What is meant by organizational change?

Organizational change refers to a process where a business alters its structures, strategies, or operations to improve efficiency, respond to external market pressures, or achieve new goals. This process can encompass various transformations, including changes in company culture, leadership, team structure, or operational processes. By adapting methods or aims, a business can be better positioned to meet its objectives and react to changes in its environment.

For instance, a company might implement a new technological system to streamline operations or shift its focus to sustainability practices in response to consumer demand. Such changes are essential for growth and relevance in a constantly evolving marketplace.

The other options, while they may involve adjustments within a business context, do not effectively capture the broader concept of organizational change. Increasing employee compensation relates specifically to human resource management, introducing new products pertains more to innovation and marketing strategies, and changes in company ownership involve structural shifts rather than adjustments in methods or objectives.