Using examples, explain what is meant by internal & external driver…
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Published: Mon, 5 Dec 2016
Every organization has different structure. Those structures created as achieved organization goal. There are things, situations, events etc. that occur within an organization that affect the way an organization operates , either in positive way or negative way. These things, situations, events that affect the way an organization operates are called driving forces. There are two kinds of driving forces as follows:
Internal driving forces
External driving forces
Now we discuss in briefly of above two kinds of driving forces.
1. Internal driving forces:
Internal driving forces are those kinds of things, situations, and events etc. that occur within an organization and basically under the organizations control. Once again these internal driving forces can affect the organization in either a positive or negative way. For example, decreased job satisfaction may lead to increased absenteeism, more voluntary resignations and even strikes. In turn, such events will often lead to changes in management policies and practices.
There are many kind of internal force drives:
Sometimes in the course of normal business operation it is necessary for management to adjust the firm’s strategy to achieve the goals of the company, or even to change the mission statement of the organization in response to demands of the external environments. Adjusting a company’s strategy may involve changing its fundamental approach to doing business like the markets it will target, the kinds of products it will sell, how they will be sold, its overall strategic orientation, the level of global activity, and its various partnerships and other joint-business arrangements. For Example, company determine the high standard compare to their resources, so company have to change their standard because they have no resources to achieving their target. When they change their strategy, they may be suffering the loss.
Organizations often find it necessary to redesign the structure of the company due to influences from the external environment. Structural changes involve the hierarchy of authority, goals, structural characteristics, administrative procedures, and management systems. Almost all change in how an organization is managed falls under the category of structural change. A structural change may be as simple as implementing a no-smoking policy, or as involved as restructuring the company to meet the customer needs more effectively. For Example, one company sell their product in the market but they don’t give better satisfaction to the customer, then they have to change their structure about the customer services and also product which demanded by the customers.
Organizations may need to reengineer processes to achieve optimum workflow and productivity. Process-oriented change is often related to an organization’s production process or how the organization assembles products or delivers services. The adoption of robotics in a manufacturing plant or of laser-scanning checkout systems at supermarkets is the example of the process-oriented change. For Example, in the steel company, employees cannot produce a more product because they work for 12 o’clock. So, now that time Company should change their process of the shift of work like they can divide in to three shifts for 8 o’clock. Thus, employees be encourage for their work.
1.4 Employee Moral:
This type of change alters the attitudes, behaviours, skills, or performance of employees in the company. Changing people centred processes involves communicating, motivating, leading, and interacting within groups. Changes include like investment in training, socializing employees, changing norms to motivate a diverse workforce, monitoring promotion and reward systems, and changing top management. This focus may entail changing how problems are solved, the way employees learn new skills, and even the very nature of how employees perceive themselves, their jobs, and the organization.
Some people-centred changes may involve only incremental changes or small improvements in a process. For example, many organizations undergo leadership training that teaches managers how to communicate more openly with employees. Other programs may concentrate on team processes by teaching both managers and employees to work together more effectively to solve problems.
1.5 Technological change:
Requires that organizations learn how to manage the innovation process. Technological capabilities provide new products, change existing ones, and create a core competence. Improving the reliability and quality of goods and services is an important capability. Organizations may need to restructure to achieve the benefits of new technology. For Example, in the company, they need a 10 worker for packing a product. But company can use the new technology which only needs 2 or 3 worker for handling the machinery and machinery handed the whole process of packing of product, so company can reduce the expanses behind the product packaging.
Those are the internal change forces which can control by the organisation. The change is need for the organization. If they fail in the change, then may be taken over by the competitors to the organization.
2. External Driving Force:
External driving forces are those kinds of things, situations, events etc., that occur outside of an organization and basically these are not under the organizations control. There are many types of external driving force which is below.
2.1 Changes in Technology
2.2 Political Factor
2.3 Customer Requirement
Now we discuss about the all above types of external driving forces in briefly.
