Organizational change is a vital aspect of any company’s progress. However, apart from being influenced by corporate goals, it is also largely affected by external factors. By studying the key global trends that define organizational change, one will be able to increase preparedness in an organization, promote effective change management, and reduce the extent of resistance to change among employees. In this paper, two major trends, namely, globalization and technological development, will be considered. Understanding what forces define organizational change will allow a leader to develop a competitive advantage by creating a malleable environment with enough flexibility and innovativeness.
Globalization: Organizational Complexity
An increase in the complexity of organizations is another important incentive for change in the organizational context. The tendency to create more mergers and acquisitions as a way of strengthening a company has defined the propensity toward a more complex organizational structure. As a result, a leader will have to introduce new forms of governance into a company, encouraging further change and promoting the development of new links within the corporate setting.
Globalization: Shift from Efficiency to Resilience (COVID)
In addition to the changes in how companies are governed, in general, alterations in their approach to risks have been noticed recently due to the trend of resilience being viewed as a major competitive advantage. Although the importance of effective performance remains a priority, companies start to focus on the methods of increasing their resilience and preparedness toward crises. The COVID-19 pandemic can be considered the main contributor to the described trend that has developed in the global business environment. The focus on resilience will require a leader to create clear and rigid guidelines for managing risk and crises.
Globalization: Shortage of Workers
One of the more unfortunate trends observed in the current business context, the tendency for the range of experienced and efficient workers to shrink has become more noticeable over the past several years. The described issue has become especially visible in the nursing context; however, other areas have also seen the lack of a competent workforce (Wójcik, 2018). The described trend has spurred the necessity to create extra opportunities for employees to develop the necessary competencies and skills in the workplace (Wójcik, 2018). Namely, a leader will have to introduce a wide selection of online courses sponsored by the organization, as well as intricate talent management strategies, into the corporate setting as a result, spurring a major corporate change.
Globalization: Demand for Flexibility
Another visible change to the organizational environment, the increase in flexibility, and the rise in demand for it have been observed. Caused partially due to the introduction of remote work options, the flexibility requirement has affected companies vastly, making managers reconsider the approach toward the distribution of roles and responsibilities, as well as the scheduling process. As a leader, one will have to manage this situation by giving employees more agency in shaping their work process, simplifying the delegation process.
With the rise in globalization and the focus on multiculturalism, changes to the organizational setting have become inevitable. Specifically, diversity has become the main focus of organizational policies globally (Caliskan & Isik, 2016). Given the continuous nature of the process, its impact on organizational change cannot be possibly underestimated. Moreover, globalization and the resulting multiculturalism affect organizational change on multiple ranges of levels, starting from the increase in the efficacy of cross-cultural communication to the improvement in managing crises. The introduction of new viewpoints that allow a leader to build more resilient approaches to crisis management and a better understanding of the global market are the main effects of globalization and multiculturalism on organizational change.
Technology: Social Media
Technology is the first factor that comes to mind when considering the main drivers behind organizational change. IT and ICT have expanded the range of opportunities in managing change by offering companies better tools for quality control and communication. As a result, technology has provided ample chances for companies to introduce organizational change on an institutional level. Moreover, the development of social media has created advantages for companies in creating a positive public image and building relationships with their customers by engaging with them directly with the help of social networking. Thus, a leader should direct staff members toward better engagement with customers online. By promoting conflict management and problem-solving strategies.
Technology: Remote Work
With the introduction of new technological opportunities, options for remote works have become more numerous. However, the described alteration also implies transforming the management of employees’ responsibilities, communication within a team, and the methods of exerting leadership. Due to the opportunities for saving on rent, office equipment, and the associated expenses are typically taken in the traditional workplace setting, the role of remote work has grown. The change has been spurred to an even greater degree with the emergence of the COVID-19 pandemic, which has made companies all over the world transition to remote work (Waizenegger, McKenna, Cai, & Bendz, 2020). Remote work has introduced flexibility into the organizational setting, allowing staff members to feel more relaxed and simultaneously helping them to concentrate on essential tasks in the comfort of their homes. However, controlling staff’s efficacy has become more difficult, which is a priority for a leader.
Technology: Pressure for Sustainability
The need to maintain an environmentally friendly approach toward managing waste, using resources in production and increasing shareholder awareness has been quite noticeable across global organizations. The specified trend affects organizational change dramatically, making leaders reconsider the resources that they use, the waste management strategies that they apply, and the structure of their supply chains (May & Stahl, 2017).
Global trends affect the course of organizational change, defining workplace behaviors, ethics, governance, and decision-making. Currently, several major trends can be singled out when considering the global business setting. These trends include the rise in globalization, the increased role of social media and remote work, increased organizational complexity, focus on resilience, lack of competent employees, and demand for sustainability. The described issues encourage leaders to seek improved ways of managing the issues of employee performance and motivation so that the needs of key stakeholders could be met.
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Waizenegger, L., McKenna, B., Cai, W., & Bendz, T. (2020). An affordance perspective of team collaboration and enforced working from home during COVID-19. European Journal of Information Systems, 1, 1-14. Web.
Wójcik, P. (2018). Shortage of talents – A challenge for modern organizations. International Journal of Synergy and Research, 6, 123-135. Web.