Organizational Change

Types of Organizational Change

The scale of change may be categorized as wide-ranging, frame-breaking “transformational change” or small-scale and slow-shifting in “incremental change” models.

Incremental Change / 1st Order Change Incremental change/1st order change is generally categorized by changes in functional processes, including, communication systems, recognition and reward programs, and decision-making processes as shown in fig 1&2 in Appedix. 1st order change is considered part of a continuous process. A low demand for change results in 1st order. [6].Incremental models/1st order of change suggest that change should be implemented in a gradual manner ,however ,Waterfield suggest that an incremental approach to change „will not work‟ and did not deliver the required scale of change as the focus on re-engineering and restructuring as ways of implementing change, citing only small-scale improvements as a result.[7] It includes: Cost changes: These changes are occur when organizations attempts to reduce costs in order to improve efficiency or performance of organizations. Process changes: These changes are implemented to improve efficiency or effectiveness of organizational processes and procedures.

Transformational / Radical Change / 2nd Order Change The radical/2nd order change is a multi-dimensional, multilevel, qualitative, discontinuous change as shown in fig.1&2 in Appendix. These change involving a paradigmatic shift in organization. It leads to a new identity of the considered organization. It is viewed as deep structural and cultural change .A 2nd order change occur due to high demand of change. Different researchers like Kleiner and Corrigan argues that transformational change/2nd order can be described as radical, groundbreaking alterations that exhibit a profound break with accepted patterns of organizational behavior and operation It includes; Cultural changes: These changes are the least· tangible of all the types of change, but they can be are the most difficult changes. An organization‟s culture is its shared set of assumptions values, beliefs, and thoughts. Structural changes: In this change the structure of· organization changes. Mergers, acquisitions, consolidations, and divestiture of operating units are all examples of attempts at structural change.

Planned and Unplanned Change

 To start, there are planned changes and unplanned changes. That might not sound very significant or overwhelmingly important, but the distinction is definitely worth pondering. Planned change is a change that occurs when managers or employees make a conscious effort to change in response to a specific problem. An unplanned change occurs randomly and spontaneously without any specific intention on the part of managers or employees of addressing a problem.

Obviously, when change is planned, like a new information management system or a different accounts payable procedure, change management can also be planned to minimize employee resistance. When an unplanned change occurs, like a sudden economic downturn or a shortage of resources, managers are taken by surprise and adaptation may not be as organized.


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