Changes In The Internal Environment example essay topic

Introduction: Change is an ongoing phenomenon in an organisation's life. The success and failure, growth and profitability of any organisation depend upon its capability to change with the internal and external environment. Any change in the organisation's environment including changes in the taste of customers, the market competition, political or economic issues, social changes make it imperative for it to make changes in the internal environment. Every organisation thus take action to accommodate or to keep itself updated with the environmental change. Key issues: This paper discusses the types of changes that take place in the environment of the organisation and how these changes are implemented, managed and resisted in organisation. Types of changes in the environment: External environment: According to Scherrer (2003) changes, defined as uncontrollable elements by management include issues such as foreign competition, capital market movements, the non-responsive political issues, cultural change, economic factors and the technology.

He also states that a change in external uncontrollable element will be felt by all businesses in an industry, but the impact these changes have on a specific business depends on the strength and stability of the management. These elements are closely interrelated and thus any change in any one environmental force will consequently affect the other. For example a change in the culture or government policy may affect the change in the economic policy, which may again lead to technological changes and as a result the level of competition in market may expand. Thus to keep with the pace of the ongoing market trend the mangers have to be predictable as to what can be the necessary changes required in the future.

(Appendix 1) (Scherrer, P.S., 2003) Internal environment: According to Scherrer (2003) the changes affected by the controllable elements of environment comprising the working force, the various culture that they come from, economic factors such as increment or decrement in the salary, transfer, promotion, technology, changes in the established way of working etc, can bring a change in the working of any organisation. (Scherrer, P.S., 2003) Implementing environmental change in business: According to Mintz berg (1973) the decisions are made incrementally on the basis of what is best for the organisation at the time with out predicting the long-term plans. Thus the continuous process of change will have an impact on the organisational structure and eventually there will be a change in managerial structure that will necessitate change in the decision making. (Gilmore, A., 1998) The following can be the stages for implementing change: Firstly the need for change should be recognised before choosing the most relevant alternative. Thus the planning plays a vital role in diagnosis that what is actual need and how it must be changed or developed. (Gilmore, A., 1998) Secondly decision making is implied.

Here the managers have to decide as to what action should be taken to initiate the achievement of organisational goals. (Gilmore, A., 1998) Thirdly the actual implementation process takes place in which marketing strategies and plans turn into marketing action. It implies the managerial ability including the direction and organisation of different activities, including the management of human resources, co-ordinating activities-efforts, alternative plans and handling change. (Gilmore, A., 1998) Finally According to Brooks bank (1991) for the continues improvement for all operational activity in order to resist erosion from competition in the market the persistence and perseverance are necessary which will lead to defendable market position in relation to the competitors. (Gilmore, A., 1998) Managing change in the environment: According to Reagan (2000) Not coping with the change or ignoring changes may lead to trouble, organisations even have to shut down there businesses due to the existing competition in the market. Thus the managers have to keep a track as to what is going in and out of the organisation.

Thus they have to predict the market competition, government policies and technological changes etc. (Reagan, B., 2000) Delegation with control - Managers should delegate authority and responsibility to its key employees. Responsibility and authority are incumbent. The authority and responsibility should not be distributed without understanding by both managers and employee, so that the goals could be achieved efficiently.

(Scherrer, P.S., 2003) Organizational vision: goals and strategies: The managers need to understand the strength and weaknesses of the organisations and thus communicate a vision to its employees. (Appelbaum, S.H., St-pierre, N., Glavas, W., 1998) Organizational design and technology: The organisational design consists of the formal structures, processes, systems roles and relationships (Walton and nadler, 1994). Thus it comprises of the functional, divisional, matrix of business, job specialization, training and education programs, delegation and participation. Thus the design and technology should be changed timely. (volberda, 1992).

(Appelbaum, S.H., St-pierre, N., Glavas, W., 1998) Management practices and organizational culture: The managers must cultivate new management practices helpful in the achievement of the organisation's mission, which may include new job designs, organisational processes, rules and principles to govern people and work. It also laid emphasis on right person on right job, also about the transfer and promotion of employees. (Trahant and Burke, 1996). (Appelbaum, S.H., St-pierre, N., Glavas, W., 1998) Barriers to change: Barriers obstruct management efforts to transform the way a firms decision are made and routine operations conducted.

(Post, J.E., Altma, B.W., 1994) There are two types of barriers: Industry barriers- The unique features in which the firm is involved for its business activities. The uncontrollable elements include technical information, capital costs, current operation, the competitive pressure and industry regulation, (Appendix 2) (Post, J.E., Altma, B.W., 1994) Organisational barriers- Not exclusively the environmental problems, but they affect the firm to deal with change including the environmental change. These barriers may include employee attitude, poor communications, past practice and inefficient leadership qualities. (Appendix 2) (Post, J.E., Altma, B.W., 1994) Resistance to change According to peters (cited in O'Hara. S., 1996) Individuals are resistant to change imposed on them and take time to develop new methods of working or to change to modify according to personal needs and interest. (O'Hara, S., 1996) Conclusion: From the research I have concluded that in the environment whether internal or external is continuously changing. Despite of the various barriers for change in the internal and external environment a realistic interpretation of the change process had to take into account multiple and varied forces, such as: customers and suppliers, the economic environment, government policies, national and international competition, etc.

So as to keep pace with the existing market trend and competition.