Changes in Technology:
Different organization apply different technology as per how the standard of their pre-determine goal. Now a day, day to day different and more powerful technology comes in the market. So, one competitor organization follow the latest technology then the another competitors must be follow the latest technology. If they don’t follow, then their profitable ratio comes to down and their customers also reduce and they attracted to the competitors. For Example, in the past we communicate to each other with letter. We written letter and send in the letter box. Then after two or three days receiver receive the letter. After the time, the new technology came and we communicate with the telephone. Then after came the mobile phone we dial a number and communicate with each other by the voice. For Example, Nokia Mobile Phone Company launch their new mobile phone with camera and video recorder. So, competitors of Nokia Mobile Phone Company also apply camera and video recorder in the mobile. If they don’t apply it, then customers attract only for Nokia phone. So, all mobile phone company follow this technology and they become a competitor to the each other.
Different country has different government rules and regulation for the organization. In the organization, government also affected to the organization environment like income tax, luggage duty, custom duty, pollution control etc. each and every company honestly follows the rules and regulation of the government. If government change then its rules and regulation also change. So, it’s very affected to the organization. For Example, government allows only 10% pollution by the company and company honestly follow this rules and regulation. But after government is change so also change their rules and regulation and as per the new rules company can make only 8% pollution. Then organization must be follow of the new rules of the new government.
Each organization most tries to attract the customers by more satisfaction to customer, given better services, and fulfil the customers demand. If the company fail to attract he customer then they effects on the company’ profit. So company’s profit mainly based on the customers and customers based on their interest and test. Company must be follows the interest and test of the customers. Company also make change in products, services, quality of product, price of product etc. by requirement of the customers. For Example, now a day people use the fashion in the life style. In each product, people first see the fashion in particular product. Like one company produce only shoes that is without lace. But in the market customers requirement with lace shoes. So company mast be producing shoes with lace if they want to stable in the competitive environment.
If any new competitor wants to come in the market, they have to face with the large numbers of their competitors. In the completive market, one company change their product price high to less, and then other competitors of the company must be less their product price. If they don’t their price, then customers attract to the rivals. In the competitive environment, all company try to more attract to the customer. Company can also launch the skims like buy one get one free, bonus gift, lucky draw etc. that is more customers attract to the company. For Example, Volks Wagon car manufacturing company produce the POLO car which price is only 3 to 4 lacks. That is more competition to the Maruti Suzuki car manufacturing company that is mostly producing the car for middle class people.
Thus, external driving forces are forces fully change in the company. And the company must be change for the stable in the competitive environment.
So, organization change is a planning and ongoing process that is internal as well as external factor affected in the change.
What barriers to change existed at Corus?
1. Introduction about Corus Company:
Corus was established in 1999 when the former British steel plc merged with the Dutch company. Now Corus company subsidiary of the Tata group that is Indian company. In the Corus 40,000 peoples are employs. Corus has three operating divisions, first one strip product, second one long product, and last one distribution & building systems. In the Corus Strip product is at UK and it manufacturing steel in strip form. This steel used in different market like vehicle manufacture construction, electrical appliances, tubes and packaging.
The Corus aim is proving better products, higher quality service and better value for money than its competitors and they become a leader in the steel industry.
Every organization have barriers that is must be change by the organization. Because of these barriers, company face with some problems like goes down the profit ratio, law production, high expanses on producing etc. Corus has also many barriers to change and that is change by the Corus. Now we discuss about the all barriers to change.
3. Barriers to Change:
There are many barriers to change existed at Corus company. The all barriers of the Corus are as below.
3.1 Lack of Training or Fear of Unknown
3.2 Job Reduction
3.3 Degree of Expertise
3.4 Lack of Management System in Reward
3.1 Lack of Training or Fear of Unknown:
New and old employees both have to need the training for the particular department or their job. If the Corus don’t provide the training to the employees, they can’t given their best or may be possible to exist some accident at a work place, thus employees have fear about their job. For Example, when company recruited the new workers, then they provide some training to the workers and learn about the rules and regulation of the organization. If organizations don’t provide the training to the worker, then they feel fear about their work. When the new technology comes in the organisation, then they arrange training for the how to use the technology and how to use as free-accident. Corus have to provide the better training to the employees about safety at a working plant. If employees don’t know how to use the machinery, then they fear about some accident. So they can’t give their best to the Corus.
