Defining The Meaning Of Business Change Commerce Essay

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This essay will look at the defining the meaning of change, its importance and implementation within the organisation and what forces of change, for example the triggers and causes for change.

Today's environment is turbulent and fast changing, any organisation that remains static will simply lose their customers, their place against competitors and eventually the organisation will collapse/fail. Thus making change inevitable in any organisational environment, it has been argued that change as always been apart of organisational life however with a cliental base that is constantly moving the goal post in order to get the best products or services at the best price, change management is now a crucial part of any organisation structure. Internal and external forces can act as major drivers for change its how an organisation managers them that are vital.

Change management is seen as the effective application of change processes and tools at every level within an organisation (Jaward, 2009). To look at how we deal with change management effectively today, we must first look at how it was dealt with back in the 18th and 19th Centuries and how it has evolved and used in today's organisation. This essay will also look at the paradigms, models and typologies of change in order to get a better understanding of implementation and also why there is some resistance to change within the organisation environment. Research confirms that almost 60 per cent of all change projects are considered to fail.

At the end the evaluation will describe the focus needed on the understanding of change, the correct implementation of change management and what could be the outcomes if enforced correctly, and analyse organisational change, structure and theory.

Definitions of change:

Change what does it mean? Meaning to alter something, to make something different, to pass from one phase to another.

Change is a pervasive influence. We are all subject to continual change of one form or another. Change is an inescapable part of both social and organisational life (Mullins, 2005, pg909)

When looking at organisation theory the first type of theory and the earliest is known as Classical Theory which dates back to the 18th and 19th Century. During this time Britain moved from the farming industry (industrial Revolution) into what became the Second Industrial Revolution i.e. technology and economic progress grew dramatically and Britain turned into a money making industry making profit maximisation the main focus within industries. Frederick Taylor

The environment is constantly changing, for change to be effective in any form the reasons behind change need to be understood, the reasons for resistance acknowledge and diffused. Change is constantly evolving and will be one of the main focuses of any organisation that wants to succeed in today's market. Organisation change is inevitable today. Environments are changing faster than ever especially within the business world, for any organisation to succeed and get ahead of their competitor there needs to be an effective strategy of change in place and carried out by managers.

There are many factors that create a volatile environment such as the uncertain economic conditions and globalisation which brings with worldwide competition. These two factors are probably the most important and have had the most affect on companies. The credit crunch has seen the rise and fall of many small and large organisations. We are now left with companies fighting to get through the recession changing drastically to keep up with the environment in order to survive. Other forces for change can be technology, competition, world and local politics, social trends and the ever changing nature of the workforce.

Forces of Change



Nature of the workforce

More Cultural diversity

Aging population

Many new entrants with inadequate skills

Increase in professionals


Faster, cheaper and more mobile computers

Online music sharing

Deciphering of the human genetic code

Economic Shocks

Rise and fall of dot-com stocks

2000-2002 stock market collapse

Record low interest rates

Change in oil prices

USA real estate collapse


Global competitors

Mergers and consolidations

Growth of e-commerce

Social Trends

Internet chat rooms

Retirement of baby boomers

Rise in discount and 'big box' retailers

Attitude to smokers

Delayed marriages by young people

World Politics

Iraq-U.S war

Opening markets in china

War on terrorism following 9/11/01

(Robbins, 2009 pg653)

Typologies of Change

Planned Change versus Emergent Change

When one thinks of planned change it implies that the strategy has been consciously embarked upon to reach its desired effect. Planned change is instigated by the organisation and often involves a series of stages and processes. Robbins, (2009, pg 655) describes planned change as change activities that are intentional and goal oriented. Robbins also states that there are normally two goals within planned change, the first is to improve the organisations ability to change and the second goal is said to change the employee behaviour. There are many criticisms of planned change the most valuable being that as change is a continual complex and very unpredictable process. Planned change is normally incremental and can take a period of time to get through all the stages as it is methodical and slow. Planned change is most suitable for stable environments as it aims to improve effectiveness within a group. A planned change strategy is known as a analytical and rational one unlike emergent change strategy. Planned change may not be the correct type of change to use depending on the internal and external factors, for example in the current climate organisations have had to modify and change quickly in order to stay afloat.

Emergent change

This type of change strategy is one that we have seen many organisations use under the pressures of the recent recession as emergent change is one that is suited to turbulent environments. Emergent change concentrates on the transforming an organisation on a continual basis through a number of changes, it is normally a messy or can be termed a shake up within an organisation. Emergent change is most definitely unpredictable and can cause upset within an organisation especially as it undergoes the transformation.

