Why do Organizations Change?

Organization and Change


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Organization and Change > Best Practices

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

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  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:

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?

@: Thanks for your excellent contribution. Indeed (...)

  Dilip Khanal, CEO, Nepal

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

@, Editor: I am talking of small changes that go u (...)

  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?

@: Thanks for your excellent build for this topic. (...)

  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)

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

  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

@: Indeed Political, Economic, Social and Technolo (...)

  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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Organization and Change


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