 Welcome back, welcome to chapter 4, Performance on the Conditions of Change. In this chapter I will tell you a little bit about why organizations change, how they change and what we can do to organize it in a smooth and effective way. This very first clip on chapter 4 is about types and causes of organization change. So why do organization change? And I will introduce you to a range of change theories that will probably help you to better understand the landscape of change research we're talking about today. So some examples of change, if you just read the newspapers, you turn on the first page and you'll see you come across many, many organizations that are trying to change things, trying to change the strategy, maybe downsizing, maybe moving their production or their services to another country. So these are all instances of changes in organizations and some way or another they affect people working there and they also affect how effective in the anti-organization is. So changes are oftentimes meant to make organizations better, but do they? So that's the central topic of this short clip. So just a quick overview of the types of organizational changes that you may come across in the literature. And if I read them out loud, so buying another business, acquisition or merging together with another company, trying to expand your business to another country or try to install a new line of products or services, sometimes changes involve a cultural change, so moving from a more bureaucratic organization to a customer service organization or trying to make an organization culture where employees have more say. Implement the new technology or systems, the intranet or digital systems to transform kind of knowledge and products, changes all the time imposed to organizations, trying to improve the way people work in organizations by re-engineering the processes, for example making a back office and a front office rather than have just one office. And finally, sometimes also the restructuring of organizational units. Dispose of some, merge others, even within the organization, people are shifted and moved around a lot in order to eventually improve the organization as a whole. So change is obviously something that happens a lot in organizations. So is it always smooth without any problems? No. Woodrow Wilson during the Great Recession already found that if you want to improve, want to change the way a country is organizing, he was up to new deals, he was trying to implement all the initiatives to help people back to work and to combat a big economic depression. He stated if you want to make enemies, try to change something. So he indicated that oftentimes there's a lot of opposition to change. So there's something that you need to take with you. If you want to do a change, there's probably going to be people who don't like to change. So if there's opposition and if there's always people not happy, then why do changes still happen? Well, it may be the question is too obvious, but just to give you some clues, there are forces that drive change from outside the organization. So for example, a society is changing, there's more diversity or the workforce is aging. So people expect different things, so that may cause a pressure to an organization to adjust their policies, for example, to hire or to keep all the workers on board. Technological changes, so we already mentioned that some change could involve technological improvements, but in effect, continuous change happening in the outside world also affects what organizations can do and should do, cause a big pressure to keep on board there. Economic change, think about competition, also think about, for example, financial crisis or skyrocket high inflation things, these are all things that happen outside the organization that affect the organization itself. Ecological changes, legal regulations, and also the broader environment, so ecological change, these all affect the way organizations operate and how they should adapt to that. Inside the organization, there's also a lot of things happen that can drive clues for a change to be implemented. So starting, for example, with performance problems, something goes bad in one department that should be improved, so what happens? So building on this idea of innovating work processes. Innovation at large also, human resources, we can have a need to change the organization because there's simply no people on the labor market anymore, so we need to maybe change the production in such a way that we can deal with that. Things like employee participation, so generate ideas from workers to see how the organization can maybe improve. Leadership is very interesting as a cause for internal change. Oftentimes you see that when a new leader comes on board, they feel a need to change something in the organization, sometimes even with a real factual need for doing change, but just because there's a new leader, they want to change something. Conflicts and finally safety might also cause issues in an organization that need to be addressed. The big question for our course is to try and see how human resource management can help organizations and their employees to compete and survive in an environment of continuous change. So the premise is here that changes there, it will happen, and how can we as an organization as human resource management and as individual employees cope with these changes in such a way that we'll be happy and thriving? In this clip, the most important concept that you should remember is the difference between planned change and continuous change. Plan change is the idea that there's a situation which is now and a plan for a future situation which is to come, the East and the South, and that we can actually make little steps towards the new situation. So taking all employees on board, changing the process, buying new software, doing whatever it takes, and just move the entire entity to the next situation. This assumes that it's something that you can plan, therefore it's also called planned change. In contrast, there's a load of theories that debate that is possible in today's environment to actually plan for change. Changes just happen, you can't predict what happens in the outside world. It's better to be prepared for continuous change. So when change happens, those organizations who are best capable to quickly adjust and to grasp the benefits from this new situation, they will prosper. In the next two clips I will take you by the hand and take you through the plan change and continuous change theories. In the final clip in clip 11, I will talk about how change in organizations also requires employees to continuously change. And also, since it's about human resource management, I'll explicate how organizations can help employees to adapt to change and also to benefit their own careers. Thank you.