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T196 Organizational Change

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Management

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Running head: ORGANIZATIONAL CHANGE 1

Organizational Change

Institution Affiliation

Date

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ORGANIZATIONAL CHANGE 2

Reasons why turnover rates and profitability loss occur

Turnover rate is the percentage of the workers or employees in an organization who leave

during a certain period of time. This turnover rate may be mostly caused by low salary. When an

organization does not pay their employees well, they may leave the organization hence leading to

a high turnover rate (Nahar, Islam and Ullah, 2017). Also, management practices are a reason

why turnover rates occur especially when the employees feel ignored, undervalued or taken

advantage of. Profitability loss also takes place because of several reasons. For instance, low

revenue may lead to profitability loss as any reduction in revenue will lead to a decrease in

profits. Another reason is high expenses where if there are high expenses then the company will

have fewer profits which will lead to a profitability loss.

Challenges that may require managed change

The organization requires managed change because of the challenges that it is facing. The

first challenge that tends to make the organization require managed change is the fact of

employee turnover. The business has had the challenge where it frequently losses employees

who decide to quit from the organization. This has led to reduced productivity of the

organization and hence affects its performance. Another challenge that may require managed

change is the quality and production of the products of the company. This is because the

organization has experienced fewer sales due to the quality of the product and hence affected its

financial performance.

Levels of the organization that may be impacted by the changes

Since the business has identified the areas that need to be changed so that it may improve

its performance, there are some levels in the organization that will be impacted. One department

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Running head: ORGANIZATIONAL CHANGE Organizational Change Institution Affiliation Date 1 ORGANIZATIONAL CHANGE 2 Reasons why turnover rates and profitability loss occur Turnover rate is the percentage of the workers or employees in an organization who leave during a certain period of time. This turnover rate may be mostly caused by low salary. When an organization does not pay their employees well, they may leave the organization hence leading to a high turnover rate (Nahar, Islam and Ullah, 2017). Also, management practices are a reason why turnover rates occur especially when the employees feel ignored, undervalued or taken advantage of. Profitability loss also takes place because of several reasons. For instance, low revenue may lead to profitability loss as any reduction in revenue will lead to a decrease in profits. Another reason is high expenses where if there are high expenses then the company will have fewer profits which will lead to a profitability loss. Challenges that may require managed change The organization requires managed change because of the challenges that it is facing. The first challenge that tends to make the organization require managed change is the fact of employee turnover. The business has had the challenge where it frequently losses employees who decide to quit from the organization. This has led to reduced productivity of the organization and hence affects its performance. Another challenge that may require managed change is the quality a ...
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