Chapter 7

THE DYNAMICS OF ORGANIZATIONAL AND HUMAN BEHAVIOR

Dynamics - a pattern or process of change, growth, or activity One important subject of

interest in human behavior is how change affects people in organization. PAANO BA
NAKAKAAPEKTO SATIN ANG PAGBABAGO? The process of change can be managed to maximize
its success and minimize unintended disruption in the flow of organizational operation. Change
is compelled by many sources such as social and demographic trends, the economic conditions
prevailing in the world market, competitions, technology, politics and government regulations
and many other factors in the organizational environment.
There is a saying that the only permanent thing in this world is change. Change is a
dynamic factor in all organization. Anyone who resists change is doomed to perish in the world
of business. They should either change or die, there is no third alternative. Organization that
learns and cope with change will thrive and flourish and others who fail to do so will be wiped
out.
Change was brought about by the prevailing condition in the environment. Any change in
these conditions needs adjustment both in material, technology and manpower development. In
a very simple word, we can say that change means alteration of the status quo or making things
different. It refers to any alteration which occurs in the overall work environment of the
organization.
PINOY can change his thoughts and he will change his world. PINOY can do many things
to simplify his busy life. He can communicate effectively, discipline himself and organize his
home, office and time schedule. For success in achieving his life goals, he needs to do more than
just changes in his behavior. To do this, he must change his way of thinking.
PINOY thought has a great deal to do with his success in any goal in life. To a large extent,
the mind controls the body. The best way to control his thoughts is to control what PlNOY puts
in his mind. PINOY positive thoughts will likely result in his good life. PINOY will be able to define
his real needs and wants better. He will be in position to clarify the courses of action that he has
to take. It will motivate him to push fast obstacle and stick to his best effort until his life goals
become a reality.
PINOY Seven Simple Paths to Change
1. Have Life Plan.
Life plan is a guide or the direction towards a predestined goal. God has a plan for
your life. He has plans to give you and prosperity. Your heart and mind control that
direction, searching will give you peace and contentment and you win you are headed to
the right direction. Find your path tow peaceful simplicity. Life is a craving for more and
 as you go up wealth and position. You find real happiness elusive. Whatever God has plan
for you. It will be wonderful and right.

2. Exercise Personal Discipline.

Discipline refers to the rules needed to gain and maintain order. It has something
do with how PINOY inspires images of obligation and restrictions. PINOY sense of
discipline can lead to liberation from problems and enhance productivity that leads to a
happy life. Exercising personal discipline puts PINOY in the driver seat of his life. PINOY
will be able to schedule more time efficiently and even combine certain activities that
make him effective in the organization.

3. Organize Yourself.
Organizing can be a valuable key of simplifying life and setting up structures for
order as having a place for everything. PINOY when properly organized will avoid stress
and conflict. Getting organized may sound to some PINOY more work, something that
crowds into his tight schedules. On one hand, when things are in order, it takes little time.
It can pay off a simpler and more pleasant lifestyle at work and for those people who
depended on PINOY in the organizational system. Organizing is a tool for PINOY to use
that will serve and step in his quest for success and simplicity in life.

4. Observe Humility in Life.

Humility makes a difference in PINOY life because it is more than behavior or an
action. It is an attitude that takes place and penetrates to the root of being PINOY.
Humility is a change that takes place inside his emotional and mental sets. The corporate
ladder where he is when promotion comes is not an issue as he works hard for it. God has
destined him in that position. In organizational relationship, PINOY feels to forego credits
for good accomplishment as his humble heart gives credit to God. Humility is the hallmark
of PINOY who has risen above human definition of position and status. PINOY humility is
choosing to place others ahead of him.

5. Love Your Work and Feel that it Matters.

PINOY may have viewed work as an end in itself and this leave him in a confusing
state of flux on any given day. PINOY rides in the crest of wave when things go well and
feels frustrated and dissatisfied when things go wrong. PINOY must view work as an
avenue for exercising his God given gifts and talents. PINOY has the power to maximize
the satisfaction he receives from his work and shed confusing expectations imposed by
the organizational system.

