Change is the process of altering the structure, the behaviour, the programs, the procedures purposes or output of a unit/ some units within an organization.
Types of change:
There are two major types of change in an organization:
- planned change
- unplanned change
Planned change is the orchestrated alteration made at work in a department or an organization. It also refers to the long range and deliberate attempt to manage events by making conscious efforts towards altering programs or structures. Unplanned change is change that occurs spontaneously or within a very short time as a result of something natural or a particular random occurrence.
Causes of change:
- External causes from the external environment
- Internal causes of change: from within the organization.
External causes of change will include:
Globalization: events taking place in other parts of the world can today directly influence what goes on in an organization and brings about certain changes such as in management style.
Technology: introduction of new and sophisticated technology can cause and is causing problems within an organization for example in the sense that employees may not know how to use the new technology. It can also lead to redundancy and downsizing.
Competitors: pressure from competitors can make an organization improve the quality of their output. They can also influence the reduction or increase of prices of commodities of goods and services.
Laws: government laws and restrictions can bring about change in an organization such as maternity leave, paternity, minimum wage legislation retirement age etc.
Education: training, quality of personnel within the organization will depend upon the type and level of education received as well as professional training.
Politics: political leaders can interfere with the running of activities within the organization for example hiring and firing or remuneration.
Internal causes of change:
Decision making within the organization in terms of policies, remuneration, goals and objectives.
Change of management; when the manager changes, then he/she will bring about changes.
Interpersonal relations: interactions within the organization among the employees and between employees and management may bring about change which could be positive or negative.
The organizational structure: structuring the organization has an effect on the performance and attitude of the employees.
Availability or lack of equipment and materials: if they are available then positive change will be realized and if they are missing de -motivation and negative attitude towards management will set in.
Organizational processes and procedures: these can bring about change especially if they are initiated by persons outside the organization. Individual expertise and skills can bring about change within the organization e.g. those who are exceptionally talented. Expertise can bring about change in profits or in the way things are done.
Financial base: Availability of capital and a sound financial base can in itself cause either a negative or positive change within the organization.
Organizational culture: leads to either positive or negative change in an organization