Managing Change, Fourth Edition

2: Reasons for Major Change

2 Reasons for Major Change

Activity 17

Think back over your own working life and/or that of other members of your family or friends. What major changes have occurred in the organizations you or they have worked for? Jot down two or three.

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In almost any organization there's a good chance that major change has taken place in recent years in one or more of the following ways:

  • the development of a totally new product or service;

  • a significant expansion or reduction of the workforce;

  • a merger with, or a take-over of/by another organization;

  • restructuring to eliminate layers of management and/or create new departmental boundaries;

  • the relocation of premises.

    The ultimate aim of any commercial organization in making such a major change is to increase its profits. But the precise nature of the change will depend on a number of factors, both within and outside the organization. As in the case of small-scale gradual change, internal factors include the need for improvements in physical conditions, resources (including finance), staff skills, relationships and procedures. Factors within the external environment may be of a political, economic, social, technological, legal or environmental nature.

  • Political factors

    The nature of the government and the policies it pursues can have a major impact on organizations. Just one example is the introduction in 2001 of the Climate Change Levy, a tax on businesses which is designed to encourage them to reduce their energy consumption. Such a tax reflects the government's growing concern over the...

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