Executive Summary: Organizational Forces
Every organization is affected by forces. These forces create both planned and unplanned changes to the organization. The forces themselves are divided into two categories. The categories are external forces and internal forces. External forces come from outside the organization and internal forces come from within the organization. The external forces that are going to be reviewed are the economy and globalization. The internal forces that are going to be covered are employee expectations and managerial expectations.
Economy
The economy is currently in a precarious state at the moment. It is currently in a downturn in which there are lowered activities in almost every arena. The world is seeing a decrease in jobs or employments, less investments, decrease in productions, etcetera. Thus, this external force has affected every organization in a serious matter. The effects are listed below:
• Downsizing: In every organizations analyze by this learning team, there is one form or another of downsizing as a result of the economy going into recession. The downsizing can be either company wide or specific departments.
• Wage Freeze or Bonus Cut: In order to minimize costs in a shaky economy, most organizations have implemented a program of wage freeze or bonus cut. Employees’ salaries are not to be increased and bonuses are no longer given until there is an improvement in the economy.
• Hiring Hold: In addition to the downsizing, most organizations are also withholding from hiring new employees to further notice.
• Move in location: In one organization analyze by the learning team, the company moved from its current location in California to Texas, a state with a lower cost of living.
Globalization
Globalization is which companies or organization are not longer national or bound by one country. Instead, the company is integrated in different parts of the world. Globalization, as an external force, has created both...