MBA – Human Resource Management
University of Wales
Managing Change in Organisation
12th January, 2012
Today, teams and organizations face rapid change like never before. Globalization has increased the markets and opportunities for more growth and revenue. However, increasingly diverse markets have a wide variety of needs and expectations that must be understood if they are to become strong customers and collaborators. The ability to manage change in an organisation, while continuing to meet the needs of stakeholders, is a very important skill required by today's leaders and managers. Organizational change is undertaken to improve the performance of the organization or a part of the organization, for example, a process or team. When an organizational system is disturbed by some internal or external force, the change may occur. The change is modification of the structure or process of a system that may be positive or negative. It disturbs the existing equilibrium or status quo in an organization and may affect the whole organization, or various other parts of the organization in varying degrees of speed and significance. It may affect people, structure, technology, and other elements of an organization. It may be reactive or proactive in nature. When change takes place due to external forces, it is called reactive change. However, proactive change is initiated by the management on its own to enhance the organizational effectiveness. The change is one of the most critical aspects of effective management. Organizational change is the process by which organizations move from their present state to some desired future state to increase their effectiveness. The goal of planned organizational change is to find new or improved ways of using resources and capabilities in order to increase an organization’s ability to create value and improve returns to its stakeholders. An organization in decline may need to restructure its resources to improve its fit with the environment. According to Ackerman (1997) organisational change can be distinguished in three types, namely, developmental change, transitional change and transformational change. Developmental change refers to organisational change in which what already exists is continually improved but no radical progress is achieved or aimed at. Transitional change is a shift in the way a process is completed or designed to increase efficiency. A transitional change could involve the automation of a manufacturing process that was once done by hand. Transformational change refers to a shift in the business culture of an organisation resulting from a change in the underlying strategy and processes that the organisation has used in the past. A transformational change is designed to be organisation-wide and is enacted over a period of time. Significant organizational change occurs, for example, when an organization changes its overall strategy for success, adds or removes a major section or practice, and/or wants to change the very nature by which it operates. It also occurs when an organization evolves through various life cycles, just like people must successfully evolve through life cycles. For organizations to develop, they often must undergo significant change at various points in their development. That's why the topic of organizational change and development has become widespread in communications about business, organizations, leadership and management. Leaders and managers continually make efforts to accomplish successful and significant change as it’s inherent in their jobs. Some are very good at this effort (probably more than we realize), while others continually struggle and fail. That's often the difference between people who thrive in their roles and those that get shuttled around from job to job, ultimately settling into a role...
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