Organizational behaviour

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1. External forces:

Economic Forces

The insecurity about the economy is a main cause of change. For example, declining productivity, worries arising from inflation or deflation, low capital investments and the lowering of consumer confidence have a marked impact on different economies, and therefore, an organization. Sony expected a financial loss of $90 million on sales of $6.1 billion because of changes in 2005. They reduce the prices of their product because consumers were no longer able to purchase their expensive products therefore they usually buy from Samsung or other competitors who produce the same quality. The economic crisis and global recession affects markets across South-East Asia.

Technological Forces

The world is presently faced by remarkable technological changes. Communication, computer technology have dramatically revolutionized the whole workplace and have created a new range of products and services. For example, Sony was a leading company in (1990’s) mostly recognized for its great quality in electronics and walkman but as time is passing new companies and technologies have emerge this include Samsung and Apple’s that is beating the electronics markets with its I pad and IPod.

Advances in technology contributed to the development of economies. Sony has to keep up with the new technologies in order to stay on the markets.

Government Forces

Deregulation:

This is reduction of governmental rules and increasing decentralization of economic interventions at the level of the state. What previously used to be essentially government sector, services and industries are now being handled over to private companies for operation preservation. For instance Sony has its own planning, human resources, sales functions and operates with considerable autonomy.

Suspension Agreements:

These are agreements among governments to surrender anti-dumping actions. The current postponement agreement reached between Japan and the USA. They stipulate that Japan city Tokyo has to keep value and mass records of every chip shipment to the USA.

Protectionism:

While most countries allow free trade. Strong competition has forced governments to put into place procedures that protect some of their helpless industries and business firms. USA, for example, has tried to protect its motorbike business from Japanese competition, while Japan (with local markets) and Mexico ( with cement and oil industry). They have all tried to protect their domestic venture from overseas competition. Trade barriers was placed to protect the local industries, a lots take various forms, such as tariffs or import.

Increased Global Competition

In order to continue to exist and develop, (Kotter, 1995) companies are ever more making their presence felt globally. The case of the Sony mobile industry highlights this conception. Japanese company Sony, Samsung and Apple’s have continuously been relocating their manufacturing and assembling operations to south-east Asia where the cost of labor is much cheaper compared to that in Japan. They have also established their products all over Europe and America to get introduce restrictions and in the procedure have been able to remain a competitive edge in catering to the world electronics market.

Changing Customer Needs and Preferences

Customer wants and preferences are always varying.

The customers want and preferences always changes, organization have to adjust and keep innovate their services and products and offer to meet the changes that are needed.

For example, Sony Corporation Japan is known around the world for its innovations in technology and has to adjust to the change in the customer preference. It had to develop more than a technical quality but a product that make it easy to use; It shows by the preference of Apple’s product over Sony.

2) Internal Forces for Change:

A variety of forces inside an organization also cause changes that relate to system dynamics, inadequacy of existing administrative process, individual/group expectations, technology, structures, profitability issues and resources constraints.

Inadequacy of Administrative Processes

An organization functions throughout a set of measures, regulations and policy. With change times and the adjustment of organizational goals and objectives. Various of the presented policy, actions and regulations could be at variance with the demands of certainty. To persist with such autonomous processes can lead to organizational ineffectiveness. Realization of their inadequacy is a force that induces change.

Individual/Group Speculations

The organization as confluence on people, each one wants to satisfy his needs and aspirations. This creates contradictory prospect among individuals and groups as to the needs they intend satisfying in the organizational context. Positive factors such as one’s Sony ambitions need to achieve consolidated sale of 8 trillion yen with the help on a group of individual or team of the company.

Resource Constraints

Resources refer to money, material, machinery, personnel, information and technology. Exhaustion, insufficiency or non-availability of these can be a powerful change force for any organization.

Profitability Issues

A major change structure that has obliged a number of organizations to reorganize and re-engineer themselves related to profitability issues such of loss of revenues, market share, and low production. For instance Sony has made a lot of losses due to competition and had to resize the company in order to regain their profits

Structure Focused Change

It’s a change that any of the basic components of an organisation’s structures or overall designs. Some organizations make structural changes to reduce expenses and increase effectiveness. Structural change can take the form of downsizing, decentralization, job-redesign, etc. For example, Sony, the global electronics conglomerate has been trying to downsize. While many people were asked to leave, Sony is now very selective about hiring new personnel.