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The level of competition in the market is increasing day by day. The customers have more alternatives and substitutes for the products and services offered by various organizations. Due to the slump in the economy the purchasing power of the customers is decreasing and they are looking for the best at lower prices therefore the organizations have to work really hard to increase productivity, reduce the production costs and meet the customers’ demands. The organizations are making changes to cope up with these conditions. These changes may include downsizing, long or short working hours etc. in order to adjust in the way they do business. To be more competitive the organizations must have a well-defined mission statement, goals and objectives, then only it can decide which way or method to adopt. Thus, the organizations need more creative and innovative ideas in order to survive, grow and expand.
There are certain organizational behavior forces which have to be monitored and controlled in order to compete successfully. For this purpose, few organizations have been studied here.
Mission statements are very necessary and act as a platform for the organizations. It is also essential that these mission statements are clearly defined that what basically is required to achieve. They are broader and further on the goals and objectives are defined in accordance with these statements. These statements give an impression of the organization to its customers. The employees are also inspired by them and work accordingly. If an organization work as per its clearly defined mission statement then it can gain a competitive edge over the others and the skills of its employees, their creativity, the innovation all can be enhanced and it can easily meet its customers’ expectations.
To meet the challenge of competition the organizations are struggling, making changes and restructuring so that their costs are cut down. Restructuring is basically deciding about how to get more work by lesser number of employees or utilizing the manpower to its best with low costs. This problem of restructuring has been highlighted in last two years. The organizations are cutting down the work hours of the employees. The part-time employees are either dismissed or are only called when required, in order to lower down the payroll cost. Mostly the organizations are not hiring any more employees except in special cases. This restructuring have an impact on the economy also as the unemployment ratio is increasing day by day in many countries.
As discussed earlier the level of competition has increased a lot in every field of life. Whether in education sector, the competition is going on in private institutions and public institutions. In case of property business the rents are becoming competitive day by day. The customers are getting more options and choices. The organizations in manufacturing business are suffering the competition from the countries where the labor cost is very low which reduces their production cost. Thus no matter whatever the sector is there is great competition and organizations are forced to offer superior quality products and services at low prices.
The decline in the economic conditions is forcing the organizations to make such fiscal policies where their costs are reduced as much as possible. The organizations are trying their best to control and decrease the cost by every possible mean. The organizations dealing with temporary employees are in the worst conditions. Thus, efforts are being made to reduce the costs in every area.
Customers are the main focus of every organization. They are the source of income and profit for all the organizations. They are the end users and the organizations make all the efforts to capture them and provide them whatever they require. Because of the increased competition, innovation and advancement in all the fields the customers have a vast variety to choose from. There are different types of customers internal, external, direct, indirect etc all are required to be dealt very professionally. To cope up with their demands and to come up to their requirements organizations must bring in innovative ideas. Nowadays promotional campaigns are being launched almost by every organization in order to attract the customers. The organizations have to bring in such cost-effective ideas in order to keep down their cost and hold the customers. In order to avoid the downturn in the customers the organization are also required to provide customer service. Thus, handling the customers with more care and concern is highly recommended these days.
Economy has a direct impact on the organizations. Nowadays the overall economy is suffering from a slump and the organizations are also receiving the negative impact of it. In order to cut down the costs most of the organizations are not hiring and the temporary employees are also discouraged which is resulting in more unemployment which then results in less earnings and less tax revenues. Although many organizations are becoming creative in order to keep jobs in the United States but still the economy is moving downwards. To cut down the costs not only the hiring process is being stopped rather the companies are cutting down the working hours of the full-time employees thus reducing their payrolls. This reduction in work-hours, restricts hours to below 40 each week.
The world is becoming a global village and the process of globalization has speeded up. Globalization is basically expanding the local markets into international markets referring them as one global market. It depends on the type of an organizations that how they handle the global market. This may not apply to every organization. The organizations which are operating and owned locally may not strive for a global market although it may be serving the customers around the globe. It is the goal of education to prepare students as per the requirements of the market. If doctors are required more than it will not be feasible to prepare more engineers. Thus U.S. organizations are making adjustments in order to restrict their clients from seeking representation in global markets.
No matter what type of the business is an organization in, whatever its size is mostly all the organizations are facing some or all the problems and are affected by these organizational behavior forces. They are making their best efforts to meet the customers’ requirements, increase their productivity, provide superior service and most important of all reducing their costs. Almost all organizations have been affected by the process of globalization and the one suffering the most are bringing changes in their mission statements. The organizations are required to go for innovativeness, strong decision making, good leadership then only they can have a competitive edge and will be able to survive these hard economic times.
Robbins, S. & Judge, T. (2009). Organizational behavior (13th ed.). Upper Saddle River, NJ:
Prentice Hall.
Schermerhorn, J., Hunt, J., & Osborn, R. (2008). Organizational behavior (10th ed.). Hoboken,
NJ: John Wiley & Sons.
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