ORGANIZATIONAL CHANGE MANAGEMENT

Running Head : ORGANIZATIONAL CHANGE MANAGEMENT
Organizational Change Management
Name of the Student
Name of the University
Author Note

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Introduction
The change in the business context is an act of moving the company from the previous
position to the position of its desire. The change can be small but it is completely transformative.
There are usually three types of change in the business context- the transitional, the
developmental and the transformational change. A developmental change happens when a
business tries to improve a process or tries to refocus on its marketing strategy. The transitional
change occurs when there is an act of replacing major procedures with the new procedures for
betterment. Further the transformational change happens when there is a fundamental shift in the
way of operation of a company (Al-Ali et al. 2017. The management of change is required
because in today’ business world, the adoption of change is quite difficult but equally necessary
for organization. The Change management is actually a process which helps in making the
organization transitions quite easy. Specifically it is helpful in making the change, implementing
the change and the after actions of change smooth. It further helps in understanding, computing
and accepting the changes in the business environment. Change management is important
because it is a formal method through which communication with the employees can be done. It
actually tells them about the reason for the change, the factors of change, the improvements of
the change and how the company is going to benefit at the end (Cameron and Green 2019). The
strategy of keeping the employees informed from the beginning helps in smoothing the transition
and shortening the time. Notably when the employees are quite open to change, they are more
engaged in the whole method of making it happen. The time when the employees are more

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engaged, the transition can happen quite smoothly and save the organizational resources and
time.
The organizational change definitely disrupts the process of organization life in terms of
the reporting lines, the interpersonal relationships, the employee and work unit, the group
boundaries, social identities and others. Change is always implemented for positive reason but
the employees often respond negatively towards that change and found to be registering the
change to many ways. The resistance can be linked with the increased pressure, the uncertainty
of the employees and the stress. During the organizational change, there can be situations where
a group of employees might be resisting the change because they are concerned and anxious
about the new roles the skills and relationships which are important for the employees (De
Massis, Wang and Chua 2019). For example, some employees might have trouble in this
engaging from the old organization because they feel a sense of loss with letting go the old
customs, the structures, rules and methods. With another example it can be shown that in a
context where two organizations are merging, the change outcomes and the perception of the
change are connected with the three components of the resistance to change. On the other hand
there can also be a group of employees that supports the change because they would get a new
environment of work with new rules and customs. These types of employees do not hesitate in
accepting the new ambience and adapting the updated technologies and advancements.
Sometimes, the position of an employee is also taken seriously to such an extent that in the rush
of saving the position, the employees resist any type of new implementation of policies in the
organization. Therefore, it can be seen that the way employees will react to the change either
positively or negatively is depended on the way he or she sees the organization, its values with
updated or age-old perceptions.

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The types of organizational change
There are various types of change such a structural change, strategic change, people
change and processes change. The structural change is actually a dramatic shift in the way a
market or an industry functions that is brought on by the major economic development. The key
of effective structural changes is the dynamism which is inherent in a particular system. The
structural changes are often done through technological innovation, the global shift new
economic development, the labour and capital change in resource and others. For example, the
smartphones were a surprising change for the consumers and the businesses because the products
such as cameras, flash lights were available already to everyone being a part of compact device.
The strategic change on the other hand is the implementation of changes. The strategic change is
mainly about having a particular strategy and then making some changes to the status. For
example, Renault motors had acquired the Nissan Motors of Japan that was failing in the year
1999. Renault had made some pattern changes cutting the cost of Nissan and improving the
Infinity brand reputation by a dramatic designing and introduction of new models in the year
2002.
The people changes are aimed at improving the employee performance attitude, skills,
loyalty to the company and behaviour along with enhancing the relationship with managers and
having a sense of achievement. The change among the organization’ people occur when a new
policy or process is included in the organisation which can leave impact on the people. For
instance, the inclusion of knowledge management can be a good initiative of people change
(Jalagat 2016). Notably, Ford is a global automaker and a long-term practitioner of the best
practices of knowledge management. This adoption has helped for to raise its initial quality to
18% and reduce the warranty cost by $1 billion. The business process change is a major

