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Change Management in Organizations: Drivers and Challenges

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An examination of organizational change management, exploring the key drivers — technology, workforce shifts, competition, and globalization — that motivate companies to pursue change, alongside the challenges organizations face when implementing and sustaining long-term change strategies. Keywords: change management, organizational change, drivers of change, business strategy

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Change Management




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Change Management

Organizations today frequently struggle to implement effective, long-term changes.

Businesses always seek to adjust and adapt their operations to changing conditions in an

increasingly complex and shifting commercial environment (Errida & Lotfi, 2021). According to

Stouten et al. (2018), sophisticated technology, a changing workforce, competitive threats, and

globalization are just a few drivers that motivate companies and their employees to participate in

and execute change strategies. Managing change is a challenging and risky endeavor for

organizations. Many businesses struggle with organizational transformation programs and fail to

achieve the desired results. Errida and Lotfi (2021) claim that, according to several

investigations, most organizational change programs fail, with an approximate failure rate of

sixty-seventy percent. A high failure rate generates ongoing concern and interest in the elements

that might reduce failure and promote organizational change effectiveness (Errida & Lotfi,

2021). Thus, the paper addresses internal and external forces' impact on an organization's culture,

workforce, and management, investigates barriers to change, and explores change management

models.

External Forces

External forces are changes in an organization's general and business environment.

According to Mews (2019), a firm may encounter a variety of external influences, including

demographic, social, political, technological, and economic forces. A shifting workforce may

need a culture change within the firm. Avon, for example, founded and expanded its business on

door-to-door cosmetics selling, with stay-at-home wives and mothers serving as their key front-

line employees (Mews, 2019). The company had to change directions and discover new ways to

advertise its commodities in front of the customers as more women entered the workforce in nine

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to five employment. Additionally, emerging societal trends might put corporations under

pressure to make adjustments. Consumers are becoming increasingly ecologically concerned,

prompting fast food companies to switch from plastic to paper containers (Mews, 2019). When

considering political forces, government constraints frequently push organizations to transform.

For instance, companies must react to changes in the minimum pay for employees or policies and

laws regulating competitive balance in business.

Whether new technology is introduced, industry-wide companies must evolve to accept

emerging innovations or face the repercussions. Bright and Cortes (2019) contend that

information technologies and digital media fueled by the Internet and utilized by sharing-

economy businesses like Airbnb and Uber have decentralized and enhanced competition in

various industries, including taxi services, real estate rentals, and hospitality. Companies in all

industries must employ the Internet, social networks, and software applications in R&D,

management, marketing, sales, and finance departments. Companies should adapt to new

technologies and implement changes to handle and exploit big data in these functional areas.

In general, economic and environmental influences include characteristics of the

economy, such as currency fluctuations and wages, employment numbers, and associated

variables, such as inflation, downturns, and other harmful and positive disruptions (Bright &

Cortes, 2019). Economic forces, defined as the growth of an interconnected global economy

characterized by free trade, money flows, connectivity, and cheaper foreign labor markets,

underpin the dynamics in the broad world economic context (Bright & Cortes, 2019). This

dimension continues to provide possibilities and challenges to businesses operating locally and

worldwide.

Internal Forces

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Uploaded on
July 8, 2026
Number of pages
16
Written in
2024/2025
Type
Essay
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Unknown
Grade
A
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