The alteration in the existing environment and schemes of an organization is termed as change in it. The existing equilibrium in the organization is disturbed due to these changes. A new equilibrium is developed with the introduction of changes in any level or all levels of the enterprise. However the impact of the changes is the matter which has to be carefully handles. It is to be noted that the changes are never ending process since there are continuous changes in the market. Here are brief explanations of some factors of changes which are from the external area of the organization.
Technological changes are the important external factor for the changes in the organization. It is a common fact that inventions and innovations are introduced continually in the economy due to the technological advancements. This is also affected in the decision making process of the business sectors since many manual efforts are reduced to large extent. We know the faster growth of technology has brought many updates which make the technology present today obsolete tomorrow. The main reasons for this are the computerization and automation in every sector of the economy.
There are many changes in the marketing conditions also because of the introduction of new marketing techniques and their influence in most of the sectors of economy. There are different causes like change in demand of the product, competition in the market, introduction of new products or the modification of the existing product and entry of new competitors. The changes in the factors of production can also force the organization to make organizational changes. The social change is the other factors which are a prominent reason for the organizational change since the influence of society in which the organization works is high. The education, Urbanization, impacts of international movements can also be instrumental for the changes.