Chapter 15, Problem 1CRQ

Explain how several current environmental forces are affecting and will affect organizations and organizational structures’ effectiveness and efficiency in the near future?

Summary Introduction

To determine:

The several current environmental forces affecting organizations and its structures' effectiveness and efficiency in the near future.

Introduction:

The general environment comprises all the possible influences that can affect an organization's operations and structure. The firms will have to find ways to be quick enough to respond to the immediate changes.

Explanation of Solution

Currently, the economic forces include globalization, exchange and wage rates, employment and inflation, etc. Such factors have a major impact on the businesses. They will face both threats and opportunities.

For example: Exchange rates and inflation affect the company's project's profitability. Employment and wage rates affect the workforce and will bring in changes to the structure as well.

Debates on being mechanistic or organic will occur. In the near future, globalization will increase, and the international competition will force the organizations to be effective.

Technological environmental forces impact the structure as well. The firms will seek to install new developments that will enhance the way internal operations are carried out and this would change the organization being a traditional function to a matrix structure.

It might even provide opportunities to turn towards a virtual structure in future making businesses more effective but depending on how the firms carry it.

Socio-cultural forces that deal with demographic influences and lifestyle changes affect the important operations that link to customers, the products to be developed, and the current distribution channels will get impacted.

The organization might have to decide between adopting a geographical structure or a matrix structure with intention of being flexible to the changes that happen to society.

Natural environment factors such as natural disasters and human induced problems that might arise in certain geographical locations will force the firm to move out or move in. Pollution and availability of resources are of more importance to firm day by day and will have to be considered when making decisions in the future.