Today companies are going to change their business culture. Every company wants to run the business with smooth and efficient way. Companies are trying to adopt modern technology in their business operation and also try to bring coordination and team work among the workforce in order to generate better results. All these things require flexibility and change readiness. Change management is the modern phenomena, where organization decides to make an evolution from its present position to some preferred future position. Now a day’s majority of the companies are going to change their business activities and culture, due to the expansion of latest technology, changing behavior of ...view middle of the document...
In this essay internal and external pressures for change will be defined in the light of academic literature. New broom pressure for change and credibility & reputation pressure for change will also be discussed as drivers of internal and external pressure for change. Later a case example of shell will be discussed in the perspective of credibility & reputation pressure for change. At the end, by an example of shell with selected pressure for change, tries to give the answer of ‘in a change process what difference can understanding the “why” of change?.
Environment of an organization is energetic and the pace of environmental change is often complicated to predict. In order to remain successful in the long run, organizations need to effectively deal with changing environment of the business. Organization form, and are formed by, their changing political, economic and social context of the environment. In this changing situation, many organizations are inactive while others do well. Generally, organizations are much interested in performance of an organization rather than productivity. Change can be negative or positive, depending upon the people perceptions and the results which people expected to produce, or the way in which change led and run. Most of the time change fails due to common mistakes made by the management. Organization need to develop change abilities in order to increase their success rates otherwise company could bear the devastating failure cost of change.
Two types of changes are there in the organizations which are transformational and incremental change. In these both type of change, the role of an organization’s management can be reactive or proactive and the change management strategy adopted will need to reflect this. Incremental change depends on organizational routines and organization’s existing paradigm. While on the other side transformational change is the change that cannot be handled within the organization routine or existing paradigm. It can be planned to anticipate changes in the product markets in which the organization operates.
Today business is not similar as it was earlier. Change is all over the place. Organization is not stagnant and continuously changing in reaction to the pressures for change. Those companies that fail to change when required may likely find themselves out of the business. It is the biggest challenge for today’s employees to help and anticipate change process; as a result the organizational performance is enhanced. Changes can be made in an organization after analyzing the internal and external trends in the business environment (Resvani, Dehkordi & Shamsollahi 2012). Manager need to planned change in order to support the business, when the organization is facing lot of problems. In this situation, an organization meets two types of pressures for change. These pressures come from outside as well as the inside of the organization.