Research Topics: Organisation Theory And Design

ORGANISATION THEORY

INTRODUCTION Decision making process is considered as the essential tool for keeping business organizations in its proper pacing in maintaining market success and increase in growth and stability as business managers must decide on better decision for the good of the company and that as a manager he need to use a set of framework in realizing his decisions and not to follow his gut feeling in times of critical situations that needs collaborative consideration from the management team and that he then needs to justify his interest in managerial decision making and focused on its distinct models and framework as it is the integral part of every business. Managers need to decide according to standards and principles being followed by the management and to respect its organization governance in which gut feeling approach is of no use because when managers make their decisions they should not be subjective in ways but objective and should adhere to the positive manner of the constructive approach of realizing the details of making decisions work effectively.           MAIN BODY The analysis of         provided a basic framework for investigating the general process of individual decision making that it comprises a few discrete stages: (1) what is the problem? (2) What are the alternatives? (3) Which alternative is best? as with regards to managerial decision making, the text emphasizes that such stages play out in a set of steps ranging from initial detection of a problem to implementation and monitoring of a chosen solution. The individual’s decision-making style is his natural, habitual (albeit learned) approach to effecting a choice and then acting on that choice.  In particular, a substantial amount of research has been done to investigate the impact of personal values on outcomes of the decision-making process. For example, values have been related to differences in behaviors ranging from preference ratings for automobile attributes, to mass media usage, to occupational choice.             Henceforth,           described managers as having to mediate decisions in response to a wide variety of pressures, as well as often having to put together a coalition of inside and outside groups to survive using instruments that characterizes managers as “feelers” rather than “thinkers,” and as “intuitive” rather than “sensing”: These managers are more interested in people and feelings than in analysis and is always waiting to know more before deciding, holding off decisions and judgments. They are open and flexible, able to see and appreciate all sides of issues, welcoming new perspectives and information about issues. Although private managers might demonstrate value preferences different from those of different decision-making styles, our research proposition is that the relationships between their values and decision-making styles should obtain. There was a decision-making framework for business managers who want to build their brands in a corporate advertising environment. The framework raises several questions that brand managers need to address and be able to show how questions pertaining to consumer characteristics and brand tactics form the basis of a useful conceptual model. There needs to investigate whether brand managers consider consumers’ corporate ad knowledge and how they use it in their brand planning for learning about actual brand decision-making processes in a corporate advertising environment.       It was believe that the decision making framework will facilitate conceptually based research on the management of brands in the modern business environment and limiting the gut feeling approach to be done to develop a meaningful theory of organization knowledge that can guide the managers. Decision-making processes related to choice of market, timing and mode of entry are therefore important to understand from both a research and managerial perspective ( 1999).  Moreover, (1989) challenged several of the accepted principles of decision making, her research demonstrated that more successful companies in a better environment could analyze more relevant data, consider multiple alternatives simultaneously, and make faster decisions than their less successful competitors practicing slower decision-making processes in the same market. For example, the “comprehensive” perspective posited that, due to human cognitive limitations (, 1955) faster decisions could be made by limiting alternatives considered and by constraining analysis ( 1984;  1973;  1976). It was also generally accepted that centralized decision-making would speed the decision making process because conflict and consensus are more time-consuming than an autocratic process.        (1989) stated that when decision makers immerse in real-time information, they acquire “a deep personal knowledge of the enterprise that allows them to access and interpret information rapidly when major decisions arise. The executives making fast decisions also use tactics to accelerate analysis of information and alternatives during the decision process (p. 570).       theory to faster decision making argues that two of the antecedent’s necessary for strategic decision speed are a two-tier advice process and consensus with qualification. Both of these antecedents call for a leadership type that inculcates others’ ideas and thoughts in the decision-making process. Therefore, decision-making theory requires a top management leadership that values participation of intellectual stimulation and individualized consideration, would allow a faster decision making process through       ‘s (1989) theory of decision making. Moreover, the business world has been able to adapt some of the thinking from the field management practice. Many concepts can be applied to how people interact and how to operate the business as one of the concept that plays a major role in decision is gut feel or intuition.           People generally agree that intuition refers to the brain’s process of interpreting and reaching conclusions about phenomena without resorting to conscious thought. Thus, the Boston Consulting Groups wrote “intuition is the subconscious integration of all experiences, conditioning, and knowledge of a lifetime including the cultural and emotional biases of that lifetime.” The debate raging in the business sector in the clinical world is whether you should trust your intuition in making decisions or ignore it because of its lack of critical analysis.        takes the view that intuition is extremely important and essential in decision making. He uses multiple examples of firefighters, intensive care nurses, marines and leaders who use their intuition to come to decisions in a rapid rammer because of their intuition skills. People have “gut feelings” when faced with making choices at work. For example, you may have evaluated a job candidate when your gut told you “something” seemed wrong because there is no way to quantify, these hunches you dismissed them as untrustworthy, only to discover later that your gut feeling was right all along.        demystifies the role intuition plays in the workplace and gives us permission to trust our instincts. He shows that gut feel, far from being an innate “sixth sense,” is an essential and learnable skill that anyone can use to improve job performance.       t is as important a tool in making a decision as interpreting numbers or analyzing data. Gut feeling or Intuition is an essential, powerful and practical tool.        discovered that the more experience people have in any particular field, the more they rely on gut feelings because it is a natural and direct outgrowth of experience. He defines gut feel/intuition as “the way people translate their experience into action.” In other words, people’s experience lets them recognize what is going on and make decisions. Most real-life decisions are simply not amenable to classic, analytical decision making as the experienced managers often make the mistake of assuming that their subordinates see the same patterns that are known to them. Then,        believes that a lot of us want to accept the transformative power of intuition as if it were magical. According to him, people want to believe in intuition but it unfortunately blinds us to the less romantic realities of business decision making. For every great example of a great “gut decision’’, there is an equal and opposite example of a terrible one.       refers to research studies of cognition that show a person’s thinking is subject to all sorts of biases and flaws, most of which operate at a subconscious level – the level of intuition.         The essence of business environment is to apply decision making structure in its process even if gut feeling in some ways can be good as indeed, the human drive to find decision patterns that will deal into the process of developing and shaping an appropriate organization structure amicably effective for modern business environment as the new decision support systems don’t eliminate human gut feel or intuition, as         asserts that people harness its power while remedying its most pernicious flaws. In fact, he believes computers will impose a left-brain discipline on right-brain hunches in a way that is well beyond the computational capacity of the human mind. He feels that gut feelings continues to play a key role, allowing people to make informed decisions without short-circuiting its power within the combination in a form of creative potential as it offers the true fulfillment of the promise of human intuition.               CONCLUSION Therefore, I agree that managers should use set of framework that will give basis and support in terms of deciding on something integrating to the decision making process on the other hand, the gut feeling approach could be used by the modern business environment depending upon which the need may arise and it is a sort of case to case situation as the purpose of making better decisions is to provide business success in the global market by means of depicting the general nature of relative components along with its aspects within exclusive domains and believe that in order for an organization to be more successful there should be a fit within its decision-making processes and organization context along its top management team. Furthermore, business managers can use gut feeling approach in some ways of realizing the decision framework respectively. Finally, in referring to decision-making, certain scale can be developed to determine if the decision making framework process at the managerial level of needed information and if the decision-making process is essential for the structure of the business as it provides evidence and making such study in research an important basis for future research p.           REFERENCES   Credit:ivythesis.typepad.com

