How organisational change can impact people in different ways, such as changing their role or status or financial situation, and the different ways people may respond to change. (AC 3.3)

 How organisational change can impact people in different ways, such as changing their role or status or financial situation, and the different ways people may respond to change. (AC 3.3)

A number of things can cause change inside a business, including financial worries, mergers and acquisitions, growing markets, accommodating expansion, or a simple change in corporate culture. Belardinelli et al. (2021) outline that as a result ofthe change, the organisation can encounter the following effects:

• Alteration of Effect on People’s Lives: The lives of a significant number of people are drastically changed when organisational changes need comprehensive reorganisation. Common changes that have a negative effect on a group of employees include salary reductions, the elimination of benefits, job downgrading, job loss, and migration to a different city, state, or country. Workers may suffer greatly as a result of all of these developments, especially those who support their families.
• Promotes employee growth: on the plus side, constant upheaval pushes people out of their comfort zones. While some people relish the difficulties and novel experiences, others feel “comfortable” in a setting they are accustomed with. Employees who experience change are more adaptable. Employees may adapt when they accept change with a good attitude and learn to give up old habits.
• Petitions and lawsuits: For certain workers, perceived inequities or unfairness, poor management communication, and fear about upcoming change can all contribute to higher stress levels. Through staff involvement and training, this may be reduced.
• Lower Loyalty and Higher Turnover: Businesses sometimes start by looking at pay and perks when trying to cut costs. When this happens, some employees will inevitably look for work elsewhere; nonetheless, it is crucial to keep them involved in the transformation process to reduce employee turnover.

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