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MGT307 Wk 2 Compare-Contrast Team




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Organizaonal Behavior Forces 1
Organizational Behavior Forces
University of Phoenix

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Organizaonal Behavior Forces 2
In current times when economies of the world are facing slump many organizations including US
based organizations are bringing about changes in the ways they operate. Effective cost cutting
improved performance and meeting overall targets for the organizations are the focus.To develop
a competitive edge for the organization is very important in changing times. It can be build
through reducing administrative costs, laying off and achieving the assigned targets ultimately
meeting the customer demands. This paper will discuss all the necessary steps needed to bring
about change.
1. Restructuring
In order to keep economic changes and their consequences in hand organizations have assigned
special focus on organizational restructuring since last two years. Reshuffling employees work
and reorganizing the work hours for employees entail restructuring. Full time employees now
have less working hours; part time employees are released or converted to on call employees in
order to cut down salary expenses and other administrative costs. New recruitment for the
vacancies has been put on hold.
2. Mission statement
Mission statement holds very significant position as it not only gives purpose to its employees,
motivate them to attain more but also come up to the customers anticipation. Mission statement
help define to customers what they can count on, so mission statement should be clear and
properly addressed. Organizations can become successful by establishing doable goals,

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Organizaonal Behavior Forces 3
motivating their employees to achieve them and meet customer demands through constant
development of technology
3. Fiscal Policies
Economic decline of the market has made organizations to curb their spending. One of the major
constituent of cost cutting is through laying off or having temporary or part time employees. As
this will allow companies to cut down cost on wages thus workers in all industries are facing
issues specially the ones in temporary positions.
4. Competition
All the industries and their operating organizations are facing robust competition. In order to
remain ahead of the competition and maintain edge over the rivals companies have to develop
appropriate strategies. However the standard and customer demands should not be compromised.
For instance public education faces competition from private education system.comapnies are
trying to increase their customer base through offering lesser and competitive prices e.g. rental
companies face competition within similar organizations. Off shore companies having lower
labor rates give competition to the employees with higher in country wage rates.
5. Economic changes
Economic recession and overall economic conditions have created an impact over all the
organizations. When less people are employed less will get salaries and government will get
fewer revenues from tax. Organizations are focusing more on full time employees with lesser
work hours to have less cost of wages. Organizations have decreased the work hours below 40

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