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What are management styles all about
Leadership style
Reflection on organizational change
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Trying to run a business in today’s turbulent economic environment is similar to trying to get a small boat back to shore while being in the middle of a category 5 hurricane. There are so many factors at work that a manager is required to immediately respond to, just to keep the business above the water. This is known as organizational change. The factors that push this modification are known in the managerial world as external environments, and internal environments. The external environment of an organization is referring to elements that exist outside the company that require adjustment within the organization in order to stay in business. These factors are, for the most part, out of the organizations control. For example, available …show more content…
The internal environment refers to the conditions inside the company such as, employees, systems, incidents and working conditions within the company. These factors are typically something that the business can control. For example, the culture within a company can lead to a very positive environment for consumers, and a very good morale tool for employees. Another good example would be the style of leadership from upper management, and departmental management. Providing the correct style of leadership to employees will enable them to perform at peak efficiency. Furthermore, it will foster the workplace culture, keep the staff happy, and allow them to want to come to work. Lastly, the organization’s mission statement is an internal environment factor that can be controlled. This also will have large impacts on the attitude, performance, and overall employee and customer behavior. It is important for managers to understand that the internal environment that ultimately influences decisions, employee behavior, and even encourages company activities. Changes to any of these factors can have both a large impact positively (if implemented correctly), or negatively (if implemented …show more content…
Prior to purchasing the gym, the business was in extreme financial failure. The majority of the employees frequently complained about the current leadership style experienced from the manager and their poor leadership style. They reported that they were often unsure of the current rates and services because the manager often made many changes with little to no warning, all of which, ended in failure and unhappy clients. Robert realized that if this business was going to succeed, then he must implement numerous changes to the internal environment in order to restore the gym to its former glory. Robert’s first change was to fire the current manager based on his terrible decision making and leadership. Robert’s next move was to hire an experienced fitness center manager that utilized a better leadership style that harmonized with the business and the staff. Next, Robert reinvented the mission and vision of the business that was clearly conveyed to the staff. Throughout the next few months, Robert spent a lot of time getting to know his staff and created a positive workplace culture. These changes implemented by Robert clearly were necessary in order to combat the negative internal environment that was driving the business into the ground. He quickly recognized the factors, and made the needed changes to turn
Internal- What is Danis capable of? (analyze the strengths and weaknesses) By looking at the company’s strong points and weak points Danis will be able to determine the company’s capabilities. According to Knol, marketing strategies, “All factors that are internal to the organization are known as the ‘internal environment’. They are generally audited by applying the ‘Five Ms’ which are Men, Money, Machinery, Materials and Markets. The internal environment is as important for managing change as the external.” (Knol, marketing strategy p 3)
A firm?s external environment is divided into three major areas : the general, industry and competitor environments. Below is an elaboration in further detail regarding the firm?s opportunities and threats in these three environments.
An organization might have a structure in place for change but they must also look at the finances. An organization must have appropriate finances to handle the change and must keep the organization profitable (Nielsen and Abildgaard, 2013). Both finances and the social environment within in an organization are resources that can potentially limit an organization from
Changing situations throughout the world affect all organizations in business today. Therefore, most organizations acknowledge the need to experience change and transformation in order to survive. The key challenges companies face are due to the advancements in technology, the social environment caused by globalization, the pace of competition, and the demands regarding customer expectations. It is difficult to overcome the obstacles involved with change despite all the articles, books, and publications devoted to the topic. People are naturally resistant to fundamental changes and often intimidated by the process; the old traditional patterns and methods are no longer effective.
Businesses play a significant role with the economies of all countries, whether developed or developing. It contributes to the welfare of the society through the satisfaction of needs, provides a source of livelihood to millions of people worldwide. Businesses do not operate in vacuums but operate within business environments. The events in the environment of a company have a direct effect on the success or failure of that company. According to Jain, Trehan and Trehan (2009), business environments can be categorized in two: (1) internal business environment; (2) external business environment. Institutions and organizations are usually in a position of controlling their internal business environment. By doing so, they gain the ability of affecting their institutional performance. On the contrary, it is difficult for a business to control the external environment; however, businesses can identify in advance the opportunities and threats presented by the external environment and take decisive actions to ensure its continued success (Jain, Trehan & Trehan, 2009; Goyal & Goyal, 2009).
