“There’s nothing wrong with change as long as it’s heading the right direction. For improvement – change, for perfection – change often.” Winston Churchill

Organizational change represents implementing new procedures or technologies to adjust the organization with the dynamic demands of business surroundings. With the organizational change, organization’s life cycle is being lifted to a higher level.

Types of changes:

• Radical changes – meaning basic change of organizational and business philosophy. Nothing is spared of redesigning or reengineering. In this sort of change Business Process Reengineering techniques are included.
• Incremental changes – are being carried out in cycles. Organization is periodically changing and trying to keep up the stage of business balance, which is always getting away from the dynamic changes in environment. This concept is based on the idea that it is necessary to capitalize the previous change’s achievements to move on with a new one.
• Continuous change – represent constantly, daily advancing business procedures and organization. Continuous change imply:
• Balanced Scorecard – focused on four strategic groups of indicators, including buyers, inner processes, learning, development and finances.
• Continuous Improvement – using the technique of continuous incremental improvement of business process to uplift the level of buyer’s contentment.
• Organizational Culture Change - deep organizational transformation which includes the change of basic values, norms, believes among the members of organization.
• Quality Management (ISO 9000) – Establishing system of quality by defining and surveillance of business processes.
• Knowledge Management – turning to collecting knowledge that is necessary for improving capacity of achieving result.
• Learning Organization – In future, capability of learning will represent only competition advantage.

Reasons of organizational change:

• Taking over – new owner is changing one or more persons in top management.
• Changing administration – present owner is changing one or more persons in top management.
• Promotion – the new executive director is introducing change, after departure of the former one.
• Reorganization – present administration is trying to introduce change