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Building a climate for innovation through transformationa­l leadership and organizational culture. Research has called for organizations to be more flexible, adaptive, entrepreneurial­, and innovative in meeting the changing demands of todays environment. Appropriate leadership to effect such change is required; however, there has been little empirical analysis of the theoretical relationships among the key components that make up such change strategy, including transformationa­l leadership, organizational culture, and organizational innovation. This study examines these linkages in terms of their relationships with climate for organizational innovation in Australian private sector organizations. Structural equation modeling based on responses to a survey of 1,158 managers explores the relationship between transformationa­l leadership and climate for organizational innovation and the extent to which a competitive, performance-ori­ent­ed organizational culture mediates this relationship. Strategies for building innovative organizations are discussed. Keywords: transformationa­l leadership; organizational culture; innovation ********** Leadership and organizational culture are widely believed to be linked in the process of change (Afsaneh, 1993; Kotter, 1998; Schein, 1984). As Kotter (1998) stated, Only through leadership can one truly develop and nurture
INDIAN INSTITUTE OF MANAGEMENT ROHTAK HRM-1 ORGANIZATIONAL BEHAVIOUR I ORGANIZATIONAL CYNICISM ABSTRACT: According to Oxford Dictionary, cynicism is defined as, “an inclination to believe that people are motivated purely by self-interest; scepticism”. This behaviour exhibited in an organizational context is termed as organizational cynicism. Organizational cynicism is also defined as a negative attitude toward one’s employing organization, comprising three dimensions: 1. A belief that the organization lacks integrity. 2. Negative affect toward the organization 3. Tendencies to disparaging and critical behaviors toward the organization that are consistent with these beliefs and affect. In short, organizational cynicism is the negative intent formed in the employee’s beliefs with reference to and exhibited on the organization. There are five main types of organizational cynicism. 1. Personality or trait cynicism:-  This is largely an employee’s character related aspect. It is an innate behaviour of the employee and is an inherent trait, where the negative perception is exhibited toward the society at large. 2. Management cynicism:- Management cynicism forms when the employee perceives that he is being treated unfairly by the management. Be it overburdening of work, violation of organizational justice or anything that the employee feels that there is a conflict of interest

How the organizational structure affects innovation in firms?

Innovation makes development and improvement, which is the key to continued success.

Organizing is arranging and structuring work to accomplish an organization’s goals. Organization is important for a corporate so as to operate efficiently, but people usually just learn it in theory. Thus, knowing how to apply organizational structure to innovation in practice is necessary. Besides, although there are many organizational case studies about some situations where innovation may occur, most of these studies are just focusing on the small-scale organizations like particular farms and schools (Sapolsky, 2016).

This article aims at discussing how the organizational structure influence the innovation in terms of firms. This paper will discuss from the perspective of six elements of organizational structure to analyze the effects of each element on innovation and combining them with firm’s operation.

Organizational structure is the formal arrangement of jobs within an organization.

There are six key elements of it, work specialization, departmentalization, chain of command, span of control, centralization and formalization. The definition of innovation differs, but it is certain that it is related to new things. What companies come to mind when thinking of successful innovators? Maybe it’s Apple with its iPad, iPhone, iPod, and vast array of computers.

Maybe it’s Google with its continually evolving web platform. Innovation could be stimulated by the application of six elements of organizational structure.

Then let’s talk about the fist element of organizational structure, work specialization.

Work specialization is the degree to which tasks in the organization are divided into separate jobs with each step completed by a different person. At this point, innovation could be divided into two parts, administrative and technical innovations. Specialization have positive effect on both kinds of innovation. Damanpour (1991) used meta-analytic reviews statistic method to analyze the relationship between specialization and two kinds of innovation.

