January 27, 2023


Sapiens Digital

Structural change: The dramatic organizational change

What Is Organizational Change Management? | HBS Online

There are times when companies and businesses have no choice but to go through changes. One of those cases is when companies and businesses go through a structural change. When the market or an industry experiences a shift in how they function, that is what structural change makes references to. These shifts are mostly due to big economic developments. Keep reading if you want to find out more about this dramatic organizational change.

What is structural change?

When there is structural change, usually refers to when there is a dramatic change in how an industry, a market, or even a country works. As mentioned before, this is normally due to economic developments but also technological ones. Many companies require help with structural changes due to how affected they are by it, fortunately, there are businesses such as BiZZdesign that are experts in helping companies go through these changes. Going through changes is already a hard task while keeping a company up and running, but structural changes are a different level of difficult as the entire structure is what is being changed, which is why receiving help is beneficial and advised.

Factors that can spark structural change

One of the biggest known factors of structural change is innovation. When the beliefs used to distinguish different courses of action have deviated, that is when structural change happens. For example, when streaming services started booming and people no longer needed to go to a store to pick up DVDs, or DVR tapes to watch movies and tv shows at home, many companies had to go through structural changes.

More factors that can spark structural change include economic developments, worldwide shifts in capital and labor, transformations in the availability of resources, shifts because of supply and demand, and transitions in the political landscape.

A dynamic system

In order to have an effective structural change, the ingrained dynamism is not to be trifled with. This type of organizational change is a pretty important one as the structure of the organization will be changed, however most times this is for the better. The way the company’s hierarchy is run, the way team organization is done, and the responsibilities given to the various departments are all things that a structural change will transform.