Organizational behavior is described as the study of group or individual dynamics within an organizational environment (Wikipedia, 2004). A company's work environment is created and produced by the groups or the individual people who work within it. Employees often find themselves conforming to their ever changing environment.
The economics of the world has a significant influence on both the modern business and the organizational behavior of that business. For any company to be successful, it is crucial to understand the elements that can affect the economy that supports its business. The economy can be affected by many different kinds of issues or measurements, like the interest rate, inflation rate, and employment rates. The businesses of the twenty first century face the trials of functioning in a global or multinational market. Each business will labor intensely to locate the markets in the world that offer the best services for the least costly prices. These same companies know that worldwide events will affect all businesses.
On the other side of the economy, there are the companies that offer services and products, which struggle to achieve the premium positions in the market. They are willing to transform and change their organization to meet the challenges of the changing marketplace. The organizational changes are often initiated from the top and trickled down through the ranks. The changes can range from the way selections are fulfilled to decisions made. Jobs are often redefined. People employed for these restructuring businesses can find this to be painful, but necessary for their company to succeed (Randolph & Sashkin,2002). Companies that are negatively affected by the economy could show signs of opportunity constraints. This could cause the organizational behavior to change and become less concerned with profits and more focused on surviving or moving on to a more secure location.
Listed below are some of the businesses that have changed from the past goods mentality to the modern times of offered services. They have fundamentally revised their businesses from companies that had a foundation in trading merchandise to businesses that now supply services. These services are offered by companies like AOL, Cross Country Group, AT&T, Cox Services, Clarion Hotels, and many more (Lusch et al., 2004). However, these changes in business now bring competition to the table. This can forcefully affect the economy in any country. Many countries offer cheaper labor and tax breaks by offering outsourcing...