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Adapting to New Organization Realities: Challenges and Opportunities

Explore the shift from conventional to new organizational forms in response to globalization, new technologies, knowledge-based society, hypercompetition, and social accountability. Understand the implications and strategies for modern organizations.

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Adapting to New Organization Realities: Challenges and Opportunities

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  1. Chapter 2New Conditions, New Organization

  2. Scope of Chapter 2 • The retreat from conventional forms of organization • Contrasts between conventional and new organizational forms • New conditions for organization • Implications for organization

  3. Retreat from Conventional Forms of Organization • Bureaucracy has been the most prominent form of conventional organization with an over-2000 year history • Bureaucracy has, however, been increasingly criticized since the 1950s • Many practitioners and analysts believe conventional organizational forms are insufficiently adaptable to meet present requirements

  4. Contrasts between Conventional and New Organizational Forms See Table 2.3, Chapter 2

  5. New Conditions for Organization • Globalization • New technologies • Knowledge-based society • Hypercompetition • Social accountability

  6. Globalization • Increases complexity in the environment of firms • Need both to control and to adapt to local situations • Hence requirement to maintain standardization and promote flexibilty within the same global organization

  7. New technologies • Open up new organizational possibilities • Internally, enable simplification of management structures and better integration within them • Externally, ease the management of information flows and transactions across organizational boundaries

  8. Knowledge-based society • Increased significance of innovation-based differentiation strategy within the knowledge-based economy • Intensive use of inter-disciplinary teams to foster innovation and new projects • Devolution of initiative to knowledge workers so as to benefit from their expertise and enhance their motivation

  9. Hypercompetition • Places a premium on the ability of firms to adjust to new competitive opportunities and threats • Need for ‘the flexible firm’, whose organization promotes rapid and appropriate adjustment • Mode of organizing should maximize organizational learning aimed at adjusting to hypercompetition

  10. Social accountability • Pressures for better corporate governance, corporate social responsibility, and fulfilling work environment • Need for normative rather than coercive forms of control that combine accountability with scope for personal intitiative and development • Inter-firm networks have to be organized so as to permit leading firms to ensure socially responsible practices by network sub-contractors and partners

  11. Summary of Implications of New Conditions for Organization See Table 2.2, Chapter 2

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