Why do organizations change? With time goes by, rapid development of science and technology had led us to a world full of competitions. Change and stay alert to keep up with the current trend is essential asset to survive in this aggressive global economy. As the framework indicated by Pettigrew, there are two key context factors makes a great deal of effects on the reason for companies to change. Those are outer context and Inner context. Outer context could refer to the surrounding environment around the firm and the global economics status, etc. Inner context could be downsizing, restructuring the Gestalt, or the problem with coherent design archetype. Under the stress of the outer and inner context, forces or triggers will bring out the revolution. Change can be seen in a short term way and also in a long term way. Short term change could be a sudden, discontinuous and frame-breaking rupture which has an impact on the whole organisation, or new forms of management ad structure of the firm itself, or the breakthrough created by the major innovations or even can refers to the impact of new product and new market opportunities. Normally, financial crisis will be an initiative as a trigger to revolution. At first of the revolution, there would probably already has small changes in normal management and structure. As a long term way to apply the change, change agents are needed to do an ongoing, continuous and gradual progression or give some simpler initiatives such as improvements to existing products and product range.
When organizational change proves necessary, all people at all levels of the organization should address change as a “how,” “what,” and “why” problem in order for the change to be sustained over time.
Environmental scanning "is the acquisition and use of information about events, trends, and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action." Choo (2001) As explained by Gazzale (2007) all businesses external environment are made up of three facets ": 1) the remote environment (macroeconomic factors including inflation, GDP, interest rates, etc.), 2) the industry environment (barriers to entry, the level of competition within the industry, etc.), and 3) the operating environment (the business's customers, suppliers, and workforce, etc.).
The idea of change is the most constant factor in business today and organisational change therefore plays a crucial role in this highly dynamic environment. It is defined as a company that is going through a transformation and is in a progressive step towards improving their existing capabilities. Organisational change is important as managers need to continue to commit and deliver today but must also think of changes that lie ahead tomorrow. This is a difficult task because management systems are design, and people are rewarded for stability. These two main factors will be discussed with reasons as to why organisational change is necessary for survival, but on the other hand why it is difficult to accomplish.
It is apparent that the only thing constant in business is change. Organizational change is often an overwhelming challenge for business leaders, managers and employees alike. The need for change may be the result of market shifts, economic environment, technology advancements or changing work force skill-set demands. Today Organizational change occurs for reasons that originate external to the organization (Chandler, 1996: Hannan & Freeman, 1984), as well as internal to the organization (Baker 1990: Prechel 1994). Thus, External constraints, internal constraints, resource dependency and increasingly growing competitive markets force organizations to change in order to maximize economic potential. Although organizational changes are usually a response in reaction to an event, companies and leaders should still expect to encounter issues. Organizations need to be more proactive and contingent on how to handle the problems that will inevitably come about. This will make the process of organizational change go smoothly as well as reduce resistance through proper management techniques. Resource dependency argues that both environmental and organizational constraints impact organizational change (Pfeffer & Salancik, 2003).
Reasons for change can be down to adopting new corporate strategies, structures, process and technology to assist organisations handle internal and external environmental conditions effectively (Goksoy, 2015). However, merely adopting change cannot drastically drive through change so organisations need to go through reconstructive change to realign the organisations objectives (Green, 2007). Although change can be introduced in these drastic fashions it can also be emergent within an organisation due
Robbins et al. (2011, p. 186), states ‘Change is an organizational reality and affects every part of a manager’s job’. Today’s wave of change primarily created by economic condition so change is now such a constant feature of organization life (Goodman, E. 2011, p.243). Organizations need to be changed at one point or another in structure, technology or people. These changes are defined as organizational change (Robbins et al. 2011, p.18). Organizational change is important because changes can increase effectiveness and efficiency, the innovation of products, services as well as dealing with changes in external and internal forces (Goodman, E. 2011, p.243). However, ‘the bottom line is that organizational change is difficult because management systems are design and people are rewarded for stability’ (Lawler, E.E. & Worley, C.G. 2006, p.11).
Organisation is the most important element in management. Any organization is located and operated in the environment. Every action of all organizations is possible only if it allows its realization. The internal environment is the source of its vitality. It involves the capacity needed for the functioning of the organization, but at the same time can be a source of problems and even her death of the organisation. The external environment is the source that supply organization resources. The organization is in constant exchange with the external environment consequently it provides itself with survival. The main objective of this work is to consider elements of the internal and external environment of the organization which are in a constant
Different organizations typically face change due to many forces surrounding their mission. These forces can be from either internal or external sources. The External forces usually occur outside of the organization and it could have a global effect. According to Kreitner-Kinichi (2003) the four external forces for change are demographic characteristics, technological advancements, market changes, and social and political pressures. The internal forces for change come from inside the organization like human problems, managerial behaviors and decisions.
The business environment that firms operate in can be divided into the internal environment and the external environment.