impact of organizational changes

impact of organizational changes

Environmental changes have a significant impact on the organization (Vorobyova, Vorobyov & Chernykh, 2019). Therefore, the business should put in place instant strategies to deal with such changes. When an environmental change is felt, one, the stability of the firms must be affected. For instance, when there are technological changes, the way of doing the thing is automatically affected. For example, if employees use the manual entry of data, here, computers should be applied. Therefore, it means they should be subjected to training induction to the technology world. Training here means managers of the organization should incur an extra cost. Such expenses might force some of the companies to close down and cease to exist.

The complexity of the business is affected by environmental changes. Complexity is the number of elements in the organization’s environment and its connections. If the governmental rules are modified in such a way that the government changes the laws affecting the business, then the variables in the business environment are directly affected. For example, considering government intervention such as reducing the price of the goods and services due to specific crises such as disease outbreak should bring changes in the organization hence breaking the rigidity of such businesses. .

Resource scarcity also comes along with environmental changes (Ghobadi & Jafari, 2015). Changes bring in extra work in the company, which calls for more resources in the organization.  The high cost of production and high prices increases the demand for more resources. Structure of the company, plants, and other machines are likely to a shortage in supply is a result of environmental changes. Uncertainties are also a problem in an organization, which is subjected to environmental changes. Unknowns characterize uncertainties. Such an unknown might bring fear to employees and managers, which might slow down the activities within the firm. For example, technological changes require more expert and competent to deal with complicated technology, which might instill fear to workers.

References

Globoid, M., & Jafari, H. (2015). Environmental Impact Assessment of Petrochemical Industry using the Fuzzy Rapid Impact Assessment Matrix. Journal Of Petroleum & Environmental Biotechnology, 06(06). doi: 10.4172/2157-7463.1000247

Vorobyova, V., Vorobyov, S., & Chernykh, A. (2019). The impact of structural changes on the profitability of agricultural organizations in the region. IOP Conference Series: Earth and Environmental Science, 274, 012032. Doe: 10.1088/1755-1315/274/1/012032