Organizational ethics as a product of societal, professional and individual moral values
The examination and appraisal of business choices concerning moral aspects range from the societal to individual perspectives. In essence, ethical conflicts arise in organizations due to divergent opinions and interests emanating from the firm’s management, personnel and society. In principle, in the operations of a firm, the professionals have a duty of ensuring that the business receives higher revenues through sincere business practices.
The professionals should also take into account the safety and environmental implications of the business operations. Most importantly, the organization has a responsibility of giving back to the society through social corporate responsibility, safeguarding the environment, avoiding child labor and corruption. Concerning individual ethics, organization’s personnel have a duty of adhering to the rules governing practices and conducts of the organization.
Compromising ethical behaviors has various implications. For instance, the business can incur huge expenses through elimination of dangerous emissions to the atmosphere. Additionally, the organization’s relationship with vendors can be severed since the business would require suppliers to maintain the required standards throughout the delivery chain.
Continuous wrangles between company’s returns and adherence to the moral codes will be a major occurrence. Actually, it is evident that the codes, norms and standards governing the smooth operations of an organization emanate from the values and morals exhibited by individuals, professionals and the general society.
Ways in which organizations create value and influence stakeholders
The successes of any organization depend on the manner in which the firm influences investors, personnel, suppliers and the society through creation of worth. In this regard, the business achieves value by attaining equilibrium between the environmental as well as societal obligations and proceeds. In addition, through the utilization of client relationship management, companies are capable of attaining efficient promotional activities through interactions with the targeted customers.
In reality, the business also gives back to the society through corporate programs thereby attracting the interests of various stakeholders. Moreover, through collaborations with vendors in the delivery chain, businesses are capable of reducing expenses, amplifying the worth of clients as well as improving the environmental conditions. The result is enhanced relations with the stakeholders.
Entrepreneurial spirit is critical in creating value as well as influencing stakeholders by propelling collective modernization and reengineering in diverse business segments. In addition, entrepreneurial spirit supports the creation of economic and societal worth to the various stakeholders through a paradigm that involves responsibility, innovation, teamwork, environmental responsiveness and partnerships between different stakeholders and the business.
In fact, the spirit is invaluable in the identification of appropriate business ideas as well as training stakeholders on business operations and leadership. Creativity, innovation and entrepreneurship are elements that create value and help the organization achieve competitive advantage.
Resource dependency theory and the inter-organizational linkages
Resource dependency theory asserts that the resources are not often available fully for the organizations. The theory is based on the ability of an organization to source for resources from external environment. In most cases, sources of external resources are other firms, donors and business-to-business partnerships. Among the external sources of firms’ resources, business partnerships are the commonly applied strategies for sustaining the inflow of external resources.
According to the theory, organizations form inter-linkages due to the scarcity of resources. In the context of the theory, resources are multidimensional ranging from labor to materials.
The formulated relationships are either symbiotic or competitive. However, most inter-organizational relationships are symbiotic in which both parties benefit. In most cases, organizations depend on each other either as customers or suppliers. Symbiotic relationships are managed through many ways including tactical alliances, mergers and acquisitions as well as co-optations.
Strategic alliance is utilized by organizations to manage symbiotic relationships. The reason is that strategic alliances are critical in building the company’s reputation. Strategic alliances include continuing deals, formation of networks, combined business enterprise as well as minority ownerships.
Essentially, strategic alliances in the management of symbiotic relations enhance appropriate means of sharing resources among several companies. Formal agreements such as long-term contracts as well as joint ventures are relationships that are strong as well as offer tight controls of the activities undertaken jointly. Such formal strategic alliances are appropriate means of sharing resources during scarcity of environmental wealth.
Differentiation within organizations
Work organizations or explicit formal organizations undergo various processes during their formation, growth and development. One of the processes is differentiation. Differentiation occurs when structures are marked out across distinct functions, authority and occupations.
In other words, differentiations in formal organizations occur in various components including occupational, hierarchical and functional. Differentiation is critical particularly when the size of an organization increases. As an organization’s size enlarges, various functions need definite roles as well as specialization. Put differently, various functions must be defined in terms of departments as the roles and responsibilities increases.
Essentially, as an organization increases in size, differentiation occurs along several lines or functions. Similarly, as the organization size increases, differentiation occurs along administrative components that affect coordination. Differentiations are critical in specifying roles of various departments as well as enhancing the management of the organization.
The differentiation in terms of functional definition is the horizontal differentiation while in terms of administration and coordination is the vertical differentiation. Studies indicate that horizontal differentiation is often a slow process while vertical differentiation produces hierarchical administrative structures.
As indicated, differentiation in organizations occur both horizontally or vertically. Horizontal differentiation occurs across the organizational functions. In other words, horizontal differentiation is the process in which the functions of the organization are separated into subunits.
