The changing business environment and its effect on businesses

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Introduction

Change has been described as a foreseeable and predictable factor. Change is very important in human life. And it can be felt in every field of life. Generally people hate change and they resist changing; the only one reason for resistance is fear from unknown situation; they are very possessive about the present situation in life or in organisation. But in changing business environment organisations have to change their strategy and tactics to beat the competitors. For that proper leadership can be formed in the organisation, so leader can easily motivate the manpower for change by showing them future benefits and more earnings or strong position in the market. As we know that change is very natural mania with passage of time and change in circumstances; in actuality change happens in the organisation at a distressing rate. Because of the change there are three impacts on organisation and on individual they can either accept, steps forward or they vanish their career. But organisation has to develop proper change management to deal with such rapid change or certain change throughout its life and for keep making success certain steps well in advance is very important.

Impact of change in the organisation

Organisation is working smoothly from so many past years and due to some internal or external triggers change is appear in the organisation, but frankly speaking change initially create so many problems, tension, conflict, and minimise the employee moral from the organisation. Change create so many adverse crash on the management, like

Experience and efficient employees thinking to leave the organisation

Normally change spread so many rumours in the organisation

Change creates a fear in the employees mind and also creates unsecure feeling.

Conflict often arises between staff and the management and it badly heart the organisation's success.

If change management has not been maintain properly by any organisation in critical time then it is the definite clash of such organisation. (The Impact of systems change in organisations: results and conclusions from, By Niels Bjørn-Andersen, page no:270-275)

Factors compelling organisations to adopt new forms of organizing

Change is outcome of so many factors, some are internals some are externals for the management. Some are controllable and some are unable to control, organisation has to change their strategy with the change in such factors.

Internal triggers

Low productivity of the employees or of the management

Poor quality in organisation out come

Customer complains, organisation has to change their strategy if any complain arise from the customer.

Staff, a path, turnover; if in any organisation staff turnover ratio is very high than management have to think about change in the present situation.

And last but not the list change also arise in organisation if any breakdown emerge in any machinery.

External triggers

Political, with the change in government rules and regulation organisation has to alter their approach.

Some time competitors activity force the organisation to transform or modify their existing scheme or system.

Technological change, in today's so growing age frequent change in technology is very normal thing but when change in technology happens organisation has to take steps to adopt new technology or process.

Cultural change, this is another external trigger which gives swiftness in organisation change. (Organizational change, By Barbara Senior, Jocelyne Fleming, page No: 41-50 the nature of organisational change chapter)

Bureaucratic organisation

A bureaucracy is a form of organization in which officeholders have defined positions and (usually) titles. Bureaucracy is a notion in sociology and political science refers to the method that the organizational implementation and enforcement of permissible convention are socially structured.

Following points are reflectors of bureaucratic organisation they are involved in such types of organisation.

1. A well-defined division of administrative labour among persons and offices, 

2. A personnel system with consistent patterns of recruitment and stable linear careers,

3. A hierarchy among offices, such that authority and status are differentially distributed among actors.

4. Formal and informal networks that connects organization's actors, to one another through flows of information and patterns of cooperation. Source(s): Organisation and bureaucracy: an analysis of modern theories By Nicos P. Mouzelis, page no: 79-82)

Strength of bureaucratic organisation

It is very effective where work like construction, chemist production and so many others where safeties are high issue.

It is imperative in today's society because most large organizations are bureaucracies. Our government is bureaucratic in organization. Indulgent how policy is shaped and interpreted enables one to understand how influence occurs in organizations which are central to understanding the internal power relationships. (Source(s): Wikipedia, Answers.yahoo.com)

Bureaucratic organisation is very important when the employees and followers of leaders are not very informally co-operative, strict standards and policy has been formed by the organisation.

It's also proves very efficient when employees likes to follow and formal and strict rules int he organisation

Bureaucratic organisation provides high results to the company in terms of profit in short term.

Leaders are very strict in such types of organisation so minimisation waste of time and optimum utilisation of all the available recourses is possible.

Advantages include the increased control and monitoring of upper level management. The success of the organizations depends upon the wise decisions of top management. If the top management is good, then results can be favourable and if the top management is not good then it can result in disaster.

Weakness of bureaucratic organisation

Generally people hates bureaucratic organisation and they tends to leave such organisation and employee's moral and enthusiasm also decrease with the increase in bureaucracy in the organisation.

In bureaucratic organisation formal rules, formal communication and formal relation is very high than informal. And this is the biggest hearting factor to the organisation's success. People love to work in friendly atmosphere and it only possible in informal organisation.

