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Why Is Change
Important in an
Organization?
Small Business | Human Resources | Change in Organizations

By Chron Contributor Updated July 02, 2020

Any business in today's fast-moving environment that is

looking for the pace of change to slow is likely to be sorely
disappointed. The world is changing everyday: the
population is changing, customer trends are changing,
technology is changing and the economy is changing.
Businesses who fail to embrace change can easily wind up
as dinosaurs – out of touch and unable to compete under
current trading conditions.

Tip
Change is important for any organization because, without
change, businesses would lose their competitive edge and
fail to meet the ever-changing needs of customers.
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The Ever-Changing World of woman
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Without change, business leaders still would be dictating
correspondence to secretaries, editing their words and
sending them back to the drawing board, wasting time for
all involved. Change that results from the adoption of new
technology is common in most organizations, according to
Forbes. While it can be disruptive at first, ultimately the
change tends to increase productivity and service delivery.

Technology also has affected how we communicate. No

longer do business people dial a rotary phone, get a busy
signal, and try again and again and again until they get
through. No longer do business people have to laboriously
contact people, in person, to find out about other people
who might be useful resources. Now, they can search for
experts online through search engines as well as through
social media sites. Today's burgeoning communication
technology represents changes that allow organizations to
learn more, more quickly, than ever before.

Customer Needs Are Constantly Evolving

Customers who were satisfied with doing business during
regular opening hours just a few years ago now expect
your business to be always open – and available with the
swipe of a smartphone. As the world evolves, customer
needs change and grow, creating new demand for new
types of products and services. This opens up new areas
of opportunity for companies to meet those needs.

The Changing Global Economy

The economy can impact organizations in both positive
and negative ways and both can be stressful. A strong
economy and increasing demand for products and services
will mean that companies must consider expansion that
might involve the addition of staff and new facilities. These
changes offer opportunities for staff, but also represent
new challenges.

A weak economy can create even more problems as

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companies find themselves needing to make difficult
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decisions that can impact employees'
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salaries and benefits
and even threaten their jobs. The ability to manage both
ends of the spectrum are critical for organizations that
want to maintain a strong brand and strong relationships
with customers as well as employees.

Change Means Growth Opportunities

The importance of change in business environments
allows employees to learn new skills, explore new
opportunities and exercise their creativity in ways that
ultimately benefit the organization through new ideas and
increased commitment, according to Business Partner
Magazine. Preparing employees to deal with these
changes involves an analysis of the tools and training
required to help them learn new skills. Training can be
provided through traditional classroom settings or,
increasingly, through online learning opportunities.

Importantly, organizations need to do a good job of

evaluating employees' capabilities and then taking steps to
fill the gaps between current skills and the skills required to
respond to growth.

Challenging the Status Quo

Simply asking the question "Why?" can lead to new ideas
and new innovations that can directly impact the bottom
line. Organizations benefit from change that results in new
ways of looking at customer needs, new ways of delivering
customer service, new ways of strengthening customer
interactions and new products that might attract new
markets.

New employees joining an organization are especially

valuable because they can often point to areas of
opportunity for improvement that those who have been
long involved in the company might have overlooked – yet
another one of the many benefits of change. But even
existing employees should be encouraged to question why
things are done a certain way and look for new ways to get
work done faster, better and with higher levels of quality
and service. Change is necessary to be a successful long-
term business.

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MOST POPULAR
How Can Conflict Be Good for an
1 Organization?

2 Characteristics of Change Management

3 Examples of Business Change

Examples of Leading Change

4 Management

REFERENCES

How Can Conflict Be

Good for an
Organization?
By Leigh Richards Updated March 06, 2019

Conflict, while often avoided, is not necessarily bad. In fact,

conflict can be good for organizations because it
encourages open-mindedness and helps avoid the
tendency toward group think that many organizations fall
prey to. The key is
learning how to
manage conflict
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effectively so that it
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rather than a hindrance,
to organizational
improvement.

Tip
Conflict is beneficial when it highlights a specific problem
area for the organization and clears a path for change.

