Four Major Forces Creating Change in Organizations Today – skills that managers need to

Globalization, technological change, knowledge management and cross border cooperation, four factors that create large forces to change in organizations today.

These changes affect decision making as organizations are forced to recognize that they executives who are innovative, creative visionaries, the different environments that are operating their organizations need to understand where and are able to differentiate between these differentEnvironments.

These environments are: the external, or operating environment, the competitive environment (the part of the external environment in which companies that are competing for the same market place) and the macroenvironment, which influences how the economy, government regulations, societal values demographics and technology come to bear on an organization.

With such a complex view of leaders must be equipped with the appropriate skill sets, such as flexibility,Good communication and critical thinking and negotiation skills. You must also be supported with the necessary resources to make good decisions that will benefit their organizations.


Supports Convergence in international activities, such as increasing foreign production of goods and services, increased consumer demand in emerging markets worldwide, falling barriers to international trade of rapidly changing technology, creates aglobal economy has resulted in the mutual dependence between countries as a norm today. So are the hiring practices of companies that find the best talent is to have changed because the best talent may not be resident in the home.

Companies had their recruitment, training and management practices to be calibrated to respond to this challenge will be. In a world that "Americans too often quite as pushy, manipulative come, and talkative" (David, 2007, p.291), U.S.Organizations need the culture, customs, political and legal differences with respect to the countries they operate in.

Some of these customs protocol related, such as exchange of gifts, the observance of holidays and employment law. Even taking into account international standards vary. Organizations must therefore be sensitive to these differences in the formulation of operational and human resource (HR) strategies for the implementation abroad, in this global environment it isunlikely that the companies, national policies can be applied that work at home and abroad.

Technological change:

Technology is like a double-edged sword, make our lives easier, or may be even worse. The Internet has revolutionized the way in which information is exchanged, facilitating communication and trade conducted revolutionized. The technology is rapidly changing demands and efficient management to more knowledge in these areas in order for companies to manage their resources anddevelop obtain or retain their competitive advantage.

Modern technology has enabled the company to save time and money by conducting business such as negotiation, and trade in real time, but may also facilitate the sharing of sensitive information about the practices of a company's trade secrets and the development of new products in a matter seconds.

Hackers can use the security of a company via the Internet and placed on companies in danger. Organizations have responded by completely new speciesof departments such as information technology (IT) departments by managers with titles such as Chief Information Officer (CIO), led the management of both the opportunities and risks associated with technological changes linked.

Moreover, any technology has a number of high-tech devices to help lead and facilitate the enterprises in the procurement and management of information generated worldwide in constant contact with their employees what the communications and decisions immediately. This can be both a blessing and a source of stress for managers and executives who have to learn to manage their selection and use of these devices. In a global economy in knowledge management technology can

Knowledge Management

Driving forces such as changes in buyer demographics and preferences, technology, product innovation and market changes in society, consumer attitudes and lifestyle require new ideas. This has created a need for knowledge workers.

> Knowledge workers of a company include intellectual capital and the creative people with new ideas and problem-solving capacity exists. Managing knowledge assets a company can have a competitive advantage because they are effectively the expertise, skill, intellect, uses, and the relations of the members of the organization.

For example a company's strategic management efforts can be significantly improved if the knowledge that resides within their international talent pool isknock at the source, as a manager, is "closer to the Earth" and a part of local culture might be better able to sense changes in the environment than one who does not.

He motivates the knowledge of workers and reward from both internal and external resources leading to a reassessment organizations and their benefits and compensation practices and to change, perhaps even re-define the traditional viewpoint of the employer-employee relationship into something new, like a Company – ContractorModel, for example.

Cross-border Collaboration

An important part of knowledge management is the effective management of enterprise-wide collaboration. Use of appropriate technologies and applications such as virtual private networks, VoIP, email, social networking sites like Face Book, and company-sponsored blogs may be the communication between an organization and its stakeholders to facilitate and help in various kinds of internal and externalcollaborative processes. An example of a tool that can be used in cross-section to cross borders cooperation could be an easily accessible online database that provides a central source of information for employees, customers or suppliers.

Managing in the 21st Century

In the 21 Century, change is the rule rather than the exception, and managers must be able to engage them. You need to evolve to be able to:

A vision and able to communicate them to their organizations
An orientationTo serve
An entrepreneurial mindset
The commitment to continuous innovation
A global mindset
Simple and reliable technology with
Expertise in systems thinking (a comprehensive view of the relationship of parts of a company, rather than a narrow view that focuses on a part or an event.)
A sense of ethics and appreciation of spirituality in the workplace
A commitment to continuous learning, personal and professional development

To respond effectively to the four majorForces to create change in today's global economy, leaders must be willing to make changes, they have curious and grateful for the richness and diversity of other cultures. This must trust-worthy and flexible, and they must cope with very strong time management, communication, conflict management, problem-solve and people skills to effectively address these drivers of change.


David, Fred R. (2009). Strategic Management, Concepts andCases, 11th ed. (P. 291). New Jersey: Pearson Prentice Hall.

Ruth M. Tappin

© 2009


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