Business organisations have evolved over last 25-30 years, as a result various organisational theories have been developed and even modified as the business need changes. Eminent writers like Powell, Daniel Pink and Russell Ackoff have forwarded alternative ways to move businesses forward more profitably and efficiently than the traditional system thinking. In particular, Russell Ackoff stated that many managers find it hard to comprehend and implement system thinking into practice, and in my opinion this can lead to inefficient practices and cause communication delays.
Now business goals (system thinking) are no longer solely decided in the boardroom. In the age of knowledge economy directors and senior managers need to incorporate stakeholders perspectives into their goals and strategy. By doing so organisation will usually meet stakeholder requirements and become more competitive in relation to other competitors.
Advancement in technology and internet has taken the business organisations to a new level and this has many benefits. Firstly, businesses can learn from social networks, wikis, people discuss and demand certain products and services which they will buy. Organisations can supply goods accordingly and save money by refraining from doing their own market research. On the internet people have huge buying power as they collaborate.
Another way an organisation can become more effective in decision making and profitable is to accept that organisational interdependency exist with immediate environment stakeholders; competitors, suppliers and customers. According to Pfeffer and Slancik an organisation needs to analyse its interdependencies in relation to other organisations and its environment.
In conclusion organisations are complex and diverse and they need to value stakeholders interest and power and maintain a healthy relationship. Businesses should be aware that strict control of the internal environment will not alone produce maximum profits, instead they must respond to external and immediate environment conditions such as its organisational interdependencies.
Ayna Miah
Posted in Uncategorized March 15th, 2010 by admin | Comments Off
To understand the success of business organisations it is vital to know how thinkers on organisations played key roles to shape business behaviour.
Adam Smith was a economist who observed the reason that Industrial Revolution was so successful was because it had the power to control and mobilize factors of productions and through division of labour (Book called Wealth of Nations). According to Marx Weber, classical theory, a business needs a organisational structure, he advocated the need for a hierarchy and bureaucratic system.
Under a hierarchy system the line of authority comes from the top to the bottom of an organisation and the span of control is small. The management will control small groups. There are layers of management which slows communication and the flow of information, sometimes it can be costly and inefficient. Management decisions are slow because it needs approval.
Ayna Miah
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Posted in Uncategorized March 10th, 2010 by admin | Comments Off
The BBC1 covered a programme if there is a Conspiracy Theory on Diet (Date 1 March 2010). Diversity and complexity course theme is compared and contrasted.
In the report all major sugar companies in UK including Tate Lyle formed `Sugar Lobby Group`, it influenced powerful stakeholders like government, other organisations in order to promote sugar. Pfeffer and Salancik`s organisational interdependency theory is relevant because the sugar lobby goup negotiated their environment to rally political actions and get legitimacy.
The sugar lobby group better known as Sugar Bureau promoted high sugar level in foods. According to a nutritionist who was interviewed, if sugar is eaten in excess it builds up fat on the belly, it can cause diabetes and obesity.
The sugar Bureau did not comment but emailed to BBC stating that scientific research (quantitative information)shows no link between sugar and obesity.
The Minister for Public Health was interviewed, she stated that supermarkets have a duty to label in a standard format. The Minister further said that “consumer have the buying power (Peer Production) and it is important that they are really careful in what they eat”. This remark reinforces the system thinking theory that organisations need to have a positive relationship with stakeholders.
The Minister was asked if she was aware that a Burger King was opened in a NHS hospital.
She replied NHS has high values to promote good health and there will be no more Burger Kings opening again in hospitals.
My observations is that Department for Public Health is a government agency, very complex and diverse, responsible for public health policies and monitoring VFM (theory and practice) patient charter. It will make mistakes but it must learn from mistakes.
Ayna Miah
Posted in Uncategorized March 9th, 2010 by admin | No comments
The BBC1 covered a programme if there is a Conspiracy Theory on Diet. In light of the diversity and complexity course theme I feel fellow students will benefit if I report it briefly.
In the report all major sugar companies in UK including Tate Lyle formed `Sugar Lobby Group`, it influenced powerful stakeholders like government, other organisations in order to promote sugar. Pfeffer and Salancik`s organisational interdependency theory is relevant because the sugar lobby goup negotiated their environment to rally political actions and get legitimacy.
The sugar lobby group better known as Sugar Bureau promoted high sugar level in foods. According to a nutritionist who was interviewed, if sugar is eaten in excess it builds up fat on the belly, it can cause diabetes and obesity.
The sugar Bureau did not comment but emailed to BBC stating that scientific research (quantitative information)shows no link between sugar and obesity.
The Minister for Public Health was interviewed, she stated that supermarkets have a duty to label in a standard format. The Minister further said that “consumer have the buying power (Peer Production) and it is important that they are really careful in what they eat”. This remark reinforces the system thinking theory that organisations need to have a positive relationship with stakeholders.
The Minister was asked if she was aware that a Burger King was opened in a NHS hospital.
She replied NHS has high values to promote good health and there will be no more Burger Kings opening again in hospitals.
My observations is that Department for Public Health is a government agency, very complex and diverse, responsible for public health policies and monitoring VFM (theory and practice) patient charter. It will make mistakes but it must learn from mistakes.
Ayna Miah
Posted in Uncategorized March 5th, 2010 by admin | No comments