Conflict Encourages New Thinking

Although it is often assumed that people avoid conflict,
many people actually enjoy conflict to a certain degree
because it can be the stimulus for new thinking.
Considering a different point of view – which in certain
cases represents conflict – can open up new possibilities
and help to generate new ideas that might otherwise have
not been considered.

Conflict Raises Questions

Organizational conflict usually leads to a series of
questions for those on both sides of any issues. Those
questions can lead to new ideas and breakthroughs in
thinking that can benefit individuals, departments and
organizations. When there is no conflict, nothing changes.
There is no need to question or challenge the status quo.
Conflict represents an opportunity to reconsider, which can
lead to breakthrough thinking.
Conflict Builds Relationships
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Houston woman
MOST POPULAR
Being agreeable is nice, but encouraging
didn't 'bake' conflict can
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Five Ways That Conflict Actually Benefits
actually strengthen relationships. Organizational conflict 1 You and Your Organization
between individuals, departments and even competitors
can help to build relationships through mutual Positive & Negative Consequences of
2 Conflict in Organizations
understanding and respect. Learning to listen and listening
to learn leads to insights valued by both sides in any The Effects of Positive Conflict
3 Resolution in Organizations
conflict situation. Leaders who sincerely value the opinions
and ideas of their subordinates are not only more effective
leaders, they are also considered more valuable by their 4 The Disadvantages of Conflict Resolution
employees. If an employee feels that management values
his opinion, that employee will value his work more and
overall morale will increase.

Conflict Opens Minds

Organizations that teach employees how to manage
conflict effectively create a climate of innovation that
encourages creative thinking and opens minds to new,
previously unexplored, possibilities. Considering the
possibility for new ways of approaching challenges and
meeting the demands of a competitive business world can
result in improvements that benefit staff as well as the
organization.

Conflicts Beats Stagnation

Organizations that avoid conflict avoid change. Avoiding
change is futile and can lead to the demise of even
successful organizations. Companies that encourage staff
to approach conflict in positive and productive ways, can
beat the stagnation that opens the doors to competitors
and challenges the ability to continue to provide customers
with new and innovation solutions to meet their needs.
 Technically, a
REFERENCES WRITER BIO Houston woman
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Characteristics of
Change Management
By Jan Simon

Successful companies
often embrace change.
Based on visionary
leadership, improved
technologies and
increased competition,
executing and
managing is common occurrence in mega-corporations
and small companies. Whether organizations merge,
acquire new entities, downsize or re-brand, these actions
involve and affect the people who work there. Change
management begins with analysis followed by a planning
process. The key characteristic of successful company
transitions is a systematic approach to move the
organization from the current to the envisioned state.
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Resistance Houston woman
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As individuals, we are all bread in her…
somewhat her …
resistant to change.
Even the most carefully orchestrated change management
scenario is not exempt from challenge as change filters
through an organization. Employees handle change
differently. Some readily change directions while others
require additional coaching and handholding. Change
offers new opportunities recognized by some employees,
while others may feel a loss of autonomy. Many will even
question the need for change. To succeed in creating
change, it is necessary to anticipate resistance, identify the
roadblocks and focus on resolving employee issues.

Consistent Communication
A key factor in change management is the need to address
the people side of transition. While change initiatives are in
progress, it is necessary to communicate on a regular
basis, deliver a consistent message and handle employee
queries with open honesty. All levels of management are
responsible for delivering the same on-going message at
every opportunity. Repetition is imperative, as employees MOST POPULAR
may not understand the change process at first. It often What Are the Roles of an Employee in the
takes hearing a message six times or more before workers 1 Implementation Process?
become fully engaged.
Definition of Transformational
2 Management
Training and Goal Setting
Examples of Leading Change
After announcing and explaining the change initiative, the 3 Management
next step in the process is training. It is the responsibility
Tips on Dealing With the Human Factor in
of managers to clarify how the communicated changes 4 Change Management
impact the day-to-day work. Most importantly, to be able
adapt to change employees must understand how their
individual jobs support the company's goals. Additionally,
the organization may require new skills sets. Some
changes involve training the entire company on a new
business process, technology or set of policies. Goal
setting should accompany the new direction. Establishing
timelines and charting change activities helps employees
embrace learning new skills and provides a means of
incorporating training into theTechnically, a
daily routine.
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Recognition bread in her…
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One way to encourage change and help accelerate the

process is through recognition. Celebrating progress and
achievements not only brings visibility to the new direction,
it is a positive morale booster. Recognizing individual
contribution and team involvement publicly at meetings
and other company gatherings is instrumental in
demonstrating the progress of transition. Successful
organizations do not wait until the changes are complete
to applaud employee participation. Stopping to celebrate
success along the way is a key part of the process.

