The external forces of change arise from the outside environment. Political, economic, social, and technical variables can all impact an organization or an institution (Kaizen Consulting Group, n.d.). In these broad domains, the internal factors that determine and contribute to corporate performance ultimately characterize the organization’s connection with the external environment (Kaizen Consulting Group, n.d.). A company with a deep understanding of external factors may better explain itself to the public and beat the competition.
Essentially, Political influences play a significant role in driving change. According to the Management Study Guide (n.d.), with the fast-evolving environment political climate, and social upheaval in international diplomacy, the global economy is constantly shifting and displaying numerous dilemmas to the organizations and institutions in the form of changes in regulations and policies. Government restrictions, as well as the level of engagement, may have an impact on the need for transformation (Management Study Guide, n.d.). Furthermore, economic factors affect an organization’s change management strategy in the context of financial uncertainty or increasing competitive challenges. Technological improvements and innovations have transformed organizational functioning by enabling novel work methods (Management Study Guide, n. d.). Hence, they significantly influence an organization’s strengths or weaknesses in a competitive setting.
Monitoring and managing organizational change are fundamental for adjusting to competitive pressures and moving from the organization’s current state to the intended strategic planning. It is necessary to develop and develop appropriate strategies for effective change management. Managers who develop and convey what they have gained inside their organizations may also benefit from and communicate effectively with the organization’s external environment, producing a continual exchange of ideas that helps both the organization and its environment.
Kaizen Consulting Group. (n. d.). Internal and external factors of change management. Web.
Management Study Guide. (n. d.). Determining forces of organizational change. Web.