Question

In: Psychology

critically evaluate four areas that would bring pressures on the organization to change.

critically evaluate four areas that would bring pressures on the organization to change.

Solutions

Expert Solution

Answer : Here is factors which cause change in an organization.

Crises : When bad things happen, they require all kinds of changes. 9-11 was a horrifying event that required the airlines and financial services industries to change rapidly. The companies that did respond to change prospered.

Pressure : Companies prosper when they respond to internal or external pressures proactively. Uber has had several major management and public relation problems, but has changed in response. Taxi companies that didn't respond to the pressure of Uber's new business model have suffered.

New Technologies : Companies that embrace new technologies prosper, companies that respond slowly or resist, generally do not. Polaroid, once an innovative leader in photo technology, resisted the pressures that digital photo technology put on the company, and polaroid eventually failed. Snapchat had no underlying great, technological leg up on the competition, but it saw earlier than most companies didi that internet democratized photography.

Mergers and acquisitions : How a company responds to a merger on a new acquisition is critical. Companies that successfully merge different internal leadership models, business models and cultures will prosper. Those that do not may fail. Walt Disney and Pixar were independent movie companies with strong internal cultures; in almost every way, they were not alike. But strong leadership demanded a successful merger of the two companies, which led to a string of huge box office successes, beginning with Toy Story. Culture clashes and turf wars that followed the merge of AOL and Time Warner led to under-performance and ultimately the splitting up of the two companies after incurring huge merger-related losses.


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