Gryn Evgeniy, Ph.D. (Public Administration), applicant of Department of Production, Business and Management Organization, Kharkiv Petro Vasylenko National Technical University of Agriculture, Kharkiv, Ukraine

The concept of the management effectiveness of organizational change at the enterprise

Abstract. Introduction. The necessity for organizational changes is due to the need to ensure the current enterprise functioning and development, increase its competitiveness, and a high level of adaptation to the environment. Regardless of the nature of the organizational changes implementation, one of the most important aspects of monitoring the success is to determine the of organizational changes effectiveness. The existence of a methodological approach and tools for evaluating and ensuring the organizational changes effectiveness in the context of this theory establishing is a guarantee of the continuity of the results obtained from changes in previous periods and their prolonged use.

Purpose. The organizational change management effectiveness should include a number of aspects: the evaluation of the changes results, the analysis of management impact on the object of changes, the definition of the process of flow. All this determines the study purpose, which consists in forming a coherent concept of the organizational change management effectiveness.

Results. The main approaches to understanding the concept of “effectiveness” are considered: the allocation approach by V. Pareto, the approach from the ratio standpoint of results to costs, the target approach, the system approach, from the standpoint of the stakeholders. The difference between absolute and relative efficiency is determined, where the first one can be determined as the best way to use resources, and the second reflects the formation of a set of products of the appropriate quality to meet the consumer needs. The author’s presented concepts are presented based on the these approaches generalization: the first reflects the assessment of the enterprise functioning level in the dynamics to analyze the impact of all organizational changes that occur, to characterize their feasibility; the second involves the internal environment analysis to assess the resources available for the changes implementation; the third involves an organizational change management functions assessment at the enterprise (planning, organization, motivation, control and regulation) at different stages of their implementation; the fourth involves assessing the environment impact in order to justify the type and methods of changes; the fifth implies the use of a project approach for the direct implementation of changes, which allows combining all of the above approaches.

Conclusions. From the point of view of allocation efficiency – resources placing within the project approach for organizing changes. Calculation of net discounted profit, payback period and profitability index allows comparing changes alternatives in the ability to spend resources on their implementation. In terms of results, the organizational change management effectiveness is reflected in a set of indicators, which are calculated as the ratio of the result to the incurred costs. In terms of a targeted approach to ensuring the organizational changes effectiveness requires the correct setting of goals at the stage of project planning. In terms of a systematic approach, the effectiveness of organizational changes involves a high level of adaptation to the requirements of the environment. Taking into account the interests of stakeholders in the concept of the organizational changes effectiveness requires the development of methods of interaction with stakeholders, especially with personnel, the resistance of which can significantly affect the level of organizational changes effectiveness.

Keywords: effectiveness; organizational changes; organizational changes effectiveness; target approach; efficiency; system approach; stakeholders.

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Received: 03 October 2018

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