Md.

Abu Yousuf

ID: 20374014

Question: 2. a) Define forces of change [with example].

Answer:

Organization as a system, depend on many interdependent factors which influence it’s day to day
functioning, strategic decisions and future action plans for facing the competitive challenges
successfully. These factors can be both internal and external.

EXTERNAL FORCES OF ORGANIZATIONAL CHANGE

The external forces of change stem up from the external environment. These forces have been
described below:

Political Forces: the rapidly changing global political situation and ups and downs in global
politics have led to an equally rapid change in the global economy and presented a number of
challenges to the organization in the form of changes in regulations, policies and economic
structures in the form of globalization and liberalization.

Examples: Government policy, political stability or instability, bureaucracy, corruption,

competition regulation, foreign trade policy, tax policy, trade restrictions,
labor/environmental/copyright/consumer protection laws, funding grants & initiatives, etc

Economic Forces: Economic forces influence the organization’s change management strategy by
presenting opportunities or challenges in the form of economic uncertainty or increasing
competitive pressures.

Changes in business cycles, conventional inflation or inflation, fluctuations in interest rates,

economic downturn, changes in economic policy or tax structure, import / export tariffs,
fluctuations in global oil prices are all factors affecting the country's stability and economic
condition.
Examples:

Economic trends, growth rates, industry growth, seasonal factors, international exchange rates,
International trade, labor costs, consumer disposable income, unemployment rates, taxation,
inflation, interest rates, availability of credit, monetary policies, raw material costs, etc.

Technological Forces: Technological advances and innovations in communication and computer

technology revolutionize organizational activities to facilitate new ways of working and add new
ranges of products / services thus creating the need to build a framework to effectively manage
change and actively respond to challenges.

Examples:

Technology and communications infrastructure, legislation around technology, consumer access

to technology, competitor technology and development, emerging technologies, automation,
research and innovation, intellectual property regulation, technology incentives, etc.

Governmental Forces: Government regulations and the amount of intervention can also affect
the need for change. The following government forces are described below which determine the
need for organizational change:

 Deregulation
 Foreign Exchange
 Anti-Trust Laws
 Suspension Agreements
 Protectionism

Competitive Pressures: Challenges that increase global competition and become effective due to
competitive pressures force companies to change strategies to ensure their global presence.

Changes in the Needs and Preferences of Customers: Changes in customer needs are forcing
companies to constantly adapt and innovate their product offerings to meet the changing needs of
customers.
Social Pressure: Social. Changing social trends can pressure organizations into making changes.
Consumers are becoming more environmentally conscious.

Examples:

Attitudes and shared beliefs about a range of factors including money, customer service, imports,
religion, cultural taboos, health, work, leisure, the environment; population growth and
demographics, immigration/emigration, family size/structure, lifestyle trends, etc.

Acquisition or Merger: During Merger & Acquisition, the leaders of both the companies face
many challenges such cultural management, stress management, redundancies, HR restructuring,
resistance to change, job insecurity, talent drainage, low motivation etc. All the aforementioned
factors are responsible for change.

INTERNAL FORCES OF ORGANIZATIONAL CHANGE

Systemic Forces: An organization consists of a system and various subsystems that work in an
interconnected, just like a human system. The subsystems of an organization are in direct
interaction and also affect organizational behavior. Changes to any subsystem result in changes in
existing organizational processes and relationships as well as complete alignment.

Inadequate Existing Administrative Processes: Each organization operates following a specific

procedure, rules and regulations. With the changing times, an organization has to change its rules
and existing administrative processes, administrative inadequacies can lead to organizational
inefficiency.

Individual/Group Speculations: In anthropological terms, it is understood that man is a social

animal whose desires and requirements keep changing with the changing times, which result in
differences in individual as well as group expectations.

Structural Changes: These changes change the existing organizational structure as well as its
overall design. Structural changes can be considered as a strategic step on the part of the
organization to increase profitability and maximize spending benefits. These changes can take the
form of downsizing, work redesign, decentralization, and so on.

Changes in the Technology: Within an organization, technological changes can take the form of
changes in work processes, equipment, levels / degrees of automation, work order, etc.

People Focused Change: In this context, the main focus is on people and their existing skills,
human resource planning strategies, structural changes and employee reconstruction and
replacement of any worker which means transferring a worker to a different workplace where his
skills are best suited. May be involved in establishing recruitment policies and procedures.

Issues with the Profitability: This can be one of the primary factors that forces an organization
to reorganize (downsize or resize) or redesign itself. The company may have a profitable problem
due to loss of revenue, low productivity or loss of market share.

Resource Constraint: Inadequate resources can be a powerful force for change for the
organization.

Management & Leadership: it is the most founded reason of organizational change is hiring top
level employee.

Question: 2. b) Discuss 2 (two) major forces (one from external and one from internal) of
change with example.

Answer:

Competitive Pressures (External Force): Challenges that increase global competition and
become effective due to competitive pressures force companies to change strategies to ensure their
global presence.

