The structure and design of organizations have drastically changed over the last twenty-five years. Organizations develop new goals at the beginning of the year or after the completion of previous goals, and heavily depend on planning to help achieve these goals. Planning is an integral part of organizational success, as upper management receives substantial information on various needs such as risk uncertainty, available resources, employee development, and unforeseen changes in technology (Daft, 2013). Most importantly, successful planning allows management to make effective decisions when unforeseen events arise within the organization. Not participating in planning is equivalent to taking a road trip across the country without a …show more content…
Organizations must not overlook the environmental factors that are outside of the organization, as they can leave a detrimental imprint on the organization and their attempts to achieve various goals. According to the textbook, “Domain defines the organization’s niche and defines those external sectors with which the organization will interact to accomplish its goals” (Daft, 2013, p. 142). Some of the external sectors include human resources, technology, economic conditions, and financial resources (Daft, 2013). Changing the organization’s domain is a feasible strategy for coping with a threatening environment because it allows the organization to remain competitive when the market changes. Organizations are constantly shifting and doing so in a rapid manner, which makes it even more likely for organizations to become unstable if action is not taken when threating environmental factors occur. Although the process may be difficult, organizations should look into changing the domain to keep up with the speed and volatility of the market. Mergers and acquisitions are two plausible options for organizations to partake in to reduce uncertainty (Daft, 2013). An organization can either purchase an organization to further their operations or merge with another organization to form a more powerful and dynamic organization. For example, Sirius and XM Radio were rivals back in the day, but merged together to provide consumers with Sirius and XM Radio for their vehicles.
A private sector is usually composed of organisations which are privately owned and not part of a government; whereas a public sector is composed of organisations that are owned by the government and voluntary sectors are composed of individuals of who seek help in charitable activities. Private sectors include corporations such as partnerships and charities, like the voluntary sectors, and the public sectors include corporations such as federal, provincial, state or municipal governments. An example of a private sector is a retail store or credit unions, and example of a public sector is an educational or
Organizations plan according to the changes in the environment. Planning for organizations 25 years ago was stable. This was due to the fact; organizations during that time frame remain essentially the same. There was no need to be worried about a volatile economy, or market. In the past organizations didn’t have to primarily plan for the uncertainty, as they have to do now. They generally planned for making profits and understanding how to enlarge
For example, within the human resources department, all HR will share information and support the training and development of each employee.
Here is a first hand account of culture, structure and systems not being in harmony. In 1994, Ticketmaster (TM) United States became a major presence in the ticketing industry. As part of their growth strategy, they expanded through the re-acquisition of all licensees. One of the licensees was the Canadian Ticketmaster business. From 1995 to 1997, TM Canada was forced to transform organizationally to become similar to our American parent. The cultural breakdown occurred when transitioning from networked “(high on sociability; low on solidarity)” to mercenary “(low on sociability; high on solidarity)” (Langton & Robbins, 2007, p. #341-342). For example, the lack of accountability
In the past twenty give years there have been many changes in our world which have impacted business organizations, such as the rise of cell phones, the internet, and further globalization. Companies that have not be able to keep pace with the changes in technology, consumer taste, and marketing strategies have been relegated as dinosaurs and have destroyed themselves with this lack of adaptability. The need of an organization to conduct formal planning is widely accepted in today’s complex and rapidly changing environment and is a large factor in determining whether an organization will be successful (Khan & Khalique, 2014; Mehrabani & Mohamad, 2011; Fedrickson & Mitchell, 1984; Leontiades & Tezel, 1980). This has not necessarily been found to be true in historic application, as some studies have found that there is no strong association between corporate performance and whether that organization is a formal or informal planner (Miller & Cardinal, 1994; Leontiades & Tezel, 1980).
For a goal-oriented person, a strategic plan can set direction and serves as a template for consistent decision making that moves the organization toward its envisioned future (Zuckerman, 2013). On the other hand, Zuckerman (2013), poses a different perspective that states that strategic planning may not be strategic after all, becomes as I explained before, it can become a checklist technique that lacks innovative practices. However, the outcome of the strategic planning process relates further to the mission and vision of those who are developing the strategies than in the planning within itself. Therefore, the reality is that strategic planning can be as straightforward and complex as an organization wants it to be. Therefore, if an organization envisions growth, the proposal needs to provoke that, and if a team is only planning to organize itself; then, the plan can be subtler. Therefore, organization can review plans as often as yearly and can last as long as five
“Organizational Management and Leadership” defines planning as “the development of goals, which leads to the development of an overall strategy for achieving those goals. Planning can be performed at all levels of an organization. Supervisors are planning when a weekly work schedule is put together for hourly staff. Top executives are planning when they define the mission statement of the company and determine how the organization can maintain its competitive advantage.”
Sole traders have unlimited liabilities,meaning that in terms of law there is no separation between them,hence the sole trader is also liable for the debts incurred within the business, which makes it very risky to run for a long-term.
Without formal planning, a company might misunderstand its purpose, the focus of the business will be unclear to managers, and resources will wasted. “…the sum total of the organization’s effort might yield suboptimal results or outcomes or yield optimal results that do not directly or indirectly contribute to the organization’s purpose for existence” (Simerson, pg. 2). With this mind, it becomes clear why it is so important for businesses to come up with the right strategic plans, which lead to creating the right tactical plans, which lead to creating the right operational plans, so that the goals that have been set by the strategic plans can be
Manager’s of an organization has to use structure to help the company run efficiently. “The five types of organizational structures are functional, divisional, matrix, team-based, and virtual network” (Draft, 2013, p.316). Functional structure in an organization that is developed by grouping departments by the skills, level of knowledge, activities done daily, and the resource used. “This structure places specific departments from the bottom to the top” (Draft, 2013, p.318). For example, specific departments such as: human resources, accounting, engineering, and manufacturing are placed at the top, while there are mostly seen at the bottom in other organizations. While common functions such as; people, facilities, and other resources are combined together as a single department instead of being divided into multiple departments.
The company is geographically located in most major united states locations. It employs a hierarchal organizational design. One of the contributing factors to its success is the company’s success in providing a dining experience for its customers that excel in choices, price, customer service, and serving size. The company is known world-wide for its delicious cheesecakes with the key factor being the variety.
Managers and organisations plan because it provides them with some direction and reduces uncertainty within the firm. It is also used to set standards for controlling, it is therefore very important within organisations. (Robbins, Bergman, Stagg & Coulter et al, 2006)
Planning is considered to be a primary function of management. All organisations operate in a complex, dynamic and competitive business environment, and therefore, have to plan their actions without which they may not be able to survive.
Organizational theory is the study of how organizations work and how they impact and are impacted by the environment. Organizational theory relates to organizational structure, culture, and design. (Fig. 1.4) Organizational structure is the formal setup of task and authority relationships. Structure controls the coordination of activities and employee motivation to attain goals. Structure must be continually evaluated. Organizational culture, a set of shared values and norms, shapes and controls behavior in an organization. Q: What determines culture?
The structure of an organisation is built in order to achieve the distinct tasks by the labour and coordination between teams to provide goods and services. Organisational structure is selected in order to have a basic work and consistency according to the situation. The most foremost factors in an organisation are skilled labours, mutual understanding among the fellows and direct control to frame a good result. A good structured organisation results in quality production, which can be taken into peoples consider through marketing. When an organisation tracks in a solid structure, management plans and tasks can be easily constructed and executed. In this essay, I have been explained about the concept of Mintzberg five