13.1. WHY ORGANIZATIONAL CHANGE?

Globalization and the dynamic economic landscape necessitate continually reevaluating organizational structure. Corporations have become accustomed to change but in today's society it is not so much what changes, but rather the pace at which it occurs (Prastacos et al., 2002). The need for this change can be due to a variety of factors. The following are a few of the most common ones:

Change in the Stage of the Development of the Organization. The organization may have matured, may have become too large, or may have become too static. Such changes may require new teams, work groups, different perspectives, or new managerial structures.

Program Fluctuation. In a dynamic R&D organization, it is not uncommon for the program to change. Considerable increase or decrease in a program may necessitate major change.

New Program Emphasis. Again, no research organization working on different programs at present can anticipate the emphases of future programs. As in any dynamic organization, management must respond to changing needs; and as the program emphasis changes, it becomes necessary to change the structure of the organization in response. In addition, it may be necessary to make structural changes and move people in the organization in order to provide visibility for new programs and a focal point for emerging requirements.

Customer Interface. When problems and issues with the sponsor interface exist, it is not uncommon for an R&D organization to restructure the organization to eliminate these problems.

Personnel Changes. Even if the total program and the focus of the research organization remain the same, some personnel changes (for example, loss of key personnel) could necessitate restructuring the organization.

Performance Problems. If some individuals or units are not performing well, some structural changes in the organization may be needed.

The Relationship of a Work Group to the Organization. If an R&D group within a research laboratory needs to relate differently to the main organization, major changes within the research group may be needed.

R&D and change go hand and hand, which argues for establishing a flexible organizational structure that continually fosters creativity and innovation among scientists (Dabbah, 1999).