Organizational change is the term used to describe the transformation process that a company goes through in response to a strategic reorientation, restructure, change in management, merger or acquisition or the development of new goals and objectives for the company. The realignment of resources and the redeployment of capital can bring many challenges during the transformation process and organizational change management seeks to address this by adopting best practice standards to assist with the integration of new company vision.
Organizational change is not just change for the sake of change itself. The major precursor for organizational change is some form of exogenous force such as an external event. Cuts in a companies funding, the streamline of operations due to a merger are common examples of the magnitude of an event that creates organizational change and development. Companies that are nearing the end of the product life cycle make organizational changes in response to exiting a market or reorienting resources to new or existing business operations.
The challenges encountered by organizational change have a ripple effect on the entire organization. When the business units that comprise a company are fully integrated, a change or restructure in one can have a profound domino effect on another. Trying to increase productivity whilst experiencing a reduction in resources is a prime example of how shorfalls can create stress for company employees. Effectively managing this process is an art that has created a new area of expertise that has become known as change management.
Organizational change can impact the psychological, emotional and physical states of companies employees. Many people experience comfort zones and develop barriers during their daily lives. A change in company operations can challenge and stress people's values and central core beliefs. Dealing with behavioral and cultural changes is part of the... [continues]
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