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Areas of Change

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Smit and Cronje identified four major areas where organisations may undertake change:

Change in Strategy

When the strategic direction of the organisation is changed in response to any of the forces mentioned earlier, a change in the organisational structure is often inevitable. Strategies change in response to changing markets, new technology and so on. An example is South African Breweries that purchased breweries overseas to become internationally competitive.

Change in Structure

This involves a change in the basic components of the organisation, decentralisation, increasing authority and span of control. The amalgamation of four financial institutions into one, the ABSA group, required the implementation of a major restructuring process.

Change in Technology

Technological changes may involve the introduction of improved production processes and equipment, new engineering processes, state-of-the-art management information processes and automation. Many companies in South Africa are turning to online Internet buying, with a resultant change in organisational structures.

Change in People

This change involves changes in the performance, attitudes, perceptions, behaviours and expectations of people. Skills development and empowerment of historically disadvantaged individuals are issues receiving a lot of attention in the South African business world today.