The progress of the organization refers to changes in the management structure of the company, production processes and administrative work, behaviour of workers and adaptation processes, information resources, material factors of production, etc. Each type of resources, structures, processes or factors can be influenced by organizational change and development.
Organizational transformations caused by progress
Following transformations are observed:
- Modifying or creating new business goals (innovation)
- Improvement of the organizational structure,
- The division of labour and specialization,
- Optimization of selection of the factors of production,
- Coordination of the company processes,
- Preparation of the conditions for economic cooperation,
- Adaptation to the rules of the competitive market
- Concentration of economic activities.
Organizational development and strategy
The organizational changes are subject to the company's management strategy. Strategies represent a variety of organizational measures, which may take the form of improvements to the existing situation (i.e., created from the ground up new and original solutions).
Specific directions of improvement of the organization include:
- Organizational development - OD
- Management development
The essence of the Organizational Development approach is to study and diagnose of organization and operation of enterprises (institutions) and the use of so-called. interventions designed to alter attitudes and skills of employees.. The main emphasis in OD is located in shaping human behaviour, and its objectives are: development of such methods of influencing people so that they can easily adapt to changes in business tasks, as well as to changes in the environment,
- assist management in human resource management,
- improvement of teamwork, based on mutual trust of employees, cooperation and responsibility, 4) improvement of inter group communication.
Management development in organizational progress
Management development is an approach whose main goals are aimed at training planning and career of employees at management position, training and rotation in various positions in a hierarchical structure, specializing in the management roles of the different areas of the company. An important tool in this approach are periodic reviews and rankings of managers in a given speciality. They are aimed at assessing the effectiveness of management due to the economic performance gain by the company (divisions, departments, units), and also may be used when choosing the path of promotion for managers.
- Burns, T. E., & Stalker, G. M. (1961). The management of innovation. University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship.
- Teece, D. J. (1992). Competition, cooperation, and innovation: Organizational arrangements for regimes of rapid technological progress. Journal of Economic Behavior & Organization, 18(1), 1-25.
- Pettigrew, A. M., Woodman, R. W., & Cameron, K. S. (2001). Studying organizational change and development: Challenges for future research. Academy of management journal, 44(4), 697-713.
- Quinn, R. E., & Cameron, K. (1983). Organizational life cycles and shifting criteria of effectiveness: Some preliminary evidence. Management science, 29(1), 33-51.
Author: Krzysztof Wozniak