The Problems of Managing Organisational Change

Abstract

A business organisation resides in a pressing economic environment. Rising world prices in raw materials and production fuels have of necessity raised production and manufacturing costs. The competition for international products and material resources of a domestic and industrial nature has inevitably led to rises in import prices. Faced with increasing production costs, tighter cost controls have been felt necessary in order to ensure the survival, let alone the profitability, of a company. Since 1945 local industrial plant bargaining has grown and pressures have been exerted by unions and shop stewards in attempts to raise wage earnings. Shortages in skilled and semi-skilled labour have forced management to raise wage levels and overtime payments. Inter-firm comparisons by unions have served to put pressure on management to equalise wage differentials. With rising import and domestic prices, wage levels have been pushed up to maintain people’s living standards at levels comparable with the general cost of living. With rising prices and increasing costs, industry has of necessity been forced to raise its efficiency and productivity in order to bear ever-increasing labour and material costs. In an attempt to improve organisational performance and effectiveness, management has been called upon to deal with these problems and to overcome the internal obstacles to adaptation and change.