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Block 5 T2005P2 Block 5 Organizations and Networks.

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Presentation on theme: "Block 5 T2005P2 Block 5 Organizations and Networks."— Presentation transcript:

1 Block 5 T2005P2 Block 5 Organizations and Networks

2 Conceptual Clarity GlobalizationInformationNetworks Organizational Environment

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4 Mess Analysis of Block 5 Sensing Acting Understanding Deciding Globalization

5 Sectors of Globalization  Business  The Nation State  Media  Culture, Knowledge, ideology  International Trade  Telecommunication & Information systems  Technological Know how Advantages of Globalization  Competitive advantage  Internationalization of business  Liberalization of National Regulations

6 Cultural Implications of Globalization Changing Culture Replacement (changing the people). Re-education (changing the way the people operate). Re-education (changing the way the people operate). Re-design (changing organizational systems). Re-design (changing organizational systems). Hofstede’s Dimensions of National Culture  High VS Low Power distance  High VS Low uncertainty avoidance  Individualism VS Collectivism  Masculinity VS Femininity

7 Culture Dimension Typical questions High vs low power distance How frequently, in your experience, are employees afraid to express disagreement with their manager? Would you prefer to work for a manager: who makes decisions and then tells staff; who makes decisions and explains them fully to staff; who consults with staff before making decisions? High vs low uncertainty How strongly do you agree/disagree that company Avoidance rules should not be broken, even when employees think it is in the company’s best interests? How long do you think you will continue working for this company: until you retire; >5 years; 2–5 years; <2 years? Individualism How important is it to you to have a job which leaves you Vs Collectivism? sufficient time for your personal or family life? How important to you are training opportunities to improve your skills or to learn new skills Masculinity vs Femininity How important is it to you to have an opportunity for high earnings? How important is it to you to work with people who cooperate well with one another?

8 Cultural Differences values practices LevelNationOccupationOrganization Place Family School Workplace

9 Dimensions of Organisational Culture Transformation orientation VS Output Orientation People orientation VS Task Orientation Organizational Orientation VS Occupational Orientation Open VS Closed Climate Loose VS Tight Internal Control Structure Loose VS Tight Internal Control Structure Normative VS Market Driven Orientation

10 Commercialization of Knowledge Knowledge Fashion Knowledge Conversion

11 Socialization Internalization Externalization Combination Tacit knowledge Explicit knowledge Modes of Knowledge Conversion

12 SocializationExternalizationInternalizationCombination

13 Environmental Challenges InstabilityComplexityHostilityDependency

14 Challenge of Instability Internal Response  Flexible Structures  Flexible workforce  Organizational Culture Supporting Change External Response  Vertical Integration  Dependency Relations  Managing Relations across organizations

15 Challenge of Complexity Decentralizing Decision Making Self Contained Tasks Focusing on core Processes

16 Challenge of Hostility Competition Regulatory Pressures Social Pressures

17 Challenge of Dependency Formalize Structures Diversification Increased Mutual Dependence

18 Coping up with Organizational Environment Problem Articulating Skills Simplifying strategies Control by Colonizing Collaborating with Environment

19 Problem Articulating Skills  Articulating Problem  Communicating Problem  Accessing Problem Simplifying strategies  Selective Attention  Assuming universality  Averaging  Assuming Continuity over Time  Local Focus  Typifying  Problem Bias

20 Control by Colonizing  Control the External Elements  Piece-meal Integration Collaborating with Environment  Accepting and Preparing for it  Learning and adaptation  Networking and Connecting  Creativity and Innovation

21 Tools For Exploring Environment STEPS (Social, Technological, Economical, Political, Sustainability) SWOT (Strengths, Weaknesses, Opportunities) 5Ws and1H (Who, What, Where, When, why, How?) Inputs, Transformations and Outputs Auditing Mintzbergs’ Stakeholders Economic Sector Analysis

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24 Case Studies How Environmental Views Emerge ? Hawick Knitting Firms

25 Dependency Power, Control and Dependency  Franchising  Just- in –Time Manufacturing Types of Dependency  Economic  Financial  Technical  Psychological

26 Interpenetration Mechanisms Joint Ventures Promoting Staff Exchanges Appointing boundary People Co-option Using interlocking elites

27 Case Studies Developing a relationship: Jaguar and Nippondenso Mutual Levels of relationship :Speedo Swim-Wear Gaming Perspective and BMW The Fragility of Relationships :Novo Nordisk and Nissan

28 Relationships Between Organizations Hierarchies, Markets and Networks

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30 Key features of Market, Network, Hierarchy Key features Market Network Hierarchy Time of interaction short-term long-term long-term Topology lattice tree lattice slogan survival of fittest place for everything only connect and everything in its place Archetype bazaar empire industrial cluster

31 Hierarchies Controlling by taking into organization Persistence and growth of mega firm Hierarchy and the State Organization Structure and Growth Market or hierarchy

32 Markets Market Concepts Market Philosophy Market Philosophy (Nature of markets, Spread of market ideology, Limitations of concept, Markets and industries) Shapes of a Market Shapes of a Market ( key concepts, quasi- markets and public sector)

33 The Market-to-hierarchy Continuum PUREMARKET PureHierarchy Hard contracting Soft contracting arrangements Franchising Joint ventures Decentralized internal profit centres Hierarchical chain of command

34 Networks Personal Networks Inter-organizational Networks Network Properties Clusters

35 Comparison of forms of economic organization Key features Market Hierarchy Network Communication via... Prices Routines Relationships Tone/climate Precision, suspicion Formal, bureaucratic Open-ended, mutual benefits Participant commitment level Low Medium to high Medium to high Behaviour norms Contracts, Formal Complementary based on... property rights relationships Strengths Methods of Haggling; Administrative fiat Reciprocity; concern conflict legal enforcement Supervision for reputation Resolution Level of flexibility High Low Medium Level of Autonomy Independent Dependent Interdependent

36 Case Studies The British Sector Benetton: Hierarchy and network combined Nike: Some Network Limits Linux: An example of network development

37 The Sustainable Environment  The world we live in  We are part of nature  Public reactions to environmental issues

38 Case Studies An NGO campaign to protect wetlands in Nigeria


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