Organisational Changes Assignment Help

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Organisational Changes:

Organisational response to market changes could take the form of downsizing for cutting costs by retrenchment and reduction within the number of employees as well as in the levels of management. Technology might also force new styles of governance that require various skills. The number of operating sites might be reduced. People may search themselves performing totally new functions. The only way to stay in business might be a merger or to be the subject of takeover, friendly or hostile. With such ownership changes, technological, other market, and organisational modification might follow.

You must be reading about such changes in national dailies; it has almost become a rule within the technologically developed economies and is now not an exception for developing countries. Within the first quarter of the year 2007, Indian business houses have obtained offshore companies and vice versa. As like, this seems inevitable with little scope for escape but there is no require perceiving it as a threat; it could also be looked upon as an opportunity to done and be a winner.

A few visible and not so visible factors might also compel a business organisation to effect changes of several types. Other factors which bring about change are increased competition, technology, price cuts, laws, customer/user demand and etc.

Table: Factors that Drive Change






Decreased cost as a result of competition


Cost control efforts, workforce cut, automation, contract employee,


High workforce cost


Buying (importing) rather than manufacturing,  workforce reduction, outsourcing,


Cheaper imported products


Setting up manufacturing  unit within other countries


Obsolete product because of technology change


Change products, technology, equipment, materials


Pollution Control Laws


Technology import & product substitution, putting units in fields having lenient laws


Change within choice of consumers (semi-cooked food, electrical/electronic kits within place of fuel based equipment)


Customer (market) research lined retailing


Time constraint, simple in shopping


Departmental stores within place of small scattered stores


Health awareness - Low cholesterol oils vs. traditional oils


Healthy product substitutes


Time constraint


Home delivery & internet/tele- shopping automation

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