Hetal Patel
Organizational Development - BUS 370
David Amisano
09/29/2014
When an organization decides make changes to business model, it looks at process, people, places, and the product. “In today’s business environment, with business models in a state of flux just as products and services are, it is virtually impossible for organizations to implement their chosen strategies without undertaking the kinds of strategic initiatives that inevitably require substantial behavioral and cultural changes” (Cabrey and Haughey, 2014). It is natural for an organization to go through changes as per business needs and change is the major competence for an organization …show more content…
Operational change refers to change in daily process to meet the business goals and cut the cost. For example: production schedule, hiring temporary workers to help cover temporary need. “Operational changes occur when A firm’s efficiency capability influences firm performance and is defined as a firm’s ability to produce goods and provide services at the lowest possible cost” (Tiantian, Yezhuang, 2011). Change in the process can effect some divisions of the organization or entire organization depending on the type of operation process. For Example: Sales organization decides to change the frequency of their sales meeting from twice a week to three time a week with sales Managers to get updates on sales numbers and understand outside market. Since Sales organization is changing the meeting frequency, it is an operational …show more content…
The idea of organization change usually creates problems which can effect organization planning if the reasons and benefits are not communicated proper to the employees. Strategic changes are revolutionary to achieve organization mission and vision. Strategic changes include “culture, management, reward systems, recruiting and retaining a diverse workforce, recognition, incentives. “The importance and relevance of culture and values, business processes, people and engagement, and service quality and client satisfaction as the top four critical success factors for implementing strategic change initiatives” For example: Sales Organization decide to change Monthly bonus system to motivate employees. This is a reward system change.
“With a project management culture and mindset, organizations adept at the iterative process of change can enable longer-term sustainable change” (Cabrey and Haughey, 2014). Most of the time Operational changes results from strategic changes related to production of goods and growth of the organization. Strategic changes represent risk, therefore: originations must cover itself when implementing strategic