Managing Change

1. Explain how and why organizations change

Why

Organizational change is the process by which a company changes from one state of affairs to another.
There are numerous organizational changes that could occur. It may be required to make adjustments to
a company's structure, strategy, regulations, procedures, technology, or culture. An organization may be
forced to make the change by the environment, or it may be planned years in advance. Organizational
change can be abrupt and have an impact on how a company runs, or it can be slow-moving and alter
how things are done gradually. Regardless matter the kind, change necessitates letting go of the old
ways of doing things and adjusting to the new ones. Because of this, it is fundamentally a process that
calls for effective people management.

 Workforce Demographics
Employment rate was estimated at 94.0 percent in May 2022 or 94 in every 100 persons in the
labor force had a job or business in May 2022. This was higher than the 92.3 percent
employment rate reported a year ago but lower than the employment rate of 94.3 percent in
April 2022.

In terms of magnitude, 46.08 million out of 49.01 million Filipinos in the labor force 15 years old
and over were employed in May 2022, posting an increase of 1.37 million from the 44.72 million
employed persons in May 2021.

What does this mean for companies? Organizations may realize that as the workforce gets
younger the types of benefits they prefer may change.

 Technology
Technology's rapid development can occasionally be a catalyst for change. Gordon Moore, a co-
founder of Intel Corporation, asserted in 2008 that the complexity of computer circuits will
generally double every 18 months without increasing in cost (Moore's Law). This action is
motivating businesses to update their technology swiftly. The pace of technological change can
often make it challenging for firms to adapt. The modern example comes from the music
business. When CDs were initially introduced in the 1980s, they were far more enticing than
classic LPs. Record companies were readily able to raise the price of CDs despite the fact that CD
production is substantially less expensive than LP production. For years, the status quo was
profitable for record-keeping companies. However, when peer-to-peer file sharing through
applications like Napster and Kazaa threatened the core of their business, the music industry's
corporations found themselves completely unprepared for such disruptive technological
advancements.

ü Explain the importance of organizational culture

ü Assess factors that impact change management