8.2.1 External forces
The external forces that create the requirement for change come from various directions. These were covered in detail in Chapter 2. Here we will briefly consider some additional issues. As mentioned in Chapter 2, an understanding of the environment in which you work can assist to anticipate and plan for change.
Global economy.
The global economy intensifies the need for change. The following extract from Robbins and Mukerji (1994) illustrates this:
Probably no single external stimulus for change has been more influential in the past decade than the emergence of the global economy.few organisations are so insulated that they can ignore foreign competition. In many cases, economies of scale dictate that firms either expand or merge with other organisations in order to compete effectively in world markets. A number of major Australian and New Zealand banks, for instance, have merged in recent years in order to handle better the rise of multinationals and consolidation going on in western Europe.
Additionally, as trade barriers are lessened, organisations find that their rivals are just as likely to come from 10 000 kilometres away as from across town. Remember that less than twenty years ago, Xerox owned almost 100% of the copier market; no one, including Kodak, had ever heard of Fuji Photofilm.
Robbins SP and Mukerji D (1994). Managing Organisations: New Challenges and Perspectives . New York : Prentice Hall, page 435.
Technological advances that have created global organisations by linking national finances, communication and production have accelerated the development of interdependence of national economies.
Government regulations.
Government regulations are frequently a stimulus for change; for example, changes to occupational health and safety legislation and equal employment opportunity legislation.
Corporatisation.
Some of the interesting organisational changes have occurred in the public sector, with moves towards corporatisation being the signpost for change. There has been a push across the public sector for accountability and responsibility. There has been greater emphasis on efficiency and effectiveness, and an increased number of public sector organisations have been commercialised and privatised.
Changing society. While the pace of organisational change varies from industry to industry, the pace of economic and social change has been substantial in the past ten years. Social changes have seen the composition of the workforce changing, with an emphasis on equity in employment.
In Australia 's multicultural society, managers have a particular challenge in drawing together the talents of people from diverse cultural backgrounds. Stop for a moment and think about similar challenges that are prevalent in your situation. In addition, the population is aging and so is the workforce, requiring human resource planning. We have also seen moves towards higher levels of education.
Technology.
Technology is probably the most dramatic and obvious impetus for change. With the speed at which technology is being developed and applied to business operations - from the shop floor to the head office - organisations, large and small, cannot escape the effects of change. Consider the manner in which the supermarket industry has been changed with the introduction of scanners. Not only does the staff need to be educated when technology changes, but so does the customer.
Technology has resulted in wholesale changes to the manner in which we conduct business. For example, facsimiles, electronic mail, voicemail and mobile phones have increased the speed and ease of communications and altered significantly the way in which we live our lives or conduct our business. Such changes may not be universally positive or popular (information overload is a growing problem); but the effects of these technologies on the individuals or societies with access to them have been dramatic.