Organisational Structure

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Organisational Structure

Organisational Structure Ownership & Environmental Implications



Organisational Structure Ownership & Environmental Implications

Introduction

Literature relating organisational economics characterises the organisation as a team comprising a large number of suppliers of inputs. This approach requires a coordinator to measure, monitor, and reward each team member appropriately (known as the metering problem). Team production, developed by ((, uses transaction-specific investment, a type of asset specificity, to explain the existence of the organisation in which individuals in these teams have specific skills whose value is greater in current combination than in other exchange arrangements (McGregor, 2005). That is to say, externalities arising from the activities of team members could then be better monitored in organisations such as firms. However, whilst cooperation among the team members does not require a hierarchical structure, a hierarchy could nevertheless emerge to reduce opportunism or shirking by assigning to a member or members the responsibility of monitoring the performance of the team members (Argyris, 2004). Property rights could then be structured to reduce the likelihood of shirking by the monitor(s) by making them bear the costs of such behavior. This is then extended to explain why a variety of ownership structures exist. The core of the paper discusses types of ownership, organisational structures and environmental implications for modern business setups in 21st century.

Task (1) Necessity of Mixed Economy for UK

The modern British political economy could be traced back to World War II. The Great Depression that preceded the war, as well as the war itself, had created many hardships for the British people. Poverty, inequality, sickness, and insecurity were widespread among the British public. These facts persuaded many politicians and thinkers that a new relationship between the state and the free market was essential to achieve a just and stable order. Among the most notable thinkers was John Maynard Keynes, whose name has become synonymous with the rise of the British welfare state and mixed economy. (( wrote a highly influential report that formed the basis of the postwar introduction of a National Health Service, universal secondary education, unemployment insurance, an expanded state pension scheme, and the provision of universal family allowances for mothers.

The UK use what is called a Mixed Economy. In a mixed economy privately owned firms generally produce goods whilst the government organises the manufacture of essential goods and services such as education and health care. The United Kingdom is an example of a mixed economy. This is the same in Canada as it is in the UK. The government is subject to the National Constitution which ensures stability in the government (Badawy, 2005).

In this political economy, the Thatcher government attempted to inject stimuli to growth in the private sector through macroeconomic techniques known as supply-side economics. These measures included overall deregulation of the economy, tax cuts for the wealthy and for business, reduction in state spending on the welfare state, the ending of universal programs, the development of more selective benefits, and a series of privatisation measures. The era of council housing (public housing) came to ...
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