Balancing Organizational Change for effective

environment

1. Buffering – Buffering techniques are used to soften the impact of

environment on the organization. Stocking materials, preventive
maintenance, employee training, building inventory are examples of
buffering. These precautionary measures enable the organization to
avoid damage due to changes in environment. E.g. by maintaining a
supply of raw materials, the company can operate at full capacity even
if there are problems in obtaining fresh supply for a specified period.

2. Levelling – Whereas buffering absorbs environmental fluctuations,

levelling or smoothing attempts to reduce fluctuations in the
environment. E.g. Retails firms faced with seasonal fluctuations offer
price cuts in order to spread sales more evenly throughout the year.
Special air fares for night flights are another example of leveling.

3. Anticipating – It means acquiring information about probable

changes in the environment. E.g. a manufacturing firm tries to
anticipate demand for its product before deciding production schedules
and related matters. Other areas in where organizations frequently
anticipate changes are customer needs, competition, technology &
availability of human resources.

4. Rationing – It involves allocating organizational resources according

to a system of priorities. Rationing is resorted to when an organization
is unable to meet all the demand. E.g. when the demand exceeds
supply, the manufacturer may ration supplies to dealers.

5. Dominating – The organization attempts to control events in the

environment & reduce its dependence on them. By developing several
 suppliers, a firm can reduce dependence on one or two suppliers. An
enterprise may collaborate with others and may enter into contracts.
Advertising, public relations and lobbying are also examples of
dominating.

6. Changing – An organization may change itself, its operations and

output. For example, it may change its product line to meet changes in
customers’ preferences. Changing is a more difficult coping strategy,
while taking action in response to changes in environment
interrelationships b/w various elements of environment and their likely
impact should be understood.