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How Does Change Affect People At Work?

2219 words - 9 pages

How does change affect people at work?
What are some of the current forces for change in the workplace?
What are the implications for HR managers?

Introduction
Organizational changes do not appear from themselves. For any process of performing something, there is a reason, and the process is the result of that reasons. Increasing globalization, rapid technological advancement, changing economic conditions and organization’s financial performance are some of the current forces that cause change in organizations.

Current forces for change in the workplace
1. Globalization
Globalization on one hand creates more opportunities as there are more potential customers around the ...view middle of the document...

Consumer preferences and new competitive pressures are changing with the advanced in technology. Consider the effect the internet is having on old style media and print companies. As internet access levels increase on a worldwide scale, companies are forced to adapt their existing operations to shifting consumer preferences. Companies that neglect rising trends face a diminishing market share to competitors who better understand and address the demands of their customers. The impact of technology on organizational change also saturates the entire organization. Organizational structure and culture, the required skills for the employees may all be required to change with a change in technology.
As technology is ever changing, lifelong learning and investing in the full spectrum of employee talents with teamwork are important for dealing with restless change in technology (Benett and O’Brien 1994; Atkinson 1994).

3. Economic Conditions
Economic forces refer to the nature and direction of the economy in which business operates. Economic factors have a great influence on corporations. The states of the economy, interest rate, monetary policy, fiscal policy, are key factors affecting the companies’ investment, employment, and pricing decisions. According to Pasnicu, Cismigiu and Dragoiu, (2009), in times of economic and financial crisis, the situation requires a proper evaluation and must be taken the decision to be correct in the sense of the management of existing resources and unlocking the insufficiently exploited potential. In fact, due the recent financial tsunami, many companies are already under serious economic pressure. Restructuring, merge & acquisitions, downsizings and other major organizational changes are very common, as the organization is struggling to grow and survive. These efforts are processes of develop the organizations to a new stage in the future.
Also, when competitors introduce new products, increase advertising, reduce prices, quick and decisive response is required to prevent erosion of profit and market share. At the same time, changes occur in customer tastes and income. The firm’s products may no longer welcome by the public as customers may be able to purchase less expensive, higher quality forms of the same products. All these will lead to a necessary change in an organization to make it survive.

4. Organization’s Profitability

Companies that fail to achieve financial benchmarks are forced to evaluate their business objectives and processes. This is one of the most important drivers of organizational change. Financial pressures driving organizational changes include decreased financial resources (Cameron, 1994), demands from shareholders (Delorese, 1998), negative profitability, higher operation costs, and lowered profit margins, (Allen, 1997). If a new competitor enters the market with cheaper labor or a superior technology, companies that formally enjoyed prosperity can suddenly find a cannibalization of...

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