Organizations depend on and must interact with their external environment in order to survive and grow. They get inputs from their environment, transform them through various processes and export output to the environment. There are many ways for internal and external factors that can drive organizational change.
They take want environment gives and give what Environment wants.
Thus, organizations are constantly Responding to their external environment by making necessary changes in their internal environment. sometimes pressure for change arises from internal forces also.
For example, the Marketing department wants new products requiring changes in production, purchase and other departments.
Thus, pressure for changes is created by the internal and external Forces.
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External Factors Affecting Organizational Change
Following are the external factors affecting organizational change:
1. Political forces
Political forces within and outside the country have an important influence on large business houses.
Particularly in translational corporations, the relationship between Government and business houses has become very complex in modern times.
Related: 16 Factors Affecting Economic Environment (With Examples).
Generally, the interference of government in business has been tremendous in most countries.
Many laws have been passed to regulate the activities of the corporate sector the organizations have no control over the political and legal forces, but they have to adapt to meet the pressures of these forces.
2. Market Conditions
Market conditions are no more static. They are in the process of rapid change is the needs, desires and expectations of the customers change frequently.
So there is a tough competition between manufacturers and between suppliers in the market.
The market is flooded with new products and innovations every day. New media of advertisement and publicity are being used for influencing the customers.
Related: 16 Importance and Role of Leadership in Business (Explained).
All these factors put pressure on the modern organization to change its Technologies and marketing strategies.
3. Technology( internal Forces)
Technology is the main external force that calls for the management of organizational change.
The rate of technological change is better today than at any time in the past and technological changes are responsible for changing the nature of jobs working at all levels in the organization.
Bonus: 20 Types of Entrepreneurs (Informative Explained).
Computer technology and automation have made A Remarkable impact on the functioning of organizations in recent times of technological advancement.
4. Social Changes
because of the spread of education, knowledge explosion and government’s efforts social changes are taking place at a fast speed.
Thus, the drive for social equality [the equal opportunity to women, equal pay for equal work] has passed new challenges for the management.
The management has to follow social norms in shaping its employment, marketing, and other policies.
Related: 15 Functions of Leadership (Explained with Examples).
Internal Factors Affecting Organizational Change
Following are the internal factors affecting organizational change:
1. Changes in Managerial Personnel
The managers are replaced by new managers which is the necessitated because of Retirement, promotion transfer, etc. Each manager brings his own ideas and way of working in the organization.
Therefore, the relationships more particularly informal ones, change because of changes in managerial personnel.
Moreover, attitudes of the personnel change even though there is no change in them.
Related: 18 Factors Affecting Entrepreneurship Growth.
The new executive will follow his own style and will like to put into practice his own ideas and philosophy.
Thus, This may lead to important changes in the organization in terms of organization design, allocation of work to individuals, the delegation of authority installation of controls and many more.
2. Changes in Operative Personal
The profile of the workforce is changing fast. The new generation of workers have better educational qualifications, place greater emphasis on human values and question the authority of managers.
Their Behaviour is very complex and leading them to Organisational Goals is really a challenge. the turnover of personnel also put square stands on the organization and so it has to be handled properly by the organization.
Bonus: 20 Importance of The Study of Business Environment.
3. Deficiencies in the Existing Structure
Changes may be needed to make up deficiencies in the percent organizational set-up. These deficiencies are maybe in the form of the unmanageable span of management.
- A larger number of managerial level
- Lack of coordination among various departments
- Obstacles in communication multiplicity of committees
- Lack of uniformity in policy decisions
- lack of cooperation between line and staff.
However, the need for change in such cases goes unrecognized until some major crisis occurs.
Thus, You know the internal and external factors affecting organizational change.
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