ORGANISATION THEORY

INTRODUCTION Decision making process is considered as the essential tool for keeping business organizations in its proper pacing in ma...

ORGANIZATION THEORY

Theorists’ Contributions on Organization Theory Introduction             Organizational theory is a part of organizational studies which deals with the academic research and analysis on organizations; other sciences including sociology, psychology, economics, anthropology and political science are integrated in order to develop these theories. Over the years, organizational theories had gone through various periods of development. This was actually initiated by Plato, a Greek Philosopher who raised the significance of leadership, and Aristotle who introduced the role of persuasive communication. Later, the development of organization theory was influenced by various theorists. Due to their contributions, organization theories focused on various aspects of an organization. Initially, organization theory focused on academic discipline and scientific management. Eventually, the center of organization theory was changed on the effects of psychology and various human factors. Hence, theorists began introducing theories that are relevant to team-building and motivation. Organization theory shifted further as it began to concentrate on operations research due to the operators’ growing interest on rationalistic and systems approaches.             From these major transformations, it is clear that organization theory has indeed gone through significant developments. Through the contributions of various theorists, previous and current managers are able to improve their operations and realize significant aspects of operating an organization. In this paper, the development of organization theory throughout the 20th century will be described. Specifically, this will be done by citing some important theorists on various periods, highlighting their major contributions.   Classical Theorist:             An American engineer that aimed to enhance the efficiency of the industrial sector,   was among the intellectual pioneers of the Efficiency Movement and brought significant influences during the Progressive Era. He obtained a degree in Mechanical Engineering and became an apprentice machinist, enabling him to learn of various conditions in a factory. His exposure to various organizational settings allowed him to develop various useful theories and concepts. One of which is his belief that contemporary management should focus on establishing collaborative relations between the workers and the top management. Moreover, the combined knowledge and skills of the management and workforce will result to better organizational outcomes. In general, he stressed that both need each other and must work together to achieve the organization’s objectives.   Contribution             One of the important contributions of  was the introduction of the scientific management principles, which is also referred to as Taylorism. The development of these principles was based from his own work experiences in various organizations.  There are a total of four principles, which emphasizes that activities within the organization should be done through scientific means ( 1999a). The first principle explains that the performance of an employee should be analyzed scientifically. Organizations should then set certain work standards that describe the duties and expected output of each employee. Their performance should then be analyzed through their ability to meet these standards. The second principle discusses that organizations should scientifically assign their employees to certain job posts. According to , each worker has the ability to be a first class employee; it is then on the responsibility of the management to find out which specific job and training is appropriate for employees to reach this level ( 1996).             The third principle is centered more on the relation between the management and the workers. In particular, the management must coordinate with its workers so as to achieve scientific work results. This is further supported by ’s fourth principle, which states that responsibilities of the workers and the management must be clearly divided. As managers focus on supervising and planning, the worker will be the one in charge of carrying out the plans of organization ( 1996). In general, the scientific management principles were developed by  so as to promote the concept that in an organization, the prosperity of the management and the employees must be given equal weight. The development of the scientific management principles was also done due to his belief that the initiative and incentive system in management should be transformed. Rather than relying fully on the workmen to solve organizational issues, the scientific management principles help out employees by placing half of the problem to the management’s responsibility. Comment             ’s scientific management principles allow the employment of equal work distribution in an organization. I believe this is a beneficial aspect as work issues are resolve much easier through the collaborative efforts of the employees and the management. Moreover, following work standards in analyzing workers’ performance, selection and development also make processes more systematic. The bureaucratic nature of the theory also stresses the concept that formal division of work should be observed between the management and the employees. I think this is a significant theoretical aspect as it will foster team-building, higher productivity, enhanced worker loyalty, effective communication and continuous management-worker support.   Neo-Classical Theorist:             Born in 1923, is a management professor at Utah University and an American clinical psychologist. He has a strong interest on human mental health and believed that this represents the core issue of the present time. Aside from working in the US Public Health Service,  also introduced the hygiene-motivation theory, which is found in his book T initially published in 1959 ( 1999b). The works of  for organizational management is mainly centered on employees in the workplace. His contributions have also made a great impact to managers as his popular concepts speak of both management expertise and knowledge.    Contribution             As ’s work is focused on the workers of the organization, he was able to introduce the principle that within the workplace, there are certain factors that causes job satisfaction and dissatisfaction. Through this realization, he was able to develop one of his known theoretical contributions called the hygiene-motivation or the two-factor theory ( 1995). This theory was actually developed from his research using 200 engineers and accountants from Pittsburgh. The aim of the study was to determine whether the employees are satisfied or dissatisfied with their current jobs.             From this research,  concluded that an individual has two types of needs. One type is the lower level needs in order to avoid pain and deprivation; the higher level needs on the other hand is necessary for the individual’s psychological growth. The first set of needs is termed as the hygiene factors or dissatisfiers whereas the high level of needs refer to the motivators. The hygiene aspect pertains to factors that promote comfortable work situations. Examples of these factors include supervisory behavior, physical workplace conditions, supplemental benefits and other similar factors that are peripheral to the actual work of the employees. Hygiene factors do not really promote job satisfaction; however, they do prevent the rise of job dissatisfaction ( 1995).              The motivators on the other hand, pertain to factors that are more related to the employees’ actual work duties. Also known as growth factors, these are typically the outcome of the feedback generated by the workers and their job performance. Recognition, advancement and growth as well as responsibility are some of the examples of motivators ( 1995).  noted that dissatisfiers and motivators are two different and separate factors as they deal with two distinct levels of needs. From the hygiene-motivation theory,  was able tot develop the KITA (Kick in the Ass) concept, which explains that benefits, job participation and wage increases are not the only one that motivate employees ( 1999b).   Comment             One of the important strengths of Herzberg’s hygiene-motivation theory is that it is very comprehensive and generally applicable to all organization types. The introduction of this theory should be considered a breakthrough in organization and management theory as it makes employers realize the significance of satisfying not only the needs of their external customers but their employees as well. The hygiene and motivation factors are also serve as a helpful guide for managers to decide which motivating factor is appropriate for each employee. The theory is also essential as it promotes the reduction of employee turnover as well as employee appreciation.   