1. Unit 2 Project 2011
The Causes of Organizational Change
By Yolanda Lewis
CM 312
1

2. Unit 2 Project 2011
The word change has a tendency to scare the strongest person but unfortunately it is
necessary for things to evolve and not to stagnate.
Organizational change according to our text can traverse several different areas. Some of
these areas include: technology, customer base, competition, market structure, and the social and
political environment of the day. Internal changes concern how the company adapts to the
imposed changes (p. 14, Senge et al).
My employer Paragon Systems Inc. is undergoing major changes. Technologically we are
going to be implementing a new software program called Bold in our call center which will
supposedly make the operators jobs more efficient and will cut down on all the documentation.
The day to day operations of the business are in the hands of the owner’s son whose tight fisted
approach has rubbed many employees the wrong way. Other changes include a massive
renovation which has displaced a lot of people and in my case having to share office space with
someone who is constantly on the phone or holding loud conversations with no regard to my
trying to get work done.
Now I will go into greater detail about why change happens and how it affects companies
in great ways.
Products at companies often times are the victims of low profits and market growth.
When this happens companies can either sell the division that is not making money or end the
production of the product altogether. When another division proves to be in demand, labor and
capital are devoted to continuing to make that a success.
2

3. Unit 2 Project 2011
Earlier I mentioned government playing a part in organizational change. A change in
government can affect initiatives that will in turn cause organizations to make changes in areas
like health care where the government has major control.
Mergers and acquisitions happen when two companies become one and combine
operations. When this happens, resources are deployed and costs are cut. Google and Double
Click are an example of when two companies merge. They combined to offer superior ways for
targeting, serving, and analyzing online advertisements which would benefit customers and
consumers by making it more effective, less intrusive, and more useful.
Strategic refocus has to do with changing the strategy of how one does business. For
example AssetMaster, a company that deals with wealth management refocused its strategy after
seeing its profits stagnate. After consulting with Bain and Company, an organization which
assists companies in increasing profitability, AssetMaster saw shareholder value increase and an
increase in their market index within six months.
Other types of changes include structural changes such as the one Paragon is undergoing
with the new software, and hardware and process oriented changes when manufacturing
opportunities are deployed to achieve better productivity. U Scan checkout systems at grocery
stores and places like Wal-Mart are a perfect example of process oriented changes.
In conclusion with all of the different ways companies undergo organizational change; it
is obvious that with even the most financially stable of companies change is inevitable. Change
is required to make a company better and to keep it as relevant as possible. For example,
Facebook is facing competition from the new Google + which is supposed to be giving it some
3

4. Unit 2 Project 2011
overdue competition in the social media arena. It will be interesting to see what changes
Facebook will have to undergo to handle this new threat.
4

5. Unit 2 Project 2011
References
Bain & Company. (n.d.). Strategic Refocus For Global Wealth Management Company. Retrieved August
16, 2011, from Bain & Company: http://www.bain.com/about/client-results/strategic-refocus-for-
global-wealth-management-company.aspx
Cliff Notes. (n.d.). Types of Organizational Change. Retrieved August 16, 2011, from Cliff Notes.com:
http://www.cliffsnotes.com/study_guide/Types-of-Organizational-Change.topicArticleId-8944,articleId-
8885.html
Google Media. (2007, April 13). Google To Acquire Double Click. Retrieved August 16, 2011, from Google:
http://www.google.com/intl/en/press/pressrel/doubleclick.html
Organizational Change Management. (n.d.). Causes of Organizational Change. Retrieved August 15,
2011, from Organizational Change Management.com: http://www.organizational-change-
management.com/causes-of-organizational-change.php
5

6. Unit 2 Project 2011
6