Elements For Successful Change

Organizational change is considered the adoption of a new idea or behaviour by an organization.

Organizational innovation , in contrast, is the adoption of an idea or behavior that is new to the organization's industry , market or general environment.

Geographic Organizational Structure

Geographic Organizational Structure

Organizational structure defines the hierarchy in which an organization will operate. There are many defined types of organizational structure, but some organizations may create their own, or use a combination of several structures to efficiently run business operations. Geographic organizational structure is used for organizations that have offices or business units in different geographic locations.

Four Types of Conflict in Organizations

Four Types of Conflict in Organizations

 Types of conflict that can occur in any organization include unclear definitions of role responsibility, conflict of interest, lack of resources and interpersonal relationships within the workplace.

Organizational Culture

Porter’s Five Forces Model of Competition

Michael Porter (Harvard Business School Management Researcher) designed various vitalframeworks for developing an organization’sstrategy. One of the most renowned amongmanagers making strategic decisions is the fivecompetitive forces model that determines industrystructure. According to Porter, the nature of competition in any industry is personified in the following five forces:

i. Threat of new potential entrants

ii. Threat of substitute product/services

iii. Bargaining power of suppliers

iiii. Bargaining power of buyers

v. Rivalry among current competitors

FIGURE: Porter’s Five Forces model

The five forces mentioned above are verysignificant from point of view of strategyformulation. The potential of these forces differsfrom industry to industry. These forces jointlydetermine the profitability of industry because theyshape the prices which can be charged, the costswhich can be borne, and the investment requiredto compete in the industry. Before making strategicdecisions, the managers should use the five forcesframework to determine the competitive structureof industry.

Let’s discuss the five factors of Porter’s model in detail:

1. Risk of entry by potentialcompetitors:Potential competitors refer to the firms which are not currently competing in the industry but have the potential to do so if givena choice. Entry of new players increases the industry capacity, begins a competition for market share and lowers the current costs. The threat of entry by potential competitors is partially a function of extent of barriers to entry. The various barriers to entry are-

• Economies of scale

• Brand loyalty

• Government Regulation

• Customer Switching Costs

• Absolute Cost Advantage

• Ease in distribution

• Strong Capital base

2. Rivalry among current competitors: Rivalryrefers to the competitive struggle for market share between firms in an industry. Extreme 

ORGANIZATIONAL OPERATING GOALS

ORGANIZATIONAL OPERATING GOALS

There are many advantages to establishing organizational goals: 

They guide employee efforts, justify a company's activities and existence, define performance standards, provide constraints for pursuing unnecessary goals and function as behavioral incentives. 

There are two main types of organizational goals: official and operative. Official goals detail a company's aims as described in their public statements, such as the corporate charter and annual reports. They help to build the organization's public image and reputation.

Approaches to Mesuring Organizational Effectiveness

Approaches to Measuring Organizational Effectiveness

Four Approaches to Organizational Effectiveness :

          

1. Goal Approach:

The Goal Approach is also called rational-goal orgoal-attainment approach, it has its origins in the mechanistic view of the organization. This approach assumes that organizations are planned, logical, goal-seeking entities and they are meant toaccomplish one or more predetermined goals. Goalapproach is worried with the output side andwhether or not the organization attains its goals withrespect to preferred levels of output. It seeseffectiveness with respect to its internalorganisational objectives and performance. Typicalgoal-attainment factors include profit and efficiency maximization.

2. System Resource Approach:

This approach to Organizational Effectiveness was developed in response to the goalapproach. The System Resource Approach sees an organization as an open system. The organization obtains inputs, participates in transformation processes, and generates outputs. This approach emphasizes inputs over output. It sees mostorganizations as entities which function in order tosurvive,at the same time rivaling for scarce andvalued       resources. It assumes that the organizationconsists of interrelated subsystems. If any sub-system functions inefficiently, it is going to influence the performance of the whole system.

3. Internal-Process Approach

This approach has been developed in response to a fixed output view of the goal approach. It looks at the internal activities. Organizational effectivenessis assessed as internal organizational health andeffectiveness.
According to Internal-Process approach effectiveness is the capability to get betterat internal efficiency, coordination, commitment andstaff satisfaction. This approach assesses effort as opposed to the attained effect.