Modern Theorist:              was the author of book entitled  and also worked as a telecommunications executive. ’s book had resulted to a great impact to the management sector as it discusses an important aspect of organization theory, particularly on the functions of the organizational executives. Similar to , the concepts developed by  were greatly influenced by years and years of organizational experience. This aspect makes him one of the unique organizational theorists of the twentieth century. However, while he had made significant contributions to the development of organization theory,  was not as well-known as the other theorists. According to  (1974), this is mainly because ’s work can be difficult to read and follow due to its abstract features. Moreover, his works can be redundant.   Contributions              contributed two popular theories that are centered mainly on effective communication systems in the workplace. One of which is the theory of authority. In this theory, he noted that for a communication between the manager and the subordinate to be authoritative, four conditions must be met. First, the subordinate must understand the message being relayed; second, the subordinate must be able to comply or follow what has been said; third, the message and the subordinate’s goals must be compatible with each other; finally, the subordinate must believe that the message relayed does not contradict with the organization’s main objectives. This theory then stresses that the authoritativeness of the communication process is significantly dependent on the subordinate rather that the manager. The theory of authority also stresses that in the communication process, managers should respectfully and competently approach their subordinates (1968). ’s second theory is the theory of incentives. Here, he stated that in order to encourage subordinates to be cooperative, persuasion and tangible incentives should be provided.             While the said theories appear to highlight the subordinates, intends to stress more on the role of the executives in the organization. Specifically, he said that executives must be to develop and follow a certain communication system. It is also their role to secure the essential services each subordinate can provide. Furthermore, executives must also be adept in developing organizational objectives ( 1968).             In his book,  also noted in order for organizations to survive, effectiveness and efficiency must be present ( 1968). He defined effectiveness as the factor that enables organizations to achieve their goals. On the other hand, he defined efficiency as the degree to which the organization is capable of meeting individual needs.  then summed up by noting that an organization that is able to achieve its goals and satisfy the motives of its members would result to cooperation, allowing the organization to survive.   Comment             It has been indicated in several literatures that effective communication is essential in the workplace, especially between the management and the employees. The theories of  are then significant particularly in promoting open communication channel within the organization. Moreover, these theories appear to support the goal of ’s hygiene-motivation theory where a stronger bong between the managers and the employees is necessary. Open communication is also very relevant to contemporary organization management, especially in relation to issues of discrimination. By means of applying ’s theories, organizations will be able to realize the value of treating and communicating with all subordinates equally. His theory of effectiveness and efficiency also promotes the concept that an organization will not last if it will only focus on satisfying the management’s needs alone.   Post-Modern Theorist:              is an author as well as consultant and speaker for change management. Among his popular books include . He is also a research professor in Toronto at York University. He is well-known for his works on management thinking, giving him numerous international awards.  has been a recognized icon for post-modern organization theory as his works and keynote presentation are focused on addressing current organization issues. In particular, his knowledge on organizational management allows managers and leaders to overcome various challenges, develop frameworks for success and implement change effectively. He is also known internationally as he had already worked with several major organizations in North America and Europe.   Contribution             One of the significant contributions of  is his use of metaphors in order to describe the important components of an organization. This contribution also characterizes post-modern theories wherein organizations are described and analyzed through the use of images.   then developed various metaphors to represent the distinct aspects of an organization. There are 8 metaphors all in all, which include organization as a culture, machine, brain, organism, psychic prison, flux and transformation, political system and an instrument of domination ( 1986). According to (1993), ’s metaphors can actually be grouped into three main divisions. These are the mind, organism and machine groups. The mind group is focused on human relationships and coordination mechanisms. The organism group is centered on the dynamic relation between the environment and the organization. The machine group on the other hand, pertains to the organizational processes.             According to , the metaphors were not developed in order to argue which metaphor best describes an ideal organization. Rather,  aims to stress that leaders must be able to combine organizational metaphors that complement each other so as to achieve success. He noted further that using a single metaphor, particularly the machine factor, will only result to undesirable organizational outcomes. By means of combining complementary metaphors, leaders and employees will be able to understand the dynamic nature of organization management. ’s theory of metaphors also promotes the individual nature of organizations. Specifically, each organization is affected by distinct affective factors; combining various metaphors then allows organizations to overcome their individual issues ( 1986). Thus, he noted that in order to apply the theory effectively, metaphors should be utilized based on the current environment surrounding the organization. It is also essential that the metaphors used fit the organization’s present situation.   Comment             ’s contribution on organization metaphors is very relevant to present organizations. In particular, his theory clearly emphasizes the need for organization to be flexible and open to changes. It has been indicated by  that the metaphors used by the organization must be adaptable to its current environment and condition. Through the combination of appropriate metaphors, ’s theory then teaches organizations to constantly change its strategies, approaches and culture not only for the purpose of adaptation but also to achieve better organization outcomes. The theory of  on metaphors also supports the individualization concept that contemporary organizations should follow. This concept explains that in order to succeed, an organization should not just plainly follow known best practices and strategies used by other organizations. Instead, leaders must analyze their own organizational needs and apply customized solutions.   Conclusion             In this brief discussion, four types of organizational theorists had been discussed. Their background as well as their important contributions had also been identified. From these, it is clear that each type of theorist was able to provide significant principles that are very applicable to present organizations. In general, these principles teaches organization to give due value to their employees. Work standards should also be developed to guide the organizations’ various processes. Good relations and communication systems must also be observed in the workplace so as to foster cooperation. Finally, organizations should also be willing to adapt change and combine useful tactics in order to operate successfully. Running an organization is indeed a complicated task; through these theoretical contributions, several managers and employees are able to focus on its most significant aspects.   References: Credit:ivythesis.typepad.com