REFERENCES WRITER BIO

Examples of Business
Change
By Leigh Richards
 Technically, a
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didn't 'bake'
bread in her…
her…

There are a variety of changes that can impact a business--

internal and external. Change, while to be expected, can
unfortunately create stress for organizations and their
employees. By being aware of the areas in which change is
most likely to occur, businesses and their leaders can be
better prepared to navigate change effectively.

Health Care

The new health care law is expected to have a significant

impact on businesses across the country in ways that are
difficult to predict. However, most agree that health care
reform will result in increased costs for businesses and
employees as they bear the burden of cost for the masses
of currently uninsured people who will have new access to
health care. Health care organizations are also likely to
experience significant change as they strive to reduce
costs by changing their procedures and practices.

The Economy
The economy has the ability to impact businesses in ways MOST POPULAR
both good and bad. Ironically, good impacts can occur Why Is Change Important in an
during bad times and vice versa. For instance, during a
1 Organization?

weak economy the travel industry may suffer while the How Do Companies Make Up for Lost
home improvement sees a spike in sales as more people 2 Revenue?
decide to engage in do-it-yourself projects rather than
Why Is Urbanization Important for New
hiring contractors or buying new homes. Businesses need 3 Businesses?
to be alert to shifts in the economy so they can take
The Importance of Technology in Driving
4 Change Management
advantage of unexpected opportunities and react to
unexpected threats.

Social Media Technically, a

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Social media is having a profound impact
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is likely to continue to result in change for some time.
Social media tools like Twitter, LinkedIn and Facebook offer
new ways of communicating with consumers and
customers which can provide opportunities for business.
On the other hand, social media also opens up the potential
for risk in terms of its misuse and the potential impact on
the company brand and image.

Disruptive Innovation
Disruptive innovation is an unexpected change that causes
a significant shift in demand for a particular product or
service. Video stores were impacted by the disruptive
innovation that occurred as movies began being available
in DVD formats and the DVD industry is currently being
impacted by the movement of movies to online formats.
Shifts in the environment can cause changes in customer
demand that businesses must be alert to.

REFERENCES RESOURCES WRITER BIO

 Examples of Leading
Change Management Technically, a
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By Chron Contributor Updated June 17, 'bake'
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her…

"Change management" is a term used to describe

significant alterations to an existing business model,
philosophy or business approach. The goal is to improve a
company’s overall operations. A central premise of change
management is that organizations should lead change, not
simply manage it, according to popular change
management books by John Kotter.

Kotter's change leadership books explain that management

must provide subordinates with a clear vision of why
change is required, the way change is going to be
implemented and the anticipated results. Successful
change management leadership also requires meaningful
input and participation of subordinates. Forbes suggests
asking employees to daydream about what they could
possible do to help shape the future of the company. Ideas
are then integrated into a new business model.

Assessing Need for Change

A key element of leading change management is
identifying the specific areas of a business model that can
legitimately benefit from significant alterations. Managers
who try to fix or change an element of a business model
that is performing well just for the sake of change are
unlikely to garner the support of subordinates according to
Graziadio Business Review. Employees may feel their
existing systems and levels of performance are being
criticized and may resent the introduction of new learning
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curves and unnecessary changes.
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Change should be driven by needs analysis and

marketplace conditions. Examples of needs evaluation
include analysis of statistical data related to sales, market
penetration and market share; comparison to competitors
in terms of product and service; and the implementation of
employee and customer surveys and focus groups. Each of
these processes can help identify areas of strength and
weakness in an existing business model.

