ORGANIZATION
4
WEEK 5
CHAPTER 1
No organisation is protected from changes in technologies, conventions,
customer preferences, availability
There is a continuous process of adaption in response to changes beyond the
organisation
CURRENT CHALLENGES
. GLOBALISATION
– Due to rapid advances in technology and communications, the time
it takes to exert influence around the world has been reduced from
years to seconds
– Markets, technologies and organisations are becoming
interconnected
3 – So now more feasible to locate different parts of an
organisation to the most efficient country/place -> with the
lower cost
– Companies need to adapt by finding the structures and processes
2 that can help them take advantage of global interdependence and
minimise the disadvantages
. ETHICS AND SOCIAL RESPONSIBILITY
– Managers face pressure from the government and the public to
hold their organisations and employees to high ethical and
professional standards
. RESPONSIVENESS
– Crucial for businesses to respond quickly and decisively to
environmental changes, organisational crises, or shifting customer
expectations.
– In the past, organisations operated in a relatively stable
environment, so managers could focus on designing structures and
systems that kept the organisation running smoothly and
1
effectively
– There was little need to search for new ways to cope with
increased competition, volatile environment shifts or changing
customer demands
– Today, globalisation and technology advancements have
accelerated the pace at which organisations in all industries
need to create new products and services to stay competitive
– e.g. technological innovations have resulted in rapid emergence
of new markets and the sudden disappearance of others
. INTENSE COMPETITION
,5
– Due to the growing global interdependence, the environment has
become extremely competitive
– Companies are pressured to reduce costs and keep prices low, but
also invest in R&D to stay ahead in the innovation side
. THE DIGITAL WORKPLACE
– Many employees perform their work on computers, connected
electronically to colleagues around the world. This has many
advantages, but organisational leaders need to be up to this
technology and responsible for managing a web of relationships
that reaches beyond the boundaries of the physical organisation,
building flexible e-links between a company and its employees,
suppliers, contract partners and customers
– Decision-making needs less reference to organisational hierarchy
. DIVERSITY
– Due to organisations operating more globally, the workforce and
customers become increasingly diverse
– This brings a variety of challenges, like maintaining a strong
corporate culture while supporting diversity, balancing work and
family concerns and coping with conflicts brought by varying
cultural styles.
ORGANISATIONS:
Social entities that are (1) goal-directed, (2) designed as deliberately
structured and coordinated activity systems and (3) are linked to the external
environment
The KEY ELEMENT of organisations is not a building or a set of policies;
organisations are made up of people and their relationships with one another
An organisation exists when people interact with one another to perform
essential functions that help attain goals
Managers deliberately structure and coordinate organisational resources to
achieve the organisation’s purpose
Types of organisations:
– Large, Multinational corporations
– Small, family-owned businesses
– Non-profit organisations
– Government agencies
ORGANISATIONS EXIST TO:
. Bring together resources to achieve desired goals and outcomes
. Produce goods and services efficiently
. Facilitate innovation
. Use modern manufacturing and innovation technologies
. Adapt to and influence a changing environment
. Create value for owners, customers and employees
, . Accommodate ongoing challenges of diversity, ethics, and the
motivation and coordination of employees
CHAPTER 2
Closed system = this perspective focuses exclusively on the organisation.
– Minimal consideration is given to its dependencies upon, or capacities
to influence the environment
– Conceived as self-contained
Open system = pays attention to the (open) boundary between the organisation
and its context
– Developing a design that effectively manages the exchanges (of raw
materials, people, products etc) across this boundary is the key to
survival and prosperity
– Limitation = it presents an excessively neat picture of how
organisations operate and relate to elements of their environment
– Conceived as consumers and exporters of resources
– Necessary to adapt to change and find the right resources to do that
System thinking = each system is understood to comprise several subsystems
– These subsystems are identified in relation to the specific functions
they are conceived to perform for organisational survival
HENRY MINTZBERG SUGGESTS THAT EVERY ORGANISATION HAS FIVE PARTS
(These may vary in size and importance depending on an organisation’s
particular environment, its technology and other factors)
. Technical core
– Includes diverse support staff who do basic work of the
organisation (production subsystem)
– Where the primary transformation from input to outputs takes
place
. Technical support
– Scans the environment for problems, opportunities and
technological developments -> by technical support employees
like engineers and researchers
– Responsible for creating innovations in the technical core, helping
the organisation change and adapt
. Administrative support
– Responsible for the smooth operation and upkeep of the
organisation, including its physical and human elements (human
resources, cleaning, service, repair of machines -> by HR and
maintenance staff)
. Management - top & middle
– Responsible for directing and coordinating other parts go the
4
WEEK 5
CHAPTER 1
No organisation is protected from changes in technologies, conventions,
customer preferences, availability
There is a continuous process of adaption in response to changes beyond the
organisation
CURRENT CHALLENGES
. GLOBALISATION
– Due to rapid advances in technology and communications, the time
it takes to exert influence around the world has been reduced from
years to seconds
– Markets, technologies and organisations are becoming
interconnected
3 – So now more feasible to locate different parts of an
organisation to the most efficient country/place -> with the
lower cost
– Companies need to adapt by finding the structures and processes
2 that can help them take advantage of global interdependence and
minimise the disadvantages
. ETHICS AND SOCIAL RESPONSIBILITY
– Managers face pressure from the government and the public to
hold their organisations and employees to high ethical and
professional standards
. RESPONSIVENESS
– Crucial for businesses to respond quickly and decisively to
environmental changes, organisational crises, or shifting customer
expectations.
