Zahid Ashraf
The advent of 21st century, the global economy has dramatically undergone changes. Developed and emerging economies are converging to one gigantic global economy; this has directly impacted the businesses compelling organisations around the world to competitive at the international level. The protection shield enjoyed by the organisations behind a closed economy earlier under the cloak of the government restricting entry for foreign players are getting slimmer each year. Consequently, organisations have to compete in their home country against MNC with vast resources, and search for opportunities elsewhere. However, there are numerous other factors which have influenced organisation world – wide to reconsider their strategies in the wake of the changing global business dynamics. Free trade area agreements, creation of trading blocs such as the European Union, South East Asian countries (ASEAN) and other similar existing and ones which are still under consideration have immensely pressurized companies, and exposed them to the competition. The competitive and comparative advantages enjoyed by these organisations earlier are now threatened by the new foreign entrants. As a result to survive and grow in the 21st century most organisations either adapted or withered away to the changing conditions. The ones which survived the strong wave of forced adaption have learned their lessons that change is a constant factor in the global business environment, and being reflexive and adaptive is the only way out.
Technological innovation is another aspect that has influenced change in the organisation. Technology is evolving at a rapid pace warranting organisation to absorb the changes at the same speed. Other influential factors : Intensity of international competition; presence of key competitors in all key international markets; internationalization of product standards; stronger push by international bodies such as the world Trade Organization (WTO), International Monetary Fund (IMF) increasing level of international trade between countries ; increase in Intra-firm trade ; Technological intensity. At the organizational level, there is continuous pressure to perform in the new business economy; factors such as availability of scarce resources, Value Added Activities, presences of Propriety Technologies, Management Skills , Marketing Skills, creation of strong brand equities, Production know-how , achieving economies of scale , productive capability and presence of low labour costs centres(India , Chain and etc.) and many others.
Strengths, Weaknesses of bureaucratic organizations:
Bureaucratic organizations functions well and are suitable for environments which are stable in nature and involve routine tasks and minimal technological changes. A Bureaucratic organisational structure is often centralized; they have a clear, well defined vertical hierarchy of command, authority and chain of control. Productivity and efficiency are achieved through standardization of processes. Emphasis is given to specialization of processes and is most often formalized. As a result of these factors, the tasks in a bureaucratic organisation often results in rigidly defined jobs, process , applications of technology leaving very less or often no space for creativeness or innovative inputs into the system. Since every tasks, process are predetermined and predictable by strict standard operating procedures, the system resemble a machine.
Strengths of bureaucratic organizations :
* Strict rules and regulation regarding work , behaviour and employee code of conduct
* Impersonal orientation
* specific sphere of competence
* Continuity in uniformity of operations
* Less impact of any changes to the organizational structure or management
* Rational allocation of tasks
* Division of labor based on various specialized functions
* Membership constitutes a career
* Promotions are usually based on experience and technical knowledge and competence
* Qualifications tested
* Limited discretion of officers
* legally based tenure
* Educational and technical qualifies are tested periodically
* Prescribed chain of authority and legal compliances
Weaknesses
* Very less or often no space for creativeness or innovative inputs into the system
* Highly rigid decision making system.
* Participation is based on defined authority
* There is a severe lack of empathy or rationality.
* The origination is highly regulated by set rules and regulations.
* Productivity and efficiency are achieved through standardization of processes.
* Rigidly defined jobs, process , applications of technology
* Slow reaction to unexpected crisis
* Bureaucratic organizational step up is not suitable for industry or companies which are under great pressure to perform and compete in the market.
* Neglecting group thinking and initiatives
(The author is a student of commerce Govt Degree College Boys Anantnag.Views are his own)
