Change Management Practice Test 2026 – The Comprehensive All-in-One Guide for Exam Success!

The type of change that involves major transformations within an organization, including the introduction of new policies and significant cultural adjustments, is classified as second order change. This category of change signifies a profound shift that affects the fundamental way an organization operates. It is larger in scope and complexity, often requiring a complete reevaluation of existing structures, processes, and mindsets among employees.

Second order change is necessary when incremental adjustments are insufficient to address systemic issues or to achieve desired outcomes. This level of change typically involves altering the organization's values, beliefs, and overall direction, which can be challenging as it requires not only new strategies but also a shift in the collective mindset of the workforce. The implementation of such changes often leads to resistance, necessitating effective change management strategies to facilitate the transition.

In contrast, first order change typically involves minor adjustments or updates that do not significantly alter the overarching framework of the organization and often deal with existing processes or structures without challenging the foundational beliefs. Incremental change refers to gradual, small-scale improvements, while third order change can imply a more radical shift, though it is less commonly defined in most change management literature. Thus, second order change best encapsulates the major organizational transformations described in the question.