Organizational Change in todays business environment

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INTRODUCTIONOrganizational change is a concept that regularly occurs due to the nature of today's business environment. (McNamara, 2007) It is common in business communications, strategy, management and leadership. (McNamara, 2007) Change occurs when an organization revolutionizes parts or its entire strategy and/or wants to change the way it operates. (McNamara, 2007) Thus, it involves the realigning of organizational processes and operations. In order to remain competitive and successful in today's business environment, organizations must continually undergo changes by being innovative. (McNamara, 2007) Therefore, change plays a major role in the longevity, maturity, and success of any organization. In today's business environment,…show more content…
(Varelas, 2005)Managers and employees also have the capability to initiate and influence organizational change. (McNamara, 2006) Managers who want to incorporate improvements in the organization have the power to authoritatively initiate change. (McNamara, 2006) However, it can be sometimes difficult for managers or employees to influence change in an organization based off leadership alone. (McNamara, 2006) The power of influence in organizations rests with those who are held in high regards concerning expertise and merit by their peers and/or co-workers. (McNamara, 2006) Therefore, employees often times hold more influential power than managers in this case. In some situations, organizations are encouraged to change for more positive reasons such as profitable opportunities. (McNamara, 2006) For instance, Burger King and McDonald's recently decided to extend their operating hours because of the opportunity to increase profits based on a survey on late night eating habits. This organizational change provided each organization the opportunity to excel in a very lucrative market. According to Varelas (2005), "the difference between a company's actual performance and the performance of which it is capable," is called a performance gap. (Varelas, 2005) Recognition of a performance gap often provides the movement for change, as companies strive to improve their performance to
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