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Alfred North Whitehead was a philosopher and mathematician, but with that kind of insight on the subject of change, he could have been a CEO. Today’s business leaders have to worry about addressing customer needs in a fast-paced environment impacted by social, economic, political, and cultural shifts. In today’s business environment, the ever-looming presence of change is pretty much the only thing that stays the same. The problem is, no one likes change. Change, like the passing of time, is unavoidable Organizations and their managers have to learn how to anticipate and implement change effectively. Managers need to find ways to overcome their employees’ natural aversion to change, because managing change effectively can mean the difference between staying in business and becoming irrelevant to their customers. The first step in managing change effectively is to understand what change is and where it comes from. Organizational change is the transformation or adjustment to the way an organization functions. Organizations adjust to small changes all the time, possibly looking to improve productivity, responding to a new regulation, hiring a new employee, or something similar. But on top of these little adjustments we make at work all the time, there are larger pressures that loom over us, like competition, technology, or customer demands. Those larger pressures sometimes require larger responses. What forces create these changes?External forces are those changes that are part of an organization’s general and business environment. There are several kinds of external forces an organization might face:
Companies can also experience internal forces of change, which can often be related to external forces, but are significant enough to be considered separately. Internal forces of change arise from inside the organization and relate to the internal functioning of the organization. They might include low performance, low satisfaction, conflict, or the introduction of a new mission, new leadership. Practice QuestionLow performance within an organization must obviously be addressed with change that facilitates higher performance. When low performance yields low quality or inefficiencies, customers complain and organizations need to change. Harley-Davison’s Beginnings[1]Perhaps one of the most famous examples of a company that overcame this situation is Harley-Davison. In 1980, no one wanted a Harley. They were a poor quality bike that even leaked oil on the showroom floor. Their parent company, AMF, couldn’t find a buyer for them, and thirteen Harley managers ended up buying the company. Dramatic changes were needed, and the new CEO approached them with top-down authority. First, they laid off 40% of the workforce—salaried and hourly alike—and the remaining employees took a 9% pay cut. Their design team built the Evolution Engine and, coupled with the sleek design of their new Softail product line, sales started to improve. Perhaps most significantly, they developed the HOG (the Harley Owners Group) as a way to communicate with their customers. Operating improvements were made, and dealers started looking at Harley as a dependable partner. When they went public in 1986, underwriters were shocked that their IPO raised $25 million more than expected. Facebook’s Mission Statement[2]Companies often respond to external forces by taking on new missions and new leaders. Facebook’s original mission statement was “Making the world more open and connected.” CEO Mark Zuckerberg spent much of 2017 coming under fire for scandals (including accusations of data breaches and the potential of Facebook influencing the 2016 US election). As the world continued to divide, he led the company in unveiling a new mission statement. That statement, “Give people the power to build community and bring the world closer together,” was accompanied by the release of new group management tools within the application and a goal to help a billion people join new communities. Zuckerberg also acknowledged that Facebook is no longer a simple platform that connects friends and families, but instead a powerhouse that can have significant influence on individuals and how they interact with the world. Lowe’s new CEO[3]When a company brings on a new CEO, that’s often an internal force for change. In July of 2018, Home Depot veteran Marvin Ellison became the CEO of the faltering Lowe’s, a competing big box home improvement retailer. In his first months as CEO, he set out to improve store productivity and customer service in the stores, closed a division of smaller Lowe’s stores and eliminated $500 million in capital projects to free up cash to return to shareholders. He also let go the company’s Chief Financial Officer and Chief Operations Officer. No doubt, the company was reeling over the changes, but it might prove just what they need to get back on track. Time will tell. More often than not, these forces of change are outside of an organization’s control, but without exception, they all must be managed if an organization is going to be successful. Contribute! Did you have an idea for improving this content? We’d love your input. Improve this pageLearn More Are approaches used by an organization that acts on its own to influence stakeholders or change some aspect of its current environment quizlet?a company uses independent strategies when it acts on its own to influence stakeholders or change some aspect of its current environment. establishing and maintaining a favorable image in the minds of others in a company's environment.
What is an organizations conscious efforts to change the boundaries of its competitive environment?Strategic maneuvering is the organization's conscious efforts to change the boundaries of its task environment.
Which term is an independent strategy of an organization to establish and maintain favorable images in the minds of people in the environment?Public relations (PR) is the process of maintaining a favorable image and building beneficial relationships between an organization and the public communities, groups, and people it serves.
Which of the following are part of the macro environment of an organization?c The six principal components of the macro-environment are political, economic, sociocultural, technological, environmental (concerning the natural environment), and legal/regulatory.
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