In a journal looking at emergent change and planned change -competitors or allies (The case of XYZ construction Bernard Burnes), Burnes looks into these strategies at complementary and not competitors. Burnes concludes that organisations should avoid seeking 'the one best way approach' to change, and instead seek to identify the approach which is best suited to both type of changes they wish to undertake, according to the organisation's context.

Ackerman (1997) distinguish between three main types of change developmental, transitional, and transformational.

Development change occurs when a company decides to make an improvement to its business. When companies decide to improve their methods processes or performance management this would be considered as developmental change. It can be either planned of emergent. Development change is normally incremental and because of this normally causes little stress for the new employees as long as the reason for change conveyed and employees are educated as to why the change is being implemented. If a company to make a big decision such as closing a division

Radical versus Incremental change:

Radical change can be referred to episodic change or second change. According to Wreick and Quinn (1999) is infrequent, discontinuous and intentional. Radical change often involves replacement of one strategy with another.

Incremental also known as continuous change or first order, it is the opposite of radical, meaning that it is ongoing, evolving and cumulative. It means that people will be constantly adapting and editing their ideas. Continuous adjustments made simultaneously across units at a collective level can cause a substantial change (Effecting Change in Higher Education: Types of change).

The distinction between episodic and continuous change helps clarify thinking about an organisation's future development and evolution in relation to its long-term goals. Few organisations are in a position to decide unilaterally that they will adopt an exclusively continuous change approach. They can, however, capitalise upon many of the principles of continuous change by engendering the flexibility to accommodate and experiment with everyday contingencies, breakdowns, exceptions, opportunities and unintended consequences that punctuate organisational life (Orlikowski, 1996).

Using these characteristics proposed changes can be placed along two scales: radical - incremental and core - peripheral (Pennington 2003) Plotting the character of a proposed change along these scales can provide a sense of how difficult the introduction of any particular initiative might be and how much disturbance to the status quo it might generate. Radical changes to an institution's or department's core business will normally generate high levels of disturbance; incremental changes to peripheral activities are often considered to be unexceptional and can be accommodated as a matter of course, especially if the group involved has a successful past record of continuous improvement (Change Management: good practice and innovation 2009).

Change management is becoming one of the most talked about topics within management. It is important to determine the correct strategy that you want to use for change by having a broad understanding of the different types of change. If this is not established it will put your project of change at an immediate disadvantage. Change can be categorised in many different ways, allow most are related to the extent of the change and whether it is seen as organic (often characterised as bottom up) or driven (top-down) (Change Management-Types of change).

Change Management means to plan, initiate, realise, control, and finally stabilise change processes on both, corporate and personal level. Change management comprises both, revolutionary one-off projects and evolutionary transformations (Managing Change - Definition and Phases in Change Processes). Managing change is defined by making changes in a planned and systemic fashion. The internal and external environment can initiate an organisation to change (Definition of change management article).

There are said to be four basics definitions of Change Management:

1.   The task of managing change (from a reactive or a proactive posture)

2.  An area of professional practice (with considerable variation in competency and skill levels among practitioners)

3.  A body of knowledge (consisting of models, methods, techniques, and other tools)

4.  A control mechanism (consisting of requirements, standards, processes and procedures) (Change Management 101: A Primer).

In many organisations there are change agents that are responsible for making change happen. Change agents can be managers or non managers, current employees of the organisation, newly hired employees, or outside consultants depending on the size of the organisation (Robbins, 2009, pg655). Change agents are persons who act as catalysts within the organisation and assume the responsibility for managing the change activities. Dr Jarret (The seven myths of change management, 2003) states that change agents believe that change can be managed but these assumptions can lead to faulty interventions. He also assumes that the intentions of change agents are well intentioned however the assumptions of traditional approaches to change management present difficulties both internally and externally. Thus the outcomes being uncontrollable and unpredictable, this makes it difficult for the change agent to know best.

Change management can have two different meanings:

1: The making of changes in a planned and managed or systematic fashion

2: The response to changes over which the organisation exercises little or no control over (Managing Change - Definition and Phases in Change Processes).

Crainer states that when it comes to change managers are often reactive and refuse to accept that the necessity of change, he states that change is often and the last resort (Mullins, 2005, pg912).

Resistance To Change

Research confirms that over 60 percent of all change projects will fail. This is mainly down to resistance from individuals within the organisation. Robbins (2009, pg 657) catorgises resistance to change by individual and organisation sourcess. Individual Sources include habit, security, econominc factors, fear of the unknown and selective information processing. Organisational sourcres include structural inertia , limited forcus of change, group inertia, threat to expertise, threat to established power relationships and the threat to established resource allocations. In order for change to be sucessful these forms of resistance need to be dimished. In order to overcome change there are seven tactics that can be used and implemented by change agents. Robbins (2009, pg657) lists these as Education and Communciation, Participation