Organizational Change refers to any alternation that occurs in total work environment. Generally people are accustomed to a well-established way of life and any variation in or deviation from that life may be called a change.
Organizational change involves disequilibrium in the situation and environment in which the people and the group exist.
Organizations are, of course, learning to cope with the devastating rate of internal and external changes with the help of some fundamental changes in management philosophy and organizational technology.
Organizational changes are the changes of the structure or process of a system that may be good or event bad. It disturbs the existing equilibrium or status quo in an organization.
The change in any part of the organization may affect the whole of the organization, or various other parts or organization in varying degrees of speed and significance. It may affect people, structure, technology, and other elements of an organization. It may be reactive or proactive in nature.
Nature/ Characteristics of Change
- Change results from the pressure of both internal and external forces in the organization. It disturbs the existing equilibrium or status quo in the organization.
- The change in any part of the organization affects the whole of the organization.
- Change will affect the various parts of the organization in varying rates of speed and degrees of significance.
- Changes may affect people, structure, technology and other elements of the organization.
- Change may be reactive or proactive. When change is brought about due to the pressure of external forces; it is called reactive change. Proactive changes is initiated by the management its own to increase organizational effectiveness.
Reasons for Organizational Change
- Change in technology used.
- Changes in customer expectations or tastes.
- It as a result of competition.
- Changes as a result of government legislation.
- Changes in communication media.
- Changes in supply chain.
- Changes in the distribution chain.
- Changes in society’s value systems.