Question

In: Economics

Discuss how Change and complexity in the external environment have major implications for organization design and...

Discuss how Change and complexity in the external environment have major implications for organization design and management action? Provide relevant examples.

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Expert Solution

Answer:
Change and complexity of external environment like customers behaviors, competitions, technology etc does have implications in organization design and management actions. Few points on how it does are given below:

  • Technology changes : Technology is ever changing in just few years what we use to think is latest technology becomes outdated. So organizations also needs to keep on updating themselves with the technology. One instance is introduction of Android touchscreen during early 2000s. So all mobile manufacturers had option either to stick to traditional technology of button touch or to move to screen touch, so the companies which adopted themselves and their assembly line for newer technology like Samsung, Motorola survived but companies like Nokia which didn't picked up the changes were lagging by generations compare to their counter parts.
  • Competitions : Its correctly said competition is the biggest motivator to innovate new thing, take an example of online shopping portals like ebay or Amazon because of being constant competition among each other they keep on changing their structure and innovate new things.
  • Current case of COVID-19 pendamic : Current unforseen situation like COVID-19 pendamic also forced organizations to change they work. For instance IT companies like Microsoft, or Amazon have made work from home compulsory and even in their store outlet tried to make it as virtual and contactless as possible. All these changes are done due to pendamic which was not thought before.

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