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Organizational Change | Meaning and Definition

What is organizational change?

Organizational change indicates the change in the roles of people and structural relationships in the organization. There are several ways of introducing changes in an enterprise such as altering the technology, people, structure, or other elements. Whatever be the change in an organization, it demands a shift in the individual disposition of the employees as well. 

Before altering anything in the organization, there is a need to plan everything beforehand, set goals, and consider the methods of implementation and challenges involved in the process. The goals must be flexible, so they can be readjusted when necessary for better outcomes.

Causes of organizational change

The interplay of several factors contributes to triggering changes in an organization, where the most common ones are:

  •   Change in the team structure of the organization.
  •   Adopting a new business model.
  •   Execution of new technology in the organization
  •   New leadership within the departments or at the company’s helm.


What is the need for organizational change?

A change is defined as a process of making something different, altering, or modifying. A change can also imply dissatisfaction with the current beliefs or system and the need to embrace the new. Dissatisfaction emerges when a deficiency is described in the existing system which cannot respond well to technological impacts and environmental pressures.

Organizational change can be understood as a method for leveraging the change to give rise to a successful resolution. Usually, the process of making changes in an organization involves three phases, namely, preparation, execution, and follow-through.