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Dynamic Global Business Environment

Question:

Describe about the Dynamic Global Business Environment.

Answer:

Introduction

The global environment today is highly interconnected and extremely dynamic. Hence competitive pressure faced by firms is high.  Some of the challenges faced by these firms are short lifecycle of products, numerous technological criteria in designing new products, concreting of products or services and leveraging on the advanced technological improvements. Here we will discuss how new organizational designs based on architectural schemes helps firms for their research and designing.

Innovative organizational designs are evolving day by day. The perfect areas for experimentation of such advanced designs are computers, microelectronics and biotechnology. The fun of designing new innovative designs has now become wider and firms have started collaborating with multiple parties for enhancing value creation.

Here in this article we are developing an architectural scheme which is actor oriented in nature. Here we argue how it explains the new organizational forms are being controlled and coordinated. In an actor –oriented firm the effectiveness and efficiency of inter actor interactions enhances by the method an actor value their capabilities, protocols, commons, infrastructure and process. 

By discussing the architectural concept, showing how organizational science has adopted  the architectural scheme, traditional forms of organizing, role of hierarchy, use of control and coordination,  details of actor –oriented architectural scheme, how it helps an organizational design we discuss its usefulness. Here first we introduce actor oriented architectural scheme and show how organizations are using it. Secondly, we focus on multiparty collaborations at a large scale.

The primary argument here is about the boundary conditions or conditions under which such actor oriented scheme can be applied.  Although the general belief is that it is acceptable universally, arguments are made to further confirm this thought.  Emergence of any organizational design employs an actor oriented control in the system where there is a coordination mechanism which gives manifold opportunities for conducting researches. Here 4 kinds of issues in theory are argued upon.

Firstly,  on a large scale the role of values and incentives in a multiparty collaboration environment. Here actors are expected to presence collaborative values. Such values involve a concern for the welfare of partners collaborating and an equal distribution of shares.

Second, is the nature using which an actor oriented environment implement controls. By control is meant the determination of objectives, goals or fulfillment of resources.

Third is the process using which transformations are made from a hierarchical design to an actor-oriented design? There are many firms out there who are still working on a hierarchical basis till now.  Here focus on interdependencies is lowered. Here one suspects that using actor oriented mechanism the operations are flattened. Fourthly, is the factor of value creation in actor oriented designs?

Case study research method has been used by the researcher for doing the findings and analysis in this present research. The following are the methods used:-

  • Data cleaning and organizing
  • Describing the data
  • Testing hypothesis and models

The resources used in this research for various data analysis has been satisfactory and good enough for completing this entire research document. The reference “Organization design” written by M. Nestor is my source and it is good enough for this case study.

Hierarchical Scheme - Basically an architectural scheme is a way any system is arranged. Such a dominant scheme is generally used for describing and explaining traditional designs of organizations in a hierarchy. Such a theoretical work encompasses economics, psychology, administrative theory and computer science (Zlatev, n.d.).

Simple Hierarchy and Divisional Forms - This theory of functional forms originally was developed in the year 1800s by the steel and railroad industrial sector.  Here they display a design for differentiating efficiently and integrating activities which are sequentially linked together and yields great economies for organizations in the field of engineering, manufacturing and marketing.

Matrix Forms – In the theory of matrix forms, there are units facing the market which draws up numerous upstream capabilities in the business operations for an existing product and for new products and services for brand new customers.  It is that of a hybrid structure where there are two or more distinct hierarchies.

Network of Multiple Firms - Generally firms from various industries like to focus on their core activities.  This firm outsources non core activities to external individuals or companies. Hence multi network firms are involved in the integration of such designs (Walter, 2005).

The basic theories and elements of an organizational design is construction of their strategies first. Once strategies are fixed efforts are made to achieve those strategic objectives and goals. It is needed one makes a series of decisions based on various elements of an organizational design. For reaching such organizational goals they sometimes go beyond the abilities of individuals. Hence it becomes necessary how such tasks or responsibilities are needed to be organized. These tasks or responsibilities can be divided for making it important for making any deals (Miranda, 2010). An organization is where a collected group of people works together under a defined framework for achieving a predefined goal or objective.  The results of such work are in terms of finance, material and human resources. For such strategic organizational designs there is two more kind of theories prevalent in the industry:-

Classical/Scientific theory – One of the oldest theories found on earth this focus on production and efficiency of designs. This has evolved itself into classical organizational theory along with the principles of design, collaboration, coordination, command, control and specialization. Here there are vertical levels of design integrations where organizational design is considered to be bureaucracy (Anonymous, n.d.).

Classical theory – Such a theory is divided in a standardized form where the hierarchy is in authority or responsibility in a command or collaborative endeavor in between internal or external parties. The entire work of the organization under this theory revolves around departmentalization and the control is in command of multi parties (Anonymous, n.d.).

Yes, the conclusion and findings of this research can be used by managers. Managers can make use of such new technology as an augmented approach to do new things.  For an example transistors which are used can be utilized for improving performance of tubes. Electricity can be used to improve gas lighting operations. It is to be realized by managers that some of the most powerful ways to apply actor oriented organizational designs is not to take into account augmentations of the hierarchical organization. In place of that they can redesign their design and enhance their ability for internal and external collaborations.

Summary

The entire research was highly insightful. It gave the knowledge how multiparty collaborations can lead to effective managerial operations in organizational design schemes. Now managers can focus better on structures, processes and multiparty collaborations because it is clearly showcased how capable such collaborations are for resource utilization and reaping returns on value. For the society and for the economy as a whole there can be nothing better than this.

References

Anonymous. (n.d.). Classical Theories of Development: A Comparative Analysis. Principles and Concepts. Retrieved from: http://www.aw-bc.com/info/todaro_smith/Chapter4.pdf

Nestor., M. (2011). Organization design, Retrieved from:  http://www.saylor.org/site/wp-content/uploads/2013/02/BUS209-6.2.1-OrganizationalDesign.pdf

Walter, J. (2005). Collaboration within and between firms: Network structures, decision processes, and their impact on alliance performance. The University of St. Gallen, Graduate School of Business.

Zlatev, J. (n.d.). A Hierarchy of Meaning Systems Based on Value. Department of Linguistics and Phonetics: Lund University.

 

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