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What Is The Meaning Of Organizational Change?

Organisation change

Change and innovation both are important aspects of every business. In today’s rapidly changing environment, these two terms become important to cope up with the competitors. Change is development of stages that occur in the organization as it moves further. There are various changes that are accepted by the organization and some are not. Management, organization makes those changes in the organization that it sees as important. In the first section, concept of organization change is being discussed. As compare to change, innovation is a new idea or concept taken by the organization to create value for the organization. Innovation is done by taking the risk. There are some differences between change and innovation. Changes are comparable by seeing the previous outcomes whereas innovation is fresh new idea that is not comparable. Further, the discussion is carried on change and innovation by presenting a literature review.

In today’s rapidly changing environment, it is essential to understand the concept of organization change. According to Gartenstein (2018), it is a field of management theory that put emphasis on the stages; those organizations go through as they grow. Moving to the current business concept, there are various changes occurring in the outside environment that businesses are required to accept. However, some organizations accept those changes that are necessary to change or they see them as important. Cameron and Green (2015), further argue that change management is a plan made to initiate the changes that forces an organization to accept. On the other hand --- points out that there is need to sustain those parts that are going well in the business. The principles that are discussed in organization change theory apply to short-term as well long-term changes. In this regard, Anderson (2016), stated that organizations that accept the changes and cope up according to that likely to grow in today’s business environment while those who fail to accept the same likely to wiped out.

Changes in organization may result from internal as well as external forces. An external force that entails changes in organization includes marketing conditions (changes in expectation of customers, new modes of advertisement), technology (telecommunication system, computers, manufacturing operation), political and legal forces (changes in rules and regulation or any government policy for business), and social changes (changes in employment condition, change in lifestyle). All these external forces put pressure on the organization to change that is called reactive change. Besides these external forces, some internal forces ensure an organization to change. It includes deficiency in current management system of organization (difficulty in coordination among different departments, various obstacles for communication, lack of coordination among different level of management), change in managerial personnel (when old manager is replaced by new manager). Management to increase the effectiveness of organization is called proactive change. For small businesses, a change becomes essential in order to succeed and grow. There are various common changes that are done by today’s business environment and the most common change is financial change. When revenue of the organization is restricted; it has to start making changes by examining the costs. Besides this, sometimes managers and owners want to make some changes related to strategy in order to make the organization culture better. These changes provide high priority to the customers. In this way, every organization is required to make changes time-to-time whenever any external or internal factor forces the organization to change.

Comparison between organisation change and innovation

Change is modifying the processes; rules and infrastructure in order achieve the better result. Making changes in organization goes continuously while innovation requires setting up any new idea or concept in organization from starting. In this regard, Blok and Lemmens (2015), articulates that innovation is something new brought into the organization. It can be new process or new devices. Hosking and Anderson (2018), in his book stated that previous resources as well as knowledge are needed for organization to bring changes while innovation does not require any previous knowledge for doing innovation in organization. According to Horibe (2016), changes works with making some changes in organization while innovation in an organization done from the starting stage. For example- any technological change occurred on an organization leads to change. Linking this approach to university, much technological advancement has been done by the university that changes the pattern of study for students. All these changes brought by the university help it to reach the greater heights by satisfying the needs of the student by copying up with technological changes happening in the outside environment. Antonelli (2014), quotes definition for innovation by saying that is the introduction of new idea by any individual or group in an organization. It is a sort of creativity that helps in creating new value for the organization. Taking into account the example of innovation in university, research and development has been started by the university. In this programme, it preforms research and development on the behalf of some other companies. However, the programme is open for those firms who are conducting eligible kind of research and development by performing various activities.


When change occurs in organization, working is done on the current situations. While making changes in organization, external trends may be seen but not valued properly. On the other hand, while doing innovation, vision is the most important aspect that is taken into account. Innovation is done to find opportunities for the organization and based on that innovative solutions are recommended. Besides this, change is an outside approach, as it does not require changes in behaviour but adaptation of various people towards the current systems in the business. While, innovation is an inside approach as it comes from the person. It starts with a different mind-set and it is about the power of humans for driving excellent performance.