6. Open Your Heart to Help Others.

Giving helps PINOY simplify life by turning his eyes from the superficial assessment
of social status to the value of reaching out to those in need. Giving regularly will help
 PINOY gain stronger awareness of the needy around him. PINOY who gives will become
more than the faces around him. They will be people that PINOY will come to know and
care about which will in return help him achieve what he dreams to be in the organization.
An open hand has an open heart.

7. Keep a Healthy Body, Mind and Spirit.

PINOY’S good health frees him to make most of his life without the complication
of illness. Regular exercise of the body, the mind and the spirit will make PINOY healthy.
On regular weekly basis walking or involvement in team games or exercise in the gym will
keep PINOY body fit for work. Reading good books and magazines will feed his mind with
wisdom. Reflecting on bible passages will keep his spirit in good health. Eating good food
is another key to staying healthy. PINOY, as a busy person at work, needs also good rest
for him to keep fit for another round of hectic schedule. Sunday is the time to rest, to pray
and to reflect and plan for another week ahead at work in the organization.
Human Behavior and its Environment
The environment plays an important factor in personality development. These
environmental factors can affect every individual’s characteristics and behavior as well as it can
develop compact and balance society.
The following interplays with the development of social culture:
1. The Home and Family
The family is the most important human group which develops human behavior.
It is the basic unit which transmit the biological traits of PINOY, his mental abilities, and
emotional disposition. PINOY’s basic source of fundamental social ideals comes from the
family as he goes through the process of socialization. PINOY develops his basic attitudes
ideals, values and lifestyle with the kind of family atmosphere present in the home
environment. Such developed behavior may stimulate cooperation or competition,
assertion or shyness; or it may create friendship and acceptance, rejection or resentment.

2. Environmental Factors
PINOY is beginning to realize the environmental factors of disasters, tragedies,
plundering, and the excessive exploitation of our natural resources that cause flooding
and other calamities which are global in nature. PINOY visualizes the world issues of
environmental change that affect the life of people not only in this country but also in
other countries. The environmental imbalance creates havoc on our economy and the
development of our people. Sustainability is the development of actions that will balance
human with his environment and making this part of the planet safe for its people.

3. Cultural Environment
 Cultural environment refers to the learned ways of living. It is the norms of
behavior that are transmitted through social groups beginning on the life of PINOY as he
learns to react to his environment. The culture determines how PINOY learns as a member
of his social groups. Teaching and learning are two important components that make
PINOY what he is today, as he regulates the type of behavior which is considered
appropriate to the society where he belongs. Cultures are shaped by different personality
that goes through the process of life with different models of orientation and assimilation.

Culture is PINOY heritage which has been transmitted from one generation to
another through language. It represents the interrelated network of norms, values, and
roles. Norms are the standards of behavior prescribed by the society and are greatly
influenced by the values of the society. Values are transmitted through teaching and
internationalization of learning.

4. The Social Environment

The social environment refers to the various groups and social interactions going
on in the life of PINOY. He is helpless without the group of persons to associate with, as
from birth PINOY goes through the process of continuous socialization. His association
with the different groups of persons influences his personality formation. PINOY social
experience is influenced by the position or his role function in the society where he is in.

5. Social Status and Roles

PINOY is either male or female, or the third sex. PINOY is born into a group and
occupies a certain position or rank. He may be the eldest in the family and assumes the
lead role among the other siblings. In the Filipino family, he is required to support the
education of younger children or help family finances.

The ascribed status is acquired through competition in the field of work or in his
social dealings with other members of the group. PINOY, with specialized skills or talents,
performs roles of leadership that develops further his personality and status. As PINOY
develops further in his different roles, he occupies various positions. He continually learns
particular roles through training as required by the social institutions.

