Types of Business Change
Change is a complex phenomenon. There are different types of changes that are going on around us. Listed in this article are twelve areas in which change arises and bring some classification to it. However one may classify the change, the various heading is always interrelated. The change could be triggered by market changes, technological changes, or organizational changes.
There are several models of organizational change. A model is an integrated way of explaining why and how change takes place, based on a known and acceptable basic explanation (theory) of relationships of several aspects involved. It would be obvious that there can be different ways of explaining the change, depending on what theory we follow or use.
1. Trickle-Down Model
Two contrasting models of change are the "trickle-down" model vs. "identity search" model. In the trickle-down models of change, the change is driven by the elite group. The organizational change occurs because the top management takes a decision and adopts some new ways (technology, systems, structure, etc.) and others follow it.
2. Identity Search Model
According to the Identify Search Model, the urge to develop one's own uniqueness and identity will make the group or individuals accept change.
3. Internal Change
Another way is to look at change is to look for the external or internal forces as determinants of changes. Change can be a result of internal factors like changes in the direction and objectives and ideology of a company or a workforce.
4. External Change
The changes, which occur within the business, can result from external environments such as the development of technology, globalization of markets, or new competitors on the market.
5. Adaptation Model
Business models change as managers engage in more mundane adaptation in response to external changes. The adaptation model emphasizes the role of external factors (for example a new government policy, or competitive environment) in producing a change in organizations (more emphasis on quality, restructuring, etc.). To respond positively to environmental changes, the person must adapt.
6. Proactive Model of Change
According to the proactive model, the explanation comes from within the organization (the decision of the organization to set an example, to be a leader, to anticipate the future) and act and change itself in response to such an internal urge. Companies that take a proactive approach to change are often trying to avoid a potential future threat or to capitalize on a potential future opportunity. Corrective action was being taken before a market decline or before technology became obsolete. Positive action was being taken to seize competitive advantage before someone else did.
7. Structural Model of Change
Yet another explanation of organizational change may lie in the emphasis on the structure or the process. Structural change refers to a dramatic shift in the way a country, industry, or market operates. Successful change, according to the structure model, would require preparing the necessary structural details (technology, design of the organization, systems), and introduce them systematically.
8. Process Model of Change
The process of change entails creating the perception that a change is needed, then moving toward the new, desired level of behavior and, finally, solidifying that new behavior as the norm. People will also change, according to the process model, successful change can be planned by helping people to develop process competencies (ways of planning, decision-making, problem-solving, collaborating, communicating, etc.), and then people will find new ways of organizing, etc.
9. Adaptive Change
Adaptive change requires new learning for problem definition and solution implementation. Adaptive change requires auditing of existing systems, roles, and responsibilities. This process can often result in essentially rebuilding the entire company by redefining job descriptions, consolidation, elimination of overlap, and creating greater efficiencies. This involves the reimplementation of a change in the same organizational unit. Adaptive change is not considered threatening.
10. Innovative Change
An organization needs to constantly innovate to succeed. Innovation is about making things better, faster, or cheaper. Dynamically continuous innovation affects the way in which the company adapts to changing market conditions. This involves changes that are generally new and unfamiliar. The innovative changes create a kind of uncertainty and fear in organizations.
11. Radically Innovative Change
Radical innovation is an invention that destroys or supplants an existing business model. Radical innovation is the long-term growth strategy for revolutionary business transformation. The concept of radical innovation is about leveraging core competencies for the future and this is the most intimidating type of change. This type of change is most resisted in organizations. Radical innovation creates such a dramatic change in processes, products, or services that they transform existing markets or industries, or create new ones. Implementation of a radical change in an organization requires a long-term strategy.
12. Reactive Change
This is a change brought about by a sudden or unplanned event. Whereas the planned change is a systematic, deliberate change in the way part or all of an organization functions. In planned change the focus is on processes, people, or technology; and one person, a project team, a department, or the entire firm can be involved in the change process.
Related Links
You May Also Like
-
Recognizing Stress & its Sources
As an individual, you almost certainly know what stress feels like. Stressors are events or situations to which people must adjust. Stressors may be physical or psychological in nature. The level of severity of stress is determined not merely by exposure but the intensity, duration, and frequency of stressors. The sources of stress are many. They arise from multiple areas both with the individual and from the environment.
-
At different points in your professional career, it is helpful to identify your core values. Values are the qualities considered to be the most important guiding principles that determine the priorities in your life and greatly influence your career choices. Your career brings happiness when it is in agreement with the beliefs you have about what is important and meaningful to you. Awareness of your values will help you develop a clearer sense of what's most important to you in life.
-
We define Lean as the systematic elimination of waste through a continual effort to decrease inefficiency; the lean leader strives to create a more efficient organization. Lean leadership is a philosophy. It is a consistent way of thinking and being in your role as a leader. The focus of this approach is on raising new leaders and help their team embrace a culture of continuous improvement. Learn what we mean by lean leadership style and its principles.
-
How often do you have a plan for how you are going to spend your day but you aren't able to complete the tasks on your plan because of unimportant tasks, interruptions, or your own procrastination? Wouldn't it be great to be able to manage your schedule and your time while avoiding, or at least controlling, these time stealers? Learn the strategies to manage your schedule while still handling interruptions and demands on your time.
-
Benefits of Teams in Workplace
The use of formal work teams is commonplace in modern organizations. But why we have teams? What are the benefits or advantages that teams provide for organizations and employees? Do we really need to adopt formal team structures and use team-building approaches in organizations? Read this article to explore and learn the benefits of having formal teams in organizations.
-
Stress is a product of the busyness of modern life. It has assumed grave dimensions ever since the emergence of industrialism. In fact, stress is a natural, ongoing, dynamic, and interactive process that takes place as people adjust to their environment. Stress can be brought about by positive or negative life events. Distress can cause disease and eustress or positive stress can promote wellbeing and increased productivity. Learn to recognize and be responsible for your stress, and learn the ways to manage stress.
-
Change & Culture of Innovation
Predicting the future is a tricky business but managers need to have a future perspective in order to take business advantage and remain competitive. They need to drive and introduce constructive change to the business of the enterprise. The first step to creativity and innovation is to drive a culture of Innovation. Managers need to focus on developing future mindset all the time to keep pace with the unfolding future.
-
Many different types of teams have been identified by social scientists. Managers may encounter the diverse types of challenges while managing different kinds of teams. Challenges associated with Cross-Functional Teams might be different from that of a Geographically Dispersed Team or a Virtual Team. This article explores some common categories and subtypes of teams.
-
A manager or an employee in an organization who is experiencing a high level of stress may develop high blood pressure, ulcers, irritability, difficulty in making routine decisions, loss of appetite, accident proneness, and the like. These can be subsumed under three general categories, physiological, psychological, and behavioral symptoms. Stress can give rise to a number of changes.
-
Teams are part of the modern organizational culture. Whether you are a team leader or a team member, having a better understanding of how teams work, and being able to identify where the team is in the process, is a critical part of ensuring the team is ultimately successful. Start with the basics and understand what a team is and what role they play in an organization.
