Modern organizations evolve as the marketplace and societies evolve around them. Political, environmental, and economic factors drive these changes in certain directions. Typically, organizations not only adapt to these changes but initiate them too.
Adaptation can be achieved “passively” by merely reacting to external stimulus or “actively” by truly embracing changing circumstances to maximum benefit. Historically, we are aware of many of these changes, the industrial age, the innovation age, the age of the knowledge worker, or the creative age.
The future requires us to work smarter, to be open and flexible. This will be flat from a point of view of opportunity for all or spiky when it comes to valleys and mountains of creativity.
It will be demanding when one tries to be financially and economically successful in an environment of more players and equality in access to information.
Albert Einstein stated, “A HUMAN BEING is part of the whole called by us universe, a part limited in time and space. Experiences himself, his thoughts and feelings as something separate from the rest, a kind of optical delusion of his consciousness. This delusion is a kind of prison for us, restricting us to our personal desires and to affection for a few persons nearest to us. Modern organizations must be to free ourselves from this prison by widening its circle of compassion to embrace all living creatures and the whole of nature in its beauty.”1
Modern organizations must see the world as a whole as a set of interconnected systems
Organizations have lost the understanding of inter-connection, even as the world has become smaller and more readily present in our own businesses and living rooms.
When looking at what we are passionate about and spend a lot of time with, we find that work takes a large space in our lives. In the Western economies, it has become more and more obvious that this work is no longer the vocation of the industrial age. We no longer need to labor in the production of material goods for the majority of our lives to sustain our families and ourselves. Organizations have evolved.
Organizational Behavior Forces
There are many internal and external forces that can affect an organization.
Internal and external stimuli that can impact an organization differ depending on the type of organization and its internal and external environments. Quite often, the internal changes that arise, such as reorganization, layoffs, or changes in standards are the result of external stimuli that must be addressed or compensated for. In other cases, internal changes are the result of new directions imposed on the company by its leadership.
2 Peter Drucker, Forbes Magazin, 1998, issue 7, pages 152-177, „Management_s new paradigms_
3 (Childre, et al., 2004, p. 13)
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.
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." 4Fiscal 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 certain amounts.