Advantages And Disadvantage Of The Change Commerce Essay

This study shows how external sectors and environments influenced the alteration of my administration. I am presently working in a group of colleges offering finance & A ; accounting, concern, information engineering, technology and professional classs for both Malaysian and international pupils. It has 6,000 pupils analyzing on its campus. Introducing alteration in my administration bing system and procedure is a hard occupation. Pull offing alteration is even more hard. No affair how good is the alteration, the opposition to alter from employee still exists. Therefore the successful of implementing a alteration depends on how good the direction and employee understand the demand for alteration and do usage of good alterations and intervene if a alteration seems damaging.

Sectors and elements of external environment which I consider to hold had the most influence on the alteration within my administration are as follows:

A PEST analysis ( Gerry Johnson and Kevan Scholes 2002 ) mentioning to the political-legal, economic, technological and socio-cultural factors that influence on the alteration within administration.

Social Factors

The first moral force in PEST ‘s analysis is the societal and cultural environment. In this subdivision of rating, concern and organisational leaders are concerned with things like demographics, faith, life styles, instruction and age distribution of population.

It is of import for pedagogue to understand their territory demographics which is concerned with statistical informations of pupil population. Student population can be increased dramatically through technological progresss which pupil can analyze the plan online through cyberspace. Student population can besides be increased due to increase in mobilisation of which pupil move out from place country to town country. Increasing of demand for happening support beginnings for those pupils who came from low income household besides is another of import demographic to be considered as a alteration in the educational sector.

Another alteration in pupil demographics is the increasing of pupil from abroad analyzing in Malaysia universities or colleges. As a consequence, the figure of international pupil in my college has increased by 20 % . It is predicted that the addition will go on within the following few old ages.

Technological Factors

Since 1990s, information engineering has played an of import function in the educational sector. The popularity of distance acquisition has given people opportunity to analyze for making or new calling in their trim clip. More and more people can now entree calling preparation and even degree classs online. Most universities now require lectors to put their instruction stuffs online so that pupils can entree them outside the regular talks and tutorials categories.

Due to the progresss in Internet, more and more traditional schools or colleges expanded their online classs in the new universe of practical acquisition. Universities that can non run into the demands of today ‘s society and technologically will rapidly happen themselves left behind and enduring from decreased registration, and accordingly, federal and province support will besides be decreased.

Economic Factors

Economic factors that affect concerns are income, rising prices, recession, involvement rate and exchange rate. Because of the economic downswing, houses and companies try to scale down the operation and cut costs. Government has come out with new economic policy to get the better of the crisis but sometimes this policy is non productive.

Peoples excessively, cut costs on all outgo. Many become unemployed which force them to pass much lesser. All these affected the concern of an educational sector.

Political Factors

Another factor that influences the alteration within administration is the authorities policy on scholarship and National Higher Education Fund Corporation ( PTPTN ) . With the proclamation of Malaysia Budget 2013, refund of full loan by pupil within a twelvemonth upon this proclamation effectual from 1 October 2012 until 30 September 2013, a price reduction of 20 % will be given on their loan.

For those with consistent refund of PTPTN loan in conformity to their refund agenda, a 10 % price reduction per annum on their refund will be given effectual from 1 October 2012. As a consequence, registration in my colleges has increased dramatically. The National Higher Education Fund Corporation ( PTPTN ) has allocated RM5.8 billion for loans to pupils prosecuting their surveies locally and abroad this twelvemonth. It was an addition of about RM2 billion from over RM4 billion disbursed to 210,000 pupils last twelvemonth. This figure will go on to lift yearly as PTPTN is one of the chief financer for pupils in the state, although there are other authorities and province authorities bureaus besides supplying such loans. PTPTN had given out RM24 billion to 1.3 million pupils in the state since its constitution in 1997.

Competition Factors

One of an every bit of import portion of external appraisal is to place rivals and to determine their strengths, failings, chances, menaces, aims and schemes. Failings of rivals can go 0pportunities, while major competitory strengths can go menaces. The more competitory information is collected, the more it is advantageous for a company as it possesses a good footing for schemes.


As seen above, educational sectors are non immune to switch to external factors such as those explored through the analysis of Johnson and Scholes ; viz. , political, economic, technological and socio-cultural. As such, university executives and their boards must actively supervise what is traveling on around them in order to plan relevant schemes from their several establishments. Merely by being actively cognizant of present and future tendencies in the external environment and reacting in a proactive mode will be able to offer plans that are applicable to the demands of their constituency.

The advantages and disadvantages of the alteration are as follows:

Change in an organisation is inevitable in order to keep its endurance and success. Change can be created either internally or externally. Depending on the beginning of alteration, there are different advantages and disadvantages associated with the alteration.

