For each organizational change there is a force, cause, or source of those organizational changes. Whether the pressure from the environment, whether it is internal pressure, each organizational change has its cause, a cause that is called the source of these changes. What is it that small businesses and entrepreneurs real successful? This is flexibility. Flexibility means that entrepreneurs quickly change yourself and your business to be able to develop business and the company they own. Each entrepreneur must establish a system through which they would follow possible sources of change and without delay will make adjustment in their work. In favour of the text there is a brief elaboration of possible sources of organizational changes.
Organizational changes do not occur from themselves. For any process of performing something, there exist a specific reason, and the process is the consequence of that reasons. If the reason doesn’t exist for some process or effect, then logically there will not be the need for that process or effect. Because of the continuity of the organizational changes in the life cycle of business, there will always be reasons for these organizational changes. This cause (forces) is calling sources of organizational changes.
External sources of organizational change
On the basis of how we categorize environment, we can identify the areas that are external sources of change. On the picture is shown general categorization of the environment of the organization.
SLIKA
From the picture we can see that environment consists of the following areas, and that areas are external sources of organizational changes:
- Economic external sources of organizational change. These are competitors, suppliers, interest rates, unemployment, income settlement, credit policy, gross domestic product, inflation, the level of international trade … All these factors influence the need for changes in the organization. You need to track them in order to make the right decisions for change.
- Technology area as a source of organizational change. Technology is the application of knowledge, methods, techniques and means that transform entrance to the exit in one organization. The rate of technology impact as external sources of organizational change varies from industry to industry. Each entrepreneur must to follow the development of the technology in its industrial branch and generally to apply the latest achievements in the development of their own business. It will ask for organizational changes.
- Socio-cultural area. The external environment as a source of organizational change is composed of values, habits / traditions, norms, attitudes and demographic characteristics of people. Every society has different socio-cultural characteristics that can vary based on region, ethnic basis, settlement, etc. All these different factors affect the business and looking for different adjustments to them.
- Political area. This area of the external source of organizational change is based on the laws and bylaws retrieved by the legislative house of a state as well as regulations issued by the government. Political area contains elements such as: legislation, the stability of government, strikes, political situation in neighbouring countries, taxation, etc. These sources of change must be respected by entrepreneurs and must to be incorporated in the work of their companies.
- International Field. Country where act one company is a narrower environmental of that company, but the wider environment as internationally, recently had an increased impact on the business because of the increasing globalization of the markets. What happens on the international market affects every business. The global crisis presents an example, which currently holds the whole world.
Internal sources of organizational change
Internal sources of organizational changes are a force, which appear in the interior of the organization. Controlling these organizational changes is easier for entrepreneurs and managers because they coming from inside the organization, something that according to the function, management control.
As well as in external resources and organizational changes that would be able to use the same approach in defining internal sources of change based on the internal environment of the organization. What is the internal environment of the organization? Most simply, the internal environment of the organization is all that is within the organization. Organization as a system is composed of:
- People
- Structure
- Process
People are that who carry out all activities in the organization. We can have the best structure and the best process, but without people in the process of transformation of the input to the output we will not be able to accomplish. People in the organization can be managers or no managers, but all they represent a source of organizational change. Employees are they who may to have initiative to change their work places, or changes in work tasks for more efficient and effective performance.
The structure of the organization, does not allow the appearance of chaos in the work. It gives the mutual relations of all components of the organization. Organizational structure defined place of every individual in the organization according to the hierarchy and the role of each individual through the rules, norms and procedures. Over time, organizational structure can not answer to the needs for efficient and effective work of the organization and become internal source of organizational change.
Processes in one organization represent all the activities that are performed in order to transform input to output and that will have a value for consumers. Processes in the organization may be different and now we’ll show some of them that are most relevant to business:
- technological process (a process that transform organizational resources in the product or service)
- the decision-making process (choice of direction of the people)
- communication process (the dissemination of information between people in the organization)
- management process (management as a process-managing people in the direction of fulfilling the organizational goals.
These processes are source of internal organizational changes, because any problem will seek resolution of which is a new way of functioning of the process or organizational changes.
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