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Waterman, Peters and Phillips Text - Summary

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UU Introduction to Economics and Business Economics - Summary for Waterman, Peters and Phillips Text 'Structure is not Organisation'

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Summary – Structure is not Organisation – Waterman, Peters and Phillips:
Diagnosing and solving organisational problems  structural reorganisation (structure) and
several other related factors.

A structure is not an organisation  problems of organisation effectiveness and concerns
about the relationship between structure and organisation.

Organisation design  techniques of behavioural sciences were not providing useful
alternatives to structural design.

Structure follows strategy, but strategy rarely seemed to dictate unique structural solutions.

Main problem of Strategy = Execution  Organisation  the problem of organisation
effectiveness threatened to prove circular.

Structure and Matrix (= where something grows or develops) organisation.
Limited capacity of decision makers to process information and reach “rational” decisions.

Role of effective CEO  harness social forces in an organisation to shape and guide values.

There is a rational model which was attacked  new wave of thinking  the idea that
organisations adapt slowly  the practical value and important assumptions of organisations
have ceased  organisational learning is seen as a stream of solutions / decision makers /
opportunities interacting randomly (Herbert Simon).

Organisations frequently hold onto wrong assumptions despite evidence that has changed and
the organisation probably should too  due to competing demands, organisations cannot
handle decision making in a completely rational way  structure cannot be the biggest tool
that can change organisations with most efficiency / to the best effect, but it is still important.

Value system  a foundation for long-term continuity.

The “rational” view is all right but has decided limits  Herbert Simon (1977) describes the
rational system which does not work properly because not all economists or enterprises keep
themselves to the expected system.

Most organisations cannot maximize  no access to complete information  working with
simple decision rules in order to limit information that is really needed.

The goal of a manager / CEO of an enterprise is organisation effectiveness  the subject of
organisation and structure is more complex than models have allowed for.

New framework for organisational thought and improvement  productive organisation
change is not simply a matter of structure and it is not as simple as the interaction between
structure and strategy (though, structure and strategy are still important)  Waterman, Peters
and Phillips claim that effective organisational change is the relationship between a
multiplicity of interconnected factors / elements / variables: structure, strategy, systems, style,
skills, staff, and superordinate goals.
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