The paper ' Facilitating Organization Change' is a great example of a Management Assignment. Environmental pressures for change in organizational results when an organization’ s resource base diminishes from inadequate demand for goods and services from customers, reduced market share, and poor or rather miscalculated decisions for investment. The general result of such pressure I negative impact on cash flows ad bankruptcy which in turn leads to organizational death (Palmer, et al. , 2009). The environmental pressures that lead to organizational change are fashion, mandated pressure, geopolitical, hyper-competition, reputation and credibility, and market discipline as discussed below. Fashion Pressures: In this regard, according to o Palmer et al.
(2009), the latest management fashion results to pressure for organizational change. Managers ill experience pressure to change their organizations in accordance o the latest innovations in management practices in order to make their organizations appear more professional, progressive, and advanced. Although some new fashions of management may bring about positive changes in organizations, other fashions may fail in delivering the promise of a better performing organization and thus become a great disappointment. As well understood, some new management practices have the tendency of transforming from boom to bust´ .
Additionally, the influence of market forces is inevitable for most organizations. Right from the onset, organizations enter the market in a progressive manner until a point is reached where competitive effects take control of the market to prevent new entry. This is because the competitive nature makes new entry less attractive (Marshak, 2005). Finally, it is obvious that managers may not at any case succumb continually to pressures that call them up on responding to any fashionable methods of management that are unlikely to result in negative implications. Example: Nokia and Apple do innovate new products that come with new features to existing products to satisfy every customer's demands and preferences. Mandated Pressures: With mandated pressure, from mandated requirements force organizations to adopt change within its structure.
The nature of the change itself that organizations are forced into taking up the shape of organizations taking up duties similar to those of other organizations because of outside demands that force them to adopt such changes. However, mandated pressures are of two categories that include formal coercive and informal coercive pressures within an organization.
An example of mandated pressures comes in the form of government regulations on export and imports, changes in rates of interest and taxes, and issues of inflation. Formal Coercive Pressure - Formal coercive pressure includes a major change in government regulations on business activities such as taxation policies, import, and export regulations. In this regard, most organizations find themselves forced to change their business activities in order to meet new government changes on legal and legislative matters that may include pollution requirements and tax laws.
Unlike mother organizations, subsidiary organizations may find themselves being forced to meet some standards of accounting, certain performance criteria, and other practices that conform to the needs of the mother company. Informal Coercive Pressure Informal coercive pressure includes organizational commitment and dedication to certain types of changes within the organization that may reflect in empowerment to enable the organization to win the support of other organizations affiliated to such changes and interests. Geopolitical Pressures: These pressures result to change as an organizational reaction to an immediate crisis or in most cases long term geographic realignment that is likely to affect business operations (Koter & Cohen, 2002).
In an organization, the four environments forced to change as a result of geopolitical pressures include economic integration, technological, maturation and slow down, and fall of socialist countries. Technological changes call for more global connectivity, faster communication, and transportation systems. Greater economic integration capital cash flows and international currencies will experience some changes. Maturation and slow down of the domestic market is another global environment that is like to face change leading major concern to emphasize most on export and deregulation. Fall of socialist countries and reorientation towards capitalist economies may be experienced as a major change (Burke et al, 2009). Market Decline Pressures: Declining markets for goods and products coupled with stiff competition in the business environment forces organizations to adopt changes that make them more relevant in the market and more competitive.
The decline in the operating market forces organizations to seek more viable markets (Olson & Eoyang, 2001). Hyper competition Pressures: Hyper-competition pressures force organizations to act ad adopt new measures of attending to their consumers and competitors in a more competitive manner to cope with a new pace in business operations (Holman et al, 2006).
Hyper-competitive pressures are hard to anticipate a therefore organizations are always on the watch out. Reputation and Creditability Pressures: The need for organizations to maintain a good public reputation and high-level creditability has increased in the recent past due to the rising rate of scandals among various organizations across the globe. In light of reputation and creditability pressure, organizational change is associated with organizations developing and adopting new corporate governance mechanisms that ensure the result of a positive organizational public reputation.
A proper corporate reputation is essential in enhancing organizational survival (Palmer et al, 2009). Question two: Identity and briefly explain the five potential forces that are internal to organizations Growth Pressure: The entire concept of organizational growth, various aspects of the organization continues to experience growth and expansion. To fully experience the positive results of growth, organizations must adopt various structural changes to accommodate the expansion of production, new employment procedures, arising management positions, and orientation to new markets. It is also necessary to adopt changes that affect the organization both internally and externally to accommodate the growth pressure (Child, 2005).