ORGANIZATION THEORY

Theorists’ Contributions on Organization Theory Introduction Organizational theory is a part of organizational studies whic...

Organization Theory

Organization Theory Introduction Organizations are important aspects in a company or firm. Companies designate committees or organizations to maximize the full potential of each of its members. Organizations are useful in a company for a trickle down of information and assignments, and easier accomplishment of tasks. For a company or firm, having different organizations is a mean to an end in order to achieve its short-term or long-term goals.  (2006) reports that an organization, by its most basic definition, is an assembly of people working together to achieve common objectives through a division of labor. He added that people form organizations because individuals have limited abilities, and an organization provides a means of using individual strengths within a group to achieve more that can be accomplished by the aggregate efforts of group members working individually. With organizations, businesses and companies are more efficient in delivering goods and services to consumers. It has been reported that organizations are not merely physical, they are also social and technological systems, being multi-dimensional, and with aspects which are immeasurable (2006). Drawn from physical and engineering models, systems theory considers organizations as systems with boundaries, which make exchanges with the environment and must adapt to environmental changes in order to survive (2006). They are open systems, which interact directly with the environment and produces inputs (taking in raw materials, finance and recruits from the outside world) and outputs (provide products and services, pay wages and dividends, technology and human resources transform input to outputs). For many years there have been countless theories and models of how business organizations function and what their essential characteristics are. The theory states that a successful organization acts on relevant information and ignores the irrelevant. Ultimately, the organization that excels at processing information facilitates learning and the development of new knowledge (, 2006). Factors of the Organization Theory             Several factors determine the success, effectivity and efficiency of an organization. These factors are its environment, size, life cycle and control, and the dynamism of each is important. (2001) points out that organizations actively adapt to their environments, and organizations whose structures are not fitted to the environment (which includes other organization, communities, customers, governments, etc.) will not perform well and will fail. If the environment is stable, this selection process will lead to most organizations being well adapted to the environment, not because they all changed themselves, but because those that were not well adapted will have died off ( 2001). It has also been reported that the economy is a giant network of organizations linked by buying and selling relationships, where every company has and is dependent on suppliers (inputs) and customers (outputs) for resources and money ( 2001). The environmental interchange is continuous, as the organization must advertise and sell its products to customers who are in the broader environment ( 2006). If the company cannot sell its product, then it will not survive, as it draws its very sustenance from the environment to become a viable organization. While a business firm or a company generally interacts with its sectors, its main emphasis is on making a profit. Since it is an economic organization, its executives carefully define a particular segment of the economic environment they want to exploit; analyze market demands of the cultural sector for a particular product, and initiate organizational policies to encourage the market to buy their product. In the case of Nokia Corporation, they are highly dependent on the environment or market on where to advertise and sell their products. Nokia invests a lot of money for effective advertisements such as TV commercials, internet, printed ads, billboards and endorsements. Their use of technology and influence in the cultural sector of society are positive factors in effectively selling their products. Almost all people all over the world uses cellular phones and greatly patronize Nokia’s brand over others, regardless of age, sex or race, being user-friendly and effective in communication and entertainment.                Another factor of the organizational theory is the size of the organization. It has been reported that size refers to the capacity, number of personnel, outputs (customers or sales), and resources of an organization ( 2001). It is a property at the interface between internal structures and the environment, and is often treated as an independent variable that shapes and determines other structural variables ( 2006). Size often characterizes the scale of the work being conducted, as the increase in size is related to increase structuring of organizations activities but decreased concentration of power. Organizational size is positively associated with structural differentiation, as larger organizations are more complex, and besides increasing the types of activities, it increases the number of activities within each type. It has been reported that large size increases structure, which increases pressure for more administration to control and coordinate the increased heterogeneity of work activities (2006). However, within subunits increased size increases the number of similar activities, which reduces the amount of administration required to coordinate them, meaning a larger size of members in an organization results to higher maintenance and possibly greater outputs. The size of an organization is important for Nokia Corporation, as they need more employees for increased production, research and development, and promotion of their product all over the world. In relation to this is the individual competence of the employee, including the people’s skill, education, experience, values and social skills. Competence cannot be owned by anyone or anything but the person working for Nokia, who possesses them, because when all is said and done employees are voluntary members of the organization ( 2001).             