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Organizational change
Organizational change refers to the process through which an organization
modifies its structures, strategies, operations, technologies, or culture to adapt to internal
and external factors. It is a vital element in ensuring that organizations remain
competitive, sustainable, and responsive to the dynamic business environment. Change
may involve minor adjustments in daily operations or large-scale transformations that
redefine the entire organization.
Importance of Organizational Change
Adaptability: Helps organizations adjust to market shifts, customer needs, and
technological innovations.
Growth and Competitiveness: Enables continuous improvement and innovation.
Management: Provides strategies to overcome challenges such as economic
downturns or global disruptions.
Employee Development: Equips staff with new skills and knowledge necessary for
organizational success.
2. Technology Technology in organizational change refers to the integration, adoption, or
transformation of technological tools, systems, and processes that help an organization
improve its operations, adapt to market demands, and remain competitive. It plays a
central role in reshaping how businesses function, communicate, and deliver value.
Impact on Organizations
Enabler of Efficiency: Streamlines workflows, reduces manual labor, and improves
productivity.
Driver of Innovation: Creates new opportunities for products, services, and
business models.
Improves Communication & Collaboration: Tools like video conferencing, and
project management platforms support coordination across departments or
locations.
Data-Driven Decision Making: Technologies such as analytics and business
intelligence allow evidence-based strategies.
3. Globalization in organizational change refers to how the increasing interconnectedness
of markets, economies, cultures, and technologies influences and transforms
organizations. It highlights the need for businesses to adapt their structures, strategies,
and operations to compete and thrive in a global environment.
Globalization in organizational change is the process by which organizations evolve to
remain competitive and effective in a world where economies, markets, and cultures are
increasingly interconnected.
Case: example
A Philippine-based clothing company expands its market to Southeast Asia and starts
exporting products to Singapore, Malaysia, and Indonesia.
Organizational Change Impact:
1. Business Operations – The company adopts international quality standards (ISO
certifications) to compete globally.
2. Workforce Adaptation – Employees are trained in cross-cultural communication
and international customer service.
3. Technology Integration – The business invests in e-commerce platforms and digital
payment systems to serve global customers.
4. Management Structure – The company creates regional offices abroad, requiring
new leadership roles and decentralized decision-making.
5. Cultural Influence – The organization embraces cultural diversity by incorporating
global fashion trends while still promoting Filipino designs.
4. Growth in organizational change refers to the process of expanding and improving an
organization’s capacity, resources, and overall performance to achieve long-term
sustainability and competitiveness. It is both a goal and a driver of organizational change,
as growth often requires structural, cultural, and strategic transformations.
For example, a small business experiencing rapid growth often transitions from informal
management to more structured systems. This includes redefining roles, introducing new
leadership positions, and implementing more efficient processes.
Growth, therefore, is not only about increasing capacity but also about reconfiguring the
organization to ensure sustainable progress.
5. Poor performance in organizational change refers to the failure of individuals, teams, or
the entire organization to meet expected standards, goals, or outcomes during or after the
process of change. It is often a signal that the change initiative is not being implemented
effectively, or that employees and systems are struggling to adapt to new processes,
structures, or expectations.
key aspects:
1. Insufficient Skills or Training – During change, employees may lack the knowledge
or skills to operate new systems or follow updated processes, which results in
performance decline.
2. Low Morale and Motivation – Change often creates uncertainty, stress, and
frustration. This can lead to disengagement, absenteeism, or even turnover—all of
which negatively affect performance.
3. Impact on Organizational Outcomes – When poor performance persists, it delays
implementation, reduces efficiency, and can cause the failure of the entire
organizational change effort.
