4 Types of Organizational Change
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Table of Contents

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What are the four types of organizational change?

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Strategic Transformational Change

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Structural Change

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Remedial Change

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People-Centric Organizational Change

Organizational change can be a tough nut to crack. Approaches might differ from business to business, but the main fundamentals will remain the same. This blog will take a look at the different types of organizational change and how they might apply to your business.

In the business world, organizational change can be a touchy subject to discuss. People don’t like change, they like consistency. Whether the change is for the good or the bad. But change can be good. It can be a way to stay current and competitive in the business world. But change isn’t for everyone. Some people are early adopters and leaders in change. Others are laggards who will refuse to adopt even the most necessary changes.

It is a known fact that the world is changing at an increasingly rapid rate and that this will continue to affect the way we do business, entertain ourselves, and even the way we communicate with one another. This is why it is important to provide a stable environment for each employee at a company so that they may adjust to the changes and help to ensure that the company is successful. There are many approaches to organizational change, and it is important to be aware of each one and the fantastic benefits that they can provide.

What are the four types of organizational change?

There are many reasons why organizations decide to change the way they do business. This process can be initiated by the organization itself or by an outside agent. This can occur due to cultural, social, behavioral, or technological changes. Organizational change can be a necessary and vital part of maintaining organizational health and growth.

In the business world, change is often necessary to remain competitive and to meet the needs of a dynamic marketplace. Change is often a welcomed part of life and is generally a good thing. However, not all change is good and some organizations have a difficult time adapting to change.

The types of Organizational Change include,

  • Strategic Transformational Change
  • Structural Change
  • Remedial Change
  • People-Centric Organizational Change

Strategic Transformational Change

Strategic transformational change management is a process of changing the overall direction of an organization or a group within an organization. Strategic transformational change is often initiated by a senior executive of the organization. Strategic transformational change is often a lengthy process and requires in depth planning and preparation. It is an exercise in creativity and requires a lot of resources and leadership. It is a process that is founded on the idea that every organization has the potential for growth and change. It is an approach that is outcome oriented, with a focus on the desired end result. The key to strategic transformational change is in the process. The process should be aimed at empowering the people who will be involved in the change and inculcating a sense of ownership among them.

Structural Change

When we think of change, we often think of structural change. This is the most common type of change we usually hear about. It involves a complete transformation of the way something works. For example, if a company was in a lot of debt, it might reorganize to cut expenses, improve efficiency, and make it easier to pay off the debt. This type of change is often difficult to implement and is rarely successful.

Remedial Change

Remedial change is the process of repairing something that has already gone wrong. Where is the use of waiting for the mistake to happen and then fixing it? If it’s not broken, don’t try to fix it. Allow the organization to work perfectly with the existing process, procedure, and system. The best way to avoid mistakes is by maintaining a well-organized environment. This way, you can be sure that everything is in its place and will not cause any problem down the road.

People-Centric Organizational Change

The most successful organizational changes are the ones that are implemented in a people-centric manner. People-centric change management focuses on the employees, customers, and other stakeholders, whose mindset and behaviors are going to be affected by the change. During this type of change, the organization focuses on the emotions of these stakeholders. The change management model for this type of change is based on the idea that if the employees and customers are happy then they will buy into your new product or service and adapt to your new policies.

At Being at Full Potential, we believe in people centric-organizational change by driving people towards BEING rather than DOING. The question that always comes up is “what is the difference between BEING and DOING?” and “how do the BEING initiatives impact the performance of my organization?” To know more about this, read our article on The business care of BEING.