Organising for Business
Organizing for Business
People conduct almost every aspect in any society through groups or teams. This is exactly what occurs in every business activity. While organisational members tend to rely on each other in order to achieve specified targets, businesses also depend on other external stakeholder, especially consumers. Likewise, consumers and other external stakeholders rely on businesses in order to meet their needs and wants, but there are other factors that are involved such as economic factors (Miles 2014). For instance, economic, technology and communications factors make business appear international and global than ever before. One scholar – Thomas Friedman argued that “the world is flat”, which is a true statement as far as today’s business world is concerned. Apart from the few mentioned factors, there are other internal and external forces that affect business performance, mainly through influencing organisational behaviour. Organisational behaviour can be described as a study field committed to comprehending, describing, and eventually advancing behaviours and attitudes of groups or individuals within organisations. Actually, organisations do not change by possibility or use a random approach to execute their activities. In order to survive comfortably while meeting needs and wants of different stakeholders, organisations need to be planning and organizing. It is imperative therefore to comprehend how businesses operate through examining specific instances which demonstrate how and why both internal and external challenges affect an organisation. In order to achieve this sufficiently, the paper will use Intel Corporation as a case study.
Intel Corporation is the leading manufacturer of microprocessors across the globe. The company’s customers encompass individuals, ODMs (original design manufacturers), and OEMs (original equipment manufacturers). Intel’s operations are situated in different states and countries, whereby it conducts about 32% of its manufacturing activities in Israel and Ireland. The company has been affected by both internal and external challenges throughout its history. Internal challenges are associated with forces in an organisation while external forces result from forces outside an organisation (Zoogah & Beugré 2012).
The company needs to match the rapid technological changes that are taking place. In 2008, the corporate had 6 main divisions, including: Digital Enterprise, Digital Home, Channel Platforms, Flash Memory, Digital Health, and Mobility. In 2008, the digital division was biggest and generated approximately 55% of the company’s revenues, while mobility division offered 42% of the company’s net revenue. However, the digital division’s performance declined from 72% in 2004 and 65% in 2005. On the other hand, the mobility division increased from 20% to 29% in 2004 and 2005 respectively (Eriksson-Zetterquist, Müllern & Styhre 2011). This data apparently reveals structural issues in the corporate due to external challenges mainly market changes and technological evolutions.
External challenges associated with highly competitive and vibrant market create structural challenges in the company. One of the company’s founders, Gordon Moore, “predicted that already in 1965 that the number of transistors on a chip would double about every second year” (Eriksson-Zetterquist, Müllern & Styhre 2011, pp. 20). Exactly the Moore’s prediction is very true in modern days. In order to succeed in the modern highly competitive and uncertain business environment, the company needs to make relevant modifications. Intel encounters pressures and issues related to daily operations under its division structure. Managing the Moore’s law creates different tensions, which requires the company consider modifying its structure. For instance, the company may consider creating a boundary spanning and more flexible structure, which can help it to obtain not only internal, but also external resources. Further, Intel runs a tremendously efficient manufacturing process so as to mitigate costs associated with manufacturing of semi-conductors.
As companies continue to grow, they become more susceptible to both internal and external challenges, which force organisations to make different adjustments. Growth of companies spurred increasing issues between managers and employees and between employees themselves (Eriksson-Zetterquist, Müllern & Styhre 2011). As companies expanded, they employed more employees coming from different backgrounds. Consequently, organisations consist of people with varying ideas, behaviours, and customs among other differences. Accounting records reveal that commercial organisations emerged during the times of ancient civilisations, but the organisations were small. Furthermore, available literatures report that early business organisations were less concerned about welfare of workers and had little middle managers. However, the expiry of 1700s witnessed emergence of different influential factors that changed the nature and form of commercial organisations. For instance, emergence of new view of individuals and adoption of better efficient production approaches were some of the factors that impacted early organisations (Eriksson-Zetterquist, Müllern & Styhre 2011). Nevertheless, from start of the 1990s commercial organisations have been really changed due to different influencing factors in the business world. Changes in production processes due to development of automation have changed the nature and form of business organisations and how they operate. Consequently, most organisations have meet needs of customisation and flexibility required in modern business environment (Crowther & Green 2004).
As an international corporation, Intel employs people from diverse backgrounds. Again, the company encourages cooperation, especially through teams and groups. As a result, internal issues related to group dynamics are inevitable (Miner 2015). In spite of different teams/groups in the organisation, all organisational members work towards achieving common goals. Therefore, generally, Intel encourages cooperation