The impact of management changes in the legal, socio-economic and political environment is able to cause many craters that can create a big transformation in any business. This is mainly due to the fact that political and legal environments led to the rise of the corporate personhood doctrine that gave rise to the corporate world that exists today. In many ways, political-legal environments standardize markets today. Additionally, the market standardization has profound impact on the management of companies.
An individual does not need to look further than auto makers and the electric car initiative that took place in California, to realize the impact of management changes in a political-legal as well as socio-economic environments. This is due to the fact that due to some reasons, a number of auto manufacturers in the U.S. embarked on developing electric cars which they leased to their clients.
Afterwards, the state of California decided to mandate the auto makers that for them to do business in the State, they would have to devise a new technology that would decrease carbon dioxide emission. This was in expectation of an increase in a number of electric cars being bought. However, it was not to be the case, eventually leading to the death of the electric car program. This came as a result of the impact of a political-legal environment.
Changes in the aspects of the management of an organization can greatly affect the success of an organization. Among the areas that are likely to play a key role in the management of an organization included aspects like power, objectivity, politics, business intentions, personal agendas, as well as the goals of an organization.
Any company worth its salt must strive to make objective decisions and ensure its intentions remain in line with the company’s goals. In essence, an organization must not allow personal agendas to obstruct the business decisions. Business decisions must always make sound ethical decisions. Actually, organizational politics are likely to have an unfavorable effect on the integrity, devotion and dependence of the workforce.
Due to the fact that management changes threaten the status quo, it intrinsically implies political and socio-economic as well as legal activity. Internal change agents typically are individuals in the leadership positions in an organization who may be negatively affected in case of change. Politically, the impetus for change is likely to come from external change agents. This is because long-time career executives are likely to be sources of resistance to any changes.