Why Organizational Change is Importance - Major Enforcing Factors for Change Adaptation

Change permeates both human and organizational realms, constituting a ubiquitous aspect of life. It signifies the transition wherein something shifts from one state to another, with its essence evolving based on circumstances and various influencing factors.

For the past 33 years, I have looked in the mirror every morning and asked myself: 'If today were the last day of my life, would I want to do what I am about to do today?' And whenever the answer has been 'No' for too many days in a row, I know I need to change something.? ?-?Steve Jobs?

?Change is an ongoing process that demands continual adaptation. It's not just about altering characteristics or traits; it's about generating positive impacts. For instance, picking up smoking isn't genuine change—it's a harmful habit. Similarly, organizations failing to embrace new environments or opportunities aren't undergoing real change. Kodak and Nokia's downfall stemmed from their failure to adapt to digital advancements, showcasing that mere failure isn't synonymous with change. Genuine change is about embracing complexity and seizing opportunities for positive growth.

In addition, Nokia is endeavoring to re-enter the market with technological and operating system changes, representing an adaptive shift aimed at reclaiming its position in the mobile market.

We all encounter the challenge of change in our personal and organizational journeys, yet its difficulty often yields fruitful outcomes when approached wisely. Change involves the transformation of values, experiences, and results, or the deliberate process of altering something. Beyond mere variation, it encompasses the development of fresh ideas to adapt to changing environments. This principle holds true for individuals and organizations alike, navigating diverse situations throughout life's journey.

Just as individuals require change for adaptation and survival, organizations must also adeptly navigate varied circumstances to capitalize on potential opportunities. Indeed, change is imperative. Organizational change can be categorized into two distinct types.

1.?????? Evolutionary change, as outlined by Karl E. Weick (1999), canters on the organization's targeted efforts to enhance or modify specific areas. The primary focus of evolutionary change is on continuous improvement, adaptation, and adjustment to accommodate shifting environmental dynamics.

2.?????? Revolutionary change, in contrast to evolutionary change, encompasses a broad scope and is characterized by rapid and dramatic shifts. This type of change arises when existing operational methods or situations fail to effectively function and necessitate adjustment to accommodate changing factors. Organizations undergoing revolutionary change may find themselves compelled to overhaul strategies significantly to align with the evolving business environment.

In addition to the major types of change, several other factors warrant consideration:

A. Developmental Change involves adapting to new improvements and refining functions.

B. Transitional Change entails adopting new adjustments and transitioning from old practices to meet environmental demands.

C. Transformational Change encompasses fundamental shifts within an organization, such as changes in mindset, mission, vision, strategy, and identity. This type of change is often challenging, as it may require additional manpower and resources to redefine the organization's essence.

Organizations may implement various change processes based on their nature and environment. Some of the most commonly practiced processes for organizational existence include:

Unfreezing refers to the initial phase of organizational change, during which members of the organization become receptive to the need for change by recognizing and understanding the risks and crises facing the organization. By comprehending the potential challenges and crises, organizational members are motivated to embrace change and initiate the process of transformation.

Moving is a slightly intricate phase in the change process, involving modifications and adjustments to organizational goals and strategies. It serves to transform organizational actions in alignment with expectations.

Freezing is the process applied to stabilize the achievements attained during the moving phase.

Having explored the concept of change, its nature, and processes, the primary focus now shifts to understanding why organizations need to change. There are several compelling factors that organizations should consider as catalysts for change adaptation, including:

Crisis Management

Crisis management stands out as a critical factor demanding attention from organizations. Regular adaptation and engagement with customers become imperative to avert organizational crises. Change becomes necessary as a preventive measure against such crises. Key concerns for organizations include managing financial factors, workforce, organizational change, and the work environment. Since a crisis represents a negative change for an organization, which aligns with our earlier discussion where negative change equates to failure, it becomes mandatory for organizations to embrace change to stave off potential crises.

Reduction gap between product and performance

One of the primary reasons for organizational change is to bridge the gap between products and performance. Every organization's main objective is to generate profit through the sale of products or services, with target customers being crucial for success. Conducting regular research to gauge customer perception and feedback on products is essential. This allows organizations to determine whether change is necessary and to ensure that any changes implemented are well-timed and well-received. Simply put, if organizational actions are not aligning with goals and objectives, then change becomes imperative for the organization's continued existence.

Innovation and new technology

Innovation and the adoption of new technology are compelling factors driving change in many organizations. From various angles, technological advancements become essential for reasons such as reducing operational costs, implementing cost-cutting strategies like reducing the workforce, ensuring quality production, and aiming for market leadership. Technology and innovation have become integral aspects of human life, with rapidly changing customer desires and expectations. Advanced technology is indispensable for meeting these evolving demands. Moreover, technology can serve as a tool for identifying new market opportunities through innovation. For organizations to sustain their existence and improve their services, embracing technological change is imperative.

Organizational culture

"Organizational culture is civilization in the workplace." - Alan Adler

Organizational culture encompasses a broad spectrum of factors, spanning from the working environment to employee socialization. Much like an immune system for an organization, culture plays a pivotal role in shaping its identity and functioning. Cultural change is not only vital for achieving organizational goals but also for meeting employees' expectations of working in a diverse cultural setting and facilitating career growth (Watkins, 2013). With the growing emphasis on workforce diversity in the HR and corporate sectors, organizations face the imperative to continuously enhance and adapt their culture. This adaptability is crucial for seizing new opportunities and navigating through evolving business environments effectively.

Organizational change is an inevitable and multifaceted process driven by various factors. From crisis management to bridging gaps in product performance, from embracing innovation and new technology to nurturing organizational culture, organizations must continuously adapt to thrive in dynamic environments. As exemplified by the wisdom of Steve Jobs, change is essential for aligning actions with goals and fostering growth. By recognizing the need for change, understanding its drivers, and implementing effective strategies, organizations can not only survive but also excel in the face of uncertainty. Embracing change isn't just about staying afloat; it's about charting a course towards sustained success and relevance in an ever-evolving world.