6. The Social Agent

The school, the church and other social institutions are instruments in molding
PINOY into a dynamic, wholesome and assertive individual. Parents spend a lot of their
investment in the education of PINOY for him to develop into a whole person with values
and culture. Parents believe that education is the vehicle for social and economic
advancement. Education is viewed as the realization of the goals of society for peace and
prosperity.
Types of Environmental Change
1. Individual Level Change
Individual level change may take place due to changes in job assignment and
transfer of an employee to a different location or changes in the maturity level of the
person which occurs over a passage of time. As PINOY matures, he changes his personal
outlook that will have a significant impact on the organization. PINOY values and
perception will affect group behavior that will influence the whole organization.
Managers of organization must not treat PINOY in isolation but he must understand that
the working PINOY’S level of change has repercussions beyond his individuality.

2. Group Level Change

In implementing any change, management must consider, the group of people in
the organization as the group influences the organizational climate. The group in the
organization can be formal or informal. Formal group like labor unions can always resist
change that will affect the work performance of the organization. Informal groups like
regional associations of ILOCANO, VISAYA, TAGALOGS, PAMPANGOS, and all others can
pose a major barrier to change because of their inherent strength. Changes in the group
level can affect workflow, job design, influence and social and communication system.

3. Organizational Level Change

These levels of changes are made by top management that affect both PINOY and
his groups. These are major programmed changes that occur over a long period of time
and require considerable time for planning for implementation.

The different types of organizational level change are:

a. Strategic Change
As the business condition and environment change brought about by
advancement in technology and the economy, organization changes its basic
objectives to multiple objectives. Strategic change could lead the organization to
vertical or horizontal expansion or changes in business direction. Expansion in
market or global marketing could be an option for strategic change.

b. Structural Change
Organizational structure is the pattern of relationship among various
position holders. Structural change involves changing the internal structure of the
organization The changes could be seen in authority structure, work assignments
or inter-department relationships. It is usually brought about by expansion or
contraction of operation.
 c. Process Oriented Change
The changes are brought about by technological advancement in
automation, information processing with the use of advance computer system,
and advancement in communication that allows organization to hold conferences
right at their respective offices. These require personnel training programs, heavy
capital investments, and changes in operational patterns. Behavioral patterns of
individual and organizational culture will be affected by this change.

d. People Oriented Change

People oriented change could be the most difficult change needed by the
organization. These changes are directed towards better work performance,
group coordination, work values, dedication, and loyalty to the organization. It
requires training and organizational interventions. It involves team building
activities and behavior medications that will change people perception about their
organization and the work in general.

In conclusion, change in organization is necessary as it must move along

with the business environment. The first three types could easily be made by the
organization but the most crucial is the change in people’s behavior. People have
different sense of values, attitudes and perception.
Other Factors Affecting Environmental Change
There are number of factors both internal and external which affect organizational
functioning in its business environment. The major forces which make change not only desirable
but also inevitable are: technological, economic, political, social, legal, international and the labor
market. The more important factors are:
1. External Factors
No organization is an island as it must interact with others the total environment.
Each organization has its goals and responsibilities related to each other. The present day
environment is dynamic of change and organization has to adapt to these changing
conditions. Such changes may result in major functions of production process, labour –
management relations, nature of competition, economic constraints, and many others.

The change necessary may be seen in the following context

a. Technology - Change in technology makes work easier increases production. It
changes work structure that new balance and equilibrium in the work
environment.

b. Marketing Conditions - Technology improves products and services and customer

wants and needs vary as to quality and cost. Organization exports its product to
 all sectors of the environment and therefore competition in market conditions
exist.

c. Social Change - Social change reflects in terms of people’s aspiration, needs and
wants, and its system of working. These changes occur due to their level of
education, urbanization, feeling of autonomy, and international impact due
internet, social network and other information sources.

d. Political and Legal Changes - New laws and regulation are made by the
government in terms of environmental changes, taxes, and other mandated
regulations on wages and working condition. Any change in political and legal
factors may affect organizational operation.

