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Week2_Post_1 - Formal coercive pressure occurs when the...

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Robin, You crushed this topic, I do not feel there is anything else to explain or add to your post. I will in turn use the guidance provided to post a related topic. Very similar to your discussion of Sodexho , was the 1996 ChevronTexaco settlement regarding a racial discrimination lawsuit against it for $176 million. Being accused of racism the company the company established an external diversity task force charged with monitoring the company’s practices and ensuring fair treatment for minority staff. Chevron has went as far as to mandate staff attend diversity training, managers are attend communication courses. Other companies that have experienced similar lawsuits / settlements include Shoney’s (1992 - $133 M), Denny’s (1994 / $54M) and Coca- Cola (2000 / 192M). It is also interesting to note that the this type of change is classified as environmental pressure for change with a subcategory of mandated pressure. In fact there are two types of mandated pressures formally recognized:
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Unformatted text preview: Formal coercive pressure- occurs when the government mandates new laws or policies that force a company to comply with regulations or other legislative requirements. Informal coercive pressures- occurs when an organization changes on its own in order to get the support of other organizations. Pressures that could cause organizational change • Environmental Pressures – occur where an organization’s resource base decreases as a result of reduced demand for products and sales decrease in market share, and bad investments decision. o Fashion Pressures – imating changes in similar businesses. / not researched / faddish o Mandated Pressures - o Geopolitical pressures o Market decline pressures o Hypercompetion pressurs o Reputation and credibility pressures • Organizational pressures for change o Growth pressures o Intergreation and collaboration pressures o Identity rpesures o New broom pressures o Power and political pressures o...
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