The Importance Of Organizational Change

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CHAPTER 1
INTRODUCTION

Background of the Study
Organizational change is a growing area of importance for strategic development of modern organizations to compete in the competitive era of globalization today. According to Daniel Roque Gomes (2009), effective management of organizational change process is essential for the success of competitive organizations. Based on the study conducted by Isern & Pung (2007), which interviewing selected employees in selected organization stated that 62% of the respondents did not believe that organizational change can successfully increase work performance. It is because organizational change is an ongoing process and in order to meet these demands or stay ahead of competition, companies need to drive growth in the face of growing competition Nicolaidis (2007). The effective organization must be able to meet today’s and tomorrow’s challenges (Shivangee Singh & Pankaj Kant Dixit, 2011). The researcher further mentioned adaptability and responsiveness are essential to survive and thrive.
McKinsey & Company (2008) survey of business executives indicates that the percentage of successful change programs today is still 30%. Organizational change is important in organizations because the organization can optimize its performance through the organizational change process (Scott Keller and Carolyn Aiken, 2000). Organizational change occurs as a reaction to an ever-changing environment, a response to a current crisis situation, or is

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