Organizational Changes at the Enterprise within the Context of Its Innovative Development

Economic Annals-ХХI: Volume 148, Issue 1-2(2), Pages: 51-54

Citation information:
Grynko, T., & Gviniashvili, T. (2015). Organizational Changes at the Enterprise within the Context of Its Innovative Development. Economic Annals-XXI, 1-2(2), 51-54. https://ea21journal.world/index.php/ea-v148-13/

Tatyana Grynko
D.Sc. (Economics),
Professor,
Dnipropetrovsk National University named after Oles Honchar
72 Gagarin Str., Dnipropetrovsk, 49010, Ukraine
greisy25@gmail.com

Tatyana Gviniashvili
PhD Student (Economics),
Dnipropetrovsk National University named after Oles Honchar
72 Gagarin Str., Dnipropetrovsk, 49010, Ukraine
g_tanya@ua.fm

Organizational Changes at the Enterprise within the Context of Its Innovative Development

Abstract. Introduction. As of today, accelerated modernization and transition of national economic system and economy in its entirety to the innovation-based development is not just a trend, but a vital necessity. Successful activity of every enterprise should be followed by organizational changes in business processes. Organizational change management is one of the most demanded business technologies. In effort to adapt to constantly changing business environment conditions, enterprises experience large-scale transformations, which, in turn, call for management, because efficiency of the enterprise’s performance in the whole depends on how well the changes of organizational elements are planned and implemented. Purpose. Substantiating and establishing relationship between demand for organizational changes and types of these changes within the context of its innovative development on the principle of analysis and summarization of current economic theories concerning organizational changes.

Methods. Summarization, systematization, structuring, assessment, critical analysis and complex analysis have been applied.

Results. Performed analysis brings us to the conclusion that the problems of understanding the essence of organizational changes, assessment of performance and management methods are actively discussed by a great number of domestic and foreign scientists. Nowadays, one of the major problems facing managers is the absence of dominant paradigm or general methodology of the organizational changes analysis. Current theories of organizational changes are usually contradictory, for the most part because of the shortage of empirical evidences in favour of any concept. Any of current approaches to understanding the essence of organizational changes makes no reckoning of specific character, operating conditions and area of activities of the economic entity. Notwithstanding the fact that the theory of organizational change management as an independent branch of science develops for more than half a century, scientist did not coincide in overall opinion in respect of the most reasonable methods for research of the organizational changes processes. The article offers approach to understanding the essence of organizational changes based on the concept of the lifecycle of the enterprise. We established relationship between the life cycle stages and needs of the enterprise in implementation of certain changes. Depending on the types of organizational changes, which have the highest priority at the certain life cycle stage of the enterprise, it is possible to select and substantiate the further development strategy. Conclusion. Under current conditions of economic management, change management holds a prominent place in organization administration, namely, the changes constitute an integral part of successful activity of any enterprise. Study has found that efficient change management accelerates development of enterprises, improves the efficiency of their activity and offers the opportunity for timely reaction on change in constantly changing environment. Established relationship between the life cycle stage and needs of the enterprise in implementation of certain changes which offer the opportunity to select and substantiate the further developmental strategy.

Keywords: Change Theory; Organization; Innovative Development; Management

JEL Classіfіcatіon: L20; M11; O10

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Received 12.12.2014