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HS450 Unit 9: Organizational Development, Change and Theory PART I & II - Essay Example

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Barzilai (2010) defines organization theory as the study of organizations for the benefit of identifying common themes for the purpose of solving problems, maximizing efficiency and productivity, and meeting the needs of stakeholders. Broadly OT can be conceptualized as studying…
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HS450 Unit 9: Organizational Development, Change and Theory PART I & II
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Download file to see previous pages The number of employees available within the organization determines the segregation of duties and job description of each employee and how each position within the organization interacts with each other. Product evolution is especially important in manufacturing company’s organization structure because the product’s maturity in the market may affect the need for product development and market research departments. When establishing formal organization structure, the company considers whether the authority will be centralized or decentralized, which will determine the hierarchy of the organization. Moreover, the consideration of how many control points and who will be performing them will shape the organization structure. Finally, the market of the company’s product will determine how the sales and marketing department are arranged and how the finance department will be shapes. For example, if a manufacturing company decides to deal directly with retailers, then it will need larger sales and marketing department to deal with bigger number of customers. It will also need extensive finance department that can support tedious billings and it will need to plan the distribution and transportation team. This may not be the case if it decides to distribute its products to wholesaler because the number of wholesaler it has to deal with usually is smaller compared to the number of the retailer.
a. Capacity of an environment which refers to the degree of which the environment can support growth (para.4). The scarcity of resources available within the environment will make more stable organization while abundant resources may lead to greater uncertainty for the organization as it may grow rapidly, but it can also leave a room for a company to make mistakes and to operate in such an inefficient manner.
b. Volatility or the predictability of environmental change could also determine the stability ...Download file to see next pagesRead More
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