Application of concepts from Economics into Change Management – By Alok Das Preface Change management is not just about leadership, communication, and organisational behaviour—it is also deeply rooted in economic principles. Economics helps organizations make informed decisions, allocate resources efficiently, and anticipate challenges associated with transitions. Applying economic concepts ensures that change initiatives are not only practical but also financially sustainable. Let’s do a deep dive Opportunity cost One fundamental economic principle in change management is opportunity cost—the idea that every decision comes with trade-offs. Organisations must assess which course of action will yield the most benefits with the least sacrifice. Application in the change context A company deciding between investing in automation or employee training needs to consider the long-term advantages and drawbacks of each. If automation increases efficiency but reduces the need for certain roles, the company must weigh the costs of employee displacement against the potential productivity ...
