An organization is a system of consciously coordinated activities or efforts of two or more people. Organization Multi-centric organizational model is an economy model that has different main actor with the market model. In the market model the central actor is individual, while in Multi-centric organization the main actors is the organizations. The basic principle of multi-centric is the recognition of two or more distinct in the same field of value. This principle was aim to improve the control of resources, sustainability and equity. Multi-centric organizational model and Market model has differences in most of every aspect. In market model Adam Smith was the one who develop the self-regulating market. It was inspired by the liberalism. …show more content…
The first premise is organizations as the basic actor. Organizations also have an important role to make the major decision in political economy. The word “multi” from multi-centric organizational model (MCO) means many. There are many organizations as the actors and players in MCO. Corporations with thousands of employees and billions of dollars of revenue are the central players. Not only the corporation but also the government, labors union, non-governmental organizations, etc. As the basic actors, organizations also have different way to make the decisions because they have to be more mature, bureaucracy and consider many aspects. The second premise is choices are made through the exercise of organizational power. In MCO model the price was determined and managed by the organizations player through the exercise of organizational power with the negotiation. The third premise is money represents power. Money can be used to measure the wealth and proseperity. Money has their own value we can know that there is the currency of several countries has more power than the other countries such as, US dollar and Euro. The forth premise is wealth and power are the driving objectives. MCO approaches was combined the economy and politics. Because MCO believes and realize that politics and economics was interdependency to each other. Organizations were assumed to gain much wealth and power. Wealth consists of income and accumulated capital. The term of capital was both, physically and financial. Power was really important to determine how successful the organizations can be in controlling the strategy in
... economic system, one that needs no interference, and needs to type of larger organization involvement.
Organisation politics should be considered as complex variables that are interconnected due to the self-interest of the individual within the group. Also, organisations should be aware of the different political personalities that exist within a group and be able manage these personalities. Furthermore, negative financial implication when the change does take place would be perceived as inequitable and unfair by individual because the lack of personal gain. In addition, the highly hierarchal structure can often increase the individual resistance and group resistance because the apex may want the change primarily to serve their own self-interest without taking into consideration the self-interest of the operational core and middle management.
Organizational structure is one of the three key organizational assets that could contribute to the effectiveness of operations of any organization (Zheng, Yan and Mclean 2009) It is joined together by different flows of information, decision processes, hierarchy of authority, specialization and working materials. (Enz 2009; Mintzberg 1980) Furthermore, it also determines the operating workflow, control of information, decision-making in the organization and the line authority (Mintzberg 1980). The facets of the organizational structure, the relationships that exist within it, and how the business processes (Bititci et al 2011) are controlled, determine the managerial style that should be utilized in addition to the strategies the organization could implement. Going further, a company’s organizational design and the parts that constitute it are seen as a contributing factor to superior performance, which ultimately provide an organization with competitive advantage over its competitors. (Enz 2009; Zheng, Yang, and Mclean 2009)
Functionalism is also be a micro perspective because it can be found in the operation of small groups, such as businesses. A micro example of functionalism can be seen in a corporation that focuses on global trade. The CEO is head of a company and its board of advisors, who listen to the informative directions the CEO gives them in order to properly run their separate branches responsible for different departments of the company, such as advertising, shipment tracking, management of global relations, and on call “sales people” to promote their business. In this micro perspective, these smaller parts of a company or businesses, if looking at it from an economic perspective, are just as essential to the operation of the economy as the corporations which “control” them all. Though Functionalism can be identified as being a predominantly macro perspective, it can also be seen in the “micro focus” of smaller groups, combining to create a larger whole that influences all in society. Of the three social perspectives discussed, Conflict Theory can be seen as being most closely related to Functionalism in the importance of the macro
The political frame relies on the assumption that organizations are alliances of unique people and interest groups. The people are unique due to their different views of the world, their morals, faith and activities and the information they have given these characteristics. The political frame also assumes that all key decisions arise from the need to allocate scarce resources such as time, money and information. These scarce resources and differences amongst people are what make conflict the core of organizational dynamics and make power such a crucial asset. Finally, the political frame assumes that all objectives and conclusions are e...
Developing a new sales organization, which it calls market organization structure where salespeople are assigned specific types of customers and required to meet their customer needs. That the advantage for Western Region when it organizing according to these customer types: grocery chains and food coops, distributor, and etc. This ensure the depth of understanding how their customer use and purchase their products. Decreasing the number of customer duplication. However, the disadvantage of this organization structure, salespeople would be more pressure due to so many of customer types. In addition, the company would spend more money just to meet the customer
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
Adizes, I. (2004, Mar/Apr). Embrace One Problem After Another. Industrial Management, 46(2), pp. 18; pp.7.
“ Organizations are collectivities oriented to the pursuit of relatively specific goals and exhibiting relatively highly formalized social structures” (page 29). The rational system is a group of individuals, bound together as an organization, designed to reach predetermined goals. The rational system models sees organizations as a mechanical model. A machine that has multiple parts that also works individually but also work together for the better good of the whole. All the individuals of the group can be replaced with a new one if it doesn’t meet the standards of
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
Scott, W.G. (1961, April 1). Organization theory: An overview and an appraisal. Journal of the Academy of Management, 4(1), 7-26.
Introduction Economic systems are organized ways in which a state or nation allocates its resources and apportion goods and services to the national community. An economic system is slackly defined as a country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectation of this type of economy is that all major decisions related to the construction or production, distribution, commodity and service prices are all made by the government.
Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2011). Classics of organization theory. Boston, MA:
Understanding the structure of an organization plays a vital role in laying the blueprint for how a company will be managed and organized. It provides a well-defined framework that outlines the roles and responsibilities of each employee in a particular company. It shows how each employee interacts and works one another in achieving the goals of a company. In other words, organizational structure is a reflection of the working relationships that govern the workflow of the company. It has a profound effect on a company’s structural dimensions, which includes formalization, specialization, hierarchy and centralization.