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Environmental Uncertainty in Business Environment

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Added on  2020-05-28

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ORGANIZATIONAL CHANGE ESSAY YIP CHUI HA LSM STUDENT ID: 206059 BA (HONS) BUSINESS AND MANAGEMENT (TOP-UP) THE UNIVERSITY OF NORTHAMPTON 14 Mar 2018 Introduction The environmental uncertainty is defined as a degree in which lack of competent data of the company is influenced by the external and internal atmosphere. It is also stated that there are many external factors that influence the whole process of business such as product availability, customer demand, competition, political influence

Environmental Uncertainty in Business Environment

   Added on 2020-05-28

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Running Head: ORGANIZATIONAL CHANGEORGANIZATIONAL CHANGEESSAYYIP CHUI HALSM STUDENT ID: 206059BA (HONS) BUSINESS AND MANAGEMENT (TOP-UP)THE UNIVERSITY OF NORTHAMPTON13Mar 2018
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2ORGANIZATIONAL CHANGEIntroduction The environmental uncertainty is defined as a degree in which lack of competent data of the company is influenced by the external and internal atmosphere. The environmental uncertainty is occurred by constant modification in a business environment. The managementis unable to control uncertainty from the environment. This section explores the value of increasing uncertainty in the business with the effective organizational plan for change management. This report also discusses the conceptual theory of organizational change. Organizational change Cummings and Worley (2014) organizational change is the situation of an organization that occurred from one state of affairs to another. The organizational change is defined as an evaluation process by which organization implements the innovation in the working place. Besides this, environmental uncertainty is a degree in which the factual data or competent information of firm is influenced by the internal and external operating atmosphere. It is also stated that there are many external factors that influence the whole process of business such as product availability, customer demand, competition, political influence, and resource availability. For illustration, construction organizations make a contract with EPA (Environmental Protection Agency) at the time of building new sites. Furthermore, the organizational change policy is depended on their sector. Each sector is used different policy to deal with environmental uncertainty and get a favorable outcome.Factors affect organizational change According to Grant (2016), Business to customers (B2C) organization is used online data security policy as compared to other policy for securing their data and get apositive benefit. It would make enable the company to effectively deal with changes in the working policy.
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3ORGANIZATIONAL CHANGEAccording to Booth (2015), environmental uncertainty is defined as an extent where the organization has lack of factual data regarding operating the external and internal business environment. There are certain external factors like economy, government rules, andregulation, social, and political factors as it could influence the performance of the business. For illustration, the economy of the country could change then they direct impact on the demand for company’s product. As a result, it could decline the existing financial performance of the organization. In addition, it is also found that lack of utilization latest technology in the working place could modify the landscape of business. In the current scenario, the organization has needed to select skilled employee as it could be supportive to retain the position of the firm in the marketplace. A company could control their cost and diversify risk for improving the growth of the business. On the other hand, Smither et al. (2016) argued that an organization has moderate power to control on the environmental uncertainty. Hence, organizations should need to develop policies or strategies for effectively dealing with uncertain changes and obtain a reliable outcome. These situations require a modification of the current business strategies for getting success. A firm could concentrate on making effective strategies with respect to the environmental uncertainty. A depth assessment of macro-environment is known as PESTLE analysis. It is effective for managers and strategic makers as it defines the existing and future position of the market. The following table demonstrates the PESTEL analysis: Political factor It assesses the degree to which a government may affect the economy and industry. For instance, a government can charge a new tax or duty due to whichwhole revenue creating the structureof organization might be changed. Political factor entails fiscal policy, tax policies, and trade traffic that a government may charge in a fiscal Economic factorIt is elements of economy’s performance, which directly affects an organization and creates the hollow long-term effect. For instance, increasing inflation rate of Hong-Kong would influence the strategies that company makes regarding their price of products and services. In such condition, economic factor entails the interest rates, inflation
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