Why do Organizations Change?



Organization and Change

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dineshbabu
Student (MBA)

Why do Organizations Change?

We all know that organizations change. They have to. But exactly why do organizations change? In other words, what are the causes or reasons for change to occur in organizations?
How can these reasons be categorized in a logical way? Is there some kind of model of causes for organizational change?
 

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9
Jaap de Jonge
Editor, Netherlands
 

Why do Organizations Change? Causes

Thanks for your excellent question... A first breakdown of such reasons or causes for companies or public organizations to change could be:

WHY DO ORGANIZATIONS CHANGE?
A. Factors in the external environment
Factors outside the firm, generally beyond its control		 B. Internal factors in the organization
Factors inside the firm, generally under its control
A1. Political B1. Leadership
A2. Economic B2. Vision
A3. Social B3. Mission (statement), purpose
A4. Technological B4. Strategy
A5. Competition B5. Culture, values
A6. Customer demands B6. Policies, procedures, systems
A7. Environment, climate, pollution B7. Merger

A useful model for external factors: PEST Analysis.
A useful model of internal factors: McKinsey's 7S Framework.

Any of the 14 main causes could be further split up into a large number of sub-factors. For example A2. Economic could be further split up into: economic growth, recession, interst rates, government spending, unemployment rates, taxation, infaltion, consumer confidence, globalization, etc.

Note that some of these main causes can be viewed as external or internal. And also that certain sub-factors can be viewed as being part of multiple main causes. As usual, the reality is always more complex than the management model. But how could we manage :-) without them?

 
5
Emilio Ferrero
Management Consultant, Curacao
 

Triggers for Organizational Change

Mr. de Jonge's list is quite thorough and is usually part of strategic planning. In my experience, h... Sign up

 
5
Dilip Khanal
CEO, Nepal
 

Change Factors in Small Organizations

Further to Mr de Jonge's list, I would like to add that organizational changes also occur when some ... Sign up

 
1
Robert Gerth
Project Manager, Sweden
 

Change Factors and the Resistance to Change

This is an interesting question but I think it could be complemented with another one. When there is... Sign up

 
3
Jaap de Jonge
Editor, Netherlands
 

What are Causes for Organizations NOT to Change?

@Robert: Thanks for your excellent contribution. Indeed that is the opposite, equally interesting su... Sign up

 
3
Dilip Khanal
CEO, Nepal
 

Organizations Keep on Changing, But we don't Notice it

@Dilip Khanal, Editor: I am talking of small changes that go unnoticed. For example changing the pla... Sign up

 
2
FREDDY VILLAVICENCIO
Business Consultant, Venezuela
 

Why Organizations Change? It is Just a Reaction to Survive

The theory of a change can illustrate why some organitations were forced to change themselves. The l... Sign up

 
1
Jaap de Jonge
Editor, Netherlands
 

What are the Causes of Organizational Change?

@FREDDY VILLAVICENCIO: Thanks for your excellent build for this topic. Indeed the first phase of Kot... Sign up

 
0
Francis
Manager, Thailand
 

What are the Causes of Organizational Change?

I think the main causes of the organizational change are somehow related to the human / organization... Sign up

 
2
Jaap de Jonge
Editor, Netherlands
 

7 Levels of Organizational Consciousness (Barrett)

@Francis: I think you are referring to Barrett’s 7 Levels of Consciousness. This model is meant to a... Sign up

 
2
Frik Reynecke
Management Consultant, Saudi Arabia
 

7 Levels of Consciousness - Building a Change Agility Capability

Agile organizations will preempt change and keep working on the 7 levels of consciousness by anticip... Sign up

 
3
Graham Williams
Management Consultant, South Africa
 

Why do Organizations Change? Causes

Lovely, informative discussion so far. Frik - nice to bump into you again! Regarding the overall fra... Sign up

 
1
Miguel Sacramento
Business Consultant, Brazil
 

Organizations Must Change

Richard Daft, in his book "Organizations", says that "Organizations are open systems and, therefore,... Sign up

 
1
Gandhi Heryanto
Management Consultant, Indonesia
 

Causes of Change in Organizations

Many factors cause change in an organization. Gleeson mentions these ones: 1. Societal and technolo... Sign up

 
2
Charles Tombazian, United States
 

The 3 C's of Change

I see many good thoughts in the stream-- I'd synthesize some contributions here by saying Organizati... Sign up

 
1
Muhammad Moeen
HR Consultant, Pakistan
 

Internal versus External Factors

Respected Sir, I think the external factors trigger the need for change of the organization or restr... Sign up

 
1
Moses Osofero
Student (Other), Finland
 

Why Organizations Need To Change? To Survive!

Yes, organizations do change and must change; any organization that remains stagnant stands the risk... Sign up

 
1
Ramon Perley M.Pandaan
Professor, Philippines
 

Why Organizational Changes Occur in Practice

In my experience, organizational changes commonly or typically happen when: 1. Organizational struc... Sign up

 
2
Maurice Hogarth
Consultant, United Kingdom
 

PEST Factors can be External and Internal

@Jaap de Jonge: Indeed Political, Economic, Social and Technological can be considered as both exter... Sign up

 
2
Graham Williams
Management Consultant, South Africa
 

Why Organizations Change? Evolutionary Dynamics

To understand WHY organisations change, another interesting concept is: Evolutionary Dynamics. It is... Sign up

 
2
Sridhar Gopal
Management Consultant, India
 

Triggers of Organizational Change I have Seen

Going over the responses here has been a good learning for me. Jaap's table seems to explain it all ... Sign up

 
1
Maurice Hogarth
Consultant, United Kingdom
 

Organizational Well-being Health Check

Asking organisations to carry out a "well-being" check following major legislative, economic-market,... Sign up

 
1
Charles Tombazian, United States
 

People are Often at the Basis of Org Change

I'd like to play a bit off Graham's, Emilio's and others who have either explicity stated or eluded ... Sign up

 
1
FREDDY VILLAVICENCIO
Business Consultant, Venezuela
 

The World is Constantly Changing

There is not an specific answer to the original question because even the perspective of the analysi... Sign up

 
1
Anonymous
 

Why Organizations don't Change Despite of Being Aware they Need To

@Robert Gerth: consider the resistance factors: - Afraid for the unknown - Lack of knowledge of wh... Sign up

 
0
BELLALI Abderrahmane
Investor, Morocco
 

Why Organizations Must Change?

The business world is constantly changing, so to survive, the business must evolve. Change within c... Sign up

 
1
A McClintock
Lecturer, Australia
 

Organizational Change Due to Continuous Learning

@Jaap de Jonge: Thank you for this. It is clear that Barrett's work would answer the above question ... Sign up

   

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Organization and Change


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