IMPORTANCE OF THE ORGANIZATIONAL CHANGE

Importance of organizational change


Introduction

In order to improve the internal and external functionality the organizations need changes and it is the demand of time (Caetano, 1999). An organization that does not adopt changes cannot survive long in market (Boston.MA, 2000).Organizational changes provide different significant benefits e.g. it improves competitiveness, improves financial performance, enhances employees and customer satisfaction and most important is that it leads organization towards continuous improvement and sustainability. These are organizational benefits and not every individual in any organization can get benefits personally from these changes but every individual working in an organization, usually have common goals and objectives and these changes made the organization as a whole stronger (Boston.MA, 2000).

The change process is very challenging and important for organizations and can lead an organization towards a path of success. It can also make them capable to meet future demands and to compete with other market player in effective way. (Robbins, 1999) Ulrich also highlight that change for organizations is necessary to deal with the diversities and the complex market situations (Ulrich, 1998). There are different forces that influence organization for change and these forces may create expectations of improved efficiency and better services, usually external forces leads towards innovation. When organizational changes are well planned and carried in a structured way it leads to continuous improvement and organizational innovation (Boston.MA, 2000

 

Source:change-management available at https://www.youtube.com/watch?v=QWORFliXxn0

Organizational change process must be managed in order to keep organizations moving toward organizational new vision and its stated goals and objectives (Boston.MA, 2000). Nowadays business trends are changing rapidly and quickly in the globe and the organizations that don’t change cannot survive (Hage, 1999). Now organizations are facing both internal and external forces pressure that makes change inevitable. There is always a pressure on organizations to balance these forces (Senior & Fleming, 2006). It is also very important for the organization to manage the demands and expectations of the customers, employees and management; therefore there is always a need for change to meet these expectations. 


Where NOKIA went wrong      

                                                                     

                      Source:www.Googal.com                                     

 

 

At the turn of the millennium, Nokia was one of the world’s largest suppliers of mobile devices. This, of course, was before smartphone mania swept the nation (and the world).

Fast forward to 2010, and while Nokia remained profitable, the writing was on the wall. It was only a matter of time before Nokia phones, as they currently existed, would remain relevant.

Because Apple beat Nokia to market with its iPhone, the latter company missed its opportunity to lead the smartphone revolution.

Understanding this all too well — Nokia has reinvented itself time and again in its 150-plus-year history — the Finland-based company hired a new CEO to take the reins.

Ultimately, Nokia’s new management team decided to sell the company’s struggling phone division to Microsoft.

Like it has done so many times over the years (how else does a company founded in 1865 become the worldwide leader in mobile devices in the 1990s?), Nokia has changed the focus of its operations once more.

   Current situation at ABZ Pharmaceutical –In 2000 ABZ is held 5th position in Sri Lankan pharmaceutical industry all other major players were same platform so after 20 years ABZ has come down drastically and now ABZ  in 28th position in Sri Lankan pharmaceutical market.                             What happen was competitors aggressively introduce new products to the market but ABZ unable to do that..                                                                                                                                                                

 Conclusion- Organizational changes are necessary to stay in the business. It’s an era of high competition and ever changing technologies and global trends. To respond these changes accordingly and to remain compatible with them it is good for organizations to understand, adopt and implement changes. It is the need of the time, to become successful in business and get the level of sustainability.

 

References

Boston, MA (2000), Management Decision and Research Center; Washington, DC: VA Health Services

Caetano, A. (Coord.), (1999). Mudança organizacional e gestão de recursos humanos. Observatório do Emprego e Formação Profissional. Lisboa: Colprinter - Indústria Gráfica, Lda, pp 177-196

Ulrich, D. (1998), A new mandate for human resources. Harvard Business Review, Vol 76, pp, 124-134

Hage, J (1999), Organizational innovation and organizational change, Annual Review of Sociology, Vol 25, pp 597-622

Senior.B &  Fleming.J (2006), Organizational change, (3rd ed), FT, Prentice Hall

successful-change-management available at https://www.youtube.com/watch?v=QWORFliXxn0

Research and Development Service, Office of Research and Development, Dept. of Veterans Affairs 

Robbins, S. (1999). Mudança organizacional e administração do stress. In Comportamento organizacional, Rio de Janeiro: LTC, pp 394-423

 





Comments

  1. Dulan JayasingheJune 20, 2020 at 7:33 PM

    Very informative article.
    The author has nicely discussed organizational Change expalning NOKIA case that has helped to get new knowledge. I enjoyed reading this article.

    ReplyDelete

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