Internal And External Factors Of A Company

1548 Words Nov 23rd, 2015 7 Pages
Internal and external factors

Dyne and Pierce (2008) explained that there are many factors which are inducing a change process in a company, as employees at all levels of organisational hierarchy are the agents of change though they are also barriers to it. Change happens when the forces of external environment are forcing to change existing circumstances. So companies wanting to change when there is fall in market share, new product has been launched, which is caught in the environmental scan. Managers therefore will try to stay of competition, may lead to analysing own strengths, weakness, opportunities and threats. This leads to understanding what capabilities and competencies are existing to make a counter offer in the marketplace.
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These elements like communication pattern, delegation of tasks, leadership style are barriers when they do not aid to mutual information exchange, and decision making to aid change process. Summers (2011) opined that at individual employee level, there can barriers like no awareness and knowledge about new QMS, or even they may not have motivation to unlearn the old and learn the new. Acceptance and adoption of a new work method may find no employees as it conflicts with their existing work-standards. This is closely linked to their individual cultural beliefs, organisational work culture which also affect individual abilities, which when falls short, needs new skill sets to be learnt. Many employees are unable to cope with the steep learning curve, as each of them have ‘individual differences’ in learning new skills, show different levels of abilities in applying new work methods (Dean and Bowen, 2008).
Kerzner (2009) acknowledged that to bring in change to any technology, financial support to change production systems is needed and hence the most liquid form of resource to buy other resources is also important in organisations. Apart from that there are organisational elements, like barriers of industry concentration, vertical integration which depends on competition, size of firm,
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