Organizational Change – Operational and Strategic Change
Organizational Development - BUS 370
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 to be successful. The reason behind organization change is the fact that current business model is not working and business is being effected by many internal and external components. Once the new business model is implemented, organization must follow the changes that were made to be successful. “Change may be impermanent, transitional, and even reversible or permanent and transformational”(Bierema, 2014) . To fix the ineffective business model, some of the area organizations would look at is their processes, culture, workforce, managing employees and resources etc. Operational change typically refers to more common changes in certain work processes, reporting structure or job roles, and Strategic changes refers to achieve the “mission and Vision”. Organization will be successful if it is able to manage the changes. .
Operational changes are smaller and reversible. 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...
References: Kash, B., Spaulding, A., Johnson, C. E., & Gamm, L. (2014). Success Factors for Strategic Change Initiatives: A Qualitative Study of Healthcare Administrators ' Perspectives. Journal Of Healthcare Management, 59(1), 65-81. http://eds.b.ebscohost.com.proxylibrary.ashford.edu/eds/pdfviewer/pdfviewer?sid=df6b88e7-38b2-42f2-9948-7705f3ba4682%40sessionmgr111&vid=0&hid=117
Bierema, L. (2014). An Introduction to Organizational Development. San Diego, CA: Bridgepoint Education, Inc.
Gao, T., & Tian, Y. (2014). Performance mechanism of learning capability based on dynamic capability framework-the mediating role of operational capabilities. Journal Of Chemical & Pharmaceutical Research, 6(4), 396-400.
MACKAY, R., & CHIA, R. (2013). CHOICE, CHANCE, AND UNINTENDED CONSEQUENCES IN STRATEGIC CHANGE: A PROCESS UNDERSTANDING OF THE RISE AND FALL OF NORTHCO AUTOMOTIVE. Academy Of Management Journal, 56(1), 208-230. doi:10.5465/amj.2010.0734
Please join StudyMode to read the full document