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Chapter 3 of Palmer's Managing organisational change, compulsory 2nd year course IBA
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Chapter 3: why organizatonn change3.1: environmental pressures for change
o They ofen occur where an organisaion’s resource base decreases as a result of reduced
demand, decrease in market share, and bad investment decisions
o INCLUDE TABLE 3.1
o Six types menioned below
Fanhion prennuren
o Mimeic isomorphism: when organizaions imitate the structures and pracices of other
organizaions in their felddindustry, as they are considered legiimatedsuccessful
o Organizaional change can occur to these management fashions: to be seen as professional,
modern or progressive
o E.g. Total quality management and employee empowerment
o Ofen blindly follow trends without criically assessing them
o They lack systemaic research
o Not always the case, various factors intervene
o Fashionable pracices go through cycles – enthusiasm fades
o Market forces infuence decisions
Mandated prennuren
o E.g. Court orders when a lawsuit is fle may force companies to change
o Corporaions who do not address social and environmental requirements face fnes & other
payments
o Formal coercive pressures: government mandates, e.g. New laws and policies
o Informal coercive pressures: commitment to types of changes such as empowerment to get
support from other organisaions
Geopolitcal Prennuren
o May be in the form of immediate crises or longer-term geographic realignments
o Immediate crises ofen have an immediate impact on a range of businesses, leading to a drop
in sales, which ofen leads to layofs.
o Longer-term geopoliical realignments are things such as when the European Union was
established. These new contexts force companies to change its structure and adapt
o Other geographical pressures may occur through mergers and acquisiions, which undermine
tradiional boundaries: need rapid and fexible responses.
o Four global environmental forces for change
o Technological: requires more globally connected communicaion
o Greater economic integraion: mainly of currencies
o Maturaion and slowdown: of domesic markets (simulate exports)
o Fall of socialist countries: more compeiion, larger markets, fewer barriers to entry
Market decline prennuren
o Declining markets place organisaions under pressure to remain relevant
o If the industry’s nature changes, it is important for frms to adapt
Hypercompetton prennuren
o Chaoic environments, associated with a postmodern organizaional paradigm
o Aligned with the rise of e-commerce and Internet
o Organisaions are forced to deliver goods and services more quickly, customized and fexibly
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