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component in terms of the development and the implemention a new strategy. Change in
business process can often lead to the competitive advantage or removal of existing competitive
disadvantages through reducing cost or differentiating the business. Taken for example, the Lean
manufacturing system is a particular system analysis which reduces unnecessary processes and
improves the way a company can use materials. For example, Toyota makes use of Lean
manufacturing which has helped it to rank among the top 3 car companies of the world.
The PEST and SWOT analysis used by the businesses
It can be noted that every company has its own framework that is followed by them for
understanding the market they are serving. They usually keep on taking note of the nerve of the
market where they want to concentrate with their products. There are some other analysis
methods which are allowed for a more holistic approach towards the determination of trends and
setting the strategies. From the perspective of strategic management, there are few tools which
permit the knowledge of the market along with the surrounding environment but the most
famous ones are SWOT and the PEST analysis.
The SWOT analysis helps companies in making the internal situation analysis such as the
strength, weaknesses, opportunities and threats. The assessments helps in understanding what are
the strong points of the company, what are the weaker points, what are the opportunities the
company can focus on and what are the threats it should address fast. On the other hand, the
PEST analysis helps the company to analyze its political, environmental, social and
technological aspects of the market in which it is operating so that it can get a preview of the
future implications of the market or the country in which it is operating (Petrou, Demerouti and
Schaufeli 2018). While making any change in the organization, a company should take into

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account both the SWOT and the PEST analysis of itself because it helps in making the change a
success with all required procedures around it.
3 examples of businesses change
Example of major changes in companies that has changed the entire organizational
strategy and operations are as follows - the first is Satya Nadella re-organizing Microsoft. After
the long live success of the Windows operating system along with the office products, Microsoft
was really struggling to write the second act. Also, the company was stagnant with the wars
between the business units which operated as competitors than the partners in the same company.
Satya Nadella undertook a major re-construction of Microsoft and done away with the
destructive competition (Shah, Irani and Sharif 2017). The products and platforms would not be
existing at separate group and employees of Microsoft would focus on unlimited touches the
inventor of productivity and the business process building of the intelligent cloud platform and
creation of more personal computing. The second is Google sitting under the Alphabet umbrella.
There was a time when Google grew monstrously diverse as a company and it was being
increasing impossible to manage the goods, the team managers and the funds. Page had broken
up Google into the constituent parts having made each one company owned by umbrella
Corporation named as Alphabet that focuses on goals and each companies of Alphabet has its
own goals (Stouten, Rousseau and De Cremer 2018). Third one is British Airways structuring the
whole organization. This re-organization was needed because the company had lost its customer
base because of the oil crisis of the 1970. The new chairperson Lord King decided to restructure
the whole organization through reducing the workforce from 60000 to 40000 eliminating the
profitable routes and having modernized the fleet. Considerably, within 10 years there line
reported to have highest profits in the whole industry.

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Factors of change impacting team, leadership and organizational behavior
Change can impact on the team both externally and internally impacting in various ways.
When the change comes from any type of internal source, it is well executed in a systematic way
where the organization, the destructuring of a new team of department along with the decision of
hiring new manager and members are usual internal places for the generation of the change. The
management further has a particular amount of the control over this entire internal driver driven
changes which can cause negative reactions towards the organization from the staffs being
affected. In an alternative way, external events which can generate the changes such as
legislation, the competitors, the political upheaval can and make many different reactions to
change in an organization (Tidd and Bessant 2018). People can be managed properly through
clear communication and transparency of information. The negative impacts of change in on the
organization behavior can be reduced through conducting meetings with the employees so that
they can understand the reason of change, the processes of the change and the future implication
of the change.
The planning of change can be done through continuous improvement models included in
the organization so that the employees can be updated to adapt with the change that is to take
place. The Burke-Litwen model of the organizational change is a useful model regarding
defining and the establishment of a cause and effect connections. This particular model assumes
that 12 organization components are there which determine a change in an organization.
According to this change model, the 12 elements are structure, mission and strategy, individual
skills, external environment, the leadership, the management practice, the work unit climate,
motivation, organizational performance systems, organizational culture and the individual needs.
Through the change model, the environmental factors of an organization can be accessed and

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adopted for ensuring a successful change occurred (Yousef 2017). The most dominant factors
which cause the organizational change is in the external environment sometimes. The result is
that it needs organizations for adjusting and changing the mission and the strategy along with the
organizational structure and culture. The organizational change model provides an efficient
strategy that is for the management of organizational change. Firstly the problems in the
organization should be properly diagnosed after which an action plan has to be developed that
needs a recognition of the element group which is the reason of the change.

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Reference
Al-Ali, A.A., Singh, S.K., Al-Nahyan, M. and Sohal, A.S., 2017. Change management through
leadership: the mediating role of organizational culture. International Journal of Organizational
Analysis.
Cameron, E. and Green, M., 2019. Making sense of change management: A complete guide to
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