History of Change Management

Introduction 

“...Organizational change can be defined as change in organizational structure, its systems, employees and relation between them in a planned or non-planned way. Also, this change process can result in good or bad…”

Varoğlu and Basım as quoted by Adnan Celik et al, 2016 

Internal and external causes can create the need for change; with internal coming from within the organisation via staff changes, systems, processes, structural, resources, relationships, cultural, etc and external from outside via technology, market changes, etc.

Organisational ecology theory and associated concepts:

-   Organisational Ecology Theory (organisations can change by interacting with their own particular environment and potentially evolve to a better outcome.)

-   Resource Dependence Theory (is a theoretical framework that explains how organizations depend on external resources and engage in collaborations with other organizations to obtain those resources, in order to manage their dependency. According to this theory, organisations respond to their environment by adapting and managing changes in their areas.)

-   Transaction Theory (in economics, transaction cost theory explains how organizations and firms try to reduce the costs of any exchange in the market. This means that organisations tend to opt for the low-cost route and evolve, change-wise, because of that.)

-   Contingency Theory (posits that there is no one best way to organize a corporation, lead a company, or make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation. This theory represented a departure from traditional management theories which emphasized a universal approach to managing organizations. Contingency theory also suggests that organizations must adapt to the       strategy, environment and technology which formed the organizational structure).

-   Strategic Choosing Theory (this theory suggests that managers are the real actors of the change process.) 

(main source: Adnan Celik et al, 2016)

The diagram below shows organisational change and some related theories: 

(source: Adnan Celik et al, 2016)

From the diagram, several theories can explain how organizations navigate change:

-   Institutional (organizations survive by adapting to and being accepted by their environment)

-   Organizational Ecology (change occurs through interaction with the environment, selecting the most suitable adaptations)

-   Resource Dependence (organizations manage change by adapting to and controlling environmental shifts)

-   Transaction Cost (organizations choose low-cost methods to implement change)

-   Contingency (organizations must align strategy, environment, and technology to structure change)

-   Strategic Choice (managers are pivotal actors in the change process)

main source: Adnan Celik et al, 2016)