Once change is accepted as inevitable and largely (or partly) predictable a manager has to develop proper strategies for managing it. Business activities are any activity a business engages in for the primary purpose of making a profit, including operations, investing, and financing activities. Instead, marketing activities are intimately connected with a company's products and services. Government regulations on health, safety, and the conduct of business affect an organisation. Thus favourable change can be brought about only by working through people. Gronroos defined a service as “an activity or series of activities of more or less intangible nature that normally, not necessarily, take place in interactions between the customer and service employees and/or physical resources or goods and/or systems of the service provider, which are provided as solution to customer problems”. Of course, the organisation must make sure that it really needs such a highly qualified (and hence more expensive) set of managers and that the new standards do not discriminate against women and minorities. The main idea behind the adoption of computers in offices is the creation of an information-processing station for each employee. Organisational Decline and Termination. Organisational changes are of three types: (i) Technological, made possible by breakthroughs in computer and word-processing technologies. The acquiring firm may have the resources and management expertise to set things right. When an organisation is unable to meet its financial commitments through cost reduction measures, or when it is unable to raise necessary funds f6r current operations then termination seems to be the only viable solution, because in such situations the policy should be one of loss minimization rather than profit maximisation. Automation is the process of designing work so that it can be completely or almost completely performed by machines. You may need to download version 2.0 now from the Chrome Web Store. Define business. Such a response may have to be hurried so the potential for poorly conceived and poorly executed change is increased”. Terms of Service 7. 0000007523 00000 n During recession, there is a fall in demand for houses and the construction industry receives a severe jolt. All-salary plans do away with hourly wages and pay all employees a fixed wage, irrespective of work effort and productivity. In fact, various useful strategies have been applied to overcome any type of employee resistance to organisational change. The nature of business refers to the overall activities of a company in their quest to create, market, and sell a service or a product. A manager’s philosophy of change should encompass at least three elements — trust, organisational learning, and adaptiveness: Trust is defined as “an assured reliance on some person or thing, a confident dependence on the character, ability, strength, or truth of someone or something.”. Copyright 10. A transformation is a change not just in the organisation structure but (very often) from one kind of business to another. Scribd will begin operating the SlideShare business on December 1, 2020 …, ment dynamics in the developed countries is different as compared to developing countries along with examples 4. All rights reserved. The technological element may yield new production techniques that the organisation needs to explore. Finally, organisational people often resist change simply because of feelings of loss. It may also be (5) due to fear of failure, (6) due to fear of the unknown, or (7) due to unwillingness to give up existing benefits or programmes. After a while, the organisation might raise its standards again and hire only management trainees who hold an M.B.A. degree. They prefer to wait and watch. Perhaps the simplest form of technological change results from a change in equipment inasmuch as technological knowledge is often embodied in new machines and equipment. Through participation it is possible to reduce uncertainty and project self-interests and social relationship. Without customers for its products or services, a company can't stay afloat, making marketing another crucial business activity. Here, it suffices to focus on efforts to upgrade employee skills and performance. Various factors may cause decline and potential termination, but the real cause seems to be poor management, which may include anything from choosing a wrong location for a new business to over investing in capital equipment to being too generous with customer credit. Other causes of structural change include compensation systems, performance appraisal systems, and control systems. Business results into generation of employment opportunities thereby leading to growth of the economy. Nature of work means, what work is to be done in the business. The important point to note here is that any shift from one form of performance appraisal to another represents a structural organisational change, because performance appraisal is related to positions in the organisation and to interrelationships among those positions. Perceived risks in turn increase consumer hesitation and generate negative attitudes toward a service (Kalaiarasi and Srividya, 2012). Types 9. Table 15.2 lists five major areas where technological change is likely to be experienced. For example, personal computers made both manual and electric typewriters obsolete. 15.2 summarises the nature of organisational change. Please follow these tips. ore refuses to give delivery of the goods until paid. So all the best for your new business. It is a very simple meaning. Business process monitoring is the method of employing analytics to monitor the performance of a process. Section 1.1 The Nature of Business Activity Unit 1. <]>> And, of course, the employee could simply be transferred to another job or department. Sometimes changes are imposed — events beyond the individual’s or organisation’s control initiate the change. Secondly, physical assets cutbacks may mean selling a manufacturing plant, a warehouse, a computer, an office building, or surplus inventory (at cost or below). Competitors obviously influence organisation via their price structures and product lines. What is a business? If there is any residue (surplus) it is distributed among the shareholders. It represents the forces for change and brings into focus the distinction between two types of change—planned and reactive. Finally, reward system participation involves having the employees participate in the design and administration of the organisation’s reward system. Diverse feelings among workers may lead to substantial resistance force to change. Similarly, managerial skills can be developed and maintained to help managers keep pace with changes in their work environment. NATURE OF HUMAN RESOURCE MANAGEMENT The emergence of human resource management can be attributed to the writings of the human relationists who attached great significance to the human factor. For example, they may worry about their ability to meet the new job demands, they may think their job security is threatened, or they may simply dislike ambiguity. Paralleling the increased awareness of social and technological change has been a great deal of concern about organisational change. But in most cases employees give a neutral response. Research Scholar what my resume says; Learner what my Heart says. The fact is that while some organisational change is planned well in advance, other changes come about as a reaction to unexpected events. Another way to exert control is to focus on minimising work-related accidents. Planned versus Reactive Organisational Changes 3. Secondly, this redistribution emanates from a developmental change process. As socio-cultural values shift, for example, workers’ attitudes toward their jobs may also shift and they may demand a change in working hours or working conditions.