Whereas, on the other hand, people living in rural areas are more concerned about the price of the product and care less about the quality of the product and they usually choose products cheapest among all available alternatives. People living in an urban area don’t much care about the price of the product, but they care about the quality and services provided by the organization. Companies are required to change their production process with the changes in the needs and aspirations of people.ĭemands of people vary on the basis of the social environment and the status of people - factors like level of education, international influence, urbanization cause social changes.įor example, the demands of people living in an urban area will be different from the demands of people living in rural areas. Social change is also a crucial factor which causes a change in an organization. Therefore, companies are required to stay focused and make changes in technology whenever they require to stay relevant in the market. Now customers have a platform to reach to the organization, and companies can respond to the queries made by customers quickly because of the presence of advanced technology. Similarly, in the production process, there were many tasks which workers were supposed to perform with hands, but at present, with automation, all of these works are performed using machines, and this has not only reduced the man-error but also sped up the production process. were being done manually, but in the present time with the help of computers, there is no need to perform these works manually. Technology is one of the most important factors which force change in the organization, and organizations are required to adapt to these changing technologies in order to keep up with the competition.įor example, in the past times, all works like record keeping, order placement, etc. They sell products which are environment-friendly in order to gain the loyalty and respect of their customers. This has forced many organizations to change their production process and also products. Therefore, they want to use products which are environment-friendly or are good for the environment. Here is another example of a change in the market demand is that now, more and more people are becoming aware of environmental issues. Therefore, organizations are required to take their businesses online so that they can fulfill the changing demand of their customers. They buy products from an organization which provides them a good quality of products at the lowest prices.īecause of this reason, companies are required to stay on their toes and change fast in order to facilitate the changing requirements of their customers.įor examples, in the era of the internet, people prefer to shop online rather than shopping from a physical store.
In modern times, there are several options available for one product in the market, and people have the freedom to choose from any of the product, and they have become less loyal for brands. Gone are the days when people are required to accustom themselves because of the products provided by the companies because, at that time, they did not have many options to choose from. 2) Change in market demandĪnother important factor which causes a change in an organization is the changing demand of the market. This forces organizations to hire woman employees. Similarly, there are various policies like employment hire policy, wages policy, and rights of employees and workers are controlled by the organization and the organizations are required to abide by these policies to be able to operate freely.įor example, in India, there is a policy that a minimum of 30% of the total employees of an organization should be women. The operations of many organizations have changed as they are needed to make changes in the plastic. For example, recently in India government has banned the use of certain types of plastic and because of this policy. Government policies decide the way an organization operates and what it can produce and not. No matter whether your organization is a public organization or a private organization government has control on it however, the percentage of control varies. Factors that cause a change in an organizationįactors that cause a change in an organization.
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