Corporate level strategy is taking responsibilities of all managers, the top management team in the organization. Their responsibilities create value skills presence in an organization's divisions and to combine them to improve the competitive position of each division and the whole organization. Corporate strategists must find the ways to merge and use the resources of every division to create more value than each division could obtain the value, when they operated alone and independently. Corporate level strategy is a continuation of business level strategy because the organization takes its existing core competences and applies them in new domains. Corporate level strategy includes vertical integration and diversification. They are two important corporate level strategies which can help an organization to create value.
Each division will have its owned culture, but the corporate culture which can overcome differences in division orientation. At the business level, organization's culture can overcome differences in functional orientation. It means that the organization's culture might change the organization that begins to enter new domains.
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Speaking generally, an organization choose a corporate level strategy is to protect the organization's existing domains and to exploit the organization's core competences to create value for stakeholders, managers should carefully analyze the environment; this corporate-level strategy is to distinguish between a value creation opportunity and a value losing opportunity. This choice is the best solution to keep and expand the organization.
A technology is the co-ordination of all input resources to change raw materials and others into organization's intentional goods and services. Technology complexity is known to be programmed when the converting procedures of inputs resources into outputs can be determined in advance. So, that tasks can be normalized and the production process to be done. Technical complexity of a production process can be scheduled and it can be controlled and made as the plan. It is important dimensions that differentiate between the technologies.
The technology complexity influences organization structure well according to the research of Woodward's goal such as: She shows that the effective organization had structures that matched their technologies requirement. She found out and agued that each technology is combined with different structure because each technology presents different control and coordination problems too. Organizations with the small technology have three levels in their hierarchy; organizations with mass production technology have four levels; organizations with continuous process technology have six levels… each technology requires the specific, suitable structure for itself.
Technology roles in the form of knowledge enter in the organization's production of goods' and services. Small technology is the impossibility of programming conversion activities because each production technology depends on the skills and experience of people working together. Mass production technology is the ability to plan the tasks in advance that allows the organization to normalize the manufacturing process and make it as the plan. Continuous process technology, its tasks can be programmed in advance and the work process is planed and controlled in a technical sense.
Evolutionary change is gradual, incremental, and focused narrowly. It normally uses a bottom-up change strategy where employees are suggested the improvement at low level. Evolutionary change involves not a drastic or sudden altering of the basic nature of an organization's strategy and structure but a constant attempt to improve, adapt, and adjust strategy and structure incrementally to accommodate to changes taking place in the environment. There are three kinds of instruments of evolutionary change such as socio technical systems, total quantity management, and the powered creation, flexible work groups that are be used to create value and make the incremental in organizations. My previous company, Mr. Jong Gil Park, took the General Director position of company from the year 2001. Before this time, the quality product was very low, material loss rates were very high. Those reasons led the business results was low. After several months in management, he decided to improve employees mind, working style for everyone, every functional department. The company quality products and business result increased step by step for achieve the incremental.
Revolutionary change is rapid, dramatic, and broadly focused. It normally uses a top-down change strategy where top management, division managers, functional mangers are taking responsibilities to create value for organization. Revolutionary change involves a bold attempt to quickly find new way to be effective. It results in a radical shift in ways of doing things, new goals, and a new structure. There are three instruments of revolutionary change such as reengineering, restructuring, and innovation that are be used to create value and make the rapid change in organizations. During 1990s of last century, there were a lot of Vietnamese companies changed themselves structure when they changed from state owned Companies to joint-stock Companies with some less than a half or 100% capitalized to private owned companies. Top management and managers would be arranged in order to achieve the company targets and reduce the indirect management systems and increase the authority of managers and top management in the company.
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Organizational growth is the life cycle stage in which organizations create the value skills and passed competition in the market. Growth can help organization to increase its position of labors; specialization of production and then improve the competitive advantage continuously. Organizations can acquire the resources to generate surplus resources which allow it to grow strongly. Passing the time by time, organizations must transform themselves. They will become something that is very different than they were when they started.
Growth should be come from new products of an organization's ability to develop core competences that satisfy the requirement of its stakeholders, and so provide access to scare resources. Base on the institutional theory studies how organizations can increase their ability to grow and survive in a competitive environment by becoming legitimate that is accepted reliable, and accountable, in the eyes of the stakeholders; institutional environment is the set values and norms that govern the behavior of a population of organizations. So the best way for new organization to gain and strengthen its legitimacy is to imitate the goals, structure, and culture of successful organizations in its population.
According Greiner's growth model shows organizations as continuing to grow through collaboration until they encounter some new, unnamed crisis. But, many organizations, the next stage in the life cycle are not continued growth but organizational decline. Greiner's model suggests that if an organization can not solve the particular crisis associated with growth stage, by changing its strategy or structure, this will result in organizational decline.
Organizational learning is the process which managers need to improve organization members' desire and capability to knowledge and manage the organization and its environment so they make decisions that continuously raise organizational effectiveness. Today, organizational learning is a vital process for organizations to manage because of the rapid pace of change affecting every organization.
Organizations survive and prosper when managers make the right decisions sometimes through their skills and strongly judgment, but sometimes through the chances and good lucky. Managers make successful decisions all time, they must place a system which can help organizational members to improve their abilities, to learn new adaptive behaviors, and unlearn inefficient. The requirement for managers restructure and reengineer continually their organization. So, managers must know how organizational learning occurs the factors that can promote and impede it.
Several factors might lead managers to develop a cognitive structure that causes them to misperceive and misinterpret information. These factors are called cognitive biases. So, cognitive biases are factors that systematically bias cognitive structures and effect organizational learning and decision making. Cognitive biases include cognitive dissonance, illusion of control, and several other cognitive biases that influence the organizational learning and decision making. According to the cognitive dissonance theory, decision makers maintain consistency between their images of themselves, their attitudes, and their decisions; Managers look for or interpret information that confirms and reinforces their beliefs, and they ignore information that does not. Illusion of control is a cognitive bias that leads managers to over-estimate the extent to which they can control a situation because they have the skills and abilities needed to manage uncertainty and complexity; when top managers lose control, they can move to centralize more authority, in their mistaken belief that this will give them greater control and allow them to solve their problems.
Quantum technological change refers to a fundamental shift in technology that revolutionizes products or the way in which they are produced. New products or operating systems that incorporate a quantum technological improvement are referred to as quantum innovation. Quantum innovations are likely to cause major changes in an environment and to increase uncertainly because they force organizations to change the way they operate.
Incremental technology change refers to the refinements and improvements that are continually made to a particular technology over time, and incremental innovations refer to products or systems that incorporate and benefit from those refinements.
Both quantum and incremental technological changes are two types of technological change and advances in technology are at the core of the innovation process. Technology is defined as the skills, knowledge, experience, body of scientific knowledge, tools, machines, and equipment used in the production, design and distribution of the goods and services. So, they have a relationship closely and quantum technological change does as the premise for incremental technological change to refine the best and suitable products or operating systems then they can bring the benefits into organizations.
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These types of change are so important to organization because both these can bring a lot of benefits to organizations. Organizations, they can raise the competitive in the market then growing up day by day. The innovations that result from quantum and incremental technological change are all around us such as the products: microprocessors, PCs, Smartphone, online information, music, video, flat-screen TVs, video-games online, small digital camcorders, and the genetically engineered medicines made by biotechnology. The above products are commonplace and they are being continuously improved and cheaper.
Power in organization is the ability of one person or group to overcome resistance by others to resolve conflicts and achieve a desired objective or result.
In organization, CEO is very important in managing the organizational conflicts. The relative power of the CEO or the board of directors, and other top managers is very important in understanding how and why organizations change and restructure themselves and why this benefits some people and subunits more than others. To know and understand how and why organizational conflict is resolved in favor of different subunits and stakeholders, we want to see at the power issues closely. The power is applied to solve conflict, element of obligation exists. The actors with his or her power can bring the outcomes they order over the opposite other actors. The possession of power is important for all kinds of decisions that shall be chose to solve a conflict. The decisions are made through the bargain between organization unions, the relative power of the many unions to influence decision making determination. How conflicts get resolved and which subunits will get benefits or to be suffered.
The conflict and power have closely relationship. Conflict appears because different managers or subunits must co-operate each other to get the organizational targets. At that time they are in competitive for organizational resources and have different targets and top priorities. When the situation appears that causes these groups to fight for the resources to pursue their interests then conflict emerges.
In short, the maintenance of the power between different groups of organizational stakeholders should be kept for solving the conflicts between different managers or groups in the organization. The power of person who can combine the interests of each party forward to the organizational goals.
Authority in an organization is given from the organizational/company charter, which shareholders allow board of directors and to grand the authority to CEO who can use the resources of organizations to create value for shareholders. Then, CEO has rights to grand the authority to each functional manager in organization. Each functional manager can give the authority to subordinates in his/her department.
So, authority is the power to hold people for their actions and to influence what they do or and how they do it directly.
Basically, the authority can be given depends on each organization setting up. When the authority is centralized, authority is maintained by the top managers. In generally, less scope of person to engage in behavior pointed at raising the power. When the authority is decentralized, authority is authorized to lower people in the organization chart position who are responsibility to use the resources of organization effectively.
The authority is different from the power. The authority appears when a person or legal organization gives somebody a limited scope of right of work in a group or an organization. The authority comes from outside of a person. The power appears when a person or a group people have strong abilities, skills in their work responsibilities. The power comes from inside of a person, a group, or an organization.
Within organization, person or department can gain the power by the ways hereunder: The authorized person or groups make a decision of changes or solving problems that raise the implementation and it can increase the power in the control of this resource.
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