Organizational Change - Revision history

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← Older revision		Revision as of 10:28, 5 April 2023
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−	Organizational Change is a process in which a large company or organization changes its working methods or aims, for example in order to develop and deal with new situations or markets: Sometimes deep organizational change is necessary in order to maintain a competitive edge.<ref>Defining Organizational Change [https://dictionary.cambridge.org/us/dictionary/english/organizational-change Cambridge Dictionary]</ref>	+	Organizational Change is a process in which a large company or [[organization]] changes its working methods or aims, for example in order to develop and deal with new situations or markets: Sometimes deep organizational change is necessary in order to maintain a competitive edge.<ref>Defining Organizational Change [https://dictionary.cambridge.org/us/dictionary/english/organizational-change Cambridge Dictionary]</ref>

	Organizational change is the process in which an organization changes its structure, strategies, operational methods, technologies, or organizational culture to affect change within the organization and the effects of these changes on the organization. Organizational change can be continuous or occur for distinct periods of time.<ref>What is Organizational Change? [https://study.com/academy/lesson/what-is-organizational-change-theory-example-quiz.html Study.com]</ref>		Organizational change is the process in which an organization changes its structure, strategies, operational methods, technologies, or organizational culture to affect change within the organization and the effects of these changes on the organization. Organizational change can be continuous or occur for distinct periods of time.<ref>What is Organizational Change? [https://study.com/academy/lesson/what-is-organizational-change-theory-example-quiz.html Study.com]</ref>

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 == See Also ==
 *[[Organizational Change Management (OCM)]]
 == References ==
 <references/>

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 == Theories on Organizational Change<ref>Theories on Organizational Change [https://pdfs.semanticscholar.org/4593/c34ae6dddefe36f79b595afc2a1d3635036f.pdf Ellen Flakke]</ref> ==
-Theories on organizational change try to explain why organizations change and what the consequences of change might be (Barnett & Carroll, 1995). Based on the argumentation that understanding the theory and practice of change management is fundamental in order to achieve organizational effectiveness and success (Arnold et al., 2005), there are two approaches that in the last 50 years have dominated the theory, practice, and
+Theories on organizational change try to explain why organizations change and what the consequences of change might be (Barnett & Carroll, 1995). Based on the argumentation that understanding the [[Change Management|theory and practice of change management]] is fundamental in order to achieve organizational effectiveness and success (Arnold et al., 2005), there are two approaches that in the last 50 years have dominated the theory, practice, and
 literature on change, and sheds light on the current debate on how to best manage change.
 *The Planned approach to change. In 1946 Lewin, a pioneer in systematic studies of planned change (Kanter et al., 1992), initiated the Planned approach to change, which influenced and dominated the theory and practice of change management until the 1980s(Burnes, 2004). The Planned approach comprises Field theory, Group dynamics, Action research, and the Three-Step model, and the last one is cited as a key contribution to the study of organizational change. The Three-Step model for change recognizes that old behavior has to be discarded before any new behavior can be successfully adopted and fully accepted (Burnes, 1996). As indicated by the name, the process of planned change involves three steps: Unfreezing the present level, moving to the next level, and refreezing the new level. The Planned approach was primarily developed as a theoretical framework with a broad orientation toward understanding the concept of change in general, and not solely for organizational issues (Marcus, 2000). Nevertheless, Lewin’s Three-Step model is argued to be the best-developed, best-supported, and best-documented approach to change (Burnes, 2004), and its conceptualization is suggested as fundamental for understanding how humans and social systems change (Mirvis, 2006). Schein (2004) claims that any change in human systems is based on the assumptions originally derived from Lewin, and even those who have not read Lewin use the Planned approach (Kanter et al., 1992). The Planned approach influenced the field of organizational psychology, especially related to studies and theories on change, such as Beckhard and Harris’ Three-part process from 1987 explaining organizational change as a transition from a current to a future state (Marcus, 2000). The Organizational Development (OD) builds on the fundamental ideas of Lewin but argues that the Three-Step model should be seen as an independent rather than an integrated element in the Planned approach (Burnes, 2004). OD’s elaboration of the theory has resulted in alternative theories on planned change such as Lippitt and colleagues’ Seven-phase model from 1958, Bullock and Battens’ Four-phase model from 1985, and Cummings and Huses’ Eight-phase model from 1989. With a system-wide and humanistic-democratic orientation, OD received much attention as it responds to the changing needs of organizations and their customers (Arnold et al., 2005).
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 *Integration: Managing changes in a large organization has been compared to re-engineering an aircraft while it's in flight. Change is always a moving target. As you implement a system the business processes it supports will change. As you change an organizational structure, employee turnover will occur in parallel. Long running changes that have many integration points are extremely failure-prone.
 *Competitive Forces: In many cases, external forces drive organizational change. Competition, external threats, technological change, market conditions, and economic forces are all common drivers of change. Organizations may expedite change in response to external threats. If a competitor releases a product that's 5 years ahead of your products — you may be driven to an extreme pace of change that has a high risk of failure.
-*Complexity: As organizations develop more complex processes, systems, and products — change becomes more challenging. The complexity of change is a fundamental barrier. Complex changes require a diligent and highly effective project, risk, quality, knowledge and change management. In many cases, organizations simply lack the requisite maturity to tackle a complex change. A fundamental principle of change management is to never tackle a change that's too complex for your organization.
+*Complexity: As organizations develop more complex processes, systems, and products — change becomes more challenging. The complexity of change is a fundamental barrier. Complex changes require a diligent and highly effective project, risk, quality, knowledge, and change management. In many cases, organizations simply lack the requisite maturity to tackle a complex change. A fundamental principle of change management is to never tackle a change that's too complex for your organization.
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 == See Also ==
 *[[Organizational Change Management (OCM)]]
 == References ==
 <references/>

