MACROECONOMICS(A for ALPHA)

MACROECONOMICS (A For ALPHA)

MACROECONOMICS (A For ALPHA)

The theory assumes that because an organisation & its human resources are constantly being subjected to changing internal & external forces, managers must be flexible & adapt as circumstances change. It recognises that there is no one best method of management. Managers assess the nature of the task, the environment, the people involved, & so on, in order to find the most appropriate means of managing the situation. Adapting management & organisational approaches to change-The structure or organisational approach a business chooses will depend on: The organisation's culture, which refers to the values that provide standards for work & which help to set the levels of communication, delegation & initiative The nature of tasks central to the operation of the business, & the abilities of those responsible for carrying them out. A pyramidal structure organised along departmental or functional lines would suit highly specialised jobs. The effectiveness of various organisational approachesThe product line approach-As a business increases the number of products, it will often reorganise, with an executive officer managing a product line as a separate division within the larger firm. Some businesses organise themselves according to the needs of the customer, which can also change over time. For example, David Jones used to have three separate stores in the centre of Sydney, each with a focus on different groups of customers. The decentralised approach-The federal decentralisation organisational structure, involving some delegation of duties, power & authority to lower levels of the organisation, is more suited to large enterprises. In this system, autonomous (independently managed) divisions within the organisation are established to suit changes in the business environment. For example, in the more decentralised structures, much decision making occurs at lower levels of management. The matrix approach-Many firms have adopted a matrix approach, where the authority within functional departments still flows vertically while authority that crosses departmental lines flows horizontally. Matrix organisation - The flattened approach-Less checking of the product & the process is needed when teams are used. With fewer people needed to consult about decisions, a much flatter form of organisational structure is possible, as well as greater decentralisation of authority. Where businesses have simplified their structure because of cost-cutting & flattened management by thinning out the middle layers, greater flexibility has been demanded of remaining managers, who take on additional roles & responsibilities. The staff empowerment approach-Organisations can adopt a flatter management structure to become more market focused - to bring the decision-makers closer to the customer. With fewer layers of management, sales & service people need to be given the authority to solve problems immediately. NRMA is an example of a business that has empowered its front-line staff to make decisions & take certain actions without reference to management. To ensure that this approach works, management must implement education programs to give employees the confidence & knowledge to make such decisions. The technology approach-Technological developments that make the transfer of rapidly analysed information almost instantaneous, demand on the job ...