Organizational Change Management- How and Why?

Organizational change can be defined as the process of mastering a new idea, a type of behavior, or as any relatively independent modification of one or more elements of a management system. Examples of major changes can be the development of improved technology, the creation of a new product needed by the market, the improvement of the organizational structure, the formation of an appropriate organizational culture with new values, traditions, and management style.

Reasons for Organizational Change

In addition to the continually existing factors of the external and internal environment of the organization, which have a direct or indirect impact on the process of organizational change, one can also identify several factors that are potentially the causes of changes. These factors include:

1. Crisis Situations

When a problem situation arises, the organization is forced to implement organizational changes aimed at returning to stability or restoring liquidity. Most often, such organizational changes are operational, carried out at high speed and do not meet significant resistance from the organization personnel.

2. Stage of Company Development

At each stage of development, the organization makes the changes necessary for moving forward and moving to the next stage. Such organizational changes usually occur at the strategic and tactical levels and involve the redistribution of powers and responsibilities between company employees by creating new levels of structure and management and changing the management mechanism.

3. Personal Influence

The cause and factor of organizational changes can be changes in the personnel composition of the organization, the appearance of new people in managerial positions almost always leads to changes that lead the organization to a subjectively better state.

Innovation always cause collective resistance, often perceived by employees painfully. The solution is the purposeful development of employees and organizational structures, continuous training, and the creation of a culture of change in the organization.