The main demerit of bureaucratic organizations includes lack of modernization. All the processes and tasks are so much fixed that the innovation process is almost eliminated in bureaucratic organizations. Employees get de-motivated because of lesser employee participation and involvement. HR can't be utilized in the fullest manner by optimizing creativity which is the prime disadvantages in bureaucratic structure of the organisation. (Organisation and bureaucracy: an analysis of modern theories By Nicos P. Mouzelis, page no: 79-82)

Relevance in today's organisation

In today's organisation bureaucratic form and system is not very efficient. Employees like to share their ideas and alteration and modification, and it is very vital in today's organisation and in bureaucratic system employees have to follow strict rules and standards. No scope for personal growth and organisation growth is also decrease by adopting certain theory in organisation. In current scenario organisations have to adopt mixture of formal and informal system to encourage employees, and for long lasting success of organisation. Bureaucracy in today's organisation is not appropriate. Leadership is very important in organisation to manage change and critical issues every time. Informal and formal styles in leadership are best to use by leaders to ensure proper co-ordination and co-operation in the organisation.

In 21st century to guarantee triumph of organisation company can use chaordic model. The chaordic model of organizing human endeavours emerged in the 1990s, based on a blending of chaos and order (hence "chaordic"), comes out of the work of Dee Hock and the creation of the VISA financial network. Blending democracy, complex system, consensus decision making, co-operation and competition, the chaordic approach attempts to encourage organizations to evolve from the increasingly nonviable hierarchical, command-and-control models. (Matrix management, By Kenneth Knight, page No: 85, 142 and 155)

Impact of change on each stakeholder

It is a universal fact that frequent change is very possible and people related with that organisation resist to change. But for some reason change has to be established in organisation despite of resistance of its stake holders. Now the main step for organisation is to identify and recognise each and every people who may affect by change in the organisation. And to adopt change very smoothly organisation has to follow proper tactics to motivate stakeholders for change. People/groups with an interest in the success of a business is called stake holders of organization

Group of stake holders which may affected by change in current situation of organisation

Suppliers

Manageres

Owneres

Workeres

pressures

Groups

Customers

Local community

Employees

First and the obvious effect of change can be felt on employees. They are the one who are very heavily connected with organisation 'smallest activity. Motivation is very important to force the employees to adopt changes in technology or techniques in organisation. Normally they resist changing because they fear from unknown situation they don't like to change their routine activities, they fear to lose existing benefits. So by solving such emotional and critical concerns leader easily apply change in the organisation. Leaders can ensure employees that they will receive existing benefits after change and leaders can show good future and motivate them to adopt changes.

Customers

Customer also affects by change process in the organisation. Customer is known as a king of the market so it is very important for the organisation and for management to take proper care of customer before changing any type of activities related with them. And encourage the customer to adopt the necessary changes.

Owners

Owner of the organisation is also affect some time by change activity. But as we know, for continuous successes change is must for organisation and owners have to adopt changes whether they like it or not. But after long period of time owners may be happy after seeing terrific profit because of change in the organisation.

Managers

The leader is affected heavily and drastically by revolutionize in organisation. Managers have to handle the shifting situation and he has to manage each and every stake holders in critical situation. If managers are not agreeing for change then it is very difficult to apply such changes in organisation. Negative managers always stood against good changes in organisation.

Government

Normally government affects the organisation and force for change. But it is also possible the other way around. It depends on the situation and organisation has to comply with each and every rules and policy of the organisation. Management can appoint special person to handle such affairs with changing government.

Suppliers

It's very important stake holders in connection with continuous and timely supply of all materials in the organisation. Whether supplier provides manpower, raw materials or anything, which is important in producing goods o service. By applying change in the origination it also affect supplier in certain situation.

Each and every stake holders directly or indirectly heart and mentally upset by change in the organisation. Well, it is common knowledge that humans are initially against change but managed is therefore important to motivate by each or the other way to adopt change in their professional life.(The heart of change field guide: tools and tactics for leading change, By Dan S. Cohen, page No: 94-105)

Process or measures to implement change in organisation

Change needs to be understood and managed in a way that people can cope effectively with it. Change can be unsettling, so the manager logically needs to be a settling influence.

Check that people affected by the change agree with, or at least understand, the need for change, and have a chance to decide how the change will be managed, and to be involved in the planning and implementation of the change.

Following tactics used by organisation for implement successful change

Face-to-face communications.

Give time to employees to adopt change

For quick change or complex change use PROJECT MANAGEMENT

Personality style can be used to manage the change and to know how each employee react in different situation.

For organizational change that involves new behaviour, objectives and methods for a group or team of people use workshops to achieve understanding, involvement, plans, measurable aims, actions and commitment. Encourage your management team to use workshops with their people too if they are helping you to manage the change.

