What is meant by pressures for change on organizations?Economic and organizational development approaches

Pressures for change on organizations refer to factors in the organizational environment that are changing in ways that require organizational adaptation for organizations to continue to succeed. An almost infinite variety of pressures for change impinge on organizations. The text examines four of the most significant such pressures: 

 

(1)globalization of markets, 

(2) technology, 

(3) social networks, and 

(4) generational differences. 

 

Examples may come from one or more of these four categories, or may quite appropriately be developed from factors that have not been discussed.

The two main types of change approaches are economic and organizational development. The economic approach focuses on changing the organization's structure and decision-making authority relationships, and its goal is to improve the financial well-being of the organization. Leaders who use this approach do not involve their management team or employees in discussing ways to reach financial goals. It is mainly used by turnaround artists, and not people who want to build the organization. 

 

The organizational development approach focuses on developing employees' competencies and commitment to the organization. It requires management to engage people emotionally in examining why the existing structure and systems are not meeting the new challenges facing the organization.