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Environmental Factors Influencing Changes in The Organization Essay Sample

This essay sample shall discuss the environmental internal and external factors influencing the changes in the organization in respect of a case study of an organization.

Any changes that are occurring in the organization must be taken care of by the managers. Such organizations must learn to be adaptive to changes and cope with the new challenges which will help the organization to sustain and flourish in the long run.

Environmental Factors Influencing Changes in The Organization Essay Sample

Organizations that cannot keep up with the changes taking place in the organization due to internal or external factors may perish in the coming years.

Case study of an Irish company about changes in organization due to internal and external factors 

We will discuss a case study of a software company called Soapbox Labs in Dublin, Ireland. It is a voice technology company that is specially designed and equipped for children. It is an automated speech recognition technology for kids.

Since it’s a software company it has to constantly interact with other organizations and individuals. It has to interact with different unions, suppliers, consumers, shareholders, and government to ensure the smooth running and functioning of the company.

Such changes have to be made by the factors influencing such changes. Such organizations must be dynamic and flexible enough to adopt changes easily.

Social, political, legal, economic, and technological changes are some of the factors that influence the change in the organization.

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External factors influencing change in the organization 

We will discuss the technological, social, market, and political-legal external factors that influence change in such companies.

Technological Factor

Since Soapbox Labs is a software company it has to be adaptive and flexible toward the change in technological advances.

Many other software companies in the market are providing similar services. If they adopt any such new technology with cost-effective service it can rise and improve its market position leaving behind its other competitors.

A software company is a completely automated and computerized based system. So it needs to be updated with the technical know-how and latest technology available in the market.

As soon as Soapbox Labs adopts any such new market technology its organizational work structure will change. It will create an equilibrium in the organization ensuring the smooth functioning of the business operations.

Social Factor

Any relationship with the clients and suppliers changes the behavior of the personnel or employees. It can be due to the level of education, international market impact, autonomy, urbanization, etc.

Changes in the organization are required to improve the work culture and environment of the organization.

Marketing Factor

Due to an increase in the demand-supply chain, there is cut-throat competition in the market. Some factors influence the market position of an organization. First is the supply of the same product by the different organizations and second is the demand for the same product from buyers.

Since Soapbox Labs is a startup software organization it faces huge market competition from the already established players in the market providing the same service.

In such a situation, suitable changes need to be made to the organization in alignment with the new situation. There is a high involvement of risk in the form of competitive threats, changes in needs, and the likings of the buyers and other market forces.

Changes in the market condition will force the organization to make desirable changes to meet the needs of the buyers.

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Political and Legal Factor

Any changes in the government policies, the election of the new government, and the introduction of new laws may affect the organizational operation and functioning.

If there are any such new laws related to information technology etc. it has to be implemented by such software companies as well. It must follow government rules and policies to continue running its business.

Internal factors influencing change in the organization 

There are internal factors that can influence the change in the organization that including a change in the managerial personnel, the nature of the workforce, inertia, or any deficiency in the organization.

Change in managerial personnel

Managers of the different departments in the organization often get changed over some time. It can be due to the process of promotion, retirement, layoff, or transfer.

With every new manager comes a new way of planning strategies and working methods. It affects the behavior and attitude of the working person as they do not get easily accustomed to the new manager.

So, there is a need to change in the organization according to the changes in the personnel.

Nature of the workforce 

The workforce profile is changing at a fast pace these days as there is a growing demand for hiring young aspiring candidates into the organization. Such new young adults have high qualifications, respect for human values, and even dare to question the manager’s authority.

Different work values are reflected by the different age groups working in the organization.

If the organization shows any intolerance towards the young employees it may increase the turnover negatively impacting the management of the organization.

Soapbox Labs since it’s a startup software company needs to work with mostly the young generation as they are most capable of handling the latest technology. They have education and expertise in the field of technology.

So their needs and concerns must be catered to by the manager personally and need to show tolerance towards them.

Deficiency in the organization 

If there is a lack of management, lack of coordination between the different departments, lack of cooperation, big size of the company, communication gap, complex levels of management, lack of regularity in decision making, etc.

The following internal factors call for a change in organizational management, arrangement, and process.

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The above sample is a case study about the various internal and external factors that influence change in an organization.

Business Management QQI, QQI Supervisory Management Course QQI Level 6 (6N4329), Leadership and Management Training QQI Level 6, and Business Administration Course QQI Level 5 students can read this sample to get knowledge on such management-related subjects.

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