1.

External Forces: When the organization's general or task environment changes, the
organization's success often rides on its ability and willingness to change as well.
Modern manager is change-conscious and operating in the constantly changing
environment. Many external changes bombard the modern organizations and make
change inevitable. The general environment has social, economic, legal and political
and technological dimensions. Any of these can introduce the need for change. In
recent years, far-reaching forces for change have included developments in
information technology, the globalization of competition, and demands that
organizations take greater responsibility for their impact on the environment. These
forces are discussed below:
1. Technological Change: Rapid technological innovation is a major force for
change in organizations, and those who fail to keep pace can quickly fall
behind. It is perhaps the greatest factor that organizations reckon with.
According to C. Handy "the rate of technological changes is greater today
than any time in the past and technological changes are responsible for
changing the nature of jobs performed at all levels in the organization". For
example, the substitution of computer control for direct supervision is
resulting in wider spans of control for managers and flatter organizations.
Technological innovations bring about profound change because they are
not just changes in the way work is performed. Instead, the innovation
process promotes associated changes in work relationships and
organizational structures. Sophisticated information technology is also
making organizations more responsive. The team approach adopted by
many organizations, leads to flatter structures, decentralized decision
making and more open communication between leaders and team
members.
2. Globalization: The global economy means competitors are likely to come
from across the ocean. The power players in the global market are the
multinational and trans-national organizations. This has led companies to
think globally. There are no mental distinctions between domestic and
foreign operations. Globalization, for an organization, means rethinking the
most efficient ways to use resources, disseminate and gather information
and develop people. It requires not only structural changes but also changes
in the minds of employees. Successful organizations will be the ones that
can change in response to the competition. They will be fast on their feet,
capable of developing new products rapidly and getting them to market
quickly.
3. Social and Political Changes: A firm's fate is also influenced by such
environmental pressures as social and political changes. Many new legal
provisions in the corporate sector get introduced every time that affects the
organizations.
4. Workforce Diversity: Related to globalization is the challenge of workforce
diversity. Workforce diversity is a powerful force for change in organization.
The demographic trends contributing to workforce diversity are
1. The workforce will see increased participation form females, as the
majority of new workers will be female.
2. The workforce will be more culturally diverse than ever (part of this
is attributable to globalization).
3. The workforce is aging. There will be fewer young workers and more
middle aged working.
5. Managing Ethical Behaviour: Employees face ethical dilemmas in their daily
work lives. The need to manage ethical behaviour has brought about several
changes in organizations. Most centre on the idea that an organization must
create a culture that encourages ethical behaviour. Society expects
organizations to maintain ethical behaviour both internally and in
relationships with other organizations. Ethical behaviour is expected in
relationships with customers, environment and society. These expectations
may be informal or they may come in the form of increased legal
requirements.
These challenges are forces that place pressures to change on organizations.
Organizations cannot afford to be rigid and inflexible in the wake of
environmental pressures, they must be rather dynamic and viable so that
they survive.
Internal forces of change in an Organization
2. Internal Forces: Besides reacting to or anticipating changes on the outside, an
organization may change because someone on the inside thinks a new way of doing
things will be beneficial or even necessary. Pressures for change that originate inside
the organization are generally recognizable in the form of signals indicating that
something needs to be altered. These internal forces are discussed below:
1. Changes in Managerial Personnel: One of the most frequent reasons for
major changes in an organization is the change of executives at the top. No
two managers have the same styles, skills or managerial philosophies.
Managerial behaviour is always selective so that a newly appointed manager
might favour different organizational design, objectives procedures and
policies than a predecessor. Changes in the managerial personnel are thus a
constant pressure for change.
2. Declining Effectiveness: Declining effectiveness is a pressure to change.
A company that experiences losses is undoubtedly motivated to do
something about it. Some companies react by instituting layoffs and massive
cost cutting programmes, whereas others view the loss as symptomatic of
an underlying problem, and seek out the cause of the problem.
3. Changes in Work Climate: Changes in the work climate at an organization
can also stimulate change. A workforce that seems lethargic, unmotivated,
and dissatisfied is a symptom that must be addressed. This symptom is
common in organizations that have experienced layoffs. Workers who have
escaped a layoff may find it hard to continue to be productive. They may
fear that they will be laid off as well and may feel insecure in their jobs.
4. Deficiencies in the Existing System: Another internal pressure for
organizational change is the loopholes in the system. These loopholes may
beun manageable spans of control, lack of coordination between
departments, lack of uniformity in politics, non-cooperation between line
and staff etc.
5. Crisis: A crisis may also stimulate change in an organization. Strikes or walk
outs may lead management to change the wage structure. The resignation
of a key decision maker is one crisis that causes the company to rethink the
composition of its management team and its role in the organization.
6. Employees, Expectations: Changes in employees expectations can also
trigger change in organizations. These forces may be:-
1. Employees' desire to share in decision-making.
2. Employees' demand for effective organizational mechanism.
3. Higher employees’ expectation for satisfying jobs and work
environment.
4. Employees' desire for higher wage payment.