in new ways after being persuaded and ready to change. He is given the model in which he is to identify himself initially. Gradually, he will adopt the model and act in the way that the model suggests. Another step (known as internalisation) involves placing the person in a setting where new behaviour is required in order for him to function properly.
- Refreezing
A person must practise and experiment with the new technique of behaviour throughout this phase to ensure that it successfully merges with his existing behavioural views. Reinforcement is delivered in the form of either continuous or intermittent schedules in order to create a permanent set in the person.