Organizational Change

Topics: Change management, Management, Organization Pages: 9 (3210 words) Published: March 30, 2014


Organizational Development (OD) has become more and more important for today’s organizations because the world is moving so fast that organizations have to find ways to be more effective, more innovation, more customer-driven, and more agile. Cumming and Worley (1997) define organizational development as “a process that applies a broad range of behaviour science knowledge and practices to help organizations build their capacity to change and to achieve greater effectiveness”. Therefore, OD will help organizations understand how people act to change and which change methods can work with the resistance to change that usually occurs in organizations undergoing change. In the study of organizational development, it is important to study Organizational Intervention & Change Implementation in order to know how to operate and make use of change methods that seem to be vital in solving any problems that arise. Organizational change is an important part of organizational management and leaders cannot ignore the inevitability of having to manage change within their organizations. In addition, a global study that was conducted with over 2,000 organizations showed that 82 percent had implemented major information system change, which entailed other changes in structure, technology, and people as well (Robbins &ump; Coulter, 2007). Therefore, it is imperative that managers and organizations understand how to increase their chances of having successful change programs.

There are different reasons why we need for organizational change. Some of the reason stated below:  1. Crisis: The most obvious crisis is Global financial crisis (2007-2008) which caused numerous organizations, industries to change. They all have to change to survive. 2. Performance Gaps: Being an organization, they always look forward to improve gradually. The organization may not meet their goal, changes are required to close these gaps. 3. New Technology: Identification of new technology and more efficient and economical methods to perform work. 4. Identification of Opportunities: Opportunities are identified in the market place that the organization needs to pursue in order to increase its competitiveness. 5. Reaction to Internal & External Pressure: Management and employees, particularly those in organized unions often exert pressure for change. External pressures come from many areas, including customers, competition, changing government regulations, shareholders, financial markets, and other factors in the organization's external environment. 6. Mergers & Acquisitions: Mergers and acquisitions create change in a number of areas often negatively impacting employees when two organizations are merged and employees in duel functions are made redundant. 7. Change for the Sake of Change: Often times and organization will appoint a new CEO. In order to prove to the board he is doing something, he will make changes just for their own sake. 8. Sounds Good: Another reason organizations may institute certain changes is that other organizations are doing so. It sounds good, so the organization tries it. 9. Planned Abandonment: Changes as a result of abandoning declining products, markets, or subsidiaries and allocating resources to innovation and new opportunities.  

 What organizations can change fall into the following broad areas: 1. Mission, Vision, & Strategy: Organizations should continually ask themselves, "What is our business and what should it be?" Answers to these questions can lead to changes in the organization's mission (the purpose of its business), its vision for the future (what the organization should look like), and its competitive strategy. 2. Technology: Organizations can change their technology in order to increase efficiency and lower costs, etc. 3. Human-Behavioural Changes: Training can be provided to managers and employees to provide...
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