The organizational life cycle is a model that proposes that businesses, over time, progresses through a fairly predictable sequence of developmental stages, namely, start-up, growth, maturity, and decline, with diversification sometimes considered to be an additional stage coming between maturity and decline (, 2001). During the start-up stage, companies accumulate capital, hire workers, and start developing their products or services, while toward the end of this stage, companies often experience explosive growth and begin to hire new employees rapidly, because business opportunities exceed infrastructure and resources. This expansion continues into the growth stage where companies increase their resources and workforces dramatically. Despite their expansion, companies may still need additional funds to exploit all the available growth opportunities, so many go public at this point, too. The maturity stage is marked by security and by a slight slowdown, and in this stage, companies have amassed assets and solid profits, by becoming established in the market. In order to avoid the decline stage, mature companies often take a variety of actions to renew their growth, such as acquiring other companies and expanding product lines. If companies fail to implement measures to improve growth, they will most likely enter the fourth and final stage, the decline stage. This stage not only company hiring drops, but also company sales and profits. Furthermore, demand for a company’s products or services decreases, so to compensate for the decline, companies launch downsizing or reengineering campaigns during this stage. If these efforts do not succeed, then companies look for a buyer or shut down. As companies progress through the organizational life cycle, the criteria for their effectiveness change. Companies tend to change their management styles, reward systems, organization structures, communication and decision-making processes, and corporate strategies. As companies mature, they usually strive to become more innovative or they diversify by making acquisitions (, 2001).             Control is needed in every aspect of an organization. Because of the existence of negative externalities, organization theory is influenced by the concept of control. It refers to the laws, regulations, and social customs that are meant to minimize the negative impacts of organizational activities. In addition, this is how workers are influenced to internalized ideas favored by management, such as how workers control themselves to the benefit of management by working hard, being efficient and productive in their work without being forced to do so. Control is responsible also, on how workers are persuaded to accept ideas such as the need for self-improvement, service excellence or even working hard. It has been reported that the surveillance or close monitoring of the activities of workers also helps management to keep workers in line, as it can be done through reporting requirements, regular performance audits and through high tech methods such as electronic monitoring, which includes computer programs that can monitor the number of keystrokes per hour, log on and log off times, websites visited and so on ( 2001). Dynamism of the Organizational Theory              (2001) emphasizes that a company such as Nokia has little machinery, other than its employees and because only people can act, they are both the minders of the machines and the machines themselves. For the most part, their competence is directed outwards, to the task of generating revenue, by solving customers’ problems, and it is this outward-directed energy that creates the relationships, networks, and image that comprise the organization’s external structure. In addition, people tend to be loyal, if they are treated fairly and feel a sense of shared responsibility, so the performance of the organization really matters a lot in determining its success in the market. However, part of the organization’s performance is its constant adaptation to change, as the market and the organization itself is very dynamic.             Change is inevitable, and so organizations must continuously change to adapt to their environment, to be able to control their organization. It has been reported that the change process can be thought of as a process, which stops the current process, makes the necessary changes to the current process and runs the new process (2006). In addition, when there is a process in an organization, it is not an easy task to make changes to this process immediately. Sometimes, a single organization may have varied business entities and changes in an entity may be reflected in another entity, and changes are not so easy. However, most of the organizational changes were not so deliberately planned, for they had come about almost spontaneously; as the result of a crisis, to accommodate individuals, or in response to a management fashion (1982,). There are different types of organizations, which have many branches across the world with varied cultures (2006). The Nokia Corporation exemplifies this, as it has to change its style in promotions in different continents and countries to suit the needs of each consumer. This change allows the organization to give a reactive or a proactive response to the changes that happen internally or externally, and help in its processes to be stable. Conclusion              (2006) states that, in summary, a business firm is by no means an island unto itself, for it is constantly interacting with the various sectors of its environment, and as the environment changes, so must the firm if it expects to remain a viable institution. The organization must learn how to adapt to be able to become more effective and successful in selling its products, such as in the case of Nokia Corporation. Each member of the organization must do his or her share of the responsibility to maintain the reputation of the organization and to keep in functioning. Continuous reevaluation and innovation must be made to improve the products, to work harmoniously with the members and to arrive to the organization’s desired profit. These will be achieved by cooperation, adaptation and sharing of information.   Credit:ivythesis.typepad.com

Organization Theory

Organization Theory Introduction Organizations are important aspects in a company or firm. Companies designate committees or organizatio...