3.2 Job Reduction:
Every company need to recruit the new employees and short out their employees. But in Corus Company have more jobs cutting available because of less job satisfaction, lack of facility, not good survive, bad co-ordination etc. When company cut out the job, then remain employees don’t feel safe about their job and they fear about their job. So Corus have to need reduced the job reduction.
3.3 Aging Workforce:
Aging Workforce is one barrier to the Corus Company that is needed to change by the Corus Company. In the Corus Company, those employees are older then they get high reward form the company. But who have not more work compare to the young employees and young employees have burden of work compare to the older employees but they get less reward then the older employees. So it is not fair to young employees. So, young employees don’t attract to the Corus Company. Also in the market less opportunity for the job, so employees prefer to work in Corus Company.
3.4 Lack of Management system in Reward:
The employees most concentration on the reward system of the company. Most of the employees attract to their job because of high reward. In the Corus Company, the reward system is based on the experiences. Those employees have more experience, which employees get more reward from the company. Because of they have more experience about their job but they have burden of work then the young employees. Young employees have high productivity but they don’t get high reward rather than experience employees who had lower productivity. So, this system should be change by the Corus.
4. Reward System:
Now we discuss about the some reward system of the company. There three types of the reward system which is below.
4.1 Time Based Salary
Unit Based Salary
4.3 Experience Based Salary
4.1 Time Based Salary:
Time based salary means those salary which provide by per hour, week, or month. For Example, one worker get 5$ per hour, so if they do 10 hours jobs, then they get 150 $ per day.
Unit Based Salary:
In this type of salary, salary given based on producing unit by worker. In this type of salary, quantity is more impotent than the quality of product.
Experience or Skill Based Salary:
This type of salary provided by experience or skill of the employees. In this type of salary, quality is more important than quantity of product. For Example, doctors, teachers, engineers, scientist etc.
Thus, those are the barriers of the Corus Company which must be change by the Corus Company for innovation of getting high gain rather than its rivals.
Analyse the approaches Corus used to overcome these barriers.
Company take right things to overcome the barriers. All company need to implementation any approaches for overcomes to the barriers. Corus implement many approaches to overcome these barriers like co-ordinate with employees. Corus include to the employees in the company’s decision. Corus take an approach for easily communicate with the employees. If any employee has any problem, they can easily communicate with the company. And also Corus get suggestion or any idea from the company’s employees. Thus Corus easily find out the any problems to the employees and after Corus take a right decision for the problem. So that way, employees encourage for their work and they feeling secure in the company.
Corus apply one approach which is employees must be know about the company like what is happing in business and why is happing in the business. If company suffer to loss, then employee should be known about that why company get loss in the business. If every employee know about that, then it is more beneficial to the company. The Corus Company also put more emphasis on getting everyone take ownership of new values by physically singing up to the programme.
Employees’ participated in decision making which is the most important approach that Corus applies for the overcome barrier. So, employees can free to share their experience and their think. They can also share their new ideas and suggestion for the decision making. If company have not space for direct communication to employees, they can use indirect communication and also get feedback about things. The Corus Company also apply one thing that is employees should be known about that what behaviour or attitude expected from there. If employees know that what company expectation from there, then they do very well.
Corus implement shock tactics approach that show managers and employees to condition of the plant and identify the weakness. This approach show to every condition of plant like safety helmet use in the working area. And also identify the weakness of the employees and Corus help to improve them. Corus given training to employees and encourage to the employees. For Example, if any employees fear to share their thinks, then company encourage to them for share their ideas and suggestion.
Employees have to participation in all meeting & seminars and they can right to demonstrate about the speech. Company shown to the employees that they have limited resources and they have alternative use of the limited resources. Managers had also shown the video of poor working condition in which employees did the work. So, employees have not more expectation from the company.
Corus had 150 workshops and it had held to spread the messages to all. And also Corus clarified the most important article and respected the key messages fortnightly. Employees also redesigns of control room to improve their safety at plant like how to reduce the accident and in case accident many be arise, then how to manage it by employees. Also shown the video about the safety and why accident exists at plant and how we reduced it.
