Forces for Change.
No company today is in a particularly stable environment. Even those with dominant market share must change, sometimes radically. Almost every organization must adjust to a multicultural environment, demographic changes, immigration and outsourcing. So what are these forces that stimulate change?
1. Internal and External Forces
When do organizations change? What makes leaders decide to implement change? Forces for change are both externa (in the environment) and internal.
Changes in the environment include factors such as social trends, cultural and demographic changes, political shifts, the economy and technological advances. Changes in the local and global political environments compel organizations to look for innovative ways of dealing with new problems.
The internal forces for change closely follow external forces. For example, a new service from one hospital will push others to consider changing their offerings, or wide uses of new technology such as the Web, or poor economic conditions, may lead city and state governments to expand their online services, requiring new hires, training and new management processes. One of the most common forces for change inside organizations is the performance gap - the difference between expected and actual performance. Another potent internal force for change is new leadership at any level. Therefore, not only do leaders guide organizations through change but they are also frequently the cause of change.
External Examples:
Political and Economical
Firstly, political changes worldwide are leading to more openness and democracy. These political changes shape and are shaped by images of what is considered to be appropriate leadership. Secondly, with the worldwide economic downturn, increasing global and local competition, and complex and fast-changing technologies, numerous organizations struggle for survival and to justify their existence.
Social trends
Social trends do not remain static. Consumers now meet and share information in chat rooms and blogs. Companies must continually adjust product and marketing strategies to be sensitive to changing social trends. Consumers, employees and organizational leaders are more sensitive to environmental concerns.
Demographic
Another key factor fueling changes in leadership is the demographic changes in the United States and many other countries. These demographic changes lead to increased diversity in the various groups and organizations; their leaders must consider this diversity when making decisions. In some cases, the diversity is related to age; in others, it is related to gender, ethnic, or cultural background.
Technology
Technology is continually changing jobs and organizations. It is not hard to imagine the very idea of an office becoming an antiquated concept in the near future. The housing and financial sectors recently have experienced extraordinary economic shocks, leading to the elimination, bankruptcy of some of the best known U.S companies followed by the global recession.
Competition
The global competition associated with consumer demands for improved quality in products and services intensifies the need for flexibility and creativity on the part of organizations. The fierce international competition and perceptions of global competitors’ management practices push everyone to look for new solutions. Poor management and lack of leadership often are blamed for the problems facing many organizations.
2. Culture and Change
As pressure for change increases from inside and outside organizations, not all leaders react and respond the same way. Some perceive the pressure as a threat; others see it as an opportunity. One factor that determines the way leaders and their followers perceive pressures for change is culture, both at the national and organizational levels.
From a broader perspective, national cultural values of tolerance of ambiguity and perception and use of time can shape how leaders view change.
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