He knows that there are external forces that influence changes in his unit. Which of the following is not an external force?
A. Memo from the CEO to cut down on electrical consumption.
B. Demands of the labor sector to increase wages.
C. Low morale of staff in his unit.
D. Exacting regulatory and accreditation standards.
Correct Answer: C. Low morale of staff in his unit.
Low morale of staff is an internal factor that affects only the unit. External forces are those changes that are part of an organization’s general and business environment. All the rest of the options emanate from the top executive or from outside the institution.
Option A: During the 2008 recession, consumers lost their jobs and cut back on their spending. These economic downturns had a major impact on businesses. Banks failed. General Motors and Chrysler filed for bankruptcy. Survival meant adapting to change.
Option B: Government restrictions often force change onto organizations. This can be something as simple as a change in the minimum wage for employees, or as complex as rules and restrictions governing fair competition in business.
Option D: For instance, when the Affordable Health Care Act was put into place, businesses had to change their operations and put steps into place to confirm that all employees had healthcare coverage to comply with the new law.