Question

Do you consider political dimension to have a greater impact than economic dimension to organizational change?

Answer 1

Yes, I consider political dimension to have a greater impact than economic dimension to organizational change because Political dimension imposes laws, regulations, rules set by government and political structure of country in which organization operates that can require company to implement new changes than economical dimension.

for example- Government of US suppose increases EPA standards so now autombile manufacturing companies like tesla, GE, Hyundai, toyota etc all have to manufacture cars based on high EPA standards they must invest in new technology that can make car more environmnet friendly even if economy of US is strong or poor, organization must comply by those government laws.

Economic dimension does not affect political dimension but political dimension can affect economic dimension of organization and country as whole. for example- Trump recently impose high tariffs on Chinese products to put America First. Due to those high trump tariffs, Sourcing from China declined which affect many US organization to source materials locally at high cost. Many industry faces changes in employment, production and cost aspect of business.

Economical changes like poor purchasing power, inflation, recession born out of poor political leadership , poor and ineffective passed laws and statuses in the country which affect organizational changes. for example- In order to comply with HIPPA laws, healthcare industry must implement EHR system which costs millions of dollars investment or minimum hour wage law which requires organizations to change thier wage policy etc.so these examples show how political dimension is more impactful than economical dimension on organizational change.