Change

Executive summary

“Organizations need to continually reinvent themselves in response to an ever changing and continuously more complex environment.” Joseph Bujak

Economic Change – a history.

History has proven that the economy is always affected whenever the slightest bit of change occurs. Change can be either planned (that is, expected) or emergent (un-expected).

Planned change is expected and anticipated for and as a result it is usually easier to manage as opposed to emergent changed. Planned change generates form the organisations willingness for longevity in the industry and thus, its attempt to become more effectively and efficient.

Lewin classified a three-phased process for planned change as being: unfreezing, movement (change) and refreezing. (Lewin, 1951)

* Unfreezing – diminishing present behavioural patterns then recognising the need for change and what enhancement should take place.

* Movement (change) – developing new behavioural patterns and implementing the change.

* Refreezing – stabilising the new behavioural patterns through new policies, structures or norm. (Lewin, 1951)

Emergent change is different to planned change because of its un-predictability nature it is often difficult to manage and as a result employee resistant tends to be high; because it is often seen as threatening. Examples of emergent change are environmental turbulence (for instance the current credit crunch). Over the years organisational structure and concepts has been affected mainly by emergent change.

Environmental turbulence

This concept refers to the forces that instil the interaction between the organisation and its environment, it also refers to the pressure felt by organisations in the way it operates its business, namely its relationship with its employees, suppliers and customers. These forces are usually referred to as the PEST or PESTEL factors. It consist of the Political, Economical, Social, Technological and sometimes, environmental...