Organizational changes are the actions through which an organization alters some of its major components such as its underlying technologies, organizational structure, strategies, operational methods, infrastructure, culture, or the general internal processes. Organizational change management refers to the process of planning and the implementation of change in a company in a manner that minimizes resistance from employees and costs while maximizing the effectiveness of the change process. To ensure there is the successful management of organizational change, the employees should be engaged in the process so that there is increased morale among the employees and ensure that there is positive team building. Organizational change is an ever-present aspect of a company or business at a strategic and operational level. The organizational change varies in intensity and scope. The business environment has been changing significantly after the advent of the internet and therefore organizational change is a vital requirement for any business that wants to survive and thrive in a competitive business environment. The fast-growing global market and the rapidly evolving technology require that organizations respond appropriately by changing some of its aspects. The central objective of change management is to implement new products, business strategies, and processes successfully. It is important to minimize the negative outcomes that may be as a result of the change.
Organizational change is necessitated by a number of internal and external factors. There are small adaptive changes, incremental changes that are aimed at addressing needs that arise over time. Transformational changes, on the other hand, are bigger in scope and scale and they involve a shift in vision and strategy. The external factors are as a result of the external environment such as economic, technological, political, completion, globalization, customers’ needs and preferences, and changes to government laws and regulations. New opportunities in the global market triggers internal organizational changes to allow the business to seize them. New technologies present an opportunity for companies to do things differently which then requires the initiation of change to accommodate the new technologies (Lewis & Sahay, 2019). The political forces and especially the rapid change in global politics forces organizations to undergo some critical changes to ensure they comply with changes in regulations, policies, and the economic framework that result from liberalization and globalization.
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The vision of an organization creates the need for change to achieve it. In case there is revisiting and redefinition of the vision, there is a necessity to execute changes. Values are major drivers of change. Such values include ethnic and cultural diversity and gender balance which are currently key principles that lead to major changes in organizational processes and strategies. Since the organizational culture has a critical effect on the future of an organization, changes are usually done to ensure that the culture is dynamic and vibrant. The performance of an organization determines what changes are to be made to maintain or increase performance. When the performance of a company does not meet the potential of the organization, there is, therefore, a need to make changes that strategically shift the approach to business (Deszca, Ingols, & Cawsey, 2019). Another factor that determines whether the change is needed is the adequacy of the existing administrative processes. The assessment of the effectiveness of regulations, procedures, and rules determine whether a change is needed or not. An assessment of the effectiveness of the organizational structure also determines whether a change is needed or not. Any structural changes are referred to as strategic moves that help a company to increase its profitability. Structural changes are in various forms such as job redesign, downsizing, or even decentralization. Profitability issues also are the primary determiners of whether changes should be done or not (Palmer, Dunford, & Buchanan, 2017). This may be as a result of losses in revenue, loss of market share, or reduced productivity. Change in leadership may lead to other organizational changes because the change in leadership may lead to new ideas of doing business.
An assessment of the readiness of an organization to change helps in knowing what are the potential issues that may affect the success of the introduced change. Change readiness refers to the ability of an organization to continuously initiate and respond to change that minimize risk, provide an advantage, and sustain performance. Change awareness is a major determining factor in how a company is ready for change. An organization can redefine itself. It involves continuous scanning of the factors influencing change which leads to a culture of continuous learning, improvement, and adaptation (Lewis & Sahay, 2019). Change agility is the ability of an organization to engage people in the change process. This ensures that the employees are continuously trained to improve their skills and experiences so that they can easily adapt to the pending changes.
To ensure there is increased employee engagement, change management should be applied at the organizational level and also at the project level. Employee engagement in organizational change is essential to minimize resistance from employees. Resistance is a behavior that intends to shield an individual from the impacts that result from the real or imagined change. Employee resistance is described as undesirable if it is counter-productive to the objectives of an organization. Employee resistance to change is seen when they withdraw and tend to defend themselves emotionally or cognitively when performing their duties (Gupta & Sharma, 2016). Therefore, employee resistance could prevent the success of a company. Paying attention to the psychological thinking of employees and their experience to change may help in preventing resistance. The term employee engagement is associated with positive thinking, acting, and feeling and it is associated with the well-being of workers. It is critical to address the emotions of the employees by answering the question “why” to them. Persuade them by reason and move them by emotions by acknowledging that they have feelings. The organization should explain and convince the workforce on why the company needs to change certain aspects.
To ensure effective employee engagement, it is important to communicate efficiently and effectively by insure that the quality and amount of information given to the workers can influence the way they react to change. It is therefore essential for the manager to clearly explain what are the intended changes and their impacts on the company. It is also important to explain to the employees why the changes are taking place and their role in ensuring that the organizational change is successful. The employees should also be involved in decision making so that there is increased engagement. During the process of decision making, the management should ask the employees what they want, and what are their thoughts on what is working and what needs improvement (Cameron & Green, 2019). This makes the employees feel appreciated and recognized and therefore they will own the changes and work towards achieving the intended changes.
Change has various effects on individual, social, financial, and corporate concerns. Whatever the reason for the change might be, it has effects on individuals and it can be difficult for them to adjust to the changes. The change may affect mental stress whereby there may be increased stress levels as a result of perceived unfairness or injustice or even fear for future changes that may have a significant impact on them. Change can increase an individual’s motivation and job satisfaction. Change management improves cooperation, communication, and collaboration (Cameron & Green, 2019). When the change is properly executed and managed, it reduces anxiety and stress and encourages the employees to remain loyal to the company.
Change is important in addressing financial concerns such as reduced revenue and increased cost of production. When a business is performing well financially it may require to increase the number of employees to accommodate future growth and expansion of the business. However, when there are financial challenges, the company may trim the organizational structure to save money. The social concerns are addressed by changing the value and cultural aspects of the company. The values are the core principles and ethics which a company abides by. Culture in a company entails the values, practices, and expectations that guide the actions of members of a social group (Deszca, Ingols, & Cawsey, 2019). Changes in culture and values ensure there is ethnic, gender, and cultural diversity at the workplace.
In conclusion, changes are inevitable and every company, at some point, has to change for it to remain competitive, profitable, and relevant. It is important to recognize the need for change and know how to effectively make the change to ensure its success. Change management is vital for the success of the organizational change. It is essential to engage the employees in the change process to minimize resistance that may hinder change. Employee engagement involves effective communication, involvement in decision making, and preparation for change through continuous training. Change may have effects on employees by creating stress and anxiety among them. Change in values and culture help in creating a favorable social working environment. To address financial concerns, changes must be done to ensure there is the maximization of profits.
References
Cameron, E., & Green, M. (2019). Making sense of change management: A complete guide to the models, tools, and techniques of organizational change . Kogan Page Publishers.
Deszca, G., Ingols, C., & Cawsey, T. F. (2019). Organizational change: An action-oriented toolkit . Sage Publications.
Gupta, N., & Sharma, V. (2016). Exploring employee engagement—A way to better business performance. Global Business Review , 17 (3_suppl), 45S-63S.
Lewis, L., & Sahay, S. (2019). Organizational change . John Wiley & Sons, Incorporated.
Palmer, I., Dunford, R., & Buchanan, D. A. (2017). Managing organizational change: A multiple perspectives approach . New York: McGraw-Hill Education.
