increased pace of change that many of us have encountered over the past ten years has been dramatic. During the late 1980s, many of us were grappling with issues that we had never encountered. The accelerated use of leverages as means of increasing shareholder wealth left the balance sheet of some of America’s finest organizations in disarray. Many of largest customers, that for years represented minimal risk and required a minimum amount of time to manage, consumed most of our energy. By the end of 1993, many of these organizations had either resolved their financial troubles in bankruptcy court or no longer existed.

Organization need to settle down external environment and professional live to return a normal pace, many organizations initiated efforts to improve operating efficiency to become more competitive in the world marketplace. Inside forces include strategic and human resource change which drive organizations to adapt and evolve.

Forces of Change:

There are a number of forces both internal and external which affect organizational functioning. Any change of these factors necessitates change in an organization. The more important factors are as follows:

A. External factors:

External environment affects the organizations both directly and indirectly. The organizations do not have control over the variable in such environment. Accordingly, the organization cannot change the environment but must change themselves to align with the environment such as: Technology, Marketing Conditions and Political forces. Organizations is also affected by the world politics. Some of the changes in the world politics which have affected business all over the world are, the reunification of Germany, the break of Soviet Union and Iraq’s invasion of Kuwait. SWOT analysis identifies internal and external forces, strengths, weaknesses, opportunities and threats.

B. Internal factors:

Internal forces are too many and it is very difficult to list them comprehensively.

• Nature of Workforce: The 1990’s has been described as a decade where organizations will have to learn to manage diversity. The new generation of workers are better educational qualifications, they place great emphasis on human values and question authority of managers. The employee turnover also became very high which put strain on the management. The work force is changing with rapid increase in the percentage of wome