Corus have also raised important question about how the company managed key issues like alcohol or drug misuse. In the Corus, all working sites are free of alcohol because of high standards of safety. But if anyone who do to wrong, then they face strictly action by the Corus. If they can’t improve them self, then they may be face for left the job. But someone who are willing t improve them self, then Corus encourage to them and Corus also support to the employees who willing to the improve them self.
Thus, Corus use different approach for overcome to barriers and Corus also success to remove to these berries. Basically Corus put mainly concentration on the employees’ participation. So, Corus share all things to the employees and also get feedback & response from the employees which is useful for the Corus as well as employees.
Evaluation the effectiveness of the change programme so far.
Corus get more benefit by the implement of the change programme. It is very effective for the Corus as well as employees. Corus mostly focus on the values and beliefs of the employees. So, it is very beneficial for the Corus Company.
By the Corus company facing its internal barriers, it get improved efficiency in work, increase output production, lowered cost of manufacturing and also reducing waste in the competitive steel market. Corus have also most important improvement that is time of recession of 2008 and 2009, it had survived the business but also it had grown up its business. Rather then, at a time of change programme, Corus get reduce highly cost by 2009 and 2010 like it reduced around 250 $ million. So, it is very difficult to any steel company, but Corus had got highly benefits of their change programme. Corus have great gain by the large number of quick win at change programme. Corus get numbers of financial as well as non-financial benefits. The key gain of the Corus to indicators as below.
1. Production Capacity
2. Cost Reduction
3. Improvement in Quality and Measurement
4. Accident Free Production
Now, we discuss about all benefits of the Corus by implementation of the change programme.
1. Production Capacity:
Before the programme, Corus had not more capacity of the production, but after implementation of the change programme. Corus get increasing 4.5% production capacity per 5 million tonnes production. It is very large amount of improvement in the production.
2. Cost Reduction:
By implementation of the change programme, Corus reducing the cost of the producing steel. It achieves 20% reduction cost of the producing steel. And also maintain quality of the steel. So, it is very effective for the Corus.
3. In the change programme, Corus mainly focus on the employees’ participation and encourage to them. Corus given the training of safety and health to the employees, involved in decision making. So, it is very effective for the employees and Corus get improvement in the employees. So that, Corus get new more than 5000 employees to the value and beliefs of the business. Corus also get the reduction in the absenteeism of the employees.
4. Improvement in Quality and Management:
Corus also get improvement in quality of the product by the change programme. Corus reduced the cost of the manufacturing of steel, but Corus also maintain or improve the quality of the product. Corus bring improvement in the customer services like provide pre purchase services and also provide post purchase services. It is very beneficial to customers as well as Corus
5. Accident Free Production:
Corus bring the improvement in the safety and health of the employees. So, Corus contributes the new team of the safety and it provides safety training for employees. When new employees know the safety rules and regulation, then and then Corus accept to the work at plant. If they don’t know, then Corus provide better training for safety and health. So that, Corus get accident free production of the steel.
6. Corus follows the rules and regulation of the government. Thus, Corus reduced the pollution rate by the government rules and regulation and Corus also reduced the carbon dioxide level at 10%.
7. Change programme is very effective to the local community by the Corus Company. Corus bring the measurable improvement at the company’s impact.
Corus improved to all departments, every team and each and every individual employee by the change programme. They support to the improvement in key field and also them response to the Corus as achieving the company’s value and targets. Corus bring the change in the security. Now Corus has highly security for company because of in the Corus more than 5000 vehicles entered daily. They check by the international security for the safety. Corus also bring the new enhancement in entry for employees, contractors and suppliers. Now Corus is fully pre-secure to any accidents. So, that is a great achievement to the Corus. Now days, Corus is seen as an organization which is proud of itself in the steel industry.
Every organization needs to change and manage the change. Organization change is a planning & ongoing process. If it don’t take change or fail to change, then it may be left behind by the competition. So, Corus Strip Products UK involved in berries then they make a change. They winning to support of their employees and make an effective plan for change. Through the change programme, CSP UK is sustaining in the market and also it makes profit in the time of recession. Government also support to the Corus Company, because of Corus company follows the all rules and regulation of the government. Thus, CSP UK brings the change for overcome to these barriers. And also CSP UK is successful in the change for overcome to these barriers.
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