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