Impacts of Change on LSOs

Impacts of Change

Types of Impacts

Transformational Change refers to a change that is classified as major within the organisation. These types of changes often result in a complete restructure throughout the whole organisation, such as the creation of a flatter management structure.

Incremental Change refers to a change that is classified as minor within the organisation. These types of changes result in minor changes, usually involving only a few employees.

Impact of Change on the Organisational Structure

Structural Change refers to changes in the organisation’s structure, which is the organisation’s chart.

Main structural changes introduced include:

  • Outsourcing, which is the contracting of some organisational operations to outside suppliers. This may be necessary to help an organisation contain its costs and survive in the global market.
  • Flatter organisational structure. The change to flatter structures is more common in recent times. This change provides grater levels of accountability and responsibility being transferred to front-line staff.
  • Work teams which are typically associated with a change to a flatter management structure.

The aim of these changes is to streamline organisational operations, improve efficiency and empower employees to make their own decisions.

Impact of Change on the Corporate Culture

For an organisation to survive in the long-term, changes within the external or internal environments should be reflected in its Corporate Culture. If organisational culture fits the external environment, managers, and employees have the attitude that they need to compete successful. However the existing organisational culture may have to change, as it may not fit the real-world requirements.

Impact of Change on Human Resources Management

The possible impacts of changes to the organisation that may affect the Human Resources Management Function includes:

Impact on Change on Operations Management

The main impact of changes on the Management of Operations may include:

  • Emphasis on Quality Assurance
  • Human relations are improved.
  • New advances in production Technology
  • Refit and reorganize their factories to take advantage of improvements in technology