Organizational Theory Discussion3

discussion 3

by Dhana Karthik Vemulapalli - Monday, 2 September 2019, 6:46 AM

 

Even when managers are fully aware and recognize the seriousness of the changes that are occurring in their competitive environments, they may still have difficulties to formulate appropriate responses or strategies to prevent these threats. A good example how to successfully deal with this problem is Kodak. Kodak’s leadership equipped themselves with the adequate flexibility needed to respond quickly to business environmental changes. We have already mentioned the cognitive factors, besides them there are learning issues. Failures in organizational learning also limit organizational adoption and ability to change. Here, we examine one of the most important organizational learning issues, the distinction between lower-level learning and higher-level learning. Lower-level learning is characterized by improvements or refinements of existing beliefs, understandings, and organizational processes. Higher-level learning involves developing completely new beliefs, understandings and organizational processes.

 

Most companies allocate the majority of resources to lower-level learning rather than higher-level. That allocation is clearly harmful, but managers have good reasons to make that decision. Low-level learning has a predictable and positive impact on performance. High-level learning is more likely to have those effects on financial performance in bottom line. Lower-level learning is based on improving current work, while higher-level learning might take whole new ways, markets and strategies. The exploration of the new, in Kodak’s case, their attempts to improve technologies order to develop new products, typically requires considerable investments and often results in financial losses for many years before firms see some significant benefits. Financial instruments for maintaining business success of the company in terms of crisis are varied. They have impact at the material content in the company’s balance, its financial position and financial result. There is another factor that is important to the success of higher-level learning efforts is absorptive capacity (Cohen, Levinthal, 1989. p. 128), which has been defined as the ability of firms to “recognize the value of new information, modify and apply it to commercial ends.” (Schneider, 1987, p. 439). High absorption capability companies have a better view on external environments. They can recognize new technology and use that knowledge in the organization. Firm absorptive capacity is determined by the organization ability to recognize new developments.

discussion 3

by Arun Kumar Gellaboina - Monday, 2 September 2019, 7:12 AM

 

Environmental changes and organizational adaption have been the important part of research for management scholars. The organizational adaption is important because if there is no proper response to the changes, there is good chance that the organization might lose the market, customer segments or even the survival can be in jeopardy.

The concept of environmental change and organization adaption brings into the attention of the behavioral theory of the firm (Cyert and March, 1963). The factors that drive are social, political and economic conditions that influence the behavior of the organization, its nature and its survival. When the environment changes the organization is also expected to change and behave accordingly. The rate of change should be parallel. The late the organization adapts to change greater there is chance of losing the market.

Increase in the Information Technology-

The most worthy change that is effecting the business environment is the shift of the industry from and industrial to an information economy. In the year 1991, industries invested time and money on computing rather than any other factors. This eventually lead to making things easier. For example, during 1980’s there were no computers so everything has to be done manually on papers. But by 2000 all the industries are not adapted to change of using a computer and have realized that the mistake that can happen manually be reduced.

Increase in Scientific Knowledge-

It is strongly believed that the growth in the scientific knowledge can help change the nature of organizations in long term. There is huge growth in scientific knowledge and scientific community over the decades. The knowledge these is days is feeding itself. Due to globalization and emerging technology any kind of knowledge is available out there. The amount of information is enormous. It is said that the weekday edition of a newspaper like the New York Times has more information than an average person can likely come across in his lifetime.

I have mentioned only the few points of how the environment change effect the organizations. This also impacts various factors like the profitability, leadership, market strategies etc. On conclusion the changes to any kind of environment, the organizations should always be ready and adaptable because in a market like this, always remember Change is law of life.

Week 3 Discussion

by Palankarao Kollipati - Monday, 2 September 2019, 3:07 PM

 

Impacts of Environmental Changes on Organization

The business organizations which are available in the current market are depending upon the environmental conditions at some point of time in their business functions and operations. But the environmental conditions which are present in society will not remain the same at all times because people can’t control their activities. The changes occurring at the environment will be done within a fraction of seconds but when these changes are occurring in market then their impacts will appears in the business organizations. The impacts which are occurring on organization because of these changes will be done at environmental activities and they are showing both positive and negative way in business. But their exact impact types can’t be expected by any organization because it is completely based on the situation and the range of environmental condition changes (Foley, 2010).

The impacts occurring at business organizations can’t be controlled because the changes are occurring naturally at the environment but we can take some precautions recovery methods to reduce the damage. The main reason behind these changes at both places is due to the relationship which had been involved among them because of their requirements. Business organizations are depending on the environmental conditions to complete their operations and functions in the market. The dependency of business organizations at the environment can be done in many ways like infrastructure, resources, materials and other climate information which is chosen based on the business field. The agriculture business completely depends upon the environmental and natural activities in case any sudden changes are occurring in them then their entire functions will damage (Simberloff, 2013).

Even the damages which are occurring at forests will cause negative impacts on companies because of most of the resources and materials that are using at organizations are collecting from them. Even the employees of the company behaviors, health and working activities will be changed according to the environmental conditions which are available around them (Tiwari, 2011).