Organizational Change. Internal and External Forces

Academic Paper 2016 10 Pages

Business economics - Business Management, Corporate Governance


Table of contents:

I. Table of contents

II. Executive summary

III. Introduction

IV. Types of changes

V. The internal and external forces

VI. Sources of resistance

VII. Strategies to minimise the resistance

VIII. Conclusion

IX. References

Executive summary

This paper will highlight how crucial the process of adapting the change is and its impact on Sony. Firstly, I will stress what the organizational change is and adduce various views. Secondly, I am going to analyse 4 types of changes: in people, strategy, technology and structure. Furthermore, I will emphasize the internal forces such as management, restructuring, intrepreneurship and the external ones such as competition, technological progress, social changes, hacking, economy, politics, which create the need for the change in the company. Finally, I will analyse the process of resistance to change, the reasons why the employees do not want to adapt the new things easily. I will also mention the number of techniques, which could help to prevent the resistance by employees in the future.


The change is the reality of every organization. To develop and progress, the firm has to from time to time transform its ideology and strategy in an answer for the environmental changes.

According to Lewin’s model (Cummings G. 2014), the organization has to undertake three steps in order to adapt the change. Unfreezing is the first stage, where the preparation for the transformation occurs and the recognition of the need of the change is shown. Next stage is movement, where the change is incorporated and the new attitudes are visible. The third stage is refreezing, what means stabilization of the change by introducing new policies and regulations into company.

According to Robbins (2011), change is natural activity in the organization, thanks to which the company can increase its efficiency and effectiveness in the competitive environment. The changes, which occur within the business, can result from external environment such as development of technology, globalization of markets or new competitors on the market as well as from internal environment such as changes in direction and objectives and ideology of a company or a work force.

Goldsmith and Clutterbuck (Mullins 2013) highlight that there are two types of changes evolutionary and revolutionary. Their studies emphasize that that the incorporating the change through evolution is better option for the company, because the individuals have time to adapt in compare with revolutionary, which is rapid and unpredictable.

Employees often resist the change, however according to Crainer mainly managers are responsible for the resistance. He emphasises that managers resist the change, because of the fear of the loss status or position and mentioned that they are not trained and equipped enough to adapt. Crainer emphasises 7 skills, which are relevant in managing changes: managing processes, strategy, own development, conflict; interpersonal and managerial skills; leadership and management.

Types of changes

According to Robbins (2011) there are 4 categories of changes within organization: structural, strategic, technological and changes in people.

Changes in people describe changes in employee’s attitudes, behaviour, expectations and perceptions. Main purpose of these changes is to improve performance of the employees, enhance their efficiency towards the company, their relationships with managers and the group cooperation. Changes in workforce can be necessary, when they are a consequence of other changes or sometimes through implementing them, the firms try to enhance its effectiveness and encourage the individuals or the groups. Largescale changes such as replacing the top level managers are designed with the purpose of creating a new organizational culture, whereas the main goal of small scale changes take an attitude or behaviour of the employees into consideration. In 2005, the Sony made an entrepreneurial decision about choosing for the new CEO Howard Stringer, who was actually born in Europe, not in Japan what makes difference in compare with the previous leaders, which all were coming from Asia. The next change in the workforce, which was introduced by the new CEO, was the dismissal of 10,000 employees from the company.

According to Robbins (2011) strategic changes are these changes, which are connected with strategy, overall goals, purposes and mission of the company. The number of reasons is responsible for the change in the strategy: when the business realizes that the current way of thinking is outdated and stopped working and bringing the disadvantages for the firm in the competitive market; secondly, the change can be caused by new vision of the firm in the future; the strategy can be caused by introducing the improvements and new system to support it. Introducing the strategic change, Sony consolidated five groups, which the task was to focus on electronics, televisions, digital imaging, DVD recorders and portable audio. As a result of the changes, which occurred in the business, Sony had to close 11 plants.

Changes in the structure of the organizations can result from both internal and external factors and they have influence on the way the organization is run. These changes involved changes in hierarchy, management system and administrative procedures. The main adjustment, which Sony incorporated into its structure, was the transformation of the division central decision making authority over key areas.

Changes in technology required the modification of the techniques and equipment, which are used in the process of evaluating the firm. Especially, the alterations of the technology occur in one area of the organizations, where the number of improvements is incorporated into technological devices in order to support betterquality operations. As an answer for the innovative equipment, which the competitors were presenting, Sony had to make lot of changes in the technology of its devices, present new advancements and swap outdated facilities for the new ones. Instead of producing the cathode ray tube (CRT) television sets, the firm is going to introduce LCD and rearprojection TVs. Moreover, Sony is planning to concentrate on selfluminous flat panel organic lightemitting diode (OLED) displays, Bluray and mobile technologies.

The internal and external forces

The internal forces are the collection of the actions and the decisions, which occur inside an organization. According to Mullins (2013), they are easier to control and more predictable than the external ones. One of the internal factors, which affect the company, is management. Especially, the choice of someone, who can manage to run the company in the right way, offer a new strategy, be a good leader and the same time entrepreneur, is a key to success of the firm. To increase the performance of the company, Sony decided to take a risk and first of all, it changed its CEO, which was only the beginning of the internal changes within the business. Secondly, the internal factor, which has an influence on the company, is its restructuring. An organization from now on has to adjust the new strategies, innovative products or the global expansion, which means a significant disturbance of the hierarchy and communication in the firm. The example of the changes in the structure in Sony, was giving to Sony’s Electronics division central decision making authority over key areas. The next internal force, which affects the organization, can be also an intrapreneurship. New ideas, risktaking decisions and the change of the strategy can have the improvement and development of the firm in view. The intrepreneurship can involve new hires, new branding, reallocation of resource etc. One of the intrapreneurial changes in the Sony was the choice of new CEO (for the first time non-Asian), who implemented the number of the reforms regarding the technology and the structure, which have the improvement of the firm’s condition in view.



ISBN (eBook)
ISBN (Book)
File size
485 KB
Catalog Number
Institution / College
London School of Commerce
organizational change internal forces



Title: Organizational Change. Internal and External Forces