Managing Change by Managing Risk Essay Example | Topics and Well Written Essays - 3000 words

Managing Change by Managing Risk - Essay Example Technological development means keeping the technology up to date for the company in order to remain competitive in the market. Competitive environment forces the companies to retain good quality of the products and services in order to improve customer satisfaction. 3.2 Internal Forces of Change Internal forces of organizational change include such forces, which force the change to occur inside the company. These changes are very significant in order to increase employee satisfaction and employee commitment towards their job responsibilities. The changes include change in the working atmosphere, change in employment rules and regulations, and change regarding employee retention strategies. 4. Risk Management Harrison (n.d.) states, â€Å"Change is inherently ambiguous, and those who deal creatively with change will have a high tolerance for uncertainty†. In case of organizational change, we can say that organizational change needs proper management of risks in order to be suc cessful. Francois (n.d.) states, â€Å"A change management process is a series of business practices used to control and manage change within a large system or organization†. Risk management is one of those business practices that are needed to implement organizational change. â€Å"Much of risk management work is focused on the management of risk in a 'business as usual' and relatively stable environment† (Anderson 2004). Risk management is a process, which is used to identify and measure the risks being faced by a company or a firm. Risk management refers to the concept of keeping the risks under control so that they do not create any kind of dangerous situation for the company. This process of... According to the research there are two types of organizational change, which include external and internal forces of change. External and internal forces of change not only result in altering organizational policies concerning various business activities but also influence major functions of management. The external forces of change include competitive business environment, technological development, and political and social environment of an organization. Technological development means keeping the technology up to date for the company in order to remain competitive in the market. Competitive environment forces the companies to retain good quality of the products and services in order to improve customer satisfaction. Internal forces of organizational change include such forces, which force the change to occur inside the company. These changes are very significant in order to increase employee satisfaction and employee commitment towards their job responsibilities. The changes incl ude change in the working atmosphere, change in employment rules and regulations, and change regarding employee retention strategies. Changes are inevitable in every company or organization whether it belongs top construction industry or some other industry. Managers need to consider several issues related to different business activities before planning to bring some change to the organizational policies. Risk management also plays a key role in change management. Some of the risks related to construction companies include design assumption risk, structural development procedures, fire risk, and environment uncertainty risks.