What are organisational change and transformation? What are its different kinds? Why is organisational change so important? The word organisational change covers a complicated transformation plan that occurs in a business.
It involves large-scale changes that take place on the whole or at least in part of the business. Such change may be caused by many factors like competition, market conditions, productivity pressures, and others. The change might also occur because of the need for a new strategy for the future, or simply for the expansion of the business. It can even happen because of the financial situation. These and other factors affect the organisational change management model.
Theory of Transformational Change
Under this theory, organisations face a series of barriers to organisational change. They are organisational change management problems that can easily be solved with effective planning, communication, and cooperation. This is not only a theory but has been proven by many organisational change management models.
The theory of transformational change management focuses on the identification and analysis of organisational change factors and the design of an effective and justifiable process for their solution. Transformational change management theory suggests that transformation occurs for two reasons: to achieve the desired result and to reduce the impact of those results. It is considered that the first reason is related to change management. The second reason is related to risk management.
This process aims to make the changes that are necessary to deal with organisational change. The changes made would be such that they make the business or organisation better positioned to face and deal with organisational change. The organisation should avoid a cycle of complacency where nothing has changed. Instead, the organisation should sustain a period of change and the key is to ensure that this change is sustainable.
Theory of Change
The theory of change and the process of change would suggest that the best way to start an effective change process is by having a clearly defined vision of the new organizational structure or business. This can be achieved by having a meeting of all stakeholders at which time they put forward their views on the need for change and how the proposed change could meet their needs. The change management function should then be responsible for creating a work package that has been tailored to all stakeholders’ needs. The package should then go back to the executive for approval so that the change can come into effect.
The process should also include an evaluation of the transformation as well as monitoring its effectiveness. The transformation might be successful if there is a continued reduction in cost and a continued increase in inefficiency. The results of the evaluation should be used as part of the selection criteria for assessing whether the change has been effective. However, just because the results are good does not mean that the change has been successful. The evaluation should be done again in about six months to ensure that the organisation continues to monitor the process and results of the change.
Change can be extremely stressful for employees, especially in an organisational change. It can be especially difficult in large organisations where communication channels have usually been robust and there are many different cultures and individuals to contend with. If it appears that the change has been ineffective, the manager may find that the culture of the business is more supportive than she thought. For an organisational change to be successful, it needs to be supported by a strategic business plan that explains the transformation and includes a strong succession plan. An effective succession plan ensures that the right people are in place to carry out the change.