7 Major Internal and External Forces of Organizational Change

Organizations depend on and must interact with their external environment in order to survive and grow. They get inputs from their environment, transform them through various processes, and export output to the environment. There are many ways internal and external forces can drive organizational change.

internal and external forces of organizational change
internal and external forces of organizational change

They take want the environment gives and give what Environment wants.

Thus, organizations are constantly responding to their external environment by making necessary changes in their internal environment. Sometimes pressure for change arises from internal forces also.

For example, the marketing department wants new products requiring changes in production, purchase, and other departments. 

Thus, pressure for change is created by internal and external forces.

Internal Forces of Organizational Change

The following are the internal factors affecting organizational change:

1. Changes in Managerial Personnel

The managers are replaced by new managers which are necessitated because of Retirement, promotion transfer, etc. Each manager brings his own ideas and way of working into the organization.

Therefore, the relationships more particularly informal ones, change because of organizational changes in managerial personnel. 

Moreover, attitudes of the personnel change even though there is no change in them.

Thus, an organization has to change accordingly. Changes in organizations are quite fast when executives at the top change. No two executives have the same philosophy and style.

The new executive will follow his own style and will like to put into practice his own ideas and philosophy.

Thus, This may lead to important changes in the organization in terms of organization design, allocation of work to individuals, the delegation of authority installation of controls, and many more.

2. Changes in Operative Personal

The profile of the workforce is changing fast.

The new generation of workers has better educational qualifications, places greater emphasis on human values, and questions the authority of managers.

Their Behaviour is very complex and leading them to Organisational Goals is really a challenge.

The turnover of personnel also put a square stand on the organization and so it has to be handled properly by the organization.

Related: What is the decision-making process in business?

3. Deficiencies in the Existing Structure

Changes may be needed to make up for deficiencies in the percent organizational set-up.

These deficiencies are maybe in the form of an unmanageable span of management.

  • A larger number of managerial level
  • Lack of coordination among various departments
  • Obstacles in communication multiplicity of committees
  • Lack of uniformity in policy decisions
  • and lack of cooperation between line and staff. 

However, the need for change in such cases goes unrecognized until some major crisis occurs.

External Forces of Organizational Change

The following are the external forces affecting organizational change:

1. Political forces

Political forces within and outside the country have an important influence on large business houses

Particularly in translational corporations, the relationship between Government and business houses has become very complex in modern times.

Generally, the interference of government in business has been tremendous in most countries.

Many laws have been passed to regulate the activities of the corporate sector the organizations have no control over the political and legal forces, but they have to adapt to meet the pressures of these forces.

2. Market Conditions

Market conditions are no more static. They are in the process of rapid change as the needs, desires, and expectations of the customers change frequently.

So there is tough competition between manufacturers and between suppliers in the market.

The market is flooded with new products and innovations every day. New media of advertisement and publicity are being used for influencing customers.

All these factors put pressure on the modern organization to change their Technologies and marketing strategies.

3. Technology Adoption

Technology is the main external force that calls for the management of organizational change.

The rate of technological change is better today than at any time in the past and technological changes are responsible for changing the nature of jobs working at all levels in the organization.

Computer technology and automation have made A Remarkable impact on the functioning of organizations in recent times of technological advancement.

Thus, the permanent feature of the business area and it continues to demand a manager’s attention is pressure for change US/UK firms have progressed rapidly because they are very fast in adopting new technological innovations.

4. Social Changes

Because of the spread of education, knowledge explosion and government efforts social changes are taking place at a fast speed.

Thus, the drive for social equality (equal opportunity for women, and equal pay for equal work) has passed new challenges for management.

The management has to follow social norms in shaping its employmentmarketing, and other policies.

Thus, These are the internal and external factors affecting organizational change in business management.

Scroll to Top