“Turbulence and complexity have replaced stability & predictability as defining traits for organisations”.
Discuss in light of specific challenges organizations face today? What changes to organizational design has this resulted in? Why is a study of organizational theory important to organizations and their managers”?
Specific challenges organizations face today?
• Coping with a rapid change = most common problem facing managers and organizations.
• Specific challenges:
o dealing with Globalization
o maintaining high standards of ethics & social responsibility
o responding rapidly to environmental changes & customer needs- speed of responsiveness
o managing Digital Workforce
o supporting Diversity
• Advances in technology and communication = decision-making a lot quicker. Markets, technologies, organizations have become increasingly interconnected.
• Trend = outsourcing functions (e.g. manufacturing plants) of business to companies in other countries or partner with foreign companies to gain global advantage.
• Growing interdependence = environment for companies becoming extremely complex & competitive.
• Organizations must learn to cross lines of time, culture and geography.
• Right structures & processes = advantage of global interdependence & minimize disadvantages.
ETHICS AND SOCIAL RESPONSIBILITY
• Became increasingly important especially after Enron collapse, where thousands of employees and investors lost billions $, whilst executives profited.
• Companies face increasing pressure from Govt and public to hold organizations and employees to high ethical, professional and environmental standards. E.g. adopting Triple Bottom Line reporting to show company’s activity relating to social and environmental areas – stakeholder focus rather on shareholder.
SPEED OF RESPONSIVENESS
• Organizations must respond...