RAK ceramics has the advantage of not having local competitors, but the ceramic industry has
large amounts of fixed costs involved; therefore the industry is capital intensive, making it an entry
barrier that limits potential threats of new entrants. In addition, the need of automation and large
investment in technological advances pose as further entry barriers.
There has been significant growth in the demand for ceramic products over the years and countries
such as Bangladesh that enjoy cheap labor, ease of access to raw materials needed coupled with
duty free exports to countries in Europe due to lack of quota restriction from a generalized system
of preference, increasing the gap between demand and supply, it poses a threat of entry to the
international ceramic market.

The company is focusing on improving standalone profitability by optimizing the product mix and
through various cost-cutting measures such as reducing employee costs, traveling costs and other
fixed costs.

The ceramic tiles industry is highly competitive and dominated by the unorganized sector, which
has a market share of around 50%. Additionally, companies face competitive pressure from low-
cost Chinese imports. Also, in the organized segment, RAK faces intense competition from other
reputed players such as H&R Johnson (India) Ltd, Somany Ceramics Ltd ('CRISIL AA-
/Stable/CRISIL A1+'), Kajaria Ceramics Ltd, and Asian Granito India Ltd. The ability to command
a premium in the market will depend on the competitive advantage that RAK derives from RAK
UAE's expertise in this business.

Changes in the Technology (Internal Force): Within an organization, technological changes can
take the form of changes in work processes, equipment, levels / degrees of automation, work order,
etc.

RAK Ceramics is a pioneer in introducing hi-tech innovations that are a breakthrough in the
industry. A wide range of technologies are used at the company’s state-of-the-art plants including
digital printing technology, big slabs, slim, anti-microbial, glow in the dark, double charge, roll
feed and other advanced technologies such as granitic, techno slate, twin press, dry glaze and
waterjet.

They are using SACMI technology in their production plant which comes from Italy. SACMI is
the most advanced technology used is ceramics production. RAK’s production plant is fully
automated and computer operated which helps to reduce the chance of error. SACMI’s
machineries are sensor based in which it is assigned the specific tasks to be performed with
minimum error. In every step of production there is a parameter that is being checked for insuring
good quality by ensuring size, moisture; pressing power etc. In this department, RAK have
invested a huge amount to gain advantage over competitors.

Question 3: Organizational changes can occur in more ways than one. Highlight main
features of two (2) types of changes with example.

Answer:

Planned/Developmental change:

Planned change is the process of preparing the whole organization or a significant part of it for a
new vision or a new direction. This aspect may refer to culture, internal structures, processes and
awards or any other related aspect.

Main features of planned change:

 To improve current business operation

 To achieve specific objective(s)/expected result
 To fulfill internal and external demand

Example: RAK positioned a third plant in India to almost double its production capacity to
increase their market share. The Company has come up with modern technology to fulfill the
market demand which will speed up their production. They are doing decentralization to minimize
distribution cost and ensure faster delivery. And they have introduced various policy benefits etc.
for the employees. Such as incentives, provident fund policy, profit share etc. Such a positive
change will help companies to achieve the goal.

Happened change:

Happened Change is unpredictable in nature and is usually happens due to the impact of the
external factors. Its results are unknown and out of direct control. It happens when an organization
reaches the plateau stage in its life cycle and gets victimized by the environmental pressures or
demands.

Main features of happened change:

 Cannot predict to take accurate precaution

 Cannot control directly
 It is happens naturally by external factors

Example: Change happened due to Covid 19

The company faces many challenges and changed the strategies as below:

 Selecting the right focus: Out of many concerns it was difficult to know what to prioritize
Business Interest, Employee Health and Safety, or Complying Government Directives.
 Operational Challenges: Continuation of Import, releasing of imported material docked at
port, completion of production; in a process industry while Government issued shut down
notice and forcing to comply directives. Operational challenges was numerous to respond.
 Complying Government Direction: Government was directing rules and regulation
frequently to minimize the mass infection which impacting business landscape in uncertain
state. Complying those rules was factually difficult while operating business.
 Managing employee’s stress: Fear, anxiety of job loss or getting salary on time was the
biggest stress. Ensuring of adequate health safety of employees/ workers for their
confidence and support.

They assume that COVID Pandemic may impact further on people, communities, market and
inability to operate business in usual course.

Question 5

Write a short note on (i) Managerial Value and the Trinity; (ii) Workplace Spirituality;
Answer:

(i) Managerial Value and the Trinity

Every manger can add value from his/her position by insuring all organizational
system. Value may be added by insuring positive changes effectively.
The trinity denotes inter connected three things 1. Maintain Role: Manager should
understand the role and need to be focused on.
2. Maintain Goal: effective changes helps to achieve organizational goals. Sometime
company discreet change in the wider context of policy and strategy.
3. Maintain Focus: manager maintain his/her focus on change and identify the causes
of changes and expected result.

(ii) Workplace Spirituality

Workplace Spirituality is a framework of proven organizational values in culture that encourages

employees to experience feelings through the work process, fully and facilitates their perception
of being connected to others in a way that provides a sense of joy.

In broader sense of spirituality in the workplace can be explained as an experience of

interconnectedness, shared by all involved in the work process, primarily triggered by the
awareness that each is individually driven by an inner force, Which raises and maintains his sense
of sincerity, compassion and courage, consequently creating an aesthetically inspiring
environment characterized by purpose, high moral standards, acceptance, peace, faith, thus
establishing an enhanced atmosphere of team performance and overall harmony.