Organizational change refers to changes that are made in the way a business functions, the introduction of major business processes, changes in the organization's structure, or cultural changes within the organization. These are typically large-scale changes in a business as opposed to smaller ones that may occur on a regular basis like appointment of new personnel or modifying smaller processes.
Organizational Change Management
Organizational change management refers to the process of implementing organizational changes in a business or a company; it deals with the people involved in the process. Some of the functions that can be performed through organizational change management include: briefing employees about the changes and their role in them; communicating the vision and need for change; and setting up a reward system in which individuals are given incentives to change the way they work.
Resistance to Change
Stiff resistance can arise from within a company, whether from regular employees or from middle or senior management, when organizational change is proposed. This may result from inertia. When people are used to working within a certain system, they are wary of introducing changes or new systems. Other factors that can make them resistant to change could be insecurity, loss of control, possibility of an increased workload, uncertainty and surprise. Management must be cautious and well-prepared to ensure that the process goes smoothly.
All entities, whether humans or organizations, must constantly adapt to the changing world around them in order to thrive. This is especially true in the case of organizations that have endured for a long time. A century-old organization, for instance, cannot rely solely on the systems established at the company’s inception, or continue with the same technologies used at that time. Adapting to the current business environment makes the company more likely to succeed.
An employee who has been performing the same task in the same manner may feel that he is stagnating. Organizational change can help him brush up on his skills and apply them in a new context. This keeps him on his toes and provides new skills. This, in turn, can lead to better job satisfaction as the employee feels that his abilities are better utilized.