– In the past, organisations operated in a relatively stable
environment, so managers could focus on designing structures and
systems that kept the organisation running smoothly and
1
effectively
– There was little need to search for new ways to cope with
increased competition, volatile environment shifts or changing
customer demands
– Today, globalisation and technology advancements have
accelerated the pace at which organisations in all industries
need to create new products and services to stay competitive
– e.g. technological innovations have resulted in rapid emergence
of new markets and the sudden disappearance of others
. INTENSE COMPETITION
,5
– Due to the growing global interdependence, the environment has
become extremely competitive
– Companies are pressured to reduce costs and keep prices low, but
also invest in R&D to stay ahead in the innovation side
. THE DIGITAL WORKPLACE
– Many employees perform their work on computers, connected
electronically to colleagues around the world. This has many
advantages, but organisational leaders need to be up to this
technology and responsible for managing a web of relationships
that reaches beyond the boundaries of the physical organisation,
building flexible e-links between a company and its employees,
suppliers, contract partners and customers
– Decision-making needs less reference to organisational hierarchy
. DIVERSITY
– Due to organisations operating more globally, the workforce and
customers become increasingly diverse
– This brings a variety of challenges, like maintaining a strong
corporate culture while supporting diversity, balancing work and
family concerns and coping with conflicts brought by varying
cultural styles.
ORGANISATIONS:
Social entities that are (1) goal-directed, (2) designed as deliberately
structured and coordinated activity systems and (3) are linked to the external
environment
The KEY ELEMENT of organisations is not a building or a set of policies;
organisations are made up of people and their relationships with one another
An organisation exists when people interact with one another to perform
essential functions that help attain goals
Managers deliberately structure and coordinate organisational resources to
achieve the organisation’s purpose
Types of organisations:
– Large, Multinational corporations
– Small, family-owned businesses
– Non-profit organisations
– Government agencies
ORGANISATIONS EXIST TO:
. Bring together resources to achieve desired goals and outcomes
. Produce goods and services efficiently
. Facilitate innovation
. Use modern manufacturing and innovation technologies
. Adapt to and influence a changing environment
. Create value for owners, customers and employees
, . Accommodate ongoing challenges of diversity, ethics, and the
motivation and coordination of employees
CHAPTER 2
Closed system = this perspective focuses exclusively on the organisation.
– Minimal consideration is given to its dependencies upon, or capacities
to influence the environment
– Conceived as self-contained
Open system = pays attention to the (open) boundary between the organisation
and its context
– Developing a design that effectively manages the exchanges (of raw
materials, people, products etc) across this boundary is the key to
survival and prosperity
– Limitation = it presents an excessively neat picture of how
organisations operate and relate to elements of their environment
– Conceived as consumers and exporters of resources
– Necessary to adapt to change and find the right resources to do that
System thinking = each system is understood to comprise several subsystems
– These subsystems are identified in relation to the specific functions
they are conceived to perform for organisational survival
HENRY MINTZBERG SUGGESTS THAT EVERY ORGANISATION HAS FIVE PARTS
(These may vary in size and importance depending on an organisation’s
particular environment, its technology and other factors)
. Technical core
– Includes diverse support staff who do basic work of the
organisation (production subsystem)
– Where the primary transformation from input to outputs takes
place
. Technical support
– Scans the environment for problems, opportunities and
technological developments -> by technical support employees
like engineers and researchers
– Responsible for creating innovations in the technical core, helping
the organisation change and adapt
. Administrative support
– Responsible for the smooth operation and upkeep of the
organisation, including its physical and human elements (human
resources, cleaning, service, repair of machines -> by HR and
maintenance staff)
. Management - top & middle
– Responsible for directing and coordinating other parts go the
