What is organizational change?
In this article we will provide you the examples of Organizational change along with Organizational change triggers.
organizational change is any change made to the structure of a company with some objective , to respond to external or internal pressures. Actions to meet market demands, strategies to achieve better results or planning to gain competitive advantages are also considered organizational changes.
But they don’t just happen in extreme cases . Know that the main motivation for an organizational change is the expectation of business growth. But as the market is constantly changing, these changes are becoming frequent in companies.
In other words, we can say that organizational change happens when a company changes its internal processes to achieve certain purposes . Still, it serves to review and modify structures, whether management or business processes.
But what are the reasons for making changes in an organization? Here are some:
- provide better working conditions for employees ;
- gain competitiveness ;
- increase productivity ;
- act on market updates ;
- meet the wishes and needs of consumers ;
- improve processes;
- improve results ;
- follow consumer trends .
Organizational change triggers
Like all transformations, organizational changes need to start from somewhere, that is, they need reasons that encourage the beginning of something new. In this sense, some aspects, internal or external, are considered triggers for organizational changes.
1-Consumer Demands and Buying Trends
The consumer profile is constantly changing , as well as people’s lifestyle and consumer desires. Therefore, customer demands and market trends are factors that influence the paths companies should follow.
When a company does not follow these transformations, it does not implement changes and ends up losing competitive advantage in relation to the competition . In addition, it has its reduced space in the heart of the consumer, as it fails to meet their expectations and is unable to strengthen their loyal customer base.
Good competition is even beneficial to drive necessary changes that cannot be postponed . Thus, when a competitor appears with different business or commercial behavior, for example, the company needs to adapt, especially if this “rival” organization stands out in the segment.
The technology is a major trigger for change in companies . New systems and devices that emerge as a trend can change the way organizations offer their products or services.
One example is business models that rely on virtual collaboration or outsourcing. Today, they only get space thanks to the internet and new technologies.
4-the economic climate
The global economy determines the economic climate and is responsible for supply and demand conditions . In this case, in periods of recession, companies may need to leave employees. This implies the need to restructure the framework.
Another situation is the merger of companies or the incorporation of new business partners. Possibly, the picture will require changes in the organizational culture .
5-Legislation, regulations and government policy
Changes in legislation often directly affect the corporate world . Rules imposed by regulatory authorities require organizations to comply or adapt. Either option will signal the need for organizational change.
Examples of organizational change
Organizational changes are divided into four types. Next, check out each one.
Intense and profound modifications, which represent a 360° turn in a company, are called revolutionary. Therefore, they impact management and human resources. In addition to reflecting on the way the organization positions itself in the market.
It is a bolder and more impactful change. However, it usually happens when managers do not find another way for the business to succeed. But, despite being drastic, organizational change of the revolutionary type brings with it a positive side: from it on, the company will be totally different .
In general, revolutionary changes occur in companies that have been in the market for many years and need to be renewed. After applying this model, the general feeling will be of a completely new company — new management models, employees, purposes and operating markets.
When the objective of managers and leaders is to adapt the company to market demands, an evolutionary organizational change takes place . Here, the company needs (or wants) to expand, but intends that this growth does not affect the needs of the target audience, nor remove it from the position conquered with the competition.
In this case, evolutionary change proposes actions developed from a special purpose, being implemented gradually and allowing the choice of new paths towards the future.
This transformation takes place for a specific and well-defined objective. It doesn’t matter if the intention was to resolve an adversity or conflict , yet to fix some imperfection in their processes.
Finally, as the name suggests, evolutionary change proposes the company’s evolution in light of market demands. At the same time, it benefits its consumers or itself, to become more competitive.
Organizational change comes into play during a crisis in the company or when there is a need for a new position in the market. Thus, when implementing it, it causes significant changes in the organization’s processes, restructuring it internally to execute new strategies.
As it affects all sectors of the company, including leaders, employees and products, transformational change is usually more difficult to assimilate by human resources.
Another factor that causes surprise when we implement this change is that it does not propose additions, only modifications and transformations. As a result, transformational organizational change often leads to layoffs, transfers, and new hires.
Incremental change is characterized by adding, adding or adding something to the company . It represents a quest to improve existing processes to drive the organization’s growth and success.
It is the most used and easy to implement organizational change , as it happens naturally and constantly. Practical examples of this model are improvements in time attendance, implementation of administrative routines, use of new systems and project development.
Therefore, incremental changes seek to improve procedures that already exist, with the objective of positively impacting the organization’s performance.
Based on these examples, your company is able to choose which organizational change it will need to implement in order to achieve growth, competitiveness, success and results