Tuesday, December 27, 2011

Problems of an Organization Adapting to change

In the last blog, we had a case of TV which we would begin using for the next few blogs to understand the concepts of management. We begin today's blog with the very famous question - Does strategy drive the organization structure or does the Organization structure drive the organization's strategy. The school that believes Organization behavior is only partially preordained by the environmental conditions and that the choices which top management makes is critical determinants of organization process and strategy is called the strategic-choice school. 

To link the context to the TV case, it would be easy to understand that TV had to experience a change in its products and markets, to handle these it had to change the technological processes, the administrative structure that used to plan, coordinate and control the company.

The general focus over the next few blogs is again the process of organization adaptation which we call as the "adaptive cycle". Specifically the adaptive cycle could be thought of as comprising of 3 problems listed next.

The choices that the organization's top management is many, but for the sake of simplicity to understand how the organization adapts to its changing environment, we could clarify the problem of Organization Adaptation into 

  1. Entrepreneurial Problem
  2. Engineering Problem
  3. Administrative Problem

It would be hard to state where one problem ends and the other begins, and many a times the management of the organization would have to simultaneously handle multiple problems. Just for the sake of understanding these better it would be a good starting point to analyze these 3 separately.

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