IMPACT ON THE INTERNAL ENVIRONMENT Flashcards
HR Management:
Organisational change will ultimately have a large impact on employees at all levels within an organisation and therefore human re-source management will be altered by the implementation of a change. Some impacts on this area may include;
> Diff. Recruitment and selection
> The change might mean redundancies especially if tech developments are involved.
> Training of employees may change
> Performance appraisals may be altered
Operations:
For most organisations, change aims to reduce production costs, shorten production time, streamline distribution and service to customers. Therefore the operations area may be impacted largely; > New layouts > Emphasis on quality > Smaller or more flexible facilities > Changes in production schedules
What are the areas of the internal environment impacted by change;
> Structure
Corp. culture
HR management
Operations
What is a transformational change?
A transformational change is one that results in a complete restructure throughout the whole organisation.
What is an incremental change?
An incremental change is one that results in minor changes. It refers to small ongoing changes.
Structure:
As the organisational environment changes, organisations undergo structural change. This may include;
> Outsourcing
> Flatter organisational structure
> Develop work teams
The aim of these structural changes is to streamline operations, increase efficiency and empower employees to make their own decisions.
Corp. culture:
For an organisation to survive in the long term, changes within the external or internal environments should be reflected in its corporate culture so that the organisation can fully adapt and the change becomes the norm.