Finally, when existing systems and processes in an organizational set up are no longer viable or applicable, it is possible to identify that an organization is growing and thus the need to develop new changes to suit the growth. It is meant to support the longevity of the organization in general. Identity Pressure: Identity pressure puts the organization at the helm of fighting for its recognition in the market it operates in. This implies that organizations need to adopt some changes in their marketing strategies to ensure that their brand and identity as the best service provider is widely recognized and appreciated as the major player in its field of operation (Bradford & Burke, 2005).
Identity pressure may also compel change when the commitment of staff in different departments of the organization becomes difficult to manage and monitor. New Broom Pressure: The idea of a new broom lies beneath the concept that organizations must do away with the old ways of doing things and adopt new ones. This implies that organizations experience internal pressure to adopt and follow new practices and methods of operation.
For example, organizations will at times face the pressure of formulating new standards of manufacturing products or new marketing policies to maximize its profitability and realize the effective production of goods or services (Anderson et al, 2001). A new broom also entails changing the top management of an organization to bring in competent individuals with newly acquired skills. Power a Political Pressure: Power and politics in an organization can put pressure on the organization to adopt changes in internal processes and may adversely affect the process of making crucial decisions.
Varied interests I power politics in organizational management can lead to serious mistakes and faults in the decision-making process that can lead to severe blunders in productivity and strategic management of an organization (Custom Publication, 2011). In this regard, organizations will experience the pressure to ensure the initiation of changes to avoid conflicts resulting from power and political differences within organizational management. The change resulting from power and political pressure also seeks to satisfy shareholder expectations and customer needs. Integration and Collaboration Pressure: The creation of viable economies of scale and organizational integration can lead to pressure for change in an organization.
This ensures that organizations develop new changes to ensure that the creation of economies of scale and collaboration is in line with the organizational values, mission, and goals. This will also maintain the organizational viability in the market while at the same time ensuring competitive nature among its competitors (Ackerman, 2005). Finally, adopting changes will facilitate the effective realization of goals and objectives.
Creating strong and affective economies of scale in different units of business in an organization calls for more changes. It also calls for the co-ordination of proper communication strategies between different units of business with the organization.
Ackerman A, L. & Anderson, D., 2001. The Change Leader’s Roadmap: How to Navigate Your
Organization’s Transformation. San Francisco, CA: Jossey Bass/Pfeiffer.
Anderson, D. & Ackerman Anderson, L., 2001. Beyond Change Management: Advanced
Strategies for Today’s Transformational Leaders. San Francisco, CA: Jossey Bass/Pfeiffer.
Bradford, D.L. & Burke, W.W. (Eds), 2005. Reinventing Organization Development. San
Burke, W. W., Lake, D.G., & Paine, J. W., 2009. Organization Change: A Comprehensive
Reader. San Francisco, CA: Jossey-Bass
Child, J., 2005. Organization Contemporary Principles and Practice. Blackwell Publishing, p.
Custom Publication, 2011. Managing Complex Systems Change: Case Studies and Articles NY:
McGraw-Hill Irwin. (Printed Version ISBN: 9781121245785)
Holman, P., Devane, T. & Cady, S., 2006. The Change Handbook: The Definitive Resource on
Today’s Best Methods for Engaging Whole Systems (2nd edition). San Francisco, CA: Berrett-Koehler Publishers
Marshak, R.J., 2005. Contemporary challenges to the philosophy and practice of organizational
development. In David L. Bradford and W. Warner Burke (Eds.) Reinventing organizational development: New approaches to change in organizations. San Francisco, CA: Pfeiffer
Palmer, I., Dunford, R. & Akin, G., 2009. Managing Organizational Change: A Multiple
Perspectives Approach (2nd edition). NY: McGraw-Hill Irwin
Kotter, J. P. & Cohen, D.S., 2002. The Heart of Change: Real-life Stories of How People Change
Their Organizations. Boston, MA: Harvard Business School Press
Olson, E. E. & Eoyang, G. H., 2001. Facilitating Organization Change: Lessons from
Complexity Science. San Francisco, CA: Jossey Bass/Pfieffer.