WORLD TRADE ORGANISATION

Introduction:               This paper aims to determine the various contexts within the World Trade Organization (WTO) as an organization specifically regarding its legal structure, the respected committees involved in its activities and together with their functions as committees. Furthermore, the paper wishes to distinguish the financial matters of the organization, how the organization finances are distributed, where these come from and identify the major shareholders of the company if any. Moreover, the paper aims to discuss the performance background of the WTO by conducting a SWOT analysis and reviewing its current performance by comparing available data with those gathered from the previous years.   Brief History:               In January 1995, the World Trade Organization (WTO) became the successor to the General Agreement on Tariffs and Trade (GATT). Seven years of intensive negotiations in the Uruguay Round gave birth to an organization with vastly expanded responsibilities for international economic affairs. The WTO is undeniably a major player in the field of global governance, and its rules and processes will profoundly affect the future economic and political orientation of its 139 member countries as well as of the 30 countries in the process of joining.   By many objective criteria the WTO—and the GATT before it— have been remarkably successful at doing what they were mandated to do: liberalize trade and conduct international trade according to multilaterally agreed rules. Nevertheless, questions of a very fundamental nature are being raised about the role of the WTO in international affairs by a wide spectrum of interest groups. The manner in which these questions are addressed in the coming months and years will determine the role of the WTO in global governance ( 2001)   WTO Backgrounder:   The WTO is composed of about nearly 150 member/countries, which accounts for over the 97% of the world trade. Essentially, the WTO serves as a venue for member/countries governments to face and try to resolve out the business difficulties they are having. In the core of this all, the WTO exists because of the WTO agreements which have been reviewed, negotiated and promulgated by its members.   But the WTO does not only promote and liberalize trade, in some occasions it supports on maintaining and forcing trade barriers. This usually happens when trade becomes a threat to the members such ways as the spread of a disease. The WTO deals with trade matters in a global and non-global level. WTO is seen as an advocate body liberalizing trade but also serves as a forum for members to handle matter and resolve disputes and more specifically it does all these on a system of trade rules.   Fundamentally, the WTO serves as a place for members to resolve problems and finalize trade appointments. The first step for this is for the members to open up and talk with each other. Considering this, the WTO was born out of negotiations itself and everything else which the WTO does is made of negotiations themselves. The bulk of this work is taken from the 1986-94 negotiations which was also called as the Uruguay Round. This was under the General Agreement on Tariffs and Trade better known as GATT. Concurrently, the WTO now us the host for all these negotiations under the Doha Development Agenda which was launched last 2001.   Legal Structure:   The top level decision making body of the WTO is the Ministerial Conference which meets at least once in every 2 years. The entire membership constitutes the decisions which are most often times by consensus. While a majority vote is also plausible, this has never been used in the WTO and only happened in rare cases while under the GATT. The General Council also acts as the Trade Policy Review Body and the Dispute Settlement Body. The Goods Council, Services Council and Intellectual Property (TRIPS) council reports to the General Council. A number of specialized committees also exist. These committees work out with groups and parties to make out agreements and a range of other areas such as the environment, development while also handling membership applications together with regional trade agreements. All of these members can take part in all meetings and assemblies excluding the Appellate, dispute settlements and plurilateral committees.   Highest level: Ministerial Conference   The topmost decision-making body of the WTO is the Ministerial Conference, which has to meet at least every two years. It brings together all members of the WTO, all of which are countries or customs unions. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements.   Second level: General Council The daily work of the ministerial conference is handled by three groups The General Council, The Dispute Settlement Body and The Trade Policy.   Review Body. 1. The General Council- is the WTO’s highest-level decision-making body in Geneva, meeting regularly to carry out the functions of the WTO. It has representatives (usually ambassadors or equivalent) from all member governments and has the authority to act on behalf of the ministerial conference which only meets about every two years. The council acts on behalf of the Ministerial Council on the entire WTO affairs. The current chairman is  (Kenya) (2) The Dispute Settlement Body – Made up of all member governments, usually represented by ambassadors or equivalent. The current chairperson is  (Norway). (3) The Trade Policy Review Body (TPRB) – the WTO General Council meets as the Trade Policy Review Body to undertake trade policy reviews of Members under the TRPM. The TPRB is thus open to all WTO Members. The current chairperson is  (Canada).   Third level: Councils for Trade   The Councils for Trade work under the General Council. There are three councils – Council for Trade in Goods, Council for Trade-Related Aspects of Intellectual Property Rights, and Council for Trade in Services – each council works in different fields. Apart from these three councils, six other bodies report to the General Council reporting on issues such as trade and development, the environment, regional trading arrangements and administrative issues.               