2. Internal Forces
a. Change in Managerial Personnel
This is the replacement of old managers with new breed of managers due
to resignation or termination or transfer to other department. New managers
bring new ideas and philosophy to the work place. These need adjustments in
human relationship among workers.

b. Deficiency in Existing Organizational System

These deficiencies may be in the form of unmanageable span of
management, large number of management levels, lack of coordination, lack of
uniform policy implementation and changes due to managerial re-engineering and
re organization.

c. Nature of Work Force

Different work values have been expressed by different generations of
work force. Workers who are 50 years old and above value loyalty to their
employers, those in the mid-thirties are loyal to themselves and the younger
generation is loyal to their career alone. New generation of workers have better
education and they emphasize on human values and become a very complex and
challenge to managerial wisdom. Employee’s high turnover puts strain on
management.

d. Organization Avoids Developing Inertia

Organizational conscious managers take into account avoiding inflexibility
by being dynamic because they believe that no single method is effective at any
single time. Changes are made so that personnel, with proper planning and
consultation, develops liking for change. Unnecessary resistance will take place
when major change in organization is brought about.
Employees’ Reaction to Organizational Change
1. Acceptance
PINOY acceptance to change depends on his individual perception. Changes are
not necessarily restricted when PINOY perceives that it will affect him favorably. When
change in technology will make him sit once in a while rather than standing the whole
operation, he surely likes the idea of change. When change will be in terms of his
promotion or transfer to a more comfortable work environment, then change will not be
resisted. No resistance will occur if it is perceived as favorable to PINOY.

2. Resistance
PINOY generally feels comfortable in the environment that is habituated for work.
Resistance occurs when his perception of the work environment is unfavorable. PINOY
resistance to change can be in any of the following:

a. Hostility or aggression can be expressed verbally but combined hostility and

aggression in intense character can take into physical form.
b. PINOY may develop lack of interest towards work as it may result in spoilage of
materials, idling time and decline in work performance and further results in
decrease efficiency at work.
c. Tardiness and absence at work.
d. PINOY develops resistance, anxiety and tension at work.
e. Resistance may result to work stoppage or UNION strikes.

3. Force Acceptance
PINOY may resist change in the initial stage but if he cannot resist the change, then
there is no other way but to accept it. Eventually, PINOY tries to develop an established
set of relations and learn k; deal with each other and perform his job of what is expected.
This requires PINOY to make new adjustments as organization tries to balance the
equilibrium.

4. Indifference
The two reactions to change are acceptance and resistance but in some cases,
PINOY fails to realize the impact of change or he feels that the change will not affect so
much his work system. PINOY feeling of indifference is developed.
The Basic Reason for Change
1. Improve the means of satisfying economic needs of both organization and members
2. Increase profitability and productivity
3. Promote human work for human beings or gainful employment
4. Contribute to individual satisfaction and social well-being
The Three Basic Steps to Organization Change
1. Planning for Change
This is the first step to any change strategic change, oriented or employee oriented
change. This could be identified in the through the internal and external factors. Planned
change follows the following steps.

1. Develop new goals and objectives

It is identifying new outcomes and modifying previous goals and
objectives due to change in internal and external environment.

2. Selection of the agents of change

It is selecting the persons involved in the change process. It may
involve a chosen manager or an outside specialist or consultant who will
monitor the change process.

3. Diagnose the Problem

Problem analysis requires gathering of data that brought about the
problem which needed change. The data should point critical issues and
solutions should focus on the identified problem.

4. Select the Change Methodology

Appropriate methodology is the key to effective process of change.
It must take into account the feelings and emotions of PINOY when
selecting the methodology in problem solutions.

5. Develop a System of Change

It is the plan of action to take into account in the process of
implementation. If management wants to change the promotion policy, it
must decide as to what type of employee is to be promoted or take into
account those that will be affected.