Specialization will make workers focus more on one direction and explore more deeply in this direction because their job’s scope is narrower. They just need to think about their parts, which gives them more energy and time to innovate. Furthermore, specialization will have significant effect on newcomers in technical innovation. Von Krogh, Spaeth and Lakhani (2003, p.1230) state that “specialization in the project incurs benefit for newcomer” by interviewing different groups of workers in a case study.

Newcomers may be classified according to their contribution barriers and feature gifts, which will lead to high efficiency in innovation. However, there are some arguments that specialization also have negative impact on innovation. If it is too specialized, the mind will be limited by the scope. The people just think about finishing their own tasks and can not be creative enough. According to the theory in class, overspecialization can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism.....[read full text]

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The departmental structure will hinder the implementation because of poor communication in different kinds of areas and limited views of organizational goals.

Here comes to the third part, chain of command. Chain of command is the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to whom.

Chain of command influences the innovation negatively. If there is a long chain of command, there will be more people involved in decision making, and then there may lead to inefficiency of managerial coordination and lack of flexibility (Vossen, 1998). Ideas of innovation need to be reported to upper levels, so it may have something inaccurate in communication with more people.

Lack of flexibility also leads to lack of motivation to come up with new ideas. Except for this, chain of command may easily lead to bureaucracy. There are three elements about chain of command, authority, responsibility and unity of command. Authority and unity of command would kill the innovative ideas because of bureaucracy.

In order to set up chain of command, span of control is an important aspect to be considered.

Span of control is the number of employees who can be effectively and efficiently supervised by a manager. The wider span of control, the more innovative ideas. The increase in span of control may result in the managerial and technical innovation (Williamson, 1967). If the span of control is wider, the control of individual is less because one manager need to take control of more people.

It may facilitate the flexibility and sharing of ideas without too much control. Moreover, the width of span is affected by skills and abilities of manager, employee characteristics and many other factors. Organization can take advantages of them to stimulate innovation. For example, some employees may be more creative and the manager of them is more likely to listen to others .....

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More people participate in the process of decision-making, more ideas will arise and it could be more detailed.

The last element is formalization. Formalization is the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.

High formalization would result in low innovation, which means it has negative impact. Formalization would make the initiation of innovation more difficult (Zmud, 1982). From the definition, formalization is about the standards and rules, which may limit the creativity. People’ mind and thought may be limited by rules. Under formalization, employees tend to just follow the procedures that exist already, so they do not want to bother to think more.

However, some researches found that formalization could help the adoption and implementation of innovation. It might be true in some cases, but you could not adopt and implement if you do not have ideas. Initiation is the first step.

In conclusion, the six aspects of organizational structure have different effects on innovation.

Work specialization and span of chain have positive impact on innovation while departmentalization, chain of demand, centralization and formalization are negatively related to innovation. This article discusses the effects almost from the perspective of coming up new ideas in innovation because idea is the first step to innovation. There may be other perspectives of innovation and the effects may be different.

What’s more, these effects are considered just in some ways. Positive does not mean the degree of positive aspects should be very high. It may lead to opposite result when overusing it. Similarly, negative does not mean the degree of negative aspects should be very low. The firms should apply these six elements properly according to the size of firms, the nature of firms and an.....

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Vossen, R.W., 1998. Relative strengths and weaknesses of small firms in innovation. International small business journal, 16(3), pp.88-95.

Williamson, O.E., 1967. Hierarchical control and optimum firm size. The Journal of Political Economy, pp.123-138.

Pertusa-Ortega, E.M., Zaragoza-Sáez, P. and Claver-Cortes, E., 2010. Can formalization, complexity, and centralization influence knowledge performance? Journal of Business Research, 63(3), pp.310-320.

Robbins SP.

Organization theory: structure, design, and applications. (3rd ed.). New Jersey: Prentice Hall; 1990.

Hall DJ, Saias MA. Strategy follows structure. Strateg Manage J 1980;1(2):149–63.

Zmud, Robert W. "Diffusion of modern software practices: influence of centralization and formalization." Management science .....

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