Last Updated 07 May 2020

Organizational Behavioral Forces

Category Behavior, Insurance
Essay type Research
Words 1293 (5 pages)
Views 431

Each team employee belongs to a unique organization. The organizations are run in different ways, some more efficiently than others. Currently the economy has affected most organizations. The economy right now is a concern globally. Customer demands have gone down and the competition is up more than ever before. Internal and external forces influence many organizations. Organizational Mission An organizations mission and vision is finding a common goal seen by others and that they can relate to in their own role in the organization.

An organization must translate the company’s mission and vision into understandable terms. Internally and externally, communication has to be a priority. Employees of an organization can understand more and feel more involved when they have a better grasp of what the organization is doing internally and externally. Internal communications tailored to an organization’s culture is meaningful to an employee’s position in the organization. In the insurance industry, promoting diversity in the workplace has increased staff retention and created a better work environment for all.

The diversity in the insurance industry has helped many people of different backgrounds, cultures, sexes, and social choices. This has expanded the relationship skills of all employees at this organization. Having objectives meant to address the current situation allows the employees to contribute to the organization. When an employee of an organization is contributing to the organization, they are contributing to their own future in the organization. When an employee knows where the organization’s future lies, they have a higher degree of commitment to and enthusiasm for the organization.

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Customer Demands Customer demands have increased competitiveness and a redesigning of internal processes has occurred in the insurance industry. This has worked for the benefit of the organization but not the customer. External customer satisfaction and internal morale communicates clear important information such as in planning a new internal policy or informing the customer of a change in policy. Many policyholders or customers of the insurance industry no longer receive the quality of service they had accustomed themselves to having.

Currently, the economy has forced the organization to alleviate even more employees. This has placed a burden on the customer and the organization. The customers can no longer receive assistance with holding safety meetings and the representatives of the insurance company are without jobs. The currently economic downturn seen in this industry can be seen in many organizations. Economy The economy is an external force that is affecting the whole world. Right now, the economy is in a recession. This has been a negative force in many organizations around the world.

Some organizations have been able to adapt to the economy and make adjustments to survive. One organization that has been affected is the home health agency. In a home health agency, personal care assistants provide care to mainly elderly clients who are disabled or dependant on others to care for them. Due to the economy, many of the clients and the clients’ families have lost money from investments, stocks, or jobs. Some cannot afford the care they need. Having to cutback in this area means less hours for the hourly employees and less money for the organization itself.

Employee misconduct is an internal force that has affected this organization. In a home- health agency, employees are not working under direct supervision. Employee misconduct can be devastating in this type of organization depending on what the employee did. The agency does background and employment checks with a high level of trust placed in a private duty assistant by the agency. If the employee steals from a client or mistreats them in anyway, this creates a possibility for lawsuits or damage to the reputation of the organization.

Many companies are making necessary and sometimes extreme changes to adapt to the changes in the economy. Some may work harder against each other creating tension and some decide to merge. The economy also has an effect on the competition between organizations. Competition Competition is extremely interesting when comparing companies with consumer products. The following three companies were compared: Phillips of the Netherlands, Matsushita of Japan, and G. E. of the United States. Each company reacted to the competition differently. Phillips studied each country and tailored the products to the local economy.

Matsushita was highly centralized and was efficient and tending to dominate the television market in the 1970s and 1980s. The 1981 Jack Welsh of G. E. became the chief executive officer. He caused a rapid transformation of the company structure. This in turn caused confusion among company managers and caused G. E. to fall behind the other two organizations. Phillips on the other hand, used a gradual well thought out plan to react to market forces. Matsushita was one of the Japanese companies that fell to the string of the antidumping suit by the U.

S. on Japanese television companies. Lower cost competition from Taiwan and Korea and the rising value of the yea caused reconfiguring of assets, reallocating resources and redefining task in order to meet the changing market requirements (Barlett & Ghosha, 2003). Globalization Globalization seen in organizations with different cultures has responsiveness, flexibility, and effectiveness that have become the foundations of success. In today’s market, organizations everywhere have been transforming themselves to adapt to new requirements.

According to the three references on globalization, the latitude and longitude or exact place on the earth, does not create a significant differences. It became more obvious in the studying the globalization of different countries that they were more similar than regions within a country. People in one region of a country may work on problems and come to the same conclusion as people of another country in a different region. The requirements of change are harsh and must be dealt within a rapid manner or the company will fall behind the competition.

Fiscal Policies Since the 1970s, fiscal stress and change in approaches to the insurance industry have forced a reconsideration of relationships. Members of the board of directors who have sought to control finance and expenditures have extended to the control of state regulators. At the same time, in this organization the role of the state has increased to as that that can be provided best on a competitive basis by organizations. The insurance industry has also lost many responsibilities to the state.

Continued autonomy for the insurance industry will remain, perhaps not in the role of providing services directly. Leadership and discretion nevertheless remained dependent upon improvements in the states willingness to work with the insurance industries. Achieving the best value in services is the industries goal. Restructuring In this insurance organization, the customer is the one who suffers in restructuring of an organization. In an attempt to enhance the controllability of the insurance organization operating successfully, the board of directors tried to impose a program of mergers.

This process of decision-making and implementation turned out to be exhausting for all parties involved. Data collected by interviews revealed that the customer would be beset with many changes. The customer demanded more from the organization. The insurance organization was forced to reconsider its decisions. The organization recognized their need for power as much as possible but still went through with the merger. Summary There are too many organizations in the world to name and all of that are affected somehow or another by internal and external forces.

Some changes are planned and some are unplanned. Sometimes the organizations can weather the storm of negative forces and some cannot. Leaders of organizations should learn to be prepared and use creative new approaches alongside the experiences of the ones who have walked before them to be as successful as possible when dealing with the challenges that exist and are to come. References Barlett, C. A. , Ghoshal, S. (2003). Managing Across Borders: The Transnational Solution. Retrieved May 14, 2009, from http://www. plato. stanfors. edu/entries/globalization.

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