Advantages of alteration

Change allows companies to vie better with their rivals and develop new accomplishments or merchandises which can convey high net income. With execution of a alteration direction methodological analysis, it allows alteration direction squads or directors to cover with any proposed new way by supplying equal preparation and guidelines.

Change direction besides helps persons recognize why the alteration is needed so that they will accept it and travel frontward. Change can be good for employee since it will convey them the chance to larn something new and gain new accomplishments ( Colin Carnall, 2007 ) .

Change besides creates chance for growing, merely for those who recognize it and prehend it. Without alteration, concerns would probably lose their competitory border and neglect to run into the demands of what most required by loyal clients.

With the unfastened communicating and treatments that change direction methodological analysis promotes, persons ( employees, stakeholders and clients ) will hold a greater opportunity in the result since they have helped in the execution of the program. People by and large do non defy to things which they have involved.

Change reduces the position quo outlook, and can ease growing in a positive manner. One job we face today is that people get used to work within their ain small comfort zone and go comfy with a position quo outlook. . Peoples used to work in the same manner and ever thought that job can merely be solved by using same patterns.

Change can make hazard direction and eventuality systems to safe-guard successful perpendicular motion, and sequence. Risk direction is an organized method of placing and mensurating hazard and so developing, choosing, implementing and pull offing options for turn toing.

Change can besides advance flexibleness. Flexibility is really of import for a concern because alterations must be made on occasion from programs to schemes. Bing able to alter consequently and ever holding the option to make so will do your concern more flexible. Business is ever unsure, so flexibleness is needed to suit it.

Appropriate alteration can react to negative internal and external drive forces. Situations or events that affect concerns in either a positive or negative manner are called “ drive forces ” . There are two impulsive forces ; internal drive forces, and external drive forces. Internal drive forces are state of affairss or events that occur inside the concern, which are by and large under the control of the company. Examples of internal drive forces are organisation of machinery and equipment, technological capacity, organisational civilization, direction systems, etc. External drive forces are state of affairss or events that occur outside of the company and are normally beyond the control of the company. Examples of external drive forces are the industry itself, the economic system, demographics, competition, political intervention, etc.

Change gives the chance to develop solid strategic planning and tactical manoeuvres. Strategic planning determines where an administration is traveling over the following twelvemonth or more. What are we seeking to carry through? Change helps to better the efficiencies of an organisation, to concentrate its resources on overall ends.

Change in concern is good, but if alteration is non managed good, it will destruct the administration. Directors are frequently drawn to alter by conceive ofing the possibilities of result and the positive impact it can hold on their organisation without recognizing that the alteration might non be suited to their administration.

Disadvantages of alteration

Change might non be to come on. Many companies emphasize a civilization of uninterrupted betterment. Mistaking alteration for advancement is similar to the common job of misidentifying activity for productiveness. Every organisation can be improved, no affair how good it is executing, but a director should ever inquire the inquiry, “ How is this proposed alteration traveling to better my organisation ‘s ability to accomplish our cardinal ends? ”

Cost-to-Benefit Ratio. Change is ne’er free. Every alteration besides has chance cost ; passing your equipment budget on new computing machines which means you have to wait to upgrade the computing machine systems and there are intangible costs such as morale and client satisfaction during the adjustment period. Determine whether the cost of a alteration is outweighed by the benefit that alteration will make.

Internal Resistance. Generally, people resist alteration is deficiency of cognition about alterations and fright of the unknown. You can anticipate some degree of opposition to any alteration, no affair how little or how much benefit it might give. The cardinal tools for pull offing this job are complete, honest, and timely communicating with your work squad, clear communicating of the value of the alteration, and forbearance with your squad as they go through an inevitable accommodation stage.

Choosing the Incorrect Solution. Organizations will originate alteration when they have job that need to be solved. But it is unsafe to presume the root cause of job without look intoing it and implement solution prematurely. This attack incurs extra cost of alteration without bring forthing the intended benefit, plus it can make jobs in countries that were working decently.

A bad alteration direction program can besides impact an organisation negatively. Change direction is merely to pull off alteration and without a program to cover with every measure of the alteration ( before, during and after ) , the scheme could neglect at any point in clip, perchance conveying down the full company.


While alteration can be hazardous, the benefits still far outweighing the possible booby traps. Change allows organisations to go on remaining on top of their industry in an unsure market.

The beginnings of opposition to alter and how did the direction attempt to battle them are as follows:

Beginnings of opposition to alter can be categorized into single and organizational responses.

In each organisation, there are four types of people responded to alterations:

Peoples that initiate alterations.

Peoples that accept alterations.

Peoples that reject alterations

Peoples that apathetic towards alterations.

