Why do Organizations Change?

Organization and Change

 
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dineshbabu
Student (MBA)
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? (...) Read more? Sign up for free

  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?

  Emilio Ferrero
Management Consultant, Curacao
 

Triggers for Organizational Change

Mr. de Jonge's list is quite thorough and is usual (...)

  Dilip Khanal
CEO, Nepal
 

Change Factors in Small Organizations

Further to Mr de Jonge's list, I would like to add (...)

  Robert Gerth
Project Manager, Sweden
 

Change Factors and the Resistance to Change

This is an interesting question but I think it cou (...)

  Jaap de Jonge
Editor, Netherlands
 

What are Causes for Organizations NOT to Change?

@Robert: Thanks for your excellent contribution. I (...)

  Dilip Khanal
CEO, Nepal
 

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

@Dilip Khanal, Editor: I am talking of small chang (...)

  FREDDY VILLAVICENCIO
Business Consultant, Venezuela
 

Why Organizations Change? It is Just a Reaction to Survive

The theory of a change can illustrate why some org (...)

  Jaap de Jonge
Editor, Netherlands
 

What are the Causes of Organizational Change?

@FREDDY VILLAVICENCIO: Thanks for your excellent b (...)

  Francis
Manager, Thailand
 

What are the Cause of Organizational Change?

I think the main causes of the organizational chan (...)

  Jaap de Jonge
Editor, Netherlands
 

7 Levels of Organizational Consciousness (Barrett)

@Francis: I think you are referring to Barrett’s 7 (...)

  Frik Reynecke
Management Consultant, Saudi Arabia
 

7 Levels of Consciousness - Building a Change Agility Capability

Agile organizations will preempt change and keep w (...)

  Graham Williams
Management Consultant, South Africa
 

Why do Organizations Change? Causes

Lovely, informative discussion so far. Frik - nice (...)

  Miguel Sacramento
Business Consultant, Brazil
 

Organizations Must Change

Richard Daft, in his book "Organizations", says th (...)

  Gandhi Heryanto
Management Consultant, Indonesia
 

Causes of Change in Organizations

Many factors cause change in an organization. Glee (...)

  Charles Tombazian
Management Consultant, United States
 

The 3 C's of Change

I see many good thoughts in the stream-- I'd synth (...)

  Muhammad Moeen
HR Consultant, Pakistan
 

Internal versus External Factors

Respected Sir, I think the external factors trigge (...)

  Moses Osofero
Student (Other), Finland
 

Why Organizations Need To Change? To Survive!

Yes, organizations do change and must change; any (...)

  Ramon Perley M.Pandaan
Professor, Philippines
 

Why Organizational Changes Occur in Practice

In my experience, organizational changes commonly (...)

  Maurice Hogarth
Consultant, United Kingdom
 

PEST Factors can be External and Internal

@Jaap de Jonge: Indeed Political, Economic, Social (...)

  Graham Williams
Management Consultant, South Africa
 

Why Organizations Change? Evolutionary Dynamics

To understand WHY organisations change, another in (...)

  Sridhar Gopal
Management Consultant, India
 

Triggers of Organizational Change I have Seen

Going over the responses here has been a good lear (...)

  Maurice Hogarth
Consultant, United Kingdom
 

Organizational Well-being Health Check

Asking organisations to carry out a "well-being" c (...)

  Charles Tombazian
Management Consultant, United States
 

People are Often at the Basis of Org Change

I'd like to play a bit off Graham's, Emilio's and (...)

  FREDDY VILLAVICENCIO
Business Consultant, Venezuela
 

The World is Constantly Changing

There is not an specific answer to the original qu (...)

 

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