The difference and relationship of the concepts of “development” and “change”
Modern organizations operate in the face of constant change. Effective change management in the technical, economic, political, demographic and social spheres allows organizations to successfully adapt to the changing external environment.
Organizational change is the process of transition of an organization, as a system, from one stable state to another using existing ideas and concepts.
Organizational development is associated with a set of measures in the field of management aimed at implementing changes in the organization and including:
change in the strategic course of the organization;
merger of several organizations;
implementation or restructuring of a data processing system implemented on modern technical means;
changing principles or markets;
introduction of a new management style, etc.
Changes in the organization affect the following aspects of its activities:
changes in the basic structure – the nature and level of business activity, legal structure, property, sources of financing, international operations and their impact, diversification, merger, joint ventures;
changes in tasks and activities – product range and range of services, new markets, customers and suppliers;
changes in the applied technology – equipment, tools, materials and energy, technological processes, office equipment;
changes in management structures and processes – internal organization, labor processes, decision-making and management processes, information systems;
changes in organizational culture – values, traditions, informal relationships, motives and processes, leadership style;
changes in staff – staff competence, motivation, behavior and work efficiency;
changes in the effectiveness of the organization – financial, economic, social and other indicators;
Organization changes are divided into two main types.
1. Natural (unplanned) changes – changes that appear without a predetermined goal are a consequence of the external environment.
2. Artificial (planned) changes – changes that are carried out purposefully in order to adapt the organization to the external environment, strengthen the management system.
Each organization has a large number of natural changes, unplanned changes. A typical example is the aging of equipment and people, which have both negative consequences (the need to repair, upgrade, replace equipment or change managers who have lost dynamism and assertiveness), as well as positive aspects (technical and managerial qualifications acquired through years of practical activity). These changes occur regardless of leadership desire. They can be taken into account, determining the future of the organization, and plan preventive measures to prevent and eliminate negative consequences.
If an organization is only subject to unplanned changes, it is a sign of poor leadership, a manifestation of unwillingness or inability to look ahead and is preparing to react at the right time to future opportunities and difficulties. Planning cannot completely eliminate the need for unplanned changes. However, the planned restructuring helps the organization to properly prepare for unexpected changes and minimizes the number of situations when you have to make responsible decisions in an atmosphere of panic.
Managers and employees must constantly make changes in the organization, thereby allowing them to effectively adapt to the external environment. Requirements for changes can be internal – come in the form of the needs and expectations of employees, and external – in the form of increased competition, technological innovation, new legislation, changes in social factors. The goals of the planned changes include improving the organization’s ability to adapt to the external environment and changing employee behavior. These include:
development of new products and technologies
increased motivation of employees
increasing customer satisfaction
increase in market share, etc.
To adapt to the changing external environment, legislative requirements, new ideas, etc. organizations need effective technologies and working methods. A change in individual behavior is bringing the behavior of employees in an organization in line with new conditions. The organization will not be able to implement its strategy, adapting it to the requirements of the external environment, if its employees do not change their attitude to work.