Discuss about the Management and Organization in Global Environment.
Managers either managing the large corporation or small business enterprise are faced with challenges as well as opportunities in the management of the global environment (Luís, et al., 2013, p. 512). Therefore, it makes it primary and vital for any manager to have a comprehensive and extensive understanding of the global environment. Some of the well-performing companies such as Unilever PLC have been boosted by the robust understanding of the opportunities and challenges in the international market. (Rechkemmer & Falkenhayn, 2009, p. 7), noted that when the organizations are entering the international environment, they should adopt a range of approaches depending on the nature of the business and time the company is anticipating to operate. Alternatively, (Luís, et al., 2013, p. 515) advocated that it is also crucial to determining the global entry techniques based whether the organization is a new player or it has been in existence in the international market for a while.
For effective and successful entry, argued that the managers need elaborative training to able to conquer the constant and intense obstacles that sometimes hamper the operations of the organization. Bearing in mind that the international market is characterized by variety diverse cultures a lot macro and micro environmental factors, it is critical for the international managers to time to time monitor technological, economic, sociocultural, legal and political environments (Luís, et al., 2013, p. 516). This report seeks to address the issue of management and organization in the both in the local and global environment using the aspects of the organization design as well as organization structure.
Under the aspect of the organization design, this report explores the relationship between the structure and the strategy. This is because of the conflicting studies whereby some hold that structure follows the strategy whereas others argue that it is the strategy that follows the structures. Some of the scholars such as (Morieux, 2011) argued that the organization strategy comes before the structure. In support of his argument, Morieux advocated that strategy entails the behavior of the people and are the actions of the people that determines the structure of the organization. Again, Morieux argued that strategy translates into systems and process which in turn forms the organizational structure.
However, other studies hold different views from that of the Morieux. (Kim & Mauborgne, 2009), advocated that the organizational structure is primary because it sets out the various segments of the organization. A strategy without a structure will be unrealizable. Despite, the conflicting views of the relationship between the organizational structure and strategy, it will be crucial to note that both aspects must work together to facilitate the organization achieve its desired goals. However, many studies support the notion that the structure follows the strategy. Kim & Mauborgne (2009) Argue that the company organization structure becomes effective when there is a strategy in place. Therefore, the Yves argument seems to be valid even though it is not always the case.
Organization structure is critical as it offers the direction of the organization. Given the dynamics, in the field of the business, the organizational structure has been going through evolution. This process has resulted in the creation of holacracy a new way of distributing authority. Holacracy is based on the social technology in the governance and operation of the organization (HolacracyOne, LLC, 2016, p. 3). It involves authentically distributing authority in the flexible and self-organized manner in the rules and processes of the organizational structure as well as in the business itself. When compared to bureaucracy, holacracy is more situational and has contingency aspects due to its flexibility nature. Again, it is cheap and allows the employees to become initiative and creative while at the workplace. Holacracy aspects have proved to be effective in the case of the Zappos Company.
Zappos, a visionary company, has replaced its top-down management with the holacracy system. Holacracy includes the traits of collaboration and hierarchy and thus it has proved to be very effective in the case of the Zappos organizational structure. According to (HolacracyOne, LLC, 2016, p. 5) once the Zappos Company adopted the Hol acracy technique the new Chief Executive Officer was hired to implement the change. With the new CEO and holacracy in place, the company restructuring process took place very quickly and effectively. This change was accompanied by the change of the employees’ roles as well as improving their performance.
Holacracy innovative culture is somehow related to the agile organizational culture (Strode, et al., 2009, p. 1). Innovative culture drives employees into a commitment to be more successful than yesterday as well as than their fellow workmates. As the results, the organization productivity, reputation, profitability, and discipline is enhanced. Again, the innovative culture puts emphasis on making a decision based on the purpose, organizational culture as well as the available data (Strode, et al., 2009, p. 3). Therefore, holacracy innovative culture is well as good as agile organizational culture and hence an effective aspect in the company organizational structure.
Organization design and structure are crucial aspects for the success of any organization. A robust organization design should have both the strategy and the structure of the primary elements. However, the strategy should be given priority to pave the way for the structure. The two aspect must be integrated together if they are to help the company achieve its goals. On another hand, organizational structure is very basic for the success of the organization both locally and globally. Therefore, the management should consider adopting the organizational structure which is flexible to suit to the frequent changes in the business environment.
HolacracyOne, LLC, 2016. Holacracy: Discover A Better Way of Working, Spring City: HolacracyOne, LLC.
Kim, W. C. & Mauborgne, R., 2009. Harvard Business Review: How Strategy Shapes Structure. [Online]
Available at: https://hbr.org/2009/09/how-strategy-shapes-structure
[Accessed 29 August 2016].
Luís, A. B. et al., 2013. Management of Environmental Quality. : An International Journal Emerald Article: Considerations on the worldwide use of bioethanol as a contribution to sustainability, 14(4), pp. 509-519.
Morieux, Y., 2011. Organization Design: BCG's Yves Morieux on organization and competitive advantage. [Online]
Available at: https://www.youtube.com/watch?v=jm7d1dzOKmw
[Accessed 29 August 2016].
Rechkemmer , A. & Falkenhayn, . L. . v., 2009. The human dimensions of global environmental change: Ecosystem services, resilience, and governance. THE European Physical Journal Conferences, Volume 1, p. 3–17 .
Strode, D. E., Huff, S. L. & Tretiakov, A., 2009. The Impact of Organizational Culture on Agile Method Use. Proceedings of the 42nd Hawaii International Conference on System Sciences, pp. 1-9.