6. Strategy for Plan Implementation

This is the stage when management will answer the following:
when to implement, where to implement the plan, and how the plan will
be implemented and who will be affected. This involves right timing, and
communication with those that will be affected by the change process.
Managing Organizational Change
1. Change brought about by the environment.
 Any change that occurred requires a certain amount of adjustment in people and
organizational behavior. Organizational equilibrium is attained when there is an existing balance
between what PINOY wants in his environment and what the organization expects to achieve.
PINOY learns to deal with his organization, how to perform his job and what to expect next. When
change comes along, it requires PINOY to make new adjustments as the organization will seek a
new social equilibrium.
2. Change in Place of Work
PINOY who used to be working in Sucat Plant, was transferred to the new industrial plant
in Calamba, Laguna. He found it difficult to adjust his time schedule as he still came from Manila.
In the first few weeks, he was often late from work together with a lot of other workers who
came from the same location or from other places not in the vicinity of Laguna. This problem
created some complaints and at the same time production schedule suffers. To solve problem
management provided service buses that have pick 11 point at Magallanes at Makati, Sucat and
Alabang to accommodate employees coming from different areas.
3. Change in Time Schedule
Increase in production capacity created over time work or shifting schedule to
accommodate increasing orders of customers. It becomes also the objective of management to
increase plant capacity and three shifts schedule was created. PINOY who used to be on regular
time schedule of 8am to 5 pm time slot has to render job rotation shift every week. This requires
sleeping time lag or, adjustment in family activities. This requires adjustment or changes in family
work and his schedule in the organization. PINOY has to make adjustments or else his job
satisfaction will be put into a test. On the other hand, management has to pay additional night
premium or additional incentive in terms of additional meal allowances or additional vacation
leave credits to develop equilibrium in the organizational system. PINOY and management must
work hand in hand to achieve both his individual and group goals.
4. Changes in the Nature of Work
As PINOY is promoted in the organization, it creates changes in his nature of work. PINOY
promotion from the production line or from clerical position to a higher supervisory position
requires adjustment in his organizational behavior. He needs to adjust his relationships with
those people he works with as he now belongs to the management structure. PINOY has to
attend training programs on supervisory management and other interventions that will increase
his potential as effective supervisor of people in the organization. There is great difference
between a line worker and a supervisor as the latter handles more of people problem rather than
technical works. Management has to spend for PINOY training program to develop his skills and
talents in handling the intricate job of people management in the organization. He needs to
develop a new behavior, a new outlook to become effective in his new position.
5. Changes in Technology
 The introduction of modern technology changes the working landscape. It needs
adjustment of people in the work place. When computers were introduced, there were a lot of
PINOY who resisted as they refused to get out of their working comfort zone of the old routine.
They need new training in the use of the machine as the old system has to be revised and change.
Some employees were transferred to accommodate new work system and some were laid off
due to work redundancy. Those PINOY who would like to accept change were trained in the use
of computers and its application, hence, they were able to adapt to the changes in the
organizational environment. Today new technology has to stay or PINOY could not work
effectively without the use of computers.
6. Change in Management Structure
Any change in management structure would mean changes in the organizational system.
Any changes in the top would mean adjustments in the organizational culture or management
practices. There will be change in policies or procedure or change in climatic management styles.
PINOY has to adapt to changes in order for him stay in the job or new pressure of work schedule.
On the other hand, management must study carefully any changes in its structural component
to maintain balance in the organizational behavior of people.
The Dynamics of Organizational Change
The organizational system is a process of change with time and the prevailing condition
in the business environment. It has to change from time to time and as new people come in the
organization, it changes in values and organizational perspective. PINOY and his organization
have to change, as the organizational environment is static in nature. Management and PINOY
must be partners in change as they are complementary in the success of the organization.
Management success is dependent on PINOY as he is dependent on management for his personal
objectives.
There are basically two types of change in Organizational Dimensions:
1. Structural Dimensions
This refers to the organization system operating in the organization. It has
something to do with the characteristics and values of the composing factors and the
behavior of people in the system. It is the internal behavior of people and management
