Organizational Change in todays business environment

Topics: Change management, Organization, Management Pages: 10 (3137 words) Published: October 18, 2008
INTRODUCTIONOrganizational change is a concept that regularly occurs due to the nature of today's business environment. (McNamara, 2007) It is common in business communications, strategy, management and leadership. (McNamara, 2007) Change occurs when an organization revolutionizes parts or its entire strategy and/or wants to change the way it operates. (McNamara, 2007) Thus, it involves the realigning of organizational processes and operations. In order to remain competitive and successful in today's business environment, organizations must continually undergo changes by being innovative. (McNamara, 2007) Therefore, change plays a major role in the longevity, maturity, and success of any organization.

In today's business environment, there are many factors that compel organizations to change such as globalization of markets and rapidly evolving technology. "Organizations must change because their environments change," according to Andrew Sturdy in his article Management Beneath and Beyond Organizational Change Management: Exploring Alternatives. (Sturdy, 2003, p. 652) Today, businesses are bombarded by incredibly high rates of change from a large number of internal and external sources. (Nadler, 1981) Internal pressures tend to come from top managers and lower-level employees who push for change. (Goff, 2000) On the other hand, external pressures tend to arise from changes in the legal, competitive, technological, and economic environments. (Goff, 2000)People have deep attachments to their organization's normal work groups, duties, processes, and operations. (McNamara, 2007) Therefore, every change in an organization experiences some level or sort of resistance. Change resistance involves the pessimistic feelings and thoughts about a change(s) in an organization. (McNamara, 2007) It can result in jeopardizing or experiencing losses in productivity and profitability in an organization. (Oreg, 2006) Thus, managing and overcoming the resistance to change in an organization is essential to its survival.

Managing organizational change is the process of planning and implementing change in organizations in order to minimize employee resistance while maximizing the effectiveness of the change effort. (Nadler, 1981) It involves promoting the concept of change in organizations and having the skill to manage and lead change effectively. (Nadler, 1981) Furthermore, the purpose of this research is to explore the driving forces and resistance of organizational change and strategies for overcoming the resistance to change in today's business environment.

INTERNAL DRIVING FORCES TO CHANGEOrganizational change proposals often come about as a result of problems faced by an organization. (Varelas, 2005) According to McNamara (2007), "Change commonly occurs because the organization experiences some difficulty," "But sometimes the most constructive change takes place not because of problems but because of opportunities." (McNamara, 2007) Internal driving forces or factors that stimulate change originate from inside the organization via employees and/or managers. (Varelas, 2005) Some internal driving forces that influence or stimulate organizational change are budget, working conditions, and/or internal politics. (Varelas, 2005) Thus, the decision to implement organizational change can arise from problems that the organizations face or from presented opportunities. Some examples are: when an organization reallocates its resources to enter a new area of business or when an organization makes productivity improvements to increase cost efficiency.

Many organizations tend to implement changes in order to increase cost efficiency either through budget cuts, layoffs, and/or equipment upgrades. (Varelas, 2005) These changes are not always permanent in nature due to the fact they are stimulated by problems faced by the organization. (Varelas, 2005) If organizations overcome their issues, they usually rehire those who were laid off and raise...

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