Types of change refer to what actually changes within the organization. The four types of change are changes in strategy, in structure, in technology, and in people. Because of the systems effect, you need to consider the repercussions of a change in one variable on the others and plan accordingly. As you read about each type of change, you will understand the relationship of the systems effect.

Changes in the environment often require changes in strategy. You’ll recall that an organization may change its strategy (at the corporate, business, and/or functional level). Structure refers to how the organization is departmentalized into work units. Structure commonly follows strategy. The systems process is the technology used to transform inputs into outputs, and the technology doesn’t have to be high tech. So technology is the essential part of the systems process, and how we do our jobs does change.

Organizations can’t change without changes in people by adopting new behaviors. A change in team membership is a common type of people change. A change in organizational culture is also considered a people change. People develop and implement strategy and structure. People also create, manage, and use technology; therefore, people are the most important resource. Change in other variables will not be effective without people.