Page 220 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes know what decisions they can make on their own and to encourage them to do so. This
creates an atmosphere where change, i.e. recombination, is not only encouraged at town
meetings, it is encouraged throughout the organization whenever and wherever it is
necessary.
The benefits of globalization are so well known that most businesses would take full
advantage of them immediately, if only it were easier to do. Making globalization work
demands new types of expertise that traditional organizations often lack. While technology
has eliminated a number of barriers to globalization (most notably those involving time
and space), many significant barriers still remain, particularly those involving people and
the organizations we build around them. The enormous cultural diversity in today's
global economy makes evaluating, assessing, recruiting and managing talent a challenge
- perhaps the challenge - for transnational companies. There are several key steps
companies and their talent leaders can take to meet that challenge and build a global
workforce that delivers high performance with high integrity.
Question
Is it possible for all the organisations to follow the GE method?

Source: www.milagrow.in

11.8 Summary

Organisations are structured in a variety of ways, dependant on their objectives and
culture.

The structure of an organisation will determine the manner in which it operates and it's
performance.
Structure allows the responsibilities for different functions and processes to be clearly
allocated to different departments and employees.
The wrong organisation structure will hinder the success of the business.
Organisational structures should aim to maximize the efficiency and success of the
organisation.
An effective organisational structure will facilitate working relationships between various
sections of the organisation.
It will retain order and command whilst promoting flexibility and creativity.
Internal factors such as size, product and skills of the workforce influence the organisational
structure.
As a business expands the chain of command will lengthen and the spans of control will
widen.
The higher the level of skill each employee has the more the business will make use of the
matrix structure to maximize these skills across the organisation.

11.9 Keywords

Agile Organisation: A firm that identifies a set of business capabilities central to high profitability
operations and then build a virtual organisation around those capabilities.
Chain of Command: an unbroken line of authority that links all persons in an organisation and
shows who reports to whom

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