Development of the organization: Difference between revisions
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Revision as of 20:52, 19 March 2023
| Development of the organization |
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| See also |
Development of the organization includes a set of changes or intervention techniques, ranging from structural and systemic changes at the level of the entire organization to group and individual psychotherapy counselling session, introduced in response to environmental changes in order to improve the efficiency of the organization and well-being of workers. The development of organization is a prerequisite for the survival, stability and improvement.
The development is considered in the literature on the one hand as the elimination of the gap, keeping up with the accepted economic, market and social standards, and on the other as the process of improving the organization in the environment. An example of the second approach is the approach that defines the development of the company, as appropriate, effective and coordinated changes in the company's systems, consisting of the introduction of new features, improvement of existing ones, change the structure of these systems, an increase in the size of the company to ensure its competitive advantage in the long run.
Option of business development
Business development options include:
Structural development
- internal
- external
- mixed (internal + external).
Specialization or diversification
Internal development is a consequence of maintaining:
- The current direction of the company,
- The achieved financial and economic results
- Gained market position and image.
This development is done by increasing the number of units running their own business.
External development
The external development of companies include following options:
- Purchase (buy) of the entire enterprise,
- Purchase of part of a company,
- merging with other companies.
Changes of the organizational structure
Organizational structure and work arrangements may be subject to various modifications. Given the nature of the changes they can be divided into external and internal.
Internal sources of organizational structure changes
- transformation of the hierarchical structure, in particular to make changes to the configuration and deployment of decision-making powers. - development of management institutions,
- modification of status of the director and deputy director of the state enterprise,
- departmentalization focused on creating integrated units. This rearrangement tends to group functionally basic organizational units, such as departments. New units are complex and compact in structure, with a large number of employees,
- divisionalization (creating complex object based structures). Such structures are typical for companies or so-called multi-employer plans. horizontal concerns in which individual establishments specialize in the performance of certain types of final products,
- use of organizational division-oriented economic activity, relative to a particular territory or group of recipients,
- in large organizations - creating a so-called broad management, integrating areas such as strategic management, human resources management, research and development, marketing management, finance,
- introducing controlling methods as a common systems supporting decision making.
External sources of organizational structure changes
- creating a large trade organization,
- change of the form of ownership due to the transformation of state enterprises into joint stock companies
- division of the company into smaller business units as separate legal entities,
- the creation of a multi-unit businesses (e.g. due to diversification of profile or production).
References
- Child, J. (1972). Organizational structure, environment and performance: The role of strategic choice. sociology, 6(1), 1-22.
- Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
- Payne, R., & Pugh, D. S. (1976). Organizational structure and climate. Handbook of industrial and organizational psychology, 1125, 1173.
- Pearce, J. A., Robinson, R. B., & Subramanian, R. (2000). Strategic management: Formulation, implementation, and control. Columbus, OH: Irwin/McGraw-Hill.
- 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.
- Pugh, D. S., & Hickson, D. J. (1976). Organizational structure in its context. London: Saxon House.
- Quinn, R. E., & Cameron, K. (1983). Organizational life cycles and shifting criteria of effectiveness: Some preliminary evidence. Management science, 29(1), 33-51.
- 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.
Author: Krzysztof Wozniak
