Bus 370 Organizational Change Research Paper

Organizational Change – Operational and Strategic Change
Hetal Patel
Organizational Development - BUS 370
David Amisano
09/29/2014

When an organization decides make changes to business model, it looks at process, people, places, and the product. “In today’s business environment, with business models in a state of flux just as products and services are, it is virtually impossible for organizations to implement their chosen strategies without undertaking the kinds of strategic initiatives that inevitably require substantial behavioral and cultural changes” (Cabrey and Haughey, 2014). It is natural for an organization to go through changes as per business needs and change is the major competence for an organization
to be successful. The reason behind organization change is the fact that current business model is not working and business is being effected by many internal and external components. Once the new business model is implemented, organization must follow the changes that were made to be successful. “Change may be impermanent, transitional, and even reversible or permanent and transformational”(Bierema, 2014) . To fix the ineffective business model, some of the area organizations would look at is their processes, culture, workforce, managing employees and resources etc. Operational change typically refers to more common changes in certain work processes, reporting structure or job roles, and Strategic changes refers to achieve the “mission and Vision”. Organization will be successful if it is able to manage the changes. . Operational changes are smaller and reversible.
Operational change refers to change in daily process to meet the business goals and cut the cost. For example: production schedule, hiring temporary workers to help cover temporary need. “Operational changes occur when A firm’s efficiency capability influences firm performance and is defined as a firm’s ability to produce goods and provide services at the lowest possible cost” (Tiantian, Yezhuang, 2011). Change in the process can effect some divisions of the organization or entire organization depending on the type of operation process. For Example: Sales organization decides to change the frequency of their sales meeting from twice a week to three time a week with sales Managers to get updates on sales numbers and understand outside market. Since Sales organization is changing the meeting frequency, it is an operational
change.
Strategic change is frequently viewed as emanating from the purposeful choices of organizational actors intent on achieving a prespecifíed goal against a backdrop of existing environmental forces” (Mackay, Chia, 2013).
The idea of organization change usually creates problems which can effect organization planning if the reasons and benefits are not communicated proper to the employees. Strategic changes are revolutionary to achieve organization mission and vision. Strategic changes include “culture, management, reward systems, recruiting and retaining a diverse workforce, recognition, incentives. “The importance and relevance of culture and values, business processes, people and engagement, and service quality and client satisfaction as the top four critical success factors for implementing strategic change initiatives” For example: Sales Organization decide to change Monthly bonus system to motivate employees. This is a reward system change.
“With a project management culture and mindset, organizations adept at the iterative process of change can enable longer-term sustainable change” (Cabrey and Haughey, 2014). Most of the time Operational changes results from strategic changes related to production of goods and growth of the organization. Strategic changes represent risk, therefore: originations must cover itself when implementing strategic
decision.

References Kash, B., Spaulding, A., Johnson, C. E., & Gamm, L. (2014). Success Factors for Strategic Change Initiatives: A Qualitative Study of Healthcare Administrators ' Perspectives. Journal Of Healthcare Management, 59(1), 65-81. http://eds.b.ebscohost.com.proxylibrary.ashford.edu/eds/pdfviewer/pdfviewer?sid=df6b88e7-38b2-42f2-9948-7705f3ba4682%40sessionmgr111&vid=0&hid=117
Bierema, L. (2014). An Introduction to Organizational Development. San Diego, CA: Bridgepoint Education, Inc.

Gao, T., & Tian, Y. (2014). Performance mechanism of learning capability based on dynamic capability framework-the mediating role of operational capabilities. Journal Of Chemical & Pharmaceutical Research, 6(4), 396-400. http://eds.a.ebscohost.com.proxy-library.ashford.edu/eds/pdfviewer/pdfviewer?sid=31ea8538-1965-47aa-861b-a58d9ecb9731%40sessionmgr4003&vid=1&hid=4103 MACKAY, R., & CHIA, R. (2013). CHOICE, CHANCE, AND UNINTENDED CONSEQUENCES IN STRATEGIC CHANGE: A PROCESS UNDERSTANDING OF THE RISE AND FALL OF NORTHCO AUTOMOTIVE. Academy Of Management Journal, 56(1), 208-230. doi:10.5465/amj.2010.0734 http://eds.b.ebscohost.com.proxy-library.ashford.edu/eds/pdfviewer/pdfviewer?sid=7e84c253-0c86-46a2-a167-e441d50ce76b%40sessionmgr113&vid=1&hid=117 http://www.pmi.org/~/media/PDF/Publications/Enabling-Change-Through-Strategic-Initiatives.ashx