PLACING ORGANISATIONS IN CONTEXT

When developing business plans and performance,factors that might influence decisions and actions needs to be considered.These factors are the micro and macro factors.Micro factors which are the things within the industry or business, includes finance,people,labour.The ability to cope with these factors will determine the level of influence affecting prices,costs and the ability to meet the needs of the customers.The five recognised forces that affect these aspect of business are-Direct competition,Bargaining power of suppliers,Bargaining power of customers,Threat of new entrants and Threat of subtitute products.These five forces helps us analyse the micro environment.

Macro factor are things that affect all business,they could be the government,taxes,economy or even currency or exchange rates.The government plays an important role in the macro factor affecting businesses.Privatisation which is the transfer of ownership of property or businesses from a public sector to a privately owned entity.It involves handing over control of public funds functions to private companies or organisations.

This act by the government could be an advantage as it promotes the development of private organisations by leveling the play field and ending subsidised competition from within.

ORGANISATIONAL DESIGN AND STRUCTURE

The structure of an organisation is key to its success,however,this depends on the size of the organisation.Structure makes possible the application of the process of management. According to Drucker,it is the correct design of structure that is of most significance in determining organisational performance.Structure in an organisation provides the framework for the activities of the organisation and must harmonise with its goals and objectives.It defines tasks and responsibilities,relationships and work roles,and channels of communication.It serves as a means of improving performance by monitoring the activities of the organisation,coordination,social satisfaction of staff and clear defined roles and objectives.

According to Mintzberg,formal structure is the documented, official relationships amongst members of the organisation and an informal relationship as the unofficial relationship within the workgroup.Lack of clear and defined roles causes confusion who is to do what task in a routine and formalisation of roles enables organisations to reduce,predict and control variability.

Burns and Stalker (1961) proposed a linking relationship between formal structure and organisational performance,arguing that organisations with organic or loosely coupled networks are better adapted to dynamic environment.However,organisations that adapted to bureaucracy(Weber),which means clearly allocating specific roles and responsibilities within a defined hierarchy were viewed as more suitable for static environments.

An organically structured organisation is a flexible network that exists dependently and takes into consideration the needs of their staff.For an organisation to be organic,workers and staff have an equal level of participation and communication is in a free form.Organic organisations thrives on the power of personalities and relationships,lack of rigid procedures and communication,and can easily adapt to its environment or challenge.It is said to be the the most adaptive form of organisation.

An example of such organisation could be said to be Google.Google is the biggest internet search engine, with a turn over of more than $40m.Google has been keeping the pipeline of innovation by tapping its employees and letting ideas percolate up.It is a diversified organisation which means that it has chosen to serve new types of customers in unfamiliar markets and with opposition of new incumbent competitions,all of which tend to increase total risk for the company and placing its core resources under restrain.The companies strategy is to have none and it encourages free thinking and always looks for new ways to empower the members of staff.

ORGANISATIONAL THEORIES

Last week was about organisational structures and its effects on organisational performance.I say it depends on the size of the organisation.Structure in an organisation provides the framework for activities of the organisation and must harmonise with its goals and objectives.According to Drucker,it is the correct design of structure that is of most significance in determining organisational performance.

This week was about management theories.It was a very interesting topic because i got to know and see    different theories from different people and how it applies to business today.It is important because without theories of some sort,it would be difficult to understand what is happening in our world today and how different theories applied to different organisations.

One of the theories i found interesting was that of Mary Parker Follet(1868-1933) whose idea was the self-governing principle that would enhance growth of individuals and the group they belonged to.She believed that strict division of labour devalued human creativity although the mechanical and human side should not be seperated but bounded together.She also saw the need of replacing bureaucratic organisations with networks in which people themselves analysed their problems and implemented their solutions(Boddy p51)

Unlike Max Weber who believed in alocating specific rules and responsibilities to everyone.Rules and regulations had to be adhered to.Although this theory has its disadvantages as there is minimal employee discretion and administrative procedures were not flexible,it worked well in government departments and large public organisations.The right to give instruction was based on a persons position in the hierarchy(centralised system).
Although this theory was written a very long time ago,i still see its application in certain organisations i know like the Nigerian Police Force(NPF).The Nigerian police force is under a general operational and administrational control of an Inspector General(IGP) who is appointed by the president of Nigeria and is responsible for maintaining law and order in the country.The inspector general is the head of each department in the force and all commissioners in each state in the country reports to him and also the deputies in each state reports them.Administrative procedures are not flexible,no encouragement to develop free thinking as a member of the police force as everyone has at every stage has someone to report to and has to follow rules and regulations.Every member of the force has the mindset of ''your job" and "my job".

         

Organisations And Management

This week,i was amazed by all i got to learn about Organisations,its features,structures and meaning,Management and Entrepreneurs.
An organisation is people working with resources available to achieve a particular goal.Charles Barnard  also defined organisation as a system of cooperative human activities.The structure of an organisation creates an effective impact on the performance of such organisation.I also understood that for  the proper function of an organisation,certain roles and responsibilities has to be taken up by people.And managing people effectively,creating good interaction and communication between the people in an organisation is also an important factor.
Management is the organisation an coordination of the activities of an enterprise,guided by certain policies and rules to achieve defined objectives.Mary Parker Follet(1868-1993) defined management as the art of getting things done through people.Management is result oriented,creative,innovative and it is a process.A good manager has to be a leader,spokes person,figurehead,he has to serve as a liason between staff and be able to monitor activities in the organisation.
Also this week,i had a presentation with my group mates.It had to be on an organisation and we chose TESCO.Its one of the worlds largest retailers and operates in 13countries.It deals on fresh groceries,home appliances,entertainment.I know about its organisational structure,how it adds value and its goal.
I also got to know what makes a successful entrepreneur and what drives an motivates them.Some of these qualities and skills i see in me and they are,learning from mistakes,confidence,drive,strong business minded and eager to learn from professionals.I want to be able to face stronger challenges,have power and above all be financially independent......(yessss thats very necessary too)