Environmental Forces That Drive Organizational Development

Environmental Forces That Drive Organizational Development

Environmental Forces That Drive Organizational Development


Organizations exist in an open market where there is perfect competition on both raw materials and labor force. Therefore external environmental factors have an effect on the firm’s operations. If there is a change in either the external or internal environmental factors then the organization has to respond faster through organizational development so as to institute change and maximize their opportunities while trying to minimize the is, therefore, essential that an organization put into consideration these environmental factors that result in organizational change

According to studies done by Tushman & Romanelli (2008), it was evident that there are four major factors that lead to a change in organization decision-making processes and structures. These factors include; globalization, technological changes, knowledge management and cross boundaries collaboration. Due to the changes created by the above factors organization leaders have to ensure that they are up-to-date with their technology and put in place goals and strategies that are aligned with the environment in which they operate. The competitive environment enables an organization to adjust its strategies so that it can acquire raw materials and produce goods of high quality as compared to those of competitors so as to win bigger market share. On the other hand, the macro environment influences the operations of the organization through economic conditions, government regulations, societal values, demographics, and technology. Organizations are therefore required to makes changes in their strategies and decisions as changes in the environments occur.



Steps Followed When Responding To Change


Organizations have to first understand the reason to why the change has to be initiated. This will help them determine the specific areas that need change and mechanisms that could be used to initiate the change. After acknowledging areas that require change, the need for change is communicated to different people in the organization and a team is selected to initiate the process of change development. The team will then develop the plans by defining the objectives that need to be addressed and the goal that need to be achieved over a specified period of time. After plan development, the next step is to put the plans into operation by implementing the plans. Lastly, evaluation of the implemented plans so as to determine whether the plans are successful or if more changes have to be made for improvement (Trowler, 2008).


Effects of Organizational Change


Change causes mental stress among employees in the organization. This is more common when there are multiple changes in the organization that occurs one after the other. The employees are stressed because of lack of certainty about their future as they may be laid off to reduce financial constraints more so when the change is not communicated in time. It also leases to resignation by employees when their salaries are cut off hence leading to a deficiency in the workforce. Lastly, organizations will spend a lot of time trying to come up with a solution on how to deal with the change hence this may diverge from the core business of the organization hence making employees spend more time off duty (Begley & Czajka, 2003).


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Written by Ecadimi

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