1. Council for Trade in Goods- The workings of the General Agreement on Tariffs and Trade (GATT) which covers international trade in goods, are the responsibility of the Council for Trade in Goods. It is made up of representatives from all WTO member countries. The current chairperson is  (Finland). (2) Council for Trade-Related Aspects of Intellectual Property Rights- Information on intellectual property in the WTO, news and official records of the activities of the TRIPS Council, and details of the WTO’s work with other international organizations in the field. (3) Council for Trade in Services- The Council for Trade in Services operates under the guidance of the General Council and is responsible for overseeing the functioning of the General Agreement on Trade in Services (GATS). It’s open to all WTO members, and can create subsidiary bodies as required. The current chairperson is  (Colombia).   Fourth level: Subsidiary Bodies There are subsidiary bodies under each of the three councils. (1). The Goods Council- subsidiary under the Council for Trade in Goods. It has 11 committees consisting of all member countries, dealing with specific subjects such as agriculture, market access, subsidies, anti-dumping measures and so on. Committees include the following:  (a) Information Technology Agreement (ITA) Committee (b) State Trading Enterprises (c) Textiles Monitoring Body – Consists of a chairman and 10 members acting under it. (d) Groups dealing with notifications – process by which governments inform the WTO about new policies and measures in their countries. (2). The Services Council- subsidiary under the Council for Trade in Services which deals with financial services, domestic regulations and other specific commitments. (3). Dispute Settlement panels and Appellate Body- subsidiary under the Dispute Settlement Body to resolve disputes and the Appellate Body to deal with appeals.   Other committees Trade and Environment, Trade and Development (Subcommittee on Least-Developed Countries), Regional Trade Agreements, Balance of Payments Restrictions,  Budget, Finance and Administration, Working parties on          Accession, Working groups on Trade, debt and finance, Trade and technology transfer.   Source of Finance:   The WTO Secretariat stationed in Geneva has approximately 600 faculty members and is led by a director-general with an annual budget of about 160 million Swiss francs. The WTO derives most of the profit for its annual budget from donations through its 148 members. The figures used are established according to a figure based on their share of the international deals.   Contributions by individual members:             The WTO miscellaneous income is generated from rental fees and sales of the WTO publications. They also manage a number of trust funds of which some are offered by members. These fees are used to manage organization activities in technical and training events which are meant to be used by the least developed and concurrently developing countries to take advantage of what the WTO offers for them and in the end promote sizeable benefit for the trading system of the WTO and its members.    The WTO’s total budget for the year 2004 is as follows:     * 2005 Budget for the WTO Secretariat: 164,131,000     * 2005 Budget for the Appellate Body and its Secretariat: 4,572,400     * Total WTO Budget for the year 2005: 168,703,400   Performance: Strengths: The main strength of the WTO as an organization builds on their main objectives of the WTO to promote and liberalize trade, serving as a forum handle matter and resolve disputes and in the end impact every member for their own greater good and prosperity.   Weaknesses: The WTO exposes itself with weaknesses by placing the demands of the corporations of profit over the human and labor rights of individuals. The WTO which encourages a race by placing workers against each other rather than promoting internationally recognized labor standards. This has also complicated processes because the WTO cares not if the products made are produced even through child labor.   Opportunities: The WTO can make their current threats into wonderful opportunities for themselves. Once they try to apply what the other organizations are aspiring to offer, they can in effect manage their problems and slowly by slowly ease up their worries as an organization faced with problems.   Threats: Some of the threats to the WTO are the organizations which has developed their own organization of international economic governance which they deem be the base factor on which they can build political spare which provides a democratic global economy which aspires jobs for everyone, ensures that very individual is not neglected of their rights to food, water, education, and health care, promotes freedom and protection and finally the preservation of the shared environment where we live in for the coming generations to appreciate.   Conclusion:   The fundamental objective of the World Trade Organization is to elevate free trading between member/countries, induce economical development and in the end make the citizen’s lives more comfortable. While there may be some individuals and organization which believe that free trade is not the appropriate way to make people’s lives more prosperous because they think of the WTO as granting only the rich the means and ability to further enrich their selves at the expense of the general poor populace.   In lieu with this fundamental objective, the WTO also seeks to promote economic globalization which most anti-WTO movements and individuals consider questionable to handle. Furthermore, the WTO has been accused of partiality towards Multi National Corporations and other wealthy nations. WTO treaties had also been accused of a partiality and unfair bias toward Multi National Corporations (MNC) and wealthy nations.               Anti-WTO movements counter that small countries in the organization has or even no influence, despite its claim as advocating help for these growing countries, since they say that the influential states focus on their own commercial interests. Furthermore, they say that their claims are unheard and sensed to be ignored. The needs of the developing countries are often perceived to be ignored. In addition, the issues of health, safety and environment are steadfastly not given ample time.         Reference:     Credit:ivythesis.typepad.com

