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Organizational Behavior Forces

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Organizational Behavioral Forces

There are many internal and external forces that can affect an organization. Internally an organization sets up its own culture. It creates its own internal structure, mission, and fiscal policies. These internal forces are created to engage the external forces that include, but aren't limited to, an organization competition, the economy, and the demands of the customers. The way that these forces are handled speaks to the effectiveness of an organization.

Having knowledge of a system and its development will contribute to a well-managed organization. Keeping up to date on community needs, technology, consumer demands, and economic perspectives influence organizations to be in a better position to fulfill their mission to improve technology and service quality. Having this knowledge, an organization can be in a better position to fulfill the organizational mission. Conducting in depth surveys, receiving information on the shifting behavior of the American workforce, building research that examines and defines what drives and motivate workers, and the response to the worsening economical and employment outlook, will provide valuable insight on recruiting, motivating, and retaining its employees.

According to, fiscal policy is "government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates, and government spending, in an effort to control the economy." Fiscal policies are a much broader topic than that because although the government can influence the economy and productivity levels, individual public and private organizations can have their own fiscal policies. Organizational behavior can be affected by how conservative or aggressive its fiscal policy is and it relates to success in achieving its goals. An example of fiscal policy on a small scale is how a finance department can write off invoices up to a certain amount. Anything exceeding the allowable limit must be taken up to management. Fiscal policy can change the allowable amount, depending on how important the organization's focus on accounts receivable is. Another example is automobile companies putting more emphasis on research and development as well as production for fuel-efficient vehicles, or "hybrids" and less on conventional vehicles due to high gas prices. This causes unemployment levels to go up and down in certain areas of the car industry. When a company decides to adjust its spending, its policy may affect only a specific group of people.

Making changes to maintain characteristics of the company in an internal force impacts its organizational behavior. These changes are made to the tools, resources, and the physical or organizational settings of the company. Restructuring is referring to the resources internal and external. For the internal, it is resources from facilities, equipments, staffing levels, staff qualifications, programs, and administrative organization. Knowledge and utilizing information to adapt to organizational behavior successfully, and to changing circumstances are obtained from resources from external environmental factors. Customers, owners, suppliers, regulators, local communities, and other employees are changing their needs constantly. In addition, restructuring will have an impact on organizational behavior due to providing adequate structure enabling the organization to use or apply good processes that lead to good outcomes and to evaluate and train to ensure minimum standards are met in the workplace.

Typically, organizational behavior is affected by how well or how bad the economy is doing. Changes in the direction of organizations will be made to compensate for shifts in the economy. An example of this is the current demand for higher learning degrees. More and more companies are offering tuition reimbursement benefits to their employees if they choose to continue their education. This can help organizations compete in their respective industries because the workforce is better trained and educated. Legislation can influence the economy by making it required for certain workers to obtain higher learning degrees.

When the economy is doing well, there is less worry in organizations in regards to downsizing or outsourcing. Employees may have other options and be inclined to accept jobs at other organizations that will pay them more. When there is job security, an outcome can be increased spending, which in turn influences the economy. Growth in the economy can mean potential growth in organizations. Another example of economy impacting organizational behavior is the increase in employee carpooling caused by high gas prices. This can be a way for co-workers to get to know each other, which may cause more of a bond between employees in the organization.

Customer demands can impact organizational behavior directly in the same manner that supply can affect demand and vice versa. Organizations may change their focus to whatever the customer is looking for. Customer demand can dictate how companies adapt to market change. An example can be how



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