and how it interplayed in the working of the organization. This bah. is reflective of the
practices prevailing in the organization environment.
The following are the features of structural dimensions:
a. Formalization
Organization operates with formal written policies and procedures. These
documents are important components for standardization of products and
services. It describes how people should do their jobs. It includes system and
specific instructions. Operating policy manuals are properly documented, audited
and updated as organization changes its operational directions.
b. Specialization
Any change in the system and technology carries with it changes in
specialization of people in the organization. PINOY has to follow a new set of
structural change that fit him into the specialized work environment. It creates job
simplicity in job performance and evaluation becomes simple to administer.
c. The Hierarchy of Authority
Changes in management chain of command requires adjustments to new
supervisory practices. New reporting relationships will be in effect. PINOY has to
adjust to new supervisor or manager as span of control may become narrow or
wider depending on the style of leadership that will be implemented.
d. Standardization
Any new standards in quality and work performance require changes in
work system. PINOY has to adapt in these changes in order to produce uniform
quality products and production output. Work has to be done in uniform manner
to get the new product or service specifications.
e. Professionalism
As organization changes, its direction, mission and vision requires new
professionals in carrying out its task of expansion. Development of organizational
intervention and training programs have to be implemented that will change the
organizational philosophy and outlook of people. Expansion needs new
professionals with new vision and system of thinking. Change has to take place as
new ideals must be in place.
f. Personnel Ratio
The introduction of new machines and new technology will require
revision in personnel component. Reorganization will result in redundancy. When
this take place new adjustment will be necessary and PINOY has to follow these
changes.
g. Complexity
Re-organization requires new complex system as new activities have to be
revised. Division of work must be made along the following dimensions:
1. Vertical Complexity
 These are changes from the top to the bottom in the organizational
ladder. The levels of management may be narrowed down or additional
position in the structure is created to attend to change in organizational
setup.
2. Horizontal Complexity
A new arrangement in the horizontal structure is made to either
fuse existing departments or create new department. Fusion is created
when the company has to contract its operation and additional
department is created in case of expansion.
3. Spatial Complexity
This is expansion in new area or development of new corporations
in the vertical or horizontal expansion. This needs changes in people
environment when assigned to new locations and changes in job duties if
given new positions.
h. Centralization
This refers to hierarchical levels of authority in decision making. Proactive
management is decentralized as top executive gives more power to the operating
departments for greater efficiency and removal of organization red tape. When
trust and confidence is absent in the organizational setup, management tends to
be centralized in its decision making.
1. Changes in Contextual Dimension
Changes in contextual dimension need adjustments in the system of work.
System of measurement and analysis of the working environment have to be
made in accordance with the prevailing condition affecting the business.
Organizational growth and contraction depend on how management views the
prevailing business opportunities or threats or its strength and weaknesses.
2. Organizational Size
As organization becomes profitable in its operation, it has to increase its
manpower base. Increase in manpower would mean opportunity for PINOY to be
promoted in positions he is qualified. This would need changes in position and
work system. On other hand, organization has to make changes in its organization;
structure to accommodate opportunities on its current strength.
The contextual dimension of the organization has to change its vision and
mission in times when economic condition becomes unfavorable. Organization
would resort to reorganization or downsize its manpower base to loosen its
threats. This would mean layoff or retrenchment of some employees. PINOY may
be laid off and be paid his separation pay. PINOY would need to find a new job and
may be lucky enough if he gets employed again. On the other hand, he may be
prepared to enter a new business of his own with the money he gets from his
separation pay.
3. Organizational Technology
The introduction of modern technology affects the organizational working
set-up. The use of modern machines in the production of goods or services would
need PINOY to adjust or change hi Work system as it must conform to the
technological change. Its objective is to increase work productivity and develop
efficient work systems. Expectedly technological change would increase the
quality of inputs to quality products or services.
PINOY would need training in the use of the machines. It needs adjustment
in his personal outlook. He needs new talents or skills to be more efficient in
handling the new work system. A new system of appraisal in his work output
would be in place to measure the effects of modern technology.
4. Organizational Environment
These are external factors that affect the organization in its operation.