Organisation should even apply these principles to very tough change like making people redundant, closures and integrating merged or acquired organizations. Bad news needs even more careful management than routine change. Hiding behind memos and middle managers will make matters worse. Consulting with people, and helping them to understand does not weaken your position - it strengthens it. Leaders who fail to consult and involve their people in managing bad news are perceived as weak and lacking in integrity. Treat people with humanity and respect and they will reciprocate.

Be mindful that the chief insecurity of most staff is change itself. See the process of personal change theory to see how people react to change. Senior managers and directors responsible for managing organizational change do not, as a rule, fear change - they generally thrive on it. So remember that your people do not relish change, they find it deeply disturbing and threatening. Your people's fear of change is as great as your own fear of failure, (Managing Change, By Bernard Burnes, page No:4-9)

Change within organisational design dimension of structure

Structure change

Because of the change in the organisation, it has to change its structure and hierarchy and relation between every employee in organisation for ongoing success. In critical change like in recession time organisation have to reduce jobs and position in organisation so in such time new structure dimension will be formed to manage the change very well in company.

Technological change

If new tactics and technologies is adopt by organisation, in such cases it has to adopt all together new process and activities according to new machinery. And for such change training is most important to implement successful change.

Organisational boundaries

Change in organisation by government policies or competitors activity on such shifting environment boundaries of the organisation has to be decided once again. And new boundaries depend on the government rules and regulation.

There are so many changes by organisation has to be done in one year and on frequent bases organisation have to change formal relations, process of organisation and even the scope that is boundaries of organisation activities. With the change in the organisation there are so many factors in the organisation which are key indicators within the organisational base

To apply proper change and for getting incredible benefit from the changing situation in business environment organisation must required to change its certain important activity or some time it has to change its all organisation must required to change its certain important activity or some time it has to change its whole activity and tactics. But change management is very critical and organisation has to focus very carefully while adopting change and before changing organisation structure dimension and boundaries through research and forecasting is necessary.

EXAMPLE OF ORGANSIATIONAL CHANGE (Three Wins: Service Redesign through Flow Modelling - Simon Dodds)

Good example of Vascular Surgery Outpatient Clinic at Good Hope Hospital in North-East Birmingham from 2000-2004, which was subsequently rolled-out across the region during 2005. Simon Dodd's and his team won the first Innovation Award for Service Delivery for the change and improvement that they achieved - notably resulting in the 'three wins'

a better service to patients,

a skilled, motivated and enthusiastic team,

and a substantial cost saving in treatment costs (www.three-wins.com,The heart of change: real-life stories of how people change their organizations, By John P. Kotter, Dan S. Cohen)

Organization design

Organisation design or structural design of an organization as an image offers the outline through which an organization aims to understand its core virtues as précised in its vision statement. It provides the infrastructure into which business course are arranged and ensures that the organization's heart qualities are realized across the business processes deployed within the organization. In this way organizations aim to constantly realize their hub qualities across the services they offer to their clients. This perspective on organizational architecture is elaborated below.

The following model may be adopted by organisation in changing situation to rock the business environment and to facilitate the employees to work for more and more so optimum utilisation from employee's effort may be possible.

Galbraith's Star Model of organizational design

Above noted model describe various dimension which are very important for organisation success and if any of one is missing in organisation model it create disaster for company. Proper hierarchy in organisation structure is very important and the reward system in changing environment can be used as a tool to motivate each and every stake holders to accept the change. Human resources in organisation are known as a blood of organisation and it is very important for body that it bloods flow in each part very smoothly and without any trouble. (The Theory and Management of Systems, 3rd ed. (New York: McGraw-Hill, 1973, Wikipedia.com)

The other model of organisation design

As we know that formal and informal system worked as bonus in organisation structure, with the use of such system according to time and situation effective organizer or efficient leader can easily attain organisational goal in predefined point in time. (The Theory and Management of Systems, 3rd ed. New York: McGraw-Hill, 1973, )

Conclusion

Change is very essential and natural thing in life of organisation. But when to adopt change in business environment is very important and thorough research and all possible steps have to be taken to know the possibilities after change. By adopting change generally organisation heart all stake holders so motivation and proper change management can be used to minimise such problems in change process. After implementing change in the organisation its structure, dimension, and think has to be change consequently.

Recommendation

Change is normally resisted by human been, so organisation can first find out the reason behind opposition and then experience men has to be appointed to manage change management in the organisation. Leader can provide motivation so easily all comply with the rules and regulation. Proper training is must after change in technology and process so smooth success of the organisation can be minted despite of change.

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