On the other hand, vertical differentiations occur when the authority, roles and responsibilities are divided along the hierarchical lines. Vertical differentiation results in hierarchical structures where authority and decision-making processes can be either centralized or decentralized. Vertical differentiations are often fast as opposed to horizontal differentiation, which occurs at a slow rate.
The manner in which centralization, standardization and horizontal differentiation affects the shape of the organization
An organization may take many design dimensions. Besides, an organization may be defined in terms of formalization, centralization, specialization, standardization, complexity as well as hierarchical complexity. Centralization is the level in which the top management of the organization is responsible for decision-making processes.
In other words, all decisions are made at the top. The decisions are then trickled down the hierarchical ladder to the junior staff for implementation and reports back to the top management. The movement of information from the top to the junior staff determines the shape of the organization. Under the circumstances where there is slow flow of information, the organizations may take the form of short hierarchical structures. Short vertical structures are achieved through getting rid of various sections in the central reporting structure.
Standardization is the tactical approach to the work processes of an organization. The procedures through which work processes are accomplished determine the shape of the organization.
In situations where the work processes are to be undertaken in a short time and in a more fashionable way, the organizations need to adopt structures that are more horizontal. In other words, organizations that value standards adopt structures that enhance the attainment of the principles. On the other hand, in the circumstances that the standards are not valued, long hierarchical structures are likely to be adopted.
Horizontal differentiation is the situation where organizations expand along functional lines. In other words, organizations increase its functions and roles along the same line. Organizations that are integrated horizontally in terms of decisions and functions are always slow in their expansion process and in most cases small in relation to vertically integrated organizations.
Values, norms and cultures determine the organizations’ designs. The organizations’ designs are based on the beliefs, rules as well as the goals and strategies of the organization. The norms and values together with culture are derived from the organizations’ external environment.
In most cases, the external environment determines the organizations structure as either mechanistic or organic. In the mechanistic structure, organizations are designed according to the structural activities, specialized responsibilities as well as centralized decision-making process. Conversely, in the organic structure, organizations are designed in terms of teamwork, decentralized decision-making process as well as open communication.
The importance of differentiation in building formal structures
Differentiation process occurs in almost all formal organizations. Whether vertical, horizontal or spatial, differentiation is critical in the coordination of the work processes. Most importantly, differentiation is highly required in specialization of the organizational functions. Specialization in work processes across various functional units requires high coordination for the attainment of the organizational goals.
Even though there are many forms of differentiation, employees in diverse work units have the tendency of developing personal views on the goals of the organization. The diverse views of employees on the objectives of an organization result in differences that affect the general organizational processes, which in effect hinder the attainment of the organizations’ goals.
Therefore, large organizations where work processes are highly specialized require increased coordination. In essence, differentiation is needed to increase the effectiveness and efficiency required to attain the organization’s goals.
Most large and formal organizations are differentiated in terms of functions, authority and geographical dispersion. However, the processes of differentiation are not limited to the work or formal organization. Differentiations also occur in many forms and processes within the informal organizations. For instance, spatial differentiation occurs in informal organization.
The span of control refers to the creation of authority in the management process. In other words, the concept refers to the spectrum of control in terms of employees by the manager. Whereas integration refers to the combination of all the departments and functions of an organization, differentiation is the definition of functions and authority.
In all aspects, there are employees responsible for the implementation of integration and differentiation processes. The employees are under the supervision of the manager or controlled by the assigned supervisor. In other words, the employees have to report to the supervising authority.
Past experiences with the workplace culture
Businesses should create good relations with the customers. Good relationship encompasses a variety of activities ranging from providing quality products to close attention to the needs of the clients. In fact, a good relation, which is one of the organizational cultures that enhance innovativeness and creativity as well as provision of value to the customers, is critical for the success of the firm.
Clients often have close associations with organizations that value quality and provide products or services beyond the expectations. In addition, diversity is another cultural element, which is critical for the growth and development of the company. Currently, most companies go beyond diversity and innovativeness to adopt new cultural dimensions such as corporate social responsibility.
However, diversity has become part of the corporate culture such that both subordinates and management have embraced the dimensions including gender, physical orientations and individual cultural background. Embracing diversity within the organizations’ workforce has increased benefits. In fact, diversity within the workforce enables the company have increased competitive advantage.
Personnel with diverse cultural, language, skills, educational and leadership background characterize variations found in the workforce. The heterogeneous workforce created by diversified backgrounds brings into the organization the skills and competence mix that contributes to the increased competitive edge.
