Factors Influencing Organisational Structure and Behaviour - Coursework Example

Factors Influencing Organisational Structure and Behaviour Introduction The study about organisational structure and behaviour is very challenging as it involves individuals and people working in teams. This becomes further difficult when situational factors interact with organisational activities. By ‘organisational behaviour’ we mean the study of the expected behaviour of an individual in an organisational environment. Behaviour of each person working in different environment will not be the same. Similarly, the behaviour of individuals will be changing according to the changing circumstances, and only dynamic individuals can exist in this rapidly changing world. According to French Wendell, “Organisational development refers to a long range effort to improve an organisation’s problem solving capabilities and its ability to cope with changing in its external environment with the help of external or internal behaviour scientist consultants or change agents as they are sometimes called” (Cummings & Worley, 2). From this definition it is clear that in addition to organisational factors, there are a number of external factors which bring about changes in the structure as well as behaviour of an organisation. In this piece of work, effort is made to find out how external environmental factors and technology influence organisational structure and behaviour. External environment affecting organizational structure and behaviour All organisations have to mobilise their resources from the external environment in order to carry out business operations. So their relationship with suppliers, middlemen, and the customers are of paramount importance. For the smooth functioning of business activities, they are to abide by the laws of the land and adapt to the changes in the national and global economy, and react to the strategies of the competitors on time. Relationship with suppliers: Commitment from the part of the suppliers is greatly valued by all the customers. As Emmett and Crocker point out, the availability of better information technology enables organisations to track the cost of each transaction. So, every organisation tends to choose that supplier who would provide them with cost effective services. Sometimes the organizations may demand their suppliers to invest in a technology which may allow them to provide a better position, higher level of customer service, and availability of spare parts (148). In brief, they want their suppliers to come in their own ways. If suppliers are abundant to provide materials on demand according to the whims and fancies of the organisations, it will help in bringing down the retail price of the commodities marketed by the organisation. This becomes possible when the suppliers provide the recommended materials along with technology and information. In this context a complete restructuring is possible as each operation of the organisation can be made cost effective. Marketing conditions: Marketing conditions are never static. They are in the process of rapid change as the needs, desires, and expectations of the customers change frequently. Moreover, there is cutthroat competition in the market as the market is flooded with new products and innovations every day. Every organisation has to face competition as the goods produced by them are to be exported to the environment. There are mainly two types of forces that affect the competitive position of an organisation. The first force is other organisations that supply the same products; and the second is buyers who are reluctant to buy the product. Any change in these forces may demand suitable changes in the organisation. For instance, when Indian economy was liberalised, there entered a number of foreign organisations into the Indian market. This forced many Indian organisations to react and adapt themselves with the new situations. The result, as Gupta and Joshi point out was that there were many cases of divesting the business and concentrating on the core business, acquiring core business, and developing competitive competence to face competitive threats. Similarly, there were changes in buyers in terms of their needs, liking and disliking, and income disposal for a product. Government regulations: The government rules and regulations also sometimes become a part of the unforeseen or unexpected forces of organisational change. According to the changes in laws, with regard to licensing and relicensing, organisations have to react accordingly. In case of a an organisation carrying out international business transactions, payments are to be made in the currencies of the home country, in US dollars, or in the currencies of a third party country. If the home country makes strict laws relating to the foreign exchanges, the reserves must be kept with the government. This will badly affect the smooth trading of overall business. As Singh points out, suppose the government of a country decides to stop the trade relation with another country due to some reason, it will affect the company in the home country once a large market is lost. In this case, new markets are to be found out or else the organization will be forced to bring down the volume of production (428). Political and legal changes: Political environment inside and outside the country has incredible impact on business especially on multinational and transnational business organisations. The corporate sector is controlled and regulated by numerous laws enforced by the home countries. No