By taking the approach of Nagesser (2014), change is mainly done for incorporating certainties by taking the foreseeable set of steps. The outcomes of change are known by stimulating aversion of risk. In innovation, organizations focus on how to deal with uncertain things by allowing the unexpected coincidences. In change, the outcome of result is known somewhat to organizations on the other hand when innovation is done by organization, it does not know the duration of outcome. Therefore, risks are attached while doing innovation in organization. Innovation is a creative idea taken by the organization in order to provide the value and growth to the organization. Change is done in order to compare the past value in order to achieve the greater value than before. Change is done by seeing various factors in the organization. The success of change is determined by the introduction of change in the market and by comparing the previous product with the existing one. If current value of the product is higher than the previous one then the change that is adopted by the organization is treated to be successful. As compare to change, innovation is something that is beyond change. Innovation is a result of successful or failed changes that occurred in the organization. Thus, when innovation is done in the organization, the past patterns of the organizations are not compared. Innovation does not occur in order to improve but change is done to do so. Hence, Innovation is done for the satisfaction of needs rather than using the resources of organization. For example- while doing research and development, there are various unexpected results that come out that can be stated as innovation. This example perfectly suits to the innovation done by university in research and development.  In the words of Robbins and Judge (2014), innovation is independent nature on the other hand nature of change is relative. Change is independent because it is not compared nor judged. Change is continuous in nature while innovation is done sometimes as it involves huge cost. In this way, organizations are required to make innovation by seeing the pros and cons of that innovative idea. The risk associated with the innovative possesses organization to see the rules and regulation in the outside environment before taking any decision.

Conclusion 

In the limelight of above discussion, it can be concluded that change is something that is done by the pressure of external forces. Due to the changing policies of government or changing market conditions organization makes changes. Change is generally comparable by seeing the previous outcomes from current outcomes. Therefore, change is an important aspect of any business organization in order to bring some new things in the organization. Innovation, on the other hand is done for making the things better, faster and cheaper than the competitors make. Innovation is done by bringing the new idea in the organization that helps the organization in creative value and growth. In this way, both the aspects are necessary for the organization in order to succeed in the business environment.

References 

Anderson, D. L. (2016) Organization development: The process of leading organizational change. Sage Publications.

Antonelli, C. (2014) The economics of innovation, new technologies and structural change. United Kingdom: Routledge.

Blok, V. and Lemmens, P. (2015) The emerging concept of responsible innovation. Three reasons why it is questionable and calls for a radical transformation of the concept of innovation. In Responsible Innovation 2 (pp. 19-35). Springer, Cham.

Cameron, E. and Green, M. (2015) Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.

Fitzgerald, L. (2017) Organizational Change and Professionals: System Change and Professionals in Change Processes. In Challenging Perspectives on Organizational Change in Health Care (pp. 122-138). United Kingdom: Routledge.

Fullan, M. (2014) Teacher development and educational change. United Kingdom: Routledge

Gartenstein, D. (2018) What Is the Meaning of Organizational Change?. [online] Available from: https://smallbusiness.chron.com/meaning-organizational-change-35131.html [accessed 7/09/18].

Horibe, F. (2016) Creating the innovation culture: Leveraging visionaries, dissenters, and other useful troublemakers in your organization. London: VisionArts Inc.

Hosking, D.M. and Anderson, N. (2018) Organizational change and innovation: Psychological perspectives and practices in Europe. United Kingdom: Routledge.

Robbins, S.P. and Judge, T. (2014) Essentials of organizational behavior. London: Pearson.

Stensaker, B. (2015) Organizational identity as a concept for understanding university dynamics. Higher Education, 69(1), pp.103-115.

Victoria University. (2018) Research and development innovation. [online] Available from:  https://www.vu.edu.au/industry/research-development-innovation [accessed 7/09/18].

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