WORLD TRADE ORGANISATION

Introduction: This paper aims to determine the various contexts within the World Trade Organization (WTO) as an organizati...

WORLD TRADE ORGANISATION- HOW AND WHY IT WAS FOUNDED, WHAT IT AIMS FOR?

This is an essay about the World Trade Organization—how and why it was founded, what it is as an international institution, and what it aims for.             More importantly, the essay effectively elaborates on the disadvantages caused by WTO to nations all over the world, specifically for farmers in third world countries and on the realms of poverty, unemployment rate, health, and the environment. Definition The World Trade Organization (WTO) is an international, multilateral organization that promotes and implements rules and regulations for the system of global trade (“, 2006). The WTO has the responsibility to create and monitor free trade arrangements, oversee world trade procedures, and resolve trade disagreements among member states (“”, 2006).             As of December 15, 2005, The WTO is composed of 149 members, while another 32 countries and 7 organizations have observer status. These nations represent more than 97 percent of the global trade (“”, 2006).             The WTO’s headquarters is in Geneva, Switzerland. The organization is directed by a General Council composed of the ambassadors of member states, who also have responsibilities on other auxiliary and specialist committees (“”, 2006). The ministerial conference meets every two years and selects the Director-General, who would oversee the General Council (“”, 2006). WTO’s current Director-General is  (“”, 2006).   History             The 1944  Conference recommended the formation of the International Trade Organization (ITO) to form rules and regulations for worldwide trade (“”, 2006). Members of the UN Conference on Trade and Employment approved the ITO charter in March 1948 but the US Senate refused its ratification (“”, 2006). As a result, only one element of the ITO subsisted—the General Agreement on Tariffs and Trade or GATT (“”, 2006).             Eventually, in 1994, members of the GATT authorized a new trade agreement which resulted to the formation of the WTO. The WTO effectively began on January 1, 1995 thus substituting the GATT as a more extensive institutional structure (“”, 2006). Objectives             It is the WTO’s goal to have a trading system that has no bias—one nation cannot favor another country over others within the structure, nor can it show prejudice against foreign goods and services (“”, 2006). In addition, the WTO aims to establish a trading system that has lesser trade barriers, a system that is for better competition, and one that is more helpful to less progressive nations (“”, 2006).             Lastly, the WTO aspires for a trading process that assures foreign institutions and administrations that markets would stay open and that hindrances to trade will not be arbitrarily created (“”, 2006). Disadvantages of the WTO A number of member countries attest to the fact that the WTO has helped them immensely, since the objectives of the institution promotes free trade and economic growth. Unfortunately, since its creation, the organization has attracted criticisms from those concerned about the aforementioned issues (“”, 2006). For example, WTO’s opponents believe that free trade, in addition to the organization’s bias for multinational corporations, would result to the further increase of the already vast gap between the rich countries and poor nations (“”, 2006).             Others argue that WTO does not have democratic responsibility because its trade discussions and deliberations are kept confidential from the press and the general public (“”, 2006). Critics also contend that the organization’s trade regulations do not effectively protect workers’ rights, human health and wellbeing, and the environment (“”, 2006). WTO and Poverty             It is a well-known fact that trade encourages development and economic success. However, an increasing number of individuals presently doubt the advantages of free trade (, 2006). This is because trade agreements among countries favor the industrialized world at the expense of third world nations ( 2006).             Journalist and economist  attests to the fact that the WTO does not neutrally deal with the global economy because it actually favors developed countries and multinational corporations (“”, 2006). Consequently, less powerful states are further harmed and damaged (“”, 2006).             Therefore, through WTO’s unbalanced promotion of free trade the inequality between rich and underdeveloped countries is enhanced (“”, 2006). To illustrate, the UN Development Program stated that the wealthiest 20 percent of the world’s populace utilize 86 percent of the resources of the world, while the poorest 80 percent expend only 14 percent (“”, 2006). The regulations of WTO accelerated such trend because free trade caused nations to entertain foreign investment. Thus it is easier for production to go where employment is cheapest and most oppressed (“”, 2006). WTO and Farmers in Third World Nations Since its establishment, the WTO was criticized for it has caused devastation for the livelihoods of workers and farmers all over the world (, 2006). To illustrate, third world countries such as the Philippines, are fiercely against their membership in the WTO. In fact, in the year 2003, Filipino farmers rallied against the institution’s 5th Ministerial Meeting in Cancun, Mexico (, 2003). The reason why farmers strongly oppose the WTO is that the country’s local agricultural trade already experienced a shortage of .2 billion in the first five years of WTO and the Agreement of Agriculture (AoA), contrasted with the .2 billion national gain when it was not a member of the WTO (, 2003).             According to the Secretary-General of KMP-Peasant Movement of the Philippines (KMP), , the Philippine’s local agriculture could possibly experience a larger setback in the next five years, as an effect of the Cancun round (, 2003). He also added that the Philippines’ rural trade deficit might swell up to billion if the government persists with its allegiance with the WTO ( 2003).             As further evidence of the negative impacts of the WTO on farmers,  said that from 1999 to 2000, 1.3 million rural producers and farmers lost their source of revenue to liberalization and globalization, two causes promoted by the WTO (, 2003). Additional reports pronounced that in the year 2000, rural employments declined to 10.83 million from 1994’s 11.29 million, because of the growth of agricultural imports (, 2003).             These damages prompted  to say that “the first nine years of WTO showed us the way to national devastation. The next chapter of this round would send us further to daily scourge of disaster, hunger and death (, 2003).” WTO and Unemployment             A number of humanitarians, labor unionists, and environmentalists are also against the WTO and its promotion of free trade because it promotes unemployment ( 2000). To support this claim, a group on non-governmental organizations in Hong Kong protested against the negotiations involved in the WTO (“”, 2005). According to them, ever since the WTO operated, unemployment rates all over the world have increased. Moreover, there has also been an upsurge in the dirty, hazardous and demeaning work opportunities for people. Worse, much of such types of work are even unstable (“” 2005).             According to the spokesperson of the International Union of Foodworkers, “In the global countryside, there is more unemployment, more hunger, more food insecurity. Those who help to feed the world are increasingly unable to feed themselves (“” 2005).”             Unemployment is specifically experienced by people in third world countries, since their industries are not yet fully developed. Free-flowing import and export of products would prevent the progress of sustainable industrial employment that is normally the means towards development. Thus, WTO negotiations do not bring decent employment and growth; it may even cause considerable unemployment and devastation of livelihoods (“” 2005). WTO and Health             Increased worldwide trade has an effect on the health of people all over the world in a number ways, both directly and indirectly (, 1999).             For example, the creation of the WTO gave way to the approval of the Trade and Related Intellectual Property Rights agreement or TRIPS (“”, 2006). For chief pharmaceutical companies, this is the official confirmation of their global rights. But for public health protesters TRIPS is an embodiment of corporate power and moral apathy (“”, 2006).             This is because patents on drugs and other health related products and services, as well as increased corporate power over the pharmaceutical industry, would only lead to increased costs. As a result, people, specifically the underprivileged, are denied of vital health services (, 2003). WTO and the Environment             Multinational corporations use the WTO to eradicate laws on local and national environmental safety, which they consider as obstacles to free trade (“”, 2006). Furthermore, the WTO attempts to deregulate industries on fishing, logging, and energy allocation, which would promote the mistreatment of national resources (“”, 2006).             To illustrate, the first WTO panel said disqualified a provision on the US Clean Air Act which necessitates domestic and foreign producers to yield cleaner gasoline (“”, 2006). In addition, the WTO also declared a provision of the US’ Endangered Species Act which resulted to the escape of endangered sea turtles (“”, 2006). Conclusion With these said, it is therefore vital to have a substantial understanding of organizations that operate internationally, since their provisions and principles would greatly affect people and nations all over the world. Moreover, it is important to exercise critical and analytical examinations of such institutions to see whether they really support worldwide development, or if they just want to promote their own gains. If the latter is proven, it is therefore our right and responsibility to make an effort to oppose and eradicate such oppressive organizations.                         BIBLIOGRAPHY Credit:ivythesis.typepad.com

WORLD TRADE ORGANISATION- HOW AND WHY IT WAS FOUNDED, WHAT IT AIMS FOR?

This is an essay about the World Trade Organization—how and why it was founded, what it is as an international institution, and what it ai...