MC-L02

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Summary of the Lecture 02: Change Management – Types and Triggers of Organisational Change

Perspectives on Change: The lecture introduces different perspectives on organisational change, focusing on how and why change occurs within organisations.

Definitions of Change Management:

Change management is a systematic process that considers both global and specific organisational conditions, including culture, communication, structure, and personnel.

It refers to applying knowledge, tools, and resources to address change, often involving corporate strategies, structures, procedures, and technologies.

It is a style of management aimed at helping organisations and individuals respond effectively to workplace changes.

Triggers of Organisational Change (using PESTEL analysis):

Political: Laws, regulations, situations in neighbouring countries, taxation.

Economic: Competitors, suppliers, interest rates, unemployment, GDP, inflation, international trade.

Socio-cultural: Values, habits, norms, attitudes, demographics, religion, ethnicity.

Technological: Innovations and methods that transform inputs into outputs.

Legal: Employment laws, health and safety, consumer and data protection, intellectual property, and competition laws.

Environmental: Climate change, sustainability regulations, recycling, resource availability, and consumer environmental awareness.

Types of Organisational Change:

Evolutionary (Routine/Incremental): Gradual changes that happen as improvements over time.

Revolutionary (Non-routine/Strategic): Significant, often disruptive changes (e.g., a shift in corporate strategy).

Structural Changes: Modifying organisational structure (e.g., merger, acquisition, restructuring).

Example: Switching from a functional to a matrix structure or adopting a divisional structure for expansion.

Cost Changes: Actions to enhance efficiency, such as reducing budgets, laying off redundant employees, or eliminating nonessential activities.

Process Changes: Improving efficiency or effectiveness of organisational procedures (e.g., changing production settings, implementing new systems).

Cultural Changes: Shifts in shared values, assumptions, and beliefs; often the hardest to achieve (e.g., moving from hierarchical to participative management).

Key Concept: Understanding the types and triggers of change enables managers to anticipate and respond effectively to changes within organisations, contributing to their success and adaptability.​