When things change, it creates stress and panic for all involved - especially those at the bottom of the ladder. For example, if your organization formerly had department managers, and now that job has been done away with who does Amy, the lead report to? When facing organizational change it is vital to face it in an organized and realistic manner. In fact, many of the principles of change management apply to organizational change management.
Before you can understand organizational change, it is important to look at some of the reasons behind organizational change. Organizational change occurs because:
- A new strategy for success is needed
- A new division has been created
- A new operation has been created
- New processes have been implemented
There are also different levels of organizational change. These four levels are:
- Shaping and anticipating the organization's future - changes at this level occur when a company is still trying to define who it is and what it does in the marketplace. For example, new companies often go through organizational change when they move from getting the word out (quantity) to creating a great reputation (quality).
- (Re) defining the business to be in or core fundamentals of your business - changes here occur when the company has been around for a little while, but needs a new strategy for success or creates new divisions and operations.
- Process restructuring - changes here occur when you change how the work is done. For example, now that the business is fairly stable, processes may be restructured in order to streamline productivity.
- Process improvement - over time, quality improvement efforts will lead to the refining and improvement of processes. In a widget factory, for example, perhaps there is still too high a level of defects in a sample population. Quality improvement efforts then require process improvements - leading to organizational change and a need to manage these changes.