Organizational Behavior Forces
Organizational behavior refers to the perceptions and values that members of an organization have towards that organization. Various factors affect organizational behaviors; while some of these are innate to the organization others are external forces. This paper is going to examine how internal and external factors such as; restructuring, organization mission, fiscal policies, competition, economy, customer demands and globalization affect organizational behavior.
Restructuring refers to internal changes that arise within an organization. These are such as layoff, transfers, change of structures and change management among others. Restructuring changes how an organization used to operates and therefore affecting the organization culture. This in turn influences organizational behavior.
Organizational mission can simply be described as the purpose for the existence of the organizations (Mission, 2010). Organization mission statements are supposed to define the main goals, objective, practices and values of a company. Organization mission can largely affect working culture and values within the organization. Organizations that take their mission statement seriously ensure that all management and operation activities of the organizations are geared towards achieving the mission.
Fiscal policies can be internal which may refer to policies that govern how an organization manages its finances (Adada, 2009). These policies will influence how employees and managers conduct themselves when dealing with financial matters. Fiscal policies can also an external force. These are mainly expenditure policies by the government that touches on items such as; interest rates, tax rates and government spending. This will influence the behavior of an organization in terms of decisions they make concerning investments, acquiring capital, managing revenues among others.
An organization competitive environment greatly influences the behavior of an organization. The state of competition in a given industry or market will influences behavior of an organization in terms of the strategies it adapts in designing it products, pricing it products, distributing it product and in promoting its product in the market (Adada, 2009). An industry that is also highly competitive in terms of attracting employees will also affect how organizations behave towards their employees.
Economy is an external force that influences very many aspects of an organization. The state of the economy will influence; the marketâ€™s purchasing power and therefore demand, availability of finances, state of competition among other aspects (Adada, 2009). Demand is one of the forces that are likely to be influenced by the state of the economy among other factors. Demand will also influence the behavior of an organization in terms of the strategies it uses to attract and retain customers to the organization.
Competition and pricing are also largely determined by demand. When demand is higher than supply there is less competition and therefore prices go up. The world becoming a global village has become a common phrase in todayâ€™s business world. Barriers that used to limit international trade and movement are increasingly being eliminated creating opportunities for internationalization of businesses (Adada, 2009).
This has presented new implication for many businesses as the future promises increase in competition as more and more organization join the global market. Due to globalization organization are now compelled to restructure their operations in order to make them competitive against other global players that are joining the market.
Anonymous (2010). Strengthening Organizational Culture through Vision, Mission Statements. Retrieved on February 21, 2011, from http://news2.onlinenigeria.com/news/general/19946-Strengthening-organisational-culture-through-vision-mission-statements.html
Adada S. (2009). The Forces that Influence Organizational Behavior in the Modern Organizations. Retrieved on February 21, 2011, from http://www.hgcsp.org/Publication/THE%20FORCES%20THAT%20INFLUENCE%20ORGANIZATIONAL%20BEHAVIOR%20IN%20THE%20MODERN%20ORGANIZATION%20-%20OGOLLA%20SAMSON%20ADADA.pdf
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