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 == See Also ==
 *[[Change Management]]
 *[[McKinsey 7S Framework]]

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 == See Also ==
 *[[McKinsey 7S Framework]]
 == References ==
 <references/>

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 == Benefits of Organizational Change<ref>Benefits of Organizational Change [https://bizfluent.com/info-8539329-advantages-organizational-change.html Bizfluent]</ref> ==
 Change is scary, but change is good when it causes companies to rethink how they operate, find ways to increase efficiencies, explore new market opportunities and so much more. Among the many perks of organizational changes can be:
-*[[Innovation]]: In adapting, it’s possible to find new income strategies or create new products that can bolster the bottom line and grow the company.
+*Innovation: In adapting, it’s possible to find new income strategies or create new products that can bolster the bottom line and grow the company.
 *Diversification: When seizing whatever opportunities may come out of a changing playing field, a company may find itself having to pursue new markets, new partners and/or new audiences. It may be a struggle at first, but if successful, the company may find itself on even more solid ground than before.
 *Improved communication: Being forced to change can make management seek input from team members who are normally overlooked. By inviting participation, communication can improve, and it can also spark increased teamwork.
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 == See Also ==
-[[Organization]]<br />
+*[[McKinsey 7S Framework]]
 == References ==
 <references/>

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 *Personnel Change: Personnel change is when a company implements mass hiring or layoffs. Each of these types of organizational change can cause a significant shift in employee morale and engagement, for better or worse. The threat of layoffs evokes fear and anxiety among staff members. Although certain circumstances necessitate such a decision, leaders should expect that employee morale will suffer. Nevertheless, the company must move forward. It is important to display genuine compassion and motivate employees to continue to work hard through the difficult time. While mass hiring has better implications for a company, it is not without difficulty. Mass hiring is a sign of major growth, during which a company is susceptible to cultural changes and disorganization. Hiring new staff means training them, and providing ongoing support. Welcoming an influx of employees is great, but the work is cut out for those in management. If the transition is not handled correctly, it can cause chaos, inefficiency, and ultimately deter further growth.
 *Unplanned Change: Unplanned change is typically defined as necessary action following unexpected events. While unplanned change cannot be predicted — it can be dealt with in an organized manner. For example, the hurricanes that battered the U.S. early in the fall of 2017 caused thousands of residents to evacuate and seek temporary shelter far away from home. Following the emergency, they began the long process of restoring normalcy to their lives. Companies also experienced unplanned change in the aftermath of the storms. New government regulations, over which individual companies have no control, can also spur unplanned change. Although the circumstances that lead to unplanned change may be chaotic, it’s important for organizations to be resilient and adaptable. Companies can also benefit from setting basic organizational change strategies in place to minimize chaos and disruption.
-*Remedial Change: Leaders implement remedial changes when they identify a need to address deficiencies or poor company performance.
+*Remedial Change: Leaders implement remedial changes when they identify a need to address deficiencies or poor company performance. For example, financial distress, usually due to poor performance, requires remedial change. The most common examples of such change could be introducing a new employee training program, rolling out a new software, or creating a new role to remedy a pain point. Other types of corrective action could include reviewing strategies that may have been in place for years but are no longer profitable. Issues stemming from leadership, such as a newly appointed CEO who turns out to be a poor fit for the company, might also call for remedial change. Although remedial change efforts must be tailored to the specific problem on hand, they still require effective organizational change strategies to be successful.

← Older revision	Revision as of 13:31, 16 November 2019
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	+	== Challenges to Organizational Change<ref>What are the Barriers to Organizational Change? [https://management.simplicable.com/management/new/5-barriers-to-organizational-change Simplicable]</ref> ==
	+	Organizations only do two things: change and stay the same. It's the organizations that change who own the future. Change isn't easy. The ability to change is one of the biggest differences between organizations. It's the reason some companies can innovate — while others seem endlessly stuck in the same old patterns. The following barriers to change are fundamental business gravity. Reduce these barriers and you'll effortlessly move forward. Let these barriers get out of control and you'll sink like a rock.
	+	*Resistance to Change: People resist change (status quo bias). In fact, many people are willing to accept lower pay to get into an organization that's stable (an organization that seldom changes). Resistance to change often has political motives. People tend to resist changes that originate with political adversaries. Another reason that people resist change is that they simply think the change is going to make their life worse (e.g. complicate their job). People may resist change directly (e.g. use political influence) or indirectly (e.g. passive aggressive behavior).
	+	*Unknown Current State: An architect wouldn't renovate a building without looking at the existing blueprints. The culture, processes and systems of large organizations dwarfs the complexity of a building's architecture. Nevertheless, organizations often attempt change without an examination of their current blueprints. This makes it difficult to transition to a future state.
	+	*Integration: Managing changes in a large organization has been compared to re-engineering an aircraft while it's in flight. Change is always a moving target. As you implement a system the business processes it supports will change. As you change an organizational structure, employee turnover will occur in parallel. Long running changes that have many integration points are extremely failure prone.
	+	*Competitive Forces: In many cases external forces drive organizational change. Competition, external threats, technological change, market conditions and economic forces are all common drivers of change. Organizations may expedite change in response to external threats. If a competitor releases a product that's 5 years ahead of your products — you may be driven to a extreme pace of change that has a high risk of failure.
	+	*Complexity: As organizations develop more complex processes, systems and products — change becomes more challenging. Complexity of change is a fundamental barrier. Complex changes require diligent and highly effective project, risk, quality, knowledge and change management. In many cases, organizations simply lack the requisite maturity to tackle a complex change. A fundamental principle of change management is to never tackle a change that's too complex for your organization.