What is change?

Change is the process of altering the existing organisation in some way and re establishing it in a new or modified way. Organisations that react to pressures for change, rather than anticipate them and act proactively will always lag behind their competitors. Change pressures: Internal environment: Corporate culture a poor inappropriate or negative corporate culture can have an adverse affect a productivity and or competitiveness. Polices policies that are out dated, inappropriate or non-existent are pressures for change. Management styles that do not allow for maximum productivity and effectiveness are a pressure for change e.g. more participation style may increase motivation and hence productivity Employees will often demand change e.g. initiatives that achieve a work life balance. Operating environment: Customers/ clients their needs will change over time, altering consumer preferences and expectations Suppliers their ability to provide inputs e.g. industrial action, price rise, shortage of goods Competitors Trade unions may exert pressure for change e.g. OH+S, pay rates, working conditions Investors will favour profitable well managed, ethical, social responsible organisation Macro-environment (external environment) Economic the state of the economy will affect a business and may necessitate change e.g. inflation, interest rates, value of Australian market Legislation pressures- changes in laws and government policy can be a pressure for change e.g. introduction of fair work act 2009 Political pressures current and potential influences from political pressures Social and demographic pressures changes in community attitudes, values, preferences and lifestyle will be an impetus for change e.g. big smith campaign to lower costs of private health insurance and cost of electricity Pressure on companies regarding ethical supplies/fair trade products Trends towards online shopping Technological developments keeping up to date with technological changes to stay competitive e.g. using social media for business promotion, online shopping websites Geographic pressures includes opening of new markets, businesses relocating abroad and having to deal with foreign rules and regulations, retraining off shore staff Environmental pressures such as climate change

Introducing environmental policies and procedures such as waste management and recycling policies and procedures.