I have been conducted an analysis of opposition to alter in my administration. There are many factors that caused such a phenomenon to organizational alterations but I merely select those factors that are most relevant to my administration:

Lack of understanding around the vision and demand for alteration. Analysis indicated that the primary ground for employee opposition was that employees did non understand the aim of the peculiar alteration undertaking. Employees did non clearly understand why the alteration was needed. Employees did non hold reply from Management for inquiries, “ what should I make? “ How will the alteration impact my day-to-day work? ” “ How will I profit from the alteration? “ .

Comfort with position quo and fright of unknown. The current procedures and systems seemed all right to the employees. They felt comfy with what they are making now. They were opposed to the alteration because it forced them out of their comfort zone. The comfort zone conditions them to follow known way, and fear alteration.

Corporate history and civilization. Organizational civilization grows over clip. Employees are comfy with the current organisational civilization and current public presentation. Employees were desensitized to alter enterprises, as many had been introduced and failed. The alteration was seen simply as the “ spirit of the director, ” and employees expected it goes off like those in the yesteryear.

Resistance to the new engineerings, demands and procedures introduced by the alteration. Some employees resisted the alteration because they felt that the alteration will increase their occupation burden, adding unwanted occupation, duty and answerability although alteration can better public presentation and procedure measuring of their work. Lastly, some employees opposed the new procedures, systems or engineerings because they felt the alteration would non work out the jobs.

Fear of occupation loss. Employees perceived the concern alteration as a menace to their ain occupation security. Some employees felt that the alteration would extinguish the demand for their occupation, while others were unsure of their ain abilities and accomplishments in the new environment.

The top-four grounds for director opposition to alter were:

Loss of power and control. The primary ground for director opposition to alter was a fright of losing power. Changes frequently eliminated the director power and control. Directors perceived the alterations as violations on their liberty, and some even perceived it as a personal onslaught on the directors.

Overload of current undertakings, force per unit areas of day-to-day activities and limited resources. Directors felt that the alteration was an extra load. The alteration enterprise seemed like excess work and load when the force per unit areas of day-to-day activities were already high. In many undertakings, directors were expected to go on all of their current responsibilities in add-on to the responsibilities of implementing the alteration.

Lack of accomplishments and experience needed to pull off the alteration efficaciously. Directors were fearful of the new demands that would be placed to them by the concern alteration. Several skill countries were identified as countries of concern. First, directors were uncomfortable with their function in pull offing the alteration. Some feared recrimination while others did non hold the experience or tools to efficaciously pull off their employees ‘ opposition. Directors besides were concerned about the demands and duties placed on them by the new concern procedures, systems or engineerings.

Disagreement with the new manner. Some directors disagreed specifically with the alteration. They did non experience that the solution was the best attack to repair the job. Directors who did non play a function or supply input in the design and planning stages tended to defy the solution. Some opposition was due to the solution non being the thought of the director ( “ non invented here ” ) .

There are several actions the direction can take which will cut down the opposition due to uncertainness and insecurity to work. John P. Kotter and Leonard A. Schlesinger ( 2008 ) explained that there are six different attacks for covering with opposition to alter as follows:

Education and communicating. Management must explicate to employees why alteration is needed, place the benefits of alteration to persons and sections, and be willing to reply all inquiries as and when they arise. Subjects sing alteration that must be covered are why, what, when, where, and how. Communication between direction and employees can happen in the signifier of treatment groups, memoranda, formal studies, scheduled meetings, one-on-one meetings, etc.

Participation & A ; Involvement. Every employee must be participated in the alteration program. That engagement begins at the top ; hence the organisation ‘s leading must be particularly accustomed to successful execution. One pessimist on the leading squad can destroy the full procedure.

Facilitation & A ; Support. Directors must pull off the alteration in a manner that employees can get by with it. Directors must responsible to ease, and to assist employees to understand the grounds of alteration. This can be done by supplying particular preparation and guidance.

Negotiation and Agreement. Successful execution of alteration should be acknowledged by manner of compensation and acknowledgment. Directors can battle opposition by offering inducements to employees non to defy alteration or alteration resistances can besides be offered inducements to go forth the company.

Manipulation and Co-optation. Directors can fall back to pull strings information, resources and favours to get the better of opposition. This besides involves choosing defying single to take part in the alteration attempt and giving them desirable function in the alteration procedure.

Explicit and Implicit Coercion. Directors can explicitly and implicitly coerce employees into accepting alteration by doing clear to them that alteration can non be a pick and must be committed. Every individual affected by the alteration plan must be held responsible for implementing his or her single alteration activity. Failing of meeting that duty must be reprimanded. Directors sometimes dismiss or transfer employees who against the alteration.


Overlooking any one of the points above reduces the opportunity of successfully implementing a alteration plan.


Hi there, would you like to get such a paper? How about receiving a customized one? Check it out