The organizational change is referred to an organization-wide change and it would include elements like mission, vision, reengineering, restructuring (which includes elements like layoffs, managing newer teams), mergers, acquisitions and etc. Another important factor must be kept in mind that change should not be done for the sake of change and the basic philosophy of change should be to accomplish to overall goal of the organization and assists the organization in achieving its mission. The change in the organization is usually aggravated from an outside force and this outside force can affect the normal working of an organization that is the reason why organizations implement change.
Elements like development of new markets, political instability in the country, increase in the productivity and etc can result in the development of a change oriented strategy. The change in an organization can transform an entire organization in such a way that if an organization is a highly reactive and responsive organization then due to certain circumstances it can change into an entrepreneurial organization. Change is usually considered as a difficult process and that is the reason why organizations usually rely on negotiated change rather than stubbornly forcing the change (Kochan, Landsbury and Macduffie 1997). Similarly, the hierarchy of an organization sometimes effects the entire organization and an organization in such circumstances might change its strategy like if the new CEO is appointed for an organization then his or her new personality can change the basic structures and strategies of an organization.
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