How does change impact organization both negatively and positively? Explain

How does change impact organization both negatively and positively? Explain

Expert Answer

Organizational change:

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In today ever changing environment, it is imperative for organization to change themselves according to the changing needs.

There are forces which can lead to changes:

  1. Internal forces
  2. External forces

External Forces: External forces are those where in the organization do not have any control over environment. In such scenarios organizations have to adjust themselves in order to align with changing external environment.


  • Technology: In today modern world, it is the strongest external force which forces organization to change and adapt to new environment. The organizations which are able to make adjustment to changing technology and incorporate these into company operations are the one which establish themselves as leaders in the market.
  • Market Changes: Market conditions are ever changing with customers ever changing demand, needs and expectations. With increasing competition and higher value offering product entering in the market makes it necessary for the organization to change and bring more innovation and value in product offerings.

Internal Changes can be defined as changes occurring due to internal changes in the organization like Organization restructuring etc.

Negative Impact of changes on organization:

  • Short term inefficiencies in the organization: With the new changes in the organization, system in the short run becomes inefficient. Initially the employees take time understand the new process and get used to it.
  • Lack of trust on new systems: Employees do not trust the new system initially. They tend to think it is introduced to put them at disadvantage.
  • Resistance to change: It is human tendency to resist any change. Organizations need to channel out resources to overcome this resistance.
  • Higher Costs: Any organization change requires additional resources to bring change effectively in the organization.

Positive impact of changes on organization:

  • Better quality of services to customers by changing to modern best practices.
  • Reducing waste and overall cost for the company in long run.
  • Realignment or change gives company edge over its competitors.
  • It gives company access to new markets opportunities.
  • It helps bring culture of innovation in the organization.

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