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
-
Tips for Effective Time Management
After studying and analyzing how time is spent, why time is wasted, and where time is wasted you need to decide about the changes required for effective utilization of time. For this purpose, a large number of remedial measures can be taken by you. The first and foremost determinant of a planned and purposeful utilization of time is to develop consciousness of the value of time at all levels of the organization. Planning, goal setting, and defining priorities are concerns to addressed immediately.
-
Time management is the process of planning and exercising conscious control of time spent on specific activities, especially to increase effectiveness, efficiency, and productivity. The best time management techniques improve the ways you work. Time management refers to managing time effectively so that the right time is allocated to the right activity. Learn more about the five steps for effective time management viz. study, identify, analyze, decide, and implement.
-
Communication has as its central objective the transmission of meaning. The process of communication is successful only when the receiver understands an idea as the sender intended it. How does a message or an idea travel from one person to another? To transmit our message, we engage in a sensitive and complex process of communication, with different elements like sender, message, channels, receiver, noise, and feedback.
-
Collaborative leadership is all about collaborative problem-solving and decision-making or can also be defined as the leadership of a collaborative effort. . The term started to appear in the mid-1990s in response to the formation of long term public-private partnerships to rebuild public infrastructure. Learn how you can use principles of collaborative leadership to enhance your leadership skills for being an effective leader.
-
In today's innovation-driven economy, understanding how to generate great ideas has become an urgent managerial priority. Managers need to encourage and champion ideas and need to help their organizations incorporate diverse perspectives, which spur creative insights and facilitate creative collaboration by harnessing new technologies. Innovation is the embodiment, combination, and/or synthesis of knowledge in original, relevant, valued new products, processes, or services.
-
Storming Stage of Team Development
Storming is the second stage of team development and this stage is characterized by a bid for power and inter-personal conflicts. Learn the key factors that occur in the storming stage and the strategies that a team leader can adopt to pass this stage of high winds
-
In our present Hitech scenario, society is changing very fast. What are the skills that are most relevant for leaders in relation to the changing economic environment? Leaders need to develop skills to drive innovation and change in order to play a more central role in their organizations’ activities. How do managers accept the change and meet business expectations by becoming a key figure in driving change and innovation?
-
Charles Darwin had once commented that “It is not the strongest or the most intelligent who will survive but those who can best manage change.” Agility means the capability of rapidly and efficiently adapting to changes and recently, agility has been applied in the context of software development, agile enterprise, and agile leadership. Agile leaders play an important, even essential, role in scaling agility in an organization. Understand how being an agile leader helps in effectively catalyzing organizational change.
-
A good leadership style is something that every effective leader must have in order to succeed, but identifying what that entails or does not entails might be difficult to understand. Most of the research on leadership focuses on the exemplary, best practices, and positive attributes of effective and successful leaders. This article talks about a new approach to learn leadership using lessons from bad leadership. That is the lessons to be learned by examining leaders who have not effectively exercised their power, authority, or influence.
-
Creating Highly Effective Teams
How do we create effective teams? What comes to mind when you think about an effective team? High performing teams exhibit accountability, purpose, cohesiveness, and collaboration. It is a team that works seamlessly as a whole. Everyone brings unique talents and strengths and support each other to bring out the best in everyone. How do you create one?
