Factors that influence organisational change
Technological Forces in Strategic Management Your company may change strategies due to the availability or lack thereof of adequate technological capabilities. The relationships, more particularly informal ones, changes because of changes in managerial personnel.
External factors of organizational change
When an organization re-evaluates its method of operations in order to cater the changing demands of the market and to survive the competition is known as organizational change. These social changes affect the behavior of people in the organization. So how do we define organizational change? For example, when Indian economy was liberalized, there were many foreign organizations that entered the Indian market. The relationships, more in the organization. There are certain factors that force the organization to change. Such changes may result in organizational changes like major functions production process, labour-management relations, nature of competitions, economic constraints, organizational methods etc. These deficiencies may be in the form of unmanageable span of management, large number of managerial levels, lack in co-ordination between various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation between the line and staff, and so on. Changing strategies will enable you to change course by addressing the inherent weaknesses and threats. Their behavior has also become very complex and leading them towards organizational goals is a challenge for the managers. Old managers are replaced by new mangers, which necessitated because of retirement, promotion, transfer or dismissal.
The result in that an organization has to change accordingly. In just a few months, the technology that an organization uses on an everyday basis may be outdated and replaced.
The youngest generation of workers is loyal to their career. For example, challenges such as product imitations by competitors pose threats to your competitive advantage.
You want to make sure that the strategic orientation of your business is realigned to account for demographic and cultural sensitivities, especially when entering new markets or designing new products for specific market segments.
What are the internal and external factors that affect an organization
The changes one experiences are happening at faster and faster rates. Old managers are replaced by new mangers, which necessitated because of retirement, promotion, transfer or dismissal. Social changes have taken place because of the several forces like level of education, urbanization, feeling of autonomy, and international impact due to new information sources. The result in that an organization has to change accordingly. Government rules and regulations: Government sets a roll of rules over different business types. Similarly, there may be changes in buyers in terms of their needs, liking —disliking and income disposal for a product. For example, when Indian economy was liberalized, there were many foreign organizations that entered the Indian market. Your company must adjust existing strategies and develop new ones to reconcile and realign the missions and objectives of the organization. To execute the new marketing strategies, the organization will have to involve certain changes. Such transformations alter the management, capital, ownership and market structures of your organization, making changes in strategic management inevitable. The relationships, more in the organization. Each must continually interact with other organizations and individuals- the consumers, suppliers, unions, shareholders, government and many more.
Organizations that learn and cope with change will thrive and flourish and others who fail to do so will be wiped out.
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