Impact and Benefit of Change Management

Change Management at Project Level vs. Change Management at Organizational Level

Even with a more thorough explanation, it can be hard to differentiate the certain differences between these two disciplines.

Here is a brief side-by-side look at how the two compare.

Change Management −

  • Has no excellent instruction
  • Includes less official processes
  • Has no specific timeframe
  • Puts focus on people
  • Control the impact of change arising from organizational or project developments

Project Management −

  • Has well-known instruction and quality

  • Follows a specific schedule

  • Puts focus on scientific processes and systems

  • Control the activities of a project to meet specific target and requirements

Change management complements the project management process by helping the mankind of the equation.

Impact of Change Management on Organization

There are some positive and negative impacts of change Management on Organization.

Positive Impacts of Change Management on Organization

In spite of the fact change may be an unavoidable part of doing business, it is not always welcomed with open arms by employees, executives or business owners. Employees may be in doubt to leave the informality of their comfort zone or be afraid that they won't be able to adjust to the change.

While the temporary effects of change can one day be painful, it can have a positive impact on a business' success in the long run.

  • Staying Current with Industry Trends

Change can help an employment stay current with industry trends, which can make it more engaging to potential users as well as help supporting current customers.

For example, if a candidate develops and markets a successful new product, a business can make sure that it doesn't fall behind by evolving and retailing a similar product of its own.

  • New Business Opportunities

The capacity to welcome change can help workers in a business by generating new opportunities. A worker who anxiously applies himself/herself to studying the new office computer system can also instruct others who are more unsure. By presuming this management role, the worker may position himself/herself as someone who is able to assume additional commitment, making her a possible applicant for future promotion.

  • Encouraging Business Innovation

Businesses that are changing at controlling or even welcoming change can encourage a nature that motivates innovation. Employees who feel that their plans will be thought about by a manager or executive may be more prepared to think innovatively, which can help a business grow. One best product or marketing idea can make a big dispute in the success of a small business.

  • Increased Business Efficiency

Change can increase the overall performance of hard work processes, that could make for extra satisfied customers similarly to employees. A new delivery approach can increase the rate in which a patron receives merchandise. Switching to an automatic payroll approach can also moreover propose that a salesperson is paid his commissions sooner. A new piece of device can benefit a worker in rushing up part of the producing approach in a factory.

  • Improved Employee Attitudes and Morale

A philosophical or employees alternate in an employer may have an effective impact on worker attitudes and morale. An alternative in human assets philosophy that lets in for an extra comfortable painting environment, together with enforcing an informal get dressed code, can be welcomed by way of means of personnel. When a close-minded supervisor is changed with one who's open to new ideas, personnel may also experience that they have got extra enter concerning their process functions.

Negative Impacts of Change Management on Organization

Organizational extrade can manifest for numerous reasons, such as monetary concerns, a merger or acquisition, increasing markets, accommodating boom or an easy shift in commercial enterprise model.

Whatever the reason, extrade is sort of constantly tough for personnel and it is able to wreak havoc together along with your backside line. Before saying modifications in your personnel, position yourself in their footwear that will help you to apprehend how they could react so you can mitigate dangers in your employer and useless pressure on them.

Some of the Negative Impacts of Change Management on Organization are as follows −

  • Impact on Mental Stress

A 2017 examination via way of means of the American Psychological Association concluded that 50% of those who stated they skilled organizational extrade at paintings stated feeling persistent strain, as compared with 22% via way of means of those who did not have organizational upheaval. Furthermore, 35% stated they felt bodily signs and symptoms from their strain at paintings, as compared with the handiest eight percent having such signs and symptoms after they were not experiencing organizational modifications at paintings.

  • Loss of Loyalty and Increased Turnover

Many businesses appear to have salaries and advantages because the first locations to reduce whilst seeking to make adjustments that contain cost-saving. When this happens, it is far inevitable that a few personnel will go away from the enterprise to seek employment elsewhere.

The personnel that remain, whether or not they live voluntarily or due to the fact they couldn't locate employment elsewhere, are frequently resentful. Motivation decreases, taking activity overall performance at the side of it. Employees lose their enterprise loyalty and can even turn out to be irritated enough to purposefully sabotage the enterprise.

  • Increased Time Away from Work

When organizational modifications are announced, especially while there may be downsizing involved, personnel typically divide into certainly considered one among groups: folks who will try to manipulate their destiny and people who need to get out earlier than the modifications occur.

The organization taking manipulate will commonly dig in, grow their productivity, hit their time limits and do the entirety they are able to polish in the front in their managers hoping they will sail through the modifications with their task intact.

The last personnel deal with the modifications via ways of warding off them. You also can moreover see the employees taking longer lunch hours, coming in later and leaving earlier or virtually now not coming into the place of business at all. Whether they may be looking for new jobs or virtually fending off the place of business, expect to see an increase in employee sick days at the same time as you carry out the organizational modifications.

  • Life Changes Caused by Restructuring

Some organizational modifications require predominant restructuring, ensuing in sweeping lifestyles modifications for some of personnel. Typical modifications that negatively affect a part of the personnel are earnings cuts, lack of benefits, downgrading in process position, process loss or relocation to every other city, kingdom or country. All of those may be devastating modifications to personnel, mainly folks that are assisting families.

The excellent manner to address those modifications whilst preserving the morale of the final or unaffected personnel is via means of speaking with all the personnel each step of the manner and treating the affected personnel with equity and compassion.


In this tutorial, we have seen the impact of change management and their benefits in organizational management. Employees hesitate to change their employment because of change in the organizations. They are familiar with their current organizations and are not easily able to shift in new business.

Change has both positive and negative impact on the organization. Change can motivate employees but change can also become some hesitation to employees. Not all employees easily get into the new business. They need time to manage all the work in different organizations.

Updated on: 24-Jun-2022

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