Organisational change is vital for the transformation or growth of a business. Implementation of organizational change may involve creating a new team structure, introducing cutting-edge technology, merging into another business entity and so on. Almost every company has to undergo organizational change at some time or the other. As Regina Temple mentions, right from adopting new software to streamline productivity to undergoing a huge culture shift, all of it are type of organizational change.
Regina Temple provides a brief introduction to some of the common types of organizational change
There are many factors that can trigger organizational change and make it necessary for companies to adopt. There are many situations where managers and leaders may not even see organizational change coming, making it vital to understand a few things that can trigger such a change, like:
- Adopting new technology
- Revising certain business processes
- Complete shift in the structure of the organization
- New ownership or management taking over
- Using new business models and management practices
Organizational change is a fairly broad term. There can be several types of organizational change, such as:
- People-centric: Much like the name suggests, such changes tend to have a strong effect on the personnel and people in a company. People-centric changes can involve adjusting leave policies, which would mean that the employees will have to change how they apply for leave and which types of leave they can apply for. On the other hand, it can also mean bringing in new hires that may have a huge impact on the team. One must understand that a lot of employees tend to resist people-centric organizational change naturally, which can be challenging for the managers. To successfully implement such a change, focusing on transparency, clear communication, and empathy is extremely important.
- Strategical: Such changes deal with the overall strategy of an organization. In most cases, companies have to adjust their change management strategies in order to respond to opportunities and threats, improve efficiency, gain a competitive edge or make it easier to achieve their business goals. This may include updating the company’s vision and mission, or developing new skills and teams to handle certain tasks.
- Structural: Structural changes in an organization may involve altering the hierarchy, redistributing responsibilities, modifying the chain of command, or implementing other significant adjustments that impact the operations of the company. These changes are usually driven by a combination of internal and external factors.
- Technological: Technological advancements are crucial for maintaining competitiveness in the market. Companies must keep pace with technological innovations to avoid negative consequences. Implementing new technology or updating existing systems is a form of organizational change.
- Remedial: These changes are meant to solve specific problems. They are a form of reactionary changes that only come as a result of an identified issue or problem.
Regina Temple mentions that understanding the key types of organizational change makes it easier for company leadership to determine what change their enterprise is facing as well as figure out the best approaches to managing and facilitating the changes.