6. Personality in organizational change refers to the set of individual traits, behaviors, and
attitudes that influence how people perceive, respond, and adapt to changes within an
organization. Since employees and leaders are at the center of every change initiative,
their personalities play a vital role in determining whether change efforts succeed or fail.
people who have a positive self-concept are better at coping with change, probably
because those who have high self-esteem may feel that whatever the changes are, they
are likely to adjust to it well and be successful in the new system. People with a more
positive self-concept and those who are more optimistic may also view change as an
opportunity to shine as opposed to a threat that is overwhelming.
Case: example
A company decides to implement a new digital system for managing tasks and
communication.
How Personality Plays a Role:
1. Open and Adaptable Employees (High Openness to Experience)
o These employees quickly embrace the new system, explore its features, and
even help train others.
o Their personality makes the transition smoother.
2. Resistant and Cautious Employees (High Neuroticism / Low Openness)
o They may feel anxious about learning new technology and prefer sticking to
old methods.
o Their resistance slows down adoption, requiring extra support and
coaching.
3. Extroverted Employees
o They encourage peers to use the system, boosting morale and motivating
others to adapt.
7. Fear of failure in organizational change refers to the anxiety or hesitation employees
and even leaders feel when facing transformation due to the possibility of not meeting
new expectations, goals, or standards. This fear is a psychological barrier that can slow
down, resist, or even change initiatives if not managed properly.
1. Impact on Performance – Anxiety and lack of confidence can lead to reduced
productivity, low morale, and even disengagement from the organization.
With strong leadership, supportive culture, and effective training, this fear can be
transformed into motivation and resilience. Ultimately, overcoming the fear of failure
is not just about managing emotions—it is about building an environment where
employees feel capable, confident, and ready to embrace change.
7.4 Planning and Executing Change Effectively
1. Unfreeze
What it means: This stage prepares the organization (and its people) for change. It
involves breaking down the existing status quo before building a new way of
operating.
Purpose: To make employees aware of the need for change and reduce resistance.
2. Change (or Transition)
What it means: This is the stage where the actual change happens. Employees
start to learn, adapt, and implement the new processes, behaviors, or systems.
Purpose: To execute the intended change and guide people through the transition.
3. Refreeze
What it means: This stage ensures that the change becomes stable, permanent,
and part of the organizational culture.
Purpose: To reinforce the change so that people don’t revert to old habits.
1. Communicating a Plan for Change in organizational change refers to the process of
clearly and effectively sharing information about the purpose, steps, and expected
outcomes of a change initiative with everyone involved in the organization. It ensures that
employees, leaders, and stakeholders understand what is changing, why it is necessary.
This process is important because communication reduces uncertainty, builds trust, and
increases employee commitment to the change. A well-communicated plan also helps
address fears, resistance, and misunderstandings.
2. Provide Support in organizational change means giving employees, teams, or stakeholders the
resources, guidance, and encouragement they need to adapt successfully to changes within the
organization.
Instrumental support may be in the form of providing a training program to employees so that
they know how to function under the new system. Effective leadership and motivation skills can
assist managers to provide support to employees.
By Providing support improves creativity, enhance productivity and build trust of organization
3. Allow Employees to Participate They will have the opportunity to voice their concerns. They can
shape the change effort so that their concerns are addressed. They will be more knowledgeable
about the reasons for change, alternatives to the proposed changes, and why the chosen
alternative was better than the others.
4. Creating Small Wins it refers to the practice of breaking down a large change initiative into
smaller, manageable steps that can produce visible and measurable results early in the process.
Instead of waiting for the full transformation to be completed, organizations aim to achieve short-
term successes that demonstrate progress, motivate employees, and build confidence in the
change effort.
These “small wins” serve as milestones that show the change is working and worth supporting.
They help reduce resistance, maintain momentum, and provide evidence that the organization is
moving in the right direction.
5. Reward Change Adoption in Organizational Change refers to the practice of recognizing,
reinforcing, and rewarding individuals or teams who successfully embrace and implement changes
within an organization. It is a motivational strategy designed to encourage employees to actively
participate in the change process, reduce resistance, and sustain the new behaviors or systems
being introduced.
