Effective Organization DQ

Effective Organizations: Theory and Practice

Module 5: Organizational Change Processes

Page 1 of 2ORG502 - Module 5: Organizational Change Processes

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Technology Regulatory Process Growth Competitive

1. Is Change Necessary? Sources of Organizational Change

Throughout our careers we have heard that the only thing that is certain is change. Sometimes we ask ourselves whether or not the change is necessary. To answer the question about whether or not change is necessary it is important to examine the sources of change and the rationale for change.

There are a variety of reasons why an organization will undergo a change process. One of the most common sources of change happens when an organization needs to improve a process and/or implement a new procedure. Often these changes are implemented as a result of internal quality management process. For example, an organization may have a process in place that monitors the satisfaction of its consumers. In gathering data, a trend might be identified that triggers a need to change a process or implement a policy within the organization.

Regulatory changes at a government level also can lead to a need for an organization to change. Consider some of the regulatory changes that have resulted in organizational change for many organizations. The Sarbanes–Oxley Act of 2002 caused many organizations to change financial processes. The Affordable Care Act has also changed the way many organizations administered their health insurance benefits.

Growth and the desire for growth are additional reasons for change within an organization. As an organization grows, there are many elements within the organization that will be impacted. This can include how the organization is both structured and led. Sometimes growth brings a great deal of change to an organization.

Competition also leads to a great deal of change within an organization. As new competitors enter a marketplace, an organization may change the way they market their products and services in order to stay competitive.

Perhaps one of the biggest sources of change has been technology. As new technologies emerge, changes can occur at all levels within an organization. Consider the impact technology has had on how people can attend meetings. These technologies have allowed global corporations to increase their communications and, as a result, change management processes.

Click on each tab below to review the various sources of change.

Sources of changes

Changes that occur as a result of changing technologies within an organization. Includes, but not limited to, new hardware, new applications, new enterprise-wide solutions, and integration of applications.

Page 2 of 2ORG502 - Module 5: Organizational Change Processes

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