They are the following:
a. The government
The government has something to do with operation of the
organization in terms of current government laws being implemented like
taxes, fees, permits and environmental regulations. This would have
something to do with the increase in wages and salaries being
implemented through the wage board of the different regional office of
the Department of Labor and Employment. Changes in taxes would mean
adjustment in prices of goods or services or what PINOY has to pay in terms
of his income tax. New laws on environmental conditions affects business
operation as it would mean introduction of new system of waste disposal
that would entail new capital expenditures.
Peace and order is the concern of government to protect the
organization. Any peace and order situation in the workplace affects its
operations. Kidnapping and other crimes drive investors away from our
country. The peace and order in Mindanao is a great factor in the operation
of business in the area. It could have been a haven for agricultural and
industrial development as the weather conditions prevails in that part of
the country. It has rich natural resources awaiting development and
economic boom could have come if peace and order situation can be
improved.
Changes in the political personalities affect also the operation of
the organization. A new elected official of government may have a new
economic agenda that affect business condition. Elections may bring about
new system of government and this, in general, need changes in business
operation. Organization has to adapt to the changing conditions in the
political arena.
The development of infrastructure in the country could affect the
expansion of business in the area. The construction of expressway and the
development of better network of MRT and LRT are government concerns.
Better transport system spurs development and along with it is the change
in behavior patterns of individuals.
b. The other industries
Changes in the industrial landscape would mean changes in the
operation of the business. Growth in related industries would mean
growth also in the operation of similar business, while contraction in
operation would also mean downsizing in the operation of other related
industry. Change is a process of growth and development. It has a domino
effect and change has to be made to cope with the economic conditions
prevailing in the economy.
c. The suppliers
The important component of the business organization is the
suppliers of inputs in the production line. Suppliers are partners in business
operation. Development of good and honest suppliers is one key element
in the success of business operation. When suppliers fail to make good 05
their commitment, great adjustments have to be made. Supplier relations
must be developed to maintain good business.
f. The financial institutions
Business or organization operates with the help and assistance of
financial institutions. They are the important component that makes
business grow and prosper. Increase in interest rates would mean changes
in some policy regulations of the company. Businesses become more
progressive when interest rates are low, as organization maximizes its
capital base in the operation. The determinant of good business activities
is the linkages of the financial sector with the organization.
 e. The customer or stakeholders
The most important component of any organization is the
stakeholders or the customers. They are lifeblood of their operation.
Customer satisfaction is the name of the game. Customers who are
satisfied will continue to patronize the product of the company. Any
change in customer’s preference would mean changes in product
specification or quality. The customers are difficult to satisfy because they
have changing wants and needs. The organization must be proactive in
marketing research to find out the changing conditions or market
preferences.
5. Organizational Strategy
The company strategy refers to the direction of the organization which is
defined in its mission and vision. The mission and vision are then simplified into
operational goals and objectives that set the company in motion thru its
departmentalized level of activities. Any changes in business landscape would
mean adjustments in company strategy to cope developments in its operational
environment. New direction has to be crafted and PINOY would have to adjust to
the changing condition of business. KAPAG MAIKSI ANG KUMOT DAPAT
MAMALUKTOT. KAPAG MATINDI NA ANG KAHIRAPAN, TANDANG MALAPIT NA
ANG KAGINHAWAHAN.
Organizing Strategies
Organization must develop specific strategic action plan to cope with changing
environment. Business in this world of expansion and globalization creates competition beyond
the imagination of ordinary.
We need the aid of competent business analyst endowed with the power to analyze the
changing condition of the business environment. Highly educated manpower is badly needed by
the organization in order to create balance in the supply of goods and services and protect the
interest of business organization.
Technological advancement comes too fast and this has to be used more effectively to
cope up with the changing business landscape. Education must be able to sustain the need of
industry. We have to update our curriculum to keep in pace with the change in the organizational
environment.
Organization must develop specific strategic action plans in order to adjust to changes in
business environment. Such strategies must have time frame that specify target goals. It could
be in micro or macro level depending on the financial, manpower, and technical resources
