How Change Affects Business

Change is an inevitable part of business, but it doesn’t sit well with a lot of people. In the short-term, effects of change can be painful and hard to adapt to, but it can have a positive impact on success in the long run.

By embracing change, businesses can create new opportunities for employees. They can then work on self-development by learning a new skill or software and then train others. By taking on this challenge, an employee could gain additional responsibilities and grow in their role in the company, adding more value the more they learn and develop their skills.

Certain organizational changes can have a positive effect on employee morale. If you were to relax your dress code perhaps or replace a narrow-minded manager with one more open to ideas, employee morale could rise as they are more comfortable or feel heard and respected.

When you are great at handling change, you are able to cultivate a culture that promotes innovation. If employees feel comfortable sharing ideas, they can create some great innovations to help business growth. One small idea from an employee can spark a huge success for the business.

Adapting can help a business keep up with new industry trends. Doing so can help attract new customers as well as keep current customers. If your competitor develops a new, innovative product or software, developing something similar can only help you reach new clients and retain current ones.

And changes don’t always have to be sweeping. Simple alterations to processes can help make your business more efficient. From a new point of sale to computerized payroll, these changes can help make jobs easier to complete while making things run more smoothly.

Types of Change

There are myriad changes that can occur in an organization. Here are five types of change you could encounter in your business.

Organization-Wide Change
Every employee is going to be affected by this type of change, from the CEO to the newest hires. These kinds of changes could include restructuring the organization, initiating a policy change, or rolling out a new email system.

Personnel Change
When a company either goes on a hiring binge or has to lay off employees, these are examples of personnel change. Both can have a serious effect on employee morale and productivity. Naturally many employees fear layoffs or furloughs and anxiety skyrockets but hiring brings its own challenges as well. There could be disorganization or a culture shift when bringing in a lot of new people at once.

Transformational Change
Transformational change relates to changes within a company’s organizational strategy. When you’re suited to withstand rapid changes, you can be more adaptable when the time comes. When looking at this type of change, it is important to consider current innovations, recent culture trends, and what the social climate is like in your area.

Remedial Change
Remedial change occurs when a company reacts to poor performance or a deficiency of some kind. These types of changes include new equipment or software, opening a new job to close a gap, or creating a new training or onboarding program.

Unplanned Change
This is perhaps the most stressful change that can occur – when the unexpected happens. You can plan for hiring and firing. You can roll out new initiatives after lengthy discussion. But when blindsided by something unexpected, chaos can explode through the organization.

Why Change Management is Important

The intent of organizational change management is to lesson negative reactions of any general changes in a business. Whether it’s employees learning a new skill, restructuring hierarchy and responsibilities, or rolling out new software, change management involves a top-down approach to working through change.

By managing change well, businesses are able to maintain a constant state of growth that allows workers to stay motivated and productive during the transition phase.