Organisations need to change for a wide variety of reasons. Some of them are internal reasons – things going on within the organisation that need to be addressed. Some of them are external reasons – things happening out in the rest of the world that influence the organisation and prompt a need for change.
Several things can prompt the need for organisational change, including:
• changes in technology – e.g. telecommunication companies adapting to new generation mobile phones, tablets and other new devices
• competitors’ activities – e.g. airlines changing their routes, prices or level of service to be able to compete with each other successfully
• changes in the marketplace – e.g. …show more content…
consumer-related legislation that affects customers’ rights; changes in employment and pension contribution rights
• environmental factors – e.g. new waste management procedures to reduce landfill and contamination of the environment
• financial issues – e.g. rising costs making current processes unsustainable political factors – e.g. changes in government funding for apprenticeships
• internal business factors – e.g. following a change in senior managers and other decision-makers
• external business factors – e.g. fluctuations in currency exchange rates that affect holiday prices for customers
Organisations can go through change at any stage of their development, for example:
• when they first start to expand – e.g. leading to changes in staffing levels
• when they need to restructure after being in operation for a while – e.g. following changes in technology or competitors’ activities
• if they are taken over by another organisation – e.g. leading to a merger of staff, resources, customers, working practices and so on
• when they need to close – e.g. after a major downturn that leads to redundancies or the actual winding up of a