Educating Subordinates on Change Process

Employees react to change management, and they respond
in a more positive manner when they understand the
rationale behind the change. Rather than issuing edicts,
successful change management leaders demonstrate to
subordinates the positive ways in which change can
improve the performance of the company and, ultimately,
their role within it.

Change management examples include holding regular

MOST POPULAR
staff meetings to provide overviews and status reports of
Definition of Transformational
upcoming changes. Employees should be presented with 1 Management
statistical analysis and data that supports the change
rationale. By working with subordinates and department 2 Characteristics of Change Management
heads in a one-on-one environment, the manager can best
explain how change management directly impacts each Change Management (OD) Vs. Change
3 Management (Operational)
individual and his role within the company.
Strategic Organizational Change
Setting Clear Expectations 4 Exercises

Change management cannot be successfully implemented

overnight. Even when changes are in place, employees
require an adjustment period to become acquainted with
new policies, procedures and approaches. Change
management that is implemented over a designated time
period helps subordinates make small adjustments and
successfully implement new performance aspects into
their daily routines. Managers can help this process by
establishing clear timelines, giving advance notice of how
new goals should be established and by maintaining an
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open channel of communication a
with employees.
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Acknowledging Human Elements bread in her…
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The most significant aspect of leading change

management is in successfully transitioning employees
into new roles and mind-sets. Successful leaders of
change management are proactive in addressing potential
issues and objections, providing clear direction on new
expectations, offering training and education on new
responsibilities and business concepts, and allowing for a
learning curve during transitional periods.

REFERENCES

Challenges Faced by
Human Resource
Managers Because of
Technical Changes
By Jeremy Bradley Updated January 04, 2022
Your business's human resources department is
responsible for managing theTechnically,
organization's
a people. As
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adaptation and retooling. An bread in her…
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organization's workforce has
to keep up, or the company risks being left behind as tech-
savvy competitors move in.

The human resource manager plays an important role in

helping employees keep pace with technical changes.
Challenges faced by HR managers include overcoming
employee resistance, maintaining skilled workers, providing
cutting-edge training and ensuring information security.

Resistance to Change
As with any change in the workplace, changes in
technology may result in anxiety and even resistance
among employees. Technical changes can be seen
specifically as threats by employees who envision that
their roles within the company will be replaced by a
machine or computer that can do the job cheaper or faster.
Developing strategies to combat this resistance to change
is key to the human resources manager's role. This starts
by assuring employees of their worth and meaningful place
within the business and by helping them to see the
technology as an aid not a hindrance to their work.
Reminding employees of the benefits of smart phones and
apps in their personal life may ameliorate some
discomfort.
Dealing With Workforce Shortages
Even when unemployment is Technically,
at recordahigh levels, a
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shortage of skilled workers exists in many industries,
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according to the Society for Human her …
Resource
Management, or SHRM. Technical challenges faced by
human resource management include finding and keeping
workers who are adept at using new technology. This
MOST POPULAR
means two things for businesses: they must train their
How to Change Horizontal & Vertical
current employees to keep up with technical changes and 1 Signals on a Computer
they must motivate and encourage employees who they
bring on board to be the best they can be at using new Why Is Change Important in an
2 Organization?
technology. Human resources can also facilitate further
education programs, training days, conferences and Techniques to Manage Change in an
3 Organization
seminars to keep employees' skills fresh.
Employee Reactions to Organizational
Training Needs 4 Change
Providing training and support to employees who wish to
keep up with technical changes not only benefits the
company but also helps the employees who take this route
to feel like they are a vital part of the business. The human
resources manager can face this challenge head on by
identifying the core areas of the business where training is
needed and by offering either quality on-site programs or
by facilitating training opportunities for employees off-site.
Technical training should go beyond sporadic piecemeal
offerings, asserts Harvard Business Review, or HBR.

Managing Information
Challenges faced by HR managers include overseeing
personnel information and securing the privacy of
confidential data. Providing employee training on how to
secure data and prevent privacy breaches to keep business
information secure are among the difficulties human
resource managers encounter in this area. Communicating
with technology vendors and keeping up-to-date with the
technical aspects of the company are key ways for human
resources managers to recognize and confront this
challenge.
 Technically, a Newsletters
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her…

REFERENCES WRITER BIO

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