available at the disposal of the organization.
The following strategies have to be identified:
1. Organizational Expansion
It is the pace of growth in terms of profit and increase in market penetration. It is
the ability of the organization to cope with competition and its ability to innovate product
and services. It has to look for opportunities based on its current strength in the field of
business. The changing environment carries with it the changes in customer’s preferences
and behavior. Organizational expansion must be able to go with the tide of change in the
organizational environment.
2. Organizational System of Investment
One important determinants of organizational success in the changing
environment is how investments are planned and channeled into productive activities to
generate additional profits. Wise investment is based on careful study of the prevailing
condition in the business arena. The peso investment must generate additional revenue
for the company to finance further organizational expansion. Financial institutions would
be willing to lend a hand on organization that will use their money in gainful business
activities.
3. Structural Reforms
Any change in the business condition needs changes in the organizational
structure. The design of the organizational structure must he based un its current needs
for change. Changes in the organizational design carry with it the redefinition of the duties
and responsibilities. People handling management functions as well as the people that
will be affected by change must have new outlook and develop new strategy for action.
Decision making may he centralized or decentralized depending on the kind of changes
necessary to effectively handle new challenges.
4. Human Resource Management
One very important component in organizational change is the human resources
of the organization. Any change in the human organizational component would need a
new value system at work. PINOY as a working man must be able to adapt to this changing
environment as the organization depends much on him to keep moving in pace with any
development. Training and organizational interventions must be put in place to develop
a new PINOY.
5. Public Relation Strategy
The organization is perceived by the public in terms of its product or services.
Public relation strategy must be designed in the light of its philosophy and the type of
public exposure base on the prevailing changing environment. Consumer goods need
good public exposure. Advertisements and promotional programs must conform to the
 existing morals and practices of the community to gain better patronage. It must touch
the life of the community public and have greater impact on environmental concerns and
values of the people. Outreach programs to rural communities could be an avenue to
greater patronage.
6. Strategic Customer Relation and Marketing System
Customer and stakeholders are the lifeblood of the organization. The organization
exists because of the customer and stakeholders who patronized their products or
services. Any change in customers’ wants and needs would require organization to change
its products quality and improve services. Organization must improve product
specifications and make innovation that would satisfy their customers’ wants and needs.
It must be affordable and available. Distribution system must be improved and must be
within easy access to customers. Customer satisfaction is the name of the game.
Marketing organizations need to determine the following:
1. The needs and wants of potential and present customers
2. The strategy to produce and sell the product
3. The current competitors and the strategy to overcome them
4. Pricing strategy that maximize profit and market share
5. Marketing and distribution system
6. Development of long term customer satisfaction and patronage
Trends in Organization That Will Affect Business in the Next Decade
The fast changing condition in the global arena and the introduction of modern
technology greatly affect the conduct of the business in the next decade. The outsourcing of
marketing system to our country could be a favorable move for the increase in employment
Opportunity for PINOY who could talk better the language of the business where they are
assigned.
The following business trends in the conduct of organizational activities will greatly affect
the global landscape:
1. The fast change on how company conduct business.
Organizations are constantly changing their business models and behavior to
adapt to the changing market forces. The business environment today is markedly
different from the past due to technological advancement. A business executive needs
not have to travel to the country where he conducts business as he can have
teleconference activity right in his office.
Marketing activities can be made through outsourcing to countries where low
labor cost is in abundant supply. PINOY is reducing marketing cost of the foreign country
and thereby develop competitive advantage. These could a positive note for employment
opportunities for PINOY. Small companies who do not have the facilities of globalization
could be affected.
2. Outsourcing of materials and parts from other countries.
Competition in the supply of materials in countries where low cost row materials
are available is another factor that will affect business in the changing world economy.
This change can be favorable to PINOY if he explores the abundant natural inputs in the
country. We have mineral deposits ready for exploration. We need only to process these
natural resources before exporting it to other countries.