The Competitive Nature Of The Global Industry And Organizational Structure

The Competitive Nature Of The Global Industry And Organizational Structure

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The competitive nature of the global industry and organizational structure often requires strategic, innovative decisions. These decisions often include the need to achieve cost benefits or permit specific focus on core competencies needed to function. Other decisions that may be made based on the improvement of capital investments, which is accomplished by a focus on the main activities of the organizational human and capital resources (Isaksson, & Lantz, 2015). Moreover, special attention to outsourcing decisions may become necessary to achieve fixed costs in specialized areas or adapting to the changing organizational atmospheres. The decision may also increase the performance of the organization, (Isaksson, & Lantz, 2015). This is one decision that cannot be made frivolously.
The decision to outsource cannot be haphazardly determined by any organization. This decision affects the finances and the corporate information on the organization and, therefore, must be decided by use of a strategic process. While outsourcing is reflected in organization terms as value added, there must be a careful process in which the organization aligns priorities (Isaksson, & Lantz, 2015). Developing resources or processes that create competitive advantages would be a positive outsourcing thought. Even though outsourcing may include organizational; manufacturing; bookkeeping; tax processing; Financial Reporting; payroll; payment processing; order processing; purchases; other administrative functions; warehousing; shipping; sales force; IT; customer service; training; and warehousing, not every function would may be decided as a good outsourcing decision (Isaksson, & Lantz, 2015). Prior to a managerial mandate to outsource an aspect...


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...ed process of positive corrective actions; (5) implement corrective actions, and (6) make adjustments as needed (Vroom, & Yetton, 1973). The use of these skills acts upon choices that are available in both descriptive and normative decision-making processes. The elimination of one, some, or all of these skills may prove overwhelmingly detrimental to the organization.
Conclusion
Prior to any managerial decision to outsource a division, a process must be considered. The process includes analyzing the benefits as well as costs through a logical flow of reasonings and deliberations. The skills needed to select the appropriate course of action should be Prescriptive in nature and thoroughly evaluated for the successful solution. Outsourcing may be the solution provided all alternatives are analyzed, calculated, and determined less successful to the organization.

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