organisations have control over the political and legal forces. According to Langer, Alfirevic and Pavicic, political and legal factors strictly define the activities which an organisation can undertake and the methods which will be followed by it in accomplishing those activities and goals (72-73). Any change in these political and legal factors may affect the organisation’s operation. As the political and legal changes will remain sacrosanct, organisations have to adapt themselves to such changes. Anticipated global economic competition: Uncertainty regarding future trends is another major reason for organisational change. According to Singh, the declining productivity, varying interest rates, law capital investment, threats from inflation and deflation, the changing price of gold and crude oil etc. have made tremendous impact on various economies and thus on so many organisations; and since globalisation has reduced the charges of international cargo movement, organisations are on competition to explore new market places (429). Everyone wants to reach the new destination before their competitors do. In this anticipated rush organization is being transformed to cope up with the changing trends in the international market. Social changes: Social and cultural environment also suggest some changes for which the organisations have to adjust with. Social changes reflect in terms of people’s aspirations, their ways of working, and even in their needs. Social changes have taken place on account of several forces like level of education, urbanisation, feeling of autonomy, and international impact due to new information sources. Social equality, for example, equal opportunities for women, equal pay for equal work etc have posed new challenges for the management. The management has to follow certain social norms in shaping its employment, marketing, and other policies. Changes in people requirements: Customers dictate organisations what they actually require. For instance, with the changing requirements of customers, five star hotels have started to offer new services such as business centres, conference hall facilities, secretarial services etc. Role of technology in bringing changes Improvements in technology are the most frequent reason for change in organisations as they generally result in greater efficiency and lower costs for the firm. Technology is the way tasks are performed using tools, equipment, techniques, and human know-how. From the organisational perspective, technology refers to the knowledge and process that are required to complete various tasks. According to Podolsky, it means the techniques available for converting raw materials into finished products. Introducing a new technology may bring a major change in an organisation; and, the workers of the organisation must be trained to operate on the new improved technology as procedures and policies of the new technology are different from the one they were accustomed to (227). The substitution of computer control for direct supervision is resulting in wider spans of control for management and flatter organisations. Sophisticated information technology is also making organisations more responsive. Here, both the organisation and its employees have to be more adaptable. Jobs and tasks will have to be reshaped. People who do routine, specialized, and narrow jobs will be substituted by workers who can perform multiple tasks and actively participate in decision making. Organisations will be forced to increase their investment in training and education of employees, because employee’s skills are becoming outdated more quickly. For instance, Japanese firms have progressed very soon because they are quick in adopting new technological innovations. Technology has become a buzzword of the modern time. Rapid changes in technology has placed a question before the organisations i.e. either to run or ruin. For instance, the revolutionary change in technology like communication satellite, cable networking, dish antenna etc have compelled the dormant Murdock Company to restructure itself by segmenting its services to different categories of viewers and thus become more competitive. To conclude, like human beings, in the case of organisations also change is inevitable. Several forces influence changes in internal as well as external organisational environment. These changes demand for changes in organisational strategy so as to make organisations to survive in the changed environment. In the same manner, while accepting changes, organisation divides its group members into different and specific tasks and establishes coordination among members through a hierarchy and organisational structure. Thus, organisational change brings about organisational restructuring. Works Cited Cummings, Thomas G & Worley, Christopher G. Organizational Development & Change. USA: South-Western Cengage Learning, 2008. Print. Emmett, Stuart & Crocker, Barry. The Relationship-Driven Supply Chain: Creating a Culture of Collaboration throughout the Chain. England: Gower Publishing Limited, 2006. Print. Gupta, Shashi K & Joshi, Rosy. Management process and Organizational Behavior. New Delhi: Kalyani Publishers, 2005. Print. Langer, Josef, Alfirevic, Niksa & Pavicic, Jurica. Organizational Change in Transition Societies. England: Ashgate Publishing Limited, 2005. Print. Podolsky, Joni. Wired for Good: Strategic Technology Planning for Nonprofits. US: John Wiley & Sons, 2003. Print.  Singh, Kavitha. Organizational Behavior: Text and Cases. New Delhi: Pearson Education India, 2009. Print. Read More