1. Chapter 2 New Conditions, New Organization

2. Scope of Chapter 2 The retreat from conventional forms of organization
Contrasts between conventional and new organizational forms
New conditions for organization
Implications for organization

3. Retreat from Conventional Forms of Organization
Bureaucracy has been the most prominent form of conventional organization with an over-2000 year history
Bureaucracy has, however, been increasingly criticized since the 1950s
Many practitioners and analysts believe conventional organizational forms are insufficiently adaptable to meet present requirements

4. Contrasts between Conventional and New Organizational Forms
See Table 2.3, Chapter 2

5. New Conditions for Organization
Globalization
New technologies
Knowledge-based society
Hypercompetition
Social accountability

6. Globalization Increases complexity in the environment of firms
Need both to control and to adapt to local situations
Hence requirement to maintain standardization and promote flexibilty within the same global organization

7. New technologies Open up new organizational possibilities
Internally, enable simplification of management structures and better integration within them
Externally, ease the management of information flows and transactions across organizational boundaries

8. Knowledge-based society
Increased significance of innovation-based differentiation strategy within the knowledge-based economy
Intensive use of inter-disciplinary teams to foster innovation and new projects
Devolution of initiative to knowledge workers so as to benefit from their expertise and enhance their motivation

9. Hypercompetition
Places a premium on the ability of firms to adjust to new competitive opportunities and threats
Need for ‘the flexible firm’, whose organization promotes rapid and appropriate adjustment
Mode of organizing should maximize organizational learning aimed at adjusting to hypercompetition

10. Social accountability
Pressures for better corporate governance, corporate social responsibility, and fulfilling work environment
Need for normative rather than coercive forms of control that combine accountability with scope for personal intitiative and development
Inter-firm networks have to be organized so as to permit leading firms to ensure socially responsible practices by network sub-contractors and partners

11. Summary of Implications of New Conditions for Organization
See Table 2.2, Chapter 2