Organizational change is an essential part of today’s globalized work life. In modern’s economy, teams and organisations face rapid change like never before. Globalization has not only boosted the markets and opportunities for more development and profit, it also provides opportunities for organisational members to process. However, in general, change processes make demands on both employees and management, regardless of the content of the change process. Facing of the tide of globalization, one of the dominant disputes that human resource professional’s face is what method to improve organizational competitive advantage in the hastily changing environment. Organisational change come about multiple reasons, it is undertaken to ameliorate the accomplishment of that particular organization or a portion of the organization, for instance, a process or team. For organisations to be able to prosper, it is essential for them to go through an important alteration at different sections during their growth. Significant organizational change occurs when the overall strategy of an organisation changes, for instance, in order to achieve appropriate outcomes, accumulation or take away a big portion or usual procedure, and/or desire to alter the nature on how it works. Organizational change can bring about pros and cons.
Advantages of Organizational Change
Change can assist a business to keep up with industry trends, making it more appealing to promising consumers as well as maintaining present consumers. For instance, one way to make sure that a business does not fall behind when an opponent established and markets a successful new product is by establishing and advertising a related product of its own.
In the process of organization change, employees will be able to acquire new skills, seek new opportunities and exercise their creativity in ways that eventually favors the organization through extra ideas and increased commitment. Knowledge transfer takes place during the process when people have idiosyncratic information that is valuable to other people, and thus learning takes place during the change.
In addition, the capability to clasp change can assist employees in a business by developing new opportunities. For instance, a worker who actively applies himself/ herself to learning the new office technology can also train others who are more uncertain. This leadership role has caused the employee to position himself/ herself as a person who has the ability to guide others and is capable of assuming extra responsibilities, making her a credible candidate for approaching promotion.
Furthermore, businesses that are capable at handling or even embracing change can promote an environment that stimulates innovation. Employees will be more willing to think in a more creative manner if their ideas are acknowledge by a manager or the business owner. By stimulating employees to think in a more creative manner will enable a business grow in long run. Either a good product or a marketing idea will enables a small business to achieve it success.
Finally, an erudite or personnel change in an organization can result in employee attitudes and morale being positive. When there is a change in human resources philosophy, it enables a much relaxed work ambiance, for instance, dress down day on Friday; this kind of idea will definitely make the employees overjoyed. When an inflexible manager is substitute with one who always listens to employees’ ideas and feedback’s, employees will feel that their efforts are acknowledged and that they will give in their best regarding their job functions.
Disadvantages of Organizational Change
When major change takes place, the impact of transformation of an organisation can be effective and may frequently create complicated challenges. Change can present a risk and certain level of danger. The end results can be very costly and sometimes beyond recovery in terms of time, money, human resources, or equipment’s. It is known that human nature oppose change, especially if it is perceived to influence one’s lives adversely.
When an organization is undergoing organisational change, such as: re-structuring, or merging, it will result in employees going through the feelings of tension, stress, and uncertainty, which results in the impact on employees’ productivity output, achievement, and engagements toward the organisation. In other words, the aftermath can be out of discipline. The norm prefers foreseeable future but change disrupts it, which cause confusion and potentially an erosion of assurance. An employee lose confident and their ideas are not supported and acknowledge by the higher management may increase the stress of the employees and this might lead to staff not performing well in their daily work routine.
Secondly, during organisational change, staff members might experience loss of attachment. Most of the time, change requires working with new members, such as a new leader, or a new team. Gradually, employees will feel attached and develop a sense of faithfulness to their colleagues. Having to break up this faithfulness, can often be pressurised and make people anxious. Employees feel that the environment is doubtful, low tolerance of ambiguity, less freedom and ideal time for work, thus they will are unwilling to take risk, and therefore becoming less motivated and committed to making contributions.
Thirdly, organisational changes might lead to staffs having low morale. When the staffs opposed a change that is taking place in the workplace, they become less confident and felt hopeless about their professional future with the organisation. This is specifically so when there is a deficiency of communication within the organisation regarding the change. Lowered morale can disperse throughout the whole company, which will result in issues with both recruiting and retention of the workers.
Lastly, organisation change may result in less efficiency in employees. This is due to the employees spending much time focusing on withstanding the changes taking place in the organisation, which will results them becoming less attentive in their daily work routine which is affiliate with their jobs. Being less attentive in their work will reduce the level of adeptness and achievement among staff; this can influence the organisation’s fundamental. In reality, a decreased level of adeptness is the main reason why there is an organisation change, as changes are frequently build to reform a more cogent and productive company.
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