Therefore any change taking place within the organisation directly affects its people, which in turn affect the running of the organisation. The management of change is now commonly viewed as a complex and difficult area worthy of special attention and study (Buchanan and Boddy, 1992). Therefore the concept of organisation change and subsequently the change management have been the areas of study in the latest efforts to come out with effective management techniques. Management has to see that the change if required must be effected in such a manner it works for the betterment of the organisation and its people. There's in fact a very thin dividing line between change and innovation. While on the one hand innovation at times calls for some radical changes in the functioning of the organisation, change too may be or may not be a result of the innovation in some processing/techniques for the company. There are in general three broad categories of change:
Changes in people: Such a change involves changes in attitudes, expectations, Perceptions, Behavior etc. This type of change is also brought about when employees retire, quit, and/or are transferred, promoted, demoted or fired. The human element in an organisation is dynamic and it must always be considered as such. Human beings constantly keep changing in their characteristics depending upon the environmental factors. Also some personnel become obsolete primarily because the activity they perform becomes obsolete or the way of doing it changes drastically.
Changes in the organizational structure: Such a change involves changes in authority relationships, coordinating mechanisms, Job redesign, Spans of control etc. A 'dynamic' manager is always on the lookout for the opportunity to improve the organisation. The developments in organisation theory and the possible benefits to be gained from better organisation help stimulate and keep alive the organisation dynamics. Following the collapse of the UK housing and construction market in 1989, McInerney underwent a major restructuring; following which, McInerney Holdings was formed.
Changes in technology: If there are changes in work processes, work methods, equipment etc. This type of change generally results out of innovation.
Change brings along a component of uncertainty with it, as nobody feels totally confident about the new things. Therefore, if implemented in haste, there's every chance that such a change will be resisted. Change should therefore be implemented in a 'controlled' manner to ensure that change is seen to be implemented in an orderly and consistent manner. Innovation on the other hand should be 'channeled' when decisions are made within a company. Innovation may be a precursor to change, but may equally be required for design, or problem solving of newer problems, newer projects or just for competing with the competitors. Change is generally brought about by external forces as well as some internal factors. The major external factors responsible for change are;
Marketplace: If the market sees newer marketing techniques, marketing communication methods, competition, etc. then the company is required to take an appropriate step so that it remains in business and continues to grow. In today's competitive environment this is one of the potent reasons for change. For example, the construction major of Ireland McInerney Holdings Plc found the leisure market in the Iberian Peninsula attractive,