Organizational Change in Project Outsourcing

Types of Organizational Change

Question

A company is hired to perform some of another organization's work.

Which of the following types of organizational change is described?

Answers

Explanations

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A. B. C. D.

A.

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The correct answer is A. Outsourcing.

Outsourcing is the process of hiring an external organization to perform a specific business function that is typically carried out internally. In this scenario, one organization has hired another organization to perform some of its work. The company that is outsourcing the work is known as the client or customer, while the organization that is performing the work is known as the vendor or service provider.

Outsourcing is often used by companies to reduce costs, improve efficiency, and gain access to specialized skills or technology. It can involve outsourcing a variety of business functions, including IT, customer service, manufacturing, and accounting.

Business process change (B) is a type of organizational change that involves making significant changes to the way a company operates. This can include changes to business processes, organizational structure, and management systems. However, in the scenario described in the question, the change is primarily related to outsourcing, not a broader business process change.

Shared resources (C) refers to the practice of sharing resources such as employees, equipment, or facilities between different departments or organizations. While outsourcing may involve sharing resources to some extent, it is not the primary focus of the change described in the question.

Splitting (D) is a type of organizational change that involves dividing a company into two or more separate entities. This is not applicable to the scenario described in the question, as the change is related to outsourcing rather than a division of the organization.