Leaders Facilitate Change

Essay by longrnUniversity, Bachelor'sA+, May 2006

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"Virtually every aspect of life is affected at least indirectly by some type of organization" (Kreitner, 2004). Organizations today are going through constant change brought about by competition, economics, business innovation and a realization that remaining stagnant may mean organizational death. As the business environment increases in complexity and changes rapidly, organization and management consequently experiences significant transformation to cope with these changes. "To survive in market environments where change is the only constant, organizations need to be agile, flexible, and capable of adapting to change quickly" (University of Phoenix, 2006). On a company level, these changes would include the transformation of the internal corporate culture as well as in the management of human resources in response to change and the needs of the workforce. Therefore, the ability to change is an important part of the organization's business environment.

Organizations encounter many different forces for change. Theses forces come from external sources outside the organization and from internal sources There are external and internal forces of change for every organization.

External Forces

External factors are the elements that are outside of the organization's boundaries that have the potential to affect the business of the organization. With the increase of globalization in our world, threats and opportunities are no longer issues that are in our geographic area. "Like the butterfly's wing of chaos theory, environmental, economic, or political events in one part of the world have effects thousands of miles away" (Austin, 2001, p. 2). Listed below are the major external forces that influence change:

* Political influences: government and political strategies usually are the important elements to organization. Government can adjust tax policies, interest rates, exchange rates, etc. These uncertainties in terms of government policy can directly influence overall economy and investment environments.

* Competition influences: competition is identified as...