The major differences between functional structure and multidivisional structures as well as reasons for the organizational alterations from functional to multidivisional structure
Functional structures are organizational designs in which employees are grouped according to the areas of their expertise. However, employees are categorized not only in terms of specialization but also according to the work experiences, use of similar resources as well as pursuance of similar organizational goals.
Most of the formal organizations adopt functional structures since nearly all work processes are specialized. In the production process, specialization plays a critical role. The production processes are divided according to various functions and employees are assigned tasks according to their specialized areas.
On the other hand, multidivisional structure is an organizational design in which employees are grouped according to various divisions or departments. For instance, employees are grouped according to the finance, production and operations departments. In addition, functions are categorized according to various departments. For instance, various organizational functions are found within the finance department.
There are numerous reasons that explain the change of the organization from the functional structure to multidivisional structure. As the organization grows, there is need to increase skills and technological capabilities. Second, there is pitiable contact of employees in various departments.
Third, there are difficulties in evaluating workers since employees are exposed to similar standard measures. In other words, developing a parameter that measures every employee’s output is difficult. Fourth, the management is highly concerned with administrative matters. Multidivisional structure provides solutions to the problems associated with functional organization design.
Effects of technological complexity on the organizational structure
In the modern world, the utilization of innovative expertise influences the growth and direction of the firm. In other words, innovative technological complexity is invaluable in augmenting performance and yields of the company.
For instance, internet expertise is significant in carrying out studies on the development of products as well as business ideas regarding the goods and services online. Further, through the knowledge of internet technology, reengineering of the company’s products is inevitable leading to better and valuable goods and services to the clients.
Technology is also essential in the development of various contemporary infrastructures that are of value in the transformation of the company’s products and services. In principle, the infrastructures are valuable in the production of prototypes that test the functionality of the expertise. The alterations of certain attributes of the firm’s products attain more appeal to the customers. Moreover, technology makes the production, reduction of expense, forecasting initiatives and statistical programs efficient.
As a result, the organizations purchase tendency of goods and services provides the executive with clear insights on the amount of products that the company should produce and the expected yields. Essentially, technological complexity within the organization brings about innovativeness in product creation and execution of business processes.
Core competencies that provide an organization with competitive advantage
Core competencies are the capabilities that an organization possesses and uses as its strength to produce goods or services with enhanced satisfaction to the customers. An organization possesses several competencies. However, each organization has own unique core competencies.
The core competencies are the sources of distinctions existing between the organizations. Most of the core competencies include technology, highly skilled employees, organization structure and design, products and services, management, resources and the organization brand. Organizations utilize the core competencies to create products and services that are different from firms operating in the same industry.
Core competencies such as technology enable the organizations to differentiate their products from competitors. For instance, technology enables innovation, market analysis, increased customers relationship as well as other functions that bring competitive advantage to the organization. Most of the organizations that take advantage of the available technology and ahead in terms of innovation always have competitive advantage over similar firms.
Functional strategies are found at the level of departments such as finance, marketing and operations. In most cases, functional level strategies ensure that each function of the organization supports the attainment of the organizational goals. In other words, the strategies within various departments support the business in attaining its goals.
Essentially, functional strategies must be oriented towards the attainment of the organizational goals. Examples of functional strategies of an organization include marketing strategies, financial strategies and operations strategies. All these functional strategies must support the overall business processes.
Decline of organizations and steps undertaken by the leaders to sustain growth
Most organizations decline because they fail to deliver quality goods and services to the consumers. Actually, the provision of substandard goods and services to the economy leads to less purchases and lower proceeds. As a result, the business declines gradually due to accumulation of expenses and debts. Conversely, in order to prevent further decline, businesses have to put measures that ensure growth. Measures such as availing large quantities of products in the market result in increased returns leading to the growth of the business.
The firms must consider the groundwork for sales as well as come up with the list of the sales operations in the management of transactions. As a result, the firm achieves growth through elimination of unnecessary expenses and frustrations in their undertakings. Additionally, increased focus on the causality as opposed to over-focusing on close examination of sales enhances the efficiency of operations.
Moreover, companies invest large amounts of capital in developmental aspects such as infrastructure and other operation models. Companies also employ proficient personnel with the necessary skills that are invaluable in the management of the firm. Further, the firm’s remuneration policy should reward the employees commensurate to productivity in order to reduce excess costs incurred as salaries and wages.
Differences between evolutionary change and revolutionary change
Evolutionary change involves steady alterations realized in the company’s products and services over a given duration. For instance, the alterations that are made in the interior as well as exterior hotel blueprint are examples of evolutionary change. Actually, hotel management has constantly changed the design to suit the current market situations or needs.
In essence, the business must continue altering products design to attract and retain customers. Additionally, the Coca cola Company has experienced remarkable evolution in the design of coke bottles in order to suit the market needs. The evolutionary alterations have resulted in the attraction and sustenance of numerous clients.
On the other hand, revolutionary change is unexpected and rapid alterations in the services and products of an organization. Acquisitions or incorporations occurring between companies are revolutionary changes that have far-reaching and abrupt implications on the products, services as well as employees.
For instance, in the event that Nokia takes over Samsung, the work unit from Samsung Company will feel the abrupt impact of the takeover since they will be forced to adhere and get familiar with the new codes and rules as well as the products of the Nokia Company. In fact, the personnel will face obstacles of getting familiar with Nokia’s visions.
The relationship between creativity, entrepreneurship, innovation and their importance in building a knowledge creating organization
Creativity is the capacity of the organization to come up successfully with solutions to the existing or rising problems. Creativity within the organization is critical source of competitive advantage particularly in fast varying situations. Innovation is the capability of the company to come up with new ideas, products or services. In addition, innovation refers to the ability of the company to invent new products or make improvements on the existing products and services.
Entrepreneurship is the ability of the organization to take advantage of the opportunities arising from the market. Organizations that are capable of turning their products or services into marketable opportunities are said to be entrepreneurial. Creativity is critical for entrepreneurs. The reason is that creativity forms the first step in the innovation process. Additionally, creativity stimulates the discovery of new opportunities. Therefore, there is close linkage between creativity, innovation and entrepreneurship.
Creativity, innovation and entrepreneurship provide core competencies through which organizations generate competitive advantage. The concepts provide processes through which the organization bring about alterations and generate values as well as taking advantage of the existing opportunities. In essence, all the processes of the organization that are knowledge based depend on the concepts of creativity, innovation and entrepreneurship.
Relationship between quantum and incremental technological change
Quantum technological modification refers to rapid as well as momentous initial alterations in expertise that are critical to the growth and development of the organization. In other words, quantum technological change refers to the abrupt advancement and development of expertise that existed.
Incremental technological changes are steady modifications of expertise from one type to another over a period. For instance, the changes realized in the cell phone industry characterized by ever-increasing technological advancements ranging from pager technology in the 1950s to the current Smartphone technology. The pagers have continuously undergone modifications through PDAs with the latest technology being Smartphones.
The technological changes are significant in the operations of businesses in a number of ways. First, the companies are capable of gaining competitive advantages over rivals. The competitive advantages are achieved through the production of innovative and quality products as well as services.
For example, quantum is imperative in the development of new products that can be launched in the market without direct competition from other companies. On the other hand, incremental technological changes enable firms to develop insights on the customers’ reactions towards new products. As a result, the firms are capable of providing value as well as products that go beyond the needs of customers.
The organizational structure and cultural influence on subunits
The choices corporations make concerning operations depend on the structure and culture of the organization. In addition, the decisions concerning the organizational designs are imperative in the effortless assessment of such structures. In fact, having ideas on roles eliminates confusion as well as poor verdicts among employees in the workplace.
Additionally, executive segments and pecking order of decision makers are invaluable in making business operations efficient, which result into optimal outcomes. In general, definite organizational structure offers different dimensions in business, which is characterized by high performance and optimal results. In other words, organizational structure produces functional units with definite roles and functions that optimize performances.
On the other hand, organizational culture is derived from the values as well as moral codes guiding the operations of the firm. Aspects relating to authority emanating from connections, acquaintance and advantages are important elements influencing subunits. For instance, organizational structure and subunits depend on the knowledge of personnel in higher positions.
Actually, in companies exhibiting top-down arrangement, the knowledge of new recruits regarding the organization’s management provides competitive advantage. In essence, the recruits are presented with the prospects of getting the job and special treatment. Organizational structure creates subunits that functions depending on the cultural values of the organization.
The importance of maintaining a balance of power between different groups of organizational stakeholders
Power within an organization is the source of resolutions to rising conflicts between various groups. Organizational power arises from various sources including the need to control resources and information. Besides, centrality, non-substitutability, authority as well as self-effacing are type of organizational power.
Powers within organizations are characterized by increased benefits in form of remunerations and privileges. In addition, attainment of power is a form of satisfying personal ego, which is one of the significant needs of an individual. As such, individuals as well as groups within the organization will strive to gain certain degree of authority. The need for control of the organization also originates from the organizational politics. In other words, organizational politics enhance individual power.
The manner in which politics is dispensed differs across various organizations. In some organizations, the dispensation of politics entails the enhancement of non-substitutability and self-effacing power while in others, employees create close association with the top management.
Developing and executing partnerships as well as having influence on major decisions are also means through which individual employees show political capabilities. Essentially, balance of power between different groups is necessary in the management of conflicts. Moreover, power balance is required to make politics and influence useful to the organization.