Organizational Change: 6 Types of Organizational Change

Organizational change is when your business transitions from its current status quo into an improved business model. Implementing a change management plan may be overwhelming, but it can lead to more employee engagement and a healthier business model on a large scale.

As you work to implement change, you may encounter employee resistance and other issues. You can follow a change management plan, an internal organizational structure, to implement change.

There are several types of organizational changes, including the following change management models:

1. 1. Corrective change: This kind of change happens because of poor performance, an internal issue, or financial distress. Organizational changes to correct these issues may include training programs, new technologies, or more internal support for employees.
2. 2. Culture change: Many companies hold specific beliefs and values in high esteem. Having shared values and goals can create a better culture in any organization, but sometimes companies struggle with a negative culture. Creating a more positive culture will lead to a better workplace in the long-term.
3. 3. Digital transformation: Businesses may implement digital transmission because they want to include remote work or because they need to create better systems for an already-distributed workforce. Digital transformations can focus on new technologies, tools, and processes.
4. 4. Personnel change: Companies experience personnel change processes in response to a need for more employees or because of layoffs. Either way, this makes a change in the employee’s engagement, morale, retention, and overall feelings toward the workplace. For example, new employees can drastically make a major change in the management structure and corporate culture.
5. 5. Product change: Organizational change can include the development of new products or services or adapting to new consumer needs. Employees may need to switch their focus to different products. You may need structural changes so the company can produce new products.
6. 6. Transformational change: Transformation changes target the company’s overall organizational structure. Transformation changes often happen in response to industry changes like new technologies, cultural changes, social trends, and new competition. Transformation efforts can begin because of a leader’s personal values, or because top management evaluated the company’s ranking compared to other competition.

Effective organizational change management begins with good management and decision-making processes. To effectively manage change, use some of these strategies:

1. 1. Create a sense of urgency around the proposed change. Create a sense of urgency around the proposed change initiative by speaking about why it’s needed and what will happen if the change doesn’t happen. For example, this might help avoid layoffs, or you can explain how the entire organization will benefit from these initiatives. Discussing this clearly to employees will lead to more buy-in.
2. 2. Designate a group of change leaders who can handle managing change internally. Employees, who can actively promote the change throughout the process, must trust the change leaders. Having a designated group of people from different parts of the organization can account for different factors.
3. 3. Incorporate new technology into the workplace. Top management will need to introduce new technologies throughout the entire organization as they work on implementing change. Businesses will need to provide training on new technologies and integrate these new technologies into the change management model.
4. 4. Introduce new processes into the organizational culture. Determine what type of organizational change you’d like to introduce into your workplace. Consider what would most benefit the company’s business environment. New processes might include an onboarding program for new employees or new systems and business processes.
5. 5. Provide feedback to all team members. Top management should provide feedback to employees that details how well they’ve adapted to the new status quo.
6. 6. Reflect on the current status quo. Most times, change management processes begin because of a problem. Change efforts must begin by recognizing the problems and why they occurred. Social scientist Kurt Lewin considers this part of the organizational change incredibly important because it involves everyone becoming unstuck.
7. 7. Set achievable short-term goals. Organizational change starts from the top-down, and it will typically change in small increments over a period of time. Short-term goals ensure your company is on the path toward long-term change. Set well-defined goals that top management can measure over time.
8. 8. Tap into communication skills. Effective communication is a pillar of successful change management. Employees need to understand why you need organizational change and how to implement the new strategies. Employers can use effective communication to tell employees this crucial information, which will help individuals across the entire organization accept the change initiatives.

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