Discussion Thread: Open System Design Elements Replies
Chapter 4: How do you think planning in today’s organizations compares to planning in an organization 25 years ago? Do you think planning becomes more important or less important in a world where everything quickly changes and crises are a regular part of organizational life? Why?
Planning in today’s organizations has drastically changed from planning in an organization 25 years ago. Last century, the environment was not as uncertain as it is today. Therefore, long-range planning and forecasting were not needed like they are today because environmental demands did not drastically change as they currently do (Daft, 2021). A calm environment allows for organizations to focus on current problems and the efficiency of day-to-day operations. Today’s environment is volatile. These volatilities are not only prevalent at home but abroad. This makes planning and forecasting crucial for future success of organizations. “…In uncertain environments, planning and environmental forecasting actually become more important as a way to keep the organization geared for a coordinated, speedy response” (Daft, 2021, p. 165).
Based on the above information, planning and forecasting is of greater importance now than ever before. The world is quickly changing, and crises are becoming a regular part of normal life. There is a strong positive relationship between strategic planning and performance (Ali, 2018). In today’s environment, every contingency needs its own contingency. For example, COVID-19 was a pandemic that no company could have foreseen. However, it drastically effected the way companies conducted business. Companies either adapted or they did not survive. This is just one reason why having cognancies in place for all types of situations is of great importance. Another reason why I think planning is more important for organizations now than ever is due to the empowerment of the entrepreneur. Anyone can start a business if a need is not currently being met or if a current organization is failing to meet the need they are expected to meet. A new company can be raised and then immediately can start competing with the other organization.
Chapter 4: Is changing the organization's domain a feasible strategy for coping with a threatening environment? Can you think of an organization in the recent news that has changed its domain? Explain.
The changing of an organization’s domain is a feasible strategy for coping with a threatening environment. A domain “is the chosen environmental field of action. It is the territory an organization stakes out for itself with respect to products, services, and markets served. Domain defines the organization’s niche…” (Daft, 2021, p. 148). Therefore, domains are specific areas where organizations operate knowing that they have the greatest chance of remaining profitable. These domains are specifically selected based on the services offered by the organization and the need that consumers have within the specific domain. Organizations cannot stay stagnant. They either must continue to perfect their current course of action or change their course of action. If neither of these happen, they will eventually fail. It is important to analyze if the threats within the environment outweigh the opportunities that an organization must increase its market presence or its profitability.
An example of a company that shifted its domain to deal with a threatening environment would be Chipotle. The threatening environment was and still is COVID-19. Many companies shifted their domains during this pandemic, but Chipotle is working hard to thrive in its environment. Prior to the pandemic, Chipotle had no remedy for consumers who did not want to go into the store to get their meal. “However, in 2020, the company has significantly invested in high-margin drive-thru pickup lanes that it calls “Chipotlanes.” These drive-thru lanes exist primarily for mobile pickup orders, which means… it caters to customers concerned about COVID-19…” (Ludwig, 2022, n.p.). These high-margin drive-thru pickup lanes not only work to serve the consumer but it is also self-serving in the process. Chipotle will be able to increase production and sales while simultaneously increasing efficiency. Chipotle, like other food service businesses, was not anticipating that a global pandemic would strike and create such levels of fear where people could not interact near each other.
Chapter 6: Compare the descriptions of the transnational model described in Chapter 6 to the elements of the learning organization described in Chapter 1. Do you think the transnational model would work in a huge global firm?
There are stark differences and similarities between the learning organization in Chapter 1 and the transnational model described in Chapter 6. Learning organizations operate in an informal fashion (Daft, 2021). With the learning organization, an informal system is a practice that works. Decentralization is the key. The employees have discretion to take care of their own problems and solve issues at their level (Daft, 2021). Information flows freely and various parts of the organization have discretion. A learning organization seems to have similar rules as a transnational organization as it relates to knowledge sharing, learning, and cooperation between departments.
The transnational model is extremely complex and diverse. This model “represents the most advanced kind of international organization. It reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts” (Daft, 2021, p. 254). Transnational organizations have achieved the ultimate collaboration by means of effective communication between departments (Caniglia, John, Bellina, Lang, Wiek, Cohmer & Laubichler, 2018). These organizations also specialize in providing multi-faceted services which all harmoniously work together. Many varied parts are synced and operating effectively and concurrently (Daft, 2021).
The transnational model is specifically designed to work in a huge, global firm. “The transnational model is useful for large, multinational companies with subsidiaries in many countries that try to exploit both global and local advantages as well as technological advancements, rapid innovation, and global learning and knowledge sharing” (Daft, 2021, p. 254). This type of model offers global solutions through local service. These types of companies are complex. Therefore, this model offers free flowing information while simultaneously having a decentralized outlook in the sense that decision making must be pushed down the chain to aid in efficiency. This model also incorporates centralization within the different aspects of the organization. Companies with subsidiaries must be able to make their own decisions in real-time to allow for proper efficiency of decision making and execution of tasks.
How can/should a biblical worldview be applied?
Organizations that fix their eyes on Christ can trust and take heart that no matter what happens, God has it handled. Proverbs 3:5 says, “Trust in the Lord with all your heart, and do not lean on your own understanding” (ESV). This verse speaks volumes to how organizational leaders must give it all to God. This point can be directed to the question regarding domain and shifting domains due to threats. God always provides a way. If the opportunity presents itself to shift, that could be soft nudge from God indicating that it is time for the company to pivot and take on a new endeavor.
References
Ali, A. A. (2018). Strategic planning–organizational performance relationship: Perspectives of
previous studies and literature review. International Journal of Healthcare Management, 11(1), 8-24.
https://doi.org/10.1179/2047971915y.0000000017
Caniglia, G., John, B., Bellina, L., Lang, D. J., Wiek, A., Cohmer, S., & Laubichler, M. D.
(2018). The glocal curriculum: A model for transnational collaboration in higher education for sustainable development. Journal of Cleaner
Production, 171, 368-376. https://doi.org/10.1016/j.jclepro.2017.09.207
Daft, R. L. (2021). Organization theory & design (13th ed.). Boston, MA: Cengage Learning.
https://mbsdirect.vitalsource.com/reader/books/9780357141618/pageid/82
Ludwig, S. (2021). 10 Hugely Successful Companies that Reinvented Their Business. U.S.
Chamber of Commerce. https://www.uschamber.com/co/good-company/growth-studio/successful-companies-that-reinvented-their-
business#:~:text=One%20of%20the%20most%20recent,bowls%2C%20tacos%20and%20other%20items