INDUSTRY OPERATIONAL CHANGES

Industry Operational Changes

Industry Operational Changes

Introduction

Organizations need to change to adapt to the changing internal and external environment. Organizations call for a change to acclimatize to their environment. The factors which bring about change vary in intensity, but can be grouped into internal and external categories.

External sources of change include competitor strategies, technological innovation, deregulation of industry, labor costs, access to resources, economic changes (national and international) and changes in government policy (Johnson, 2003).

Internal change factors tend to follow on from the external ones, and include adapting to shifts in corporate missions, changes in technological equipment and processes, shifts in employee attitudes and behavior and corporate culture.

Discussion

Change strategies can be the result of reaction to some force or by managers anticipating the environment and being proactive. The proactive approach, when it proves accurate, allows more time planning and implementing change processes. It is fair to say, also, that change can be applied radically (resulting in major upheavals throughout the company) or incrementally (which involves minimal changes applied strategically throughout the firm). The circumstances will order the height of "panic" when implementing changes (Johnson, 2003). The more solemn the circumstances, the more fundamental the change required. It follows that the attitudes of all the company's employees have to adapt in harmony with the structural and operational changes in order for change to be implemented successfully (Thomson, 2006).

Even though processes are the lifeblood of every organization, they are usually the least understood and attended critical need of most businesses. They are those by which organization caries out its regular day-to-day functions (Proctor, 2000). Operational processes are identified by their qualified stability standardization as well as repeatability.

Processes have a wonderful blow on the victory of any organization. Whether we know it or not, everything accomplished in an organization is the result of one or more processes. These processes are rarely recognized, understood, or well attended, and yet they continue along, however inefficient or ineffective.

Obviously, most of this neglect is inadvertent. Most organizations just do not understand enough about processes to attend to them. Very few organizations could respond to the questions (Johnson, 2003): "What are your core processes?" or "What are your operational processes?" Neither could most organization members answer the questions: "What are your work processes?" or "For what processes are you responsible?" They attend to what is in their job descriptions, which are usually unrelated to work processes.

Operational change Management

Operational change mismanagement is one of the most common causes of company decline. Buyers and purchasers often have many incentives to maintain excessive Operational change levels, which usually leads to a vicious cycle of lower margins, reduced cash flow, and less efficient Operational change management.

The acquisition of product for re auction, whether it is acquired or manufactured, can be a company's biggest single disbursement item. Operational changes grip powerful groups inside the company, almost all of whom have incentives to exploit the investment in Operational change (Thomson, 2006).

Buyers and operations management, for instance, favor bulk purchases that give them better buying ...