The redesign of the mortgage application process by major banks is an example of which type of organizational change?

The redesign of the mortgage application process by major banks is a prime example of a paradigm shift. This type of organizational change involves a fundamental transformation in thinking, strategy, and operations within an organization. In this case, banks are not merely tweaking existing processes; they are fundamentally changing how mortgage applications are handled, potentially incorporating new technologies, customer service protocols, and business models to improve efficiency and customer experience.

This shift likely involves reassessing the underlying assumptions about their processes and embracing a new way of delivering services, which marks a significant departure from traditional practices. Such changes can significantly impact the business's overall strategy and operations, leading to improved performance and customer satisfaction.

The other concepts like automation typically relate to implementing technologies to perform tasks previously done manually. While this may play a role in redesigning processes, it does not capture the holistic transformation implied by a paradigm shift. Reengineering, although similar, implies a more radical redesign of business processes but is often more focused on specific areas rather than a comprehensive overhaul in thought and strategy. Thus, calling it a paradigm shift more accurately reflects the comprehensive, strategic change occurring within these banks.