Organizations across the world implement changes in their policies, structures, processes and more, from time to time, to improve their operations. Regina Temple mentions that the evolving consumer demands and environmental uncertainties often compel organisations to evolve and improve their way of looking at things. Organizational changes imply to the change that has a major impact on an organization, on the whole. Diverse shifts in operations, service offerings, business goals and even personnel are all considered to be varied forms of organizational changes.
Regina Temple marks common types of organizational change
In the current business landscape, organizational change has become a necessity. With time, old workers leave, new employees join the team, and even new departments are created as a company grows. Businesses also adopt new technologies in order to stay ahead of the curve. The key to successful, productive organizational change is the way this change is managed. It is imperative to keep all employees in the loop, and make sure that they understand what changes are to be implemented and why.
Organizational changes can be of several types, including:
- Strategic change: Organizations implement strategic changes to achieve important business goals, improve their competitive advantage in the market, and/or respond to discerning market opportunities. Strategic change would involve making changes to the processes, structure and policies of a company. In most cases, the upper management and the Chief Executive Officer tend to bear the responsibility for strategic change.
- People-centric organizational change: People-centric organizational change can involve the implementation of parental leave policies or bringing in new hires. Business leaders need to keep in mind that it is quite likely that employees may naturally resist some of people-centric changes. For the implementation of these changes, it is vital to maintain an empathetic approach, ensure transparent and smooth communication and have effective leadership.
- Structural change: Structural changes imply to the changes made to the structure of a company. These changes can stem from internal or external factors, and impact the way an organization runs. Structural changes can involve major shifts in the management hierarchy of the company, the chain of command, administrative procedures and even the responsibilities attributed to different departments. There are varying circumstances that may lead to structural change, including process or policy changes and mergers and acquisitions. Such changes commonly overlap with people-centric organizational change, as they largely impact the employees.
- Technological change: Constant advancement in technology and increasing market competition may lead to technological change within a company. Technology changes often involve introducing new systems or software to the company in order to improve business processes. If the goals of technology-based projects are not properly defined and communicated, it may frustrate the employees and ultimately result in resistance. Hence, technology change management largely involves identifying new technology and implementing a digital strategy for improved productivity and profitability.
As Regina Temple says, in addition to the organizational changes mentioned above, remedial change can also be important for an enterprise. Remedial changes are reactionary. This type of change takes place when a problem is identified, and a solution has to be implemented. As these changes are designed to address an specific issue; they call for immediate action.
