environment it operates in, it is important for an organization to adapt to changes and formulate policies and strategies which are fit for the changing environment. Due to the rapid development of technology and increased competition, the environment has become very volatile. The spread of globalization at an accelerating pace has further made the environment more and more volatile. In order to survive in such a volatile environment, organizations need to be very flexible so that they can proactively form or reform their strategies according to the changing environment. Today, one of the most important assets for any organization is its ability to manage change. Organizations which failed to be flexible enough to fit in this environment eventually died as their survival became impossible.
Change is the only constant thing in life. The world is constantly changing and it is often difficult to predict what it is changing into. The change results in hundreds of opportunities and pitfalls which an organization comes across every moment. The concept of organizational change refers to organization-wide change rather than smaller changes such as modifying a product of adding a new employee. It includes activities such as a change in mission of the company, operations restructuring, introduction of new technology, mergers, collaborations, launching new programs such as TQM, etc. Organizational change is usually provoked by outside factors such as new markets, changing consumers’ demands, substantial cuts in funding, need for an increase in the productivity, etc. As a business evolves through various cycles of a business lifecycle, it needs to change its overall strategies in order to be successful.
Any organization attempting to bring about a change must take into consideration the three key aspects of organizational life which are: the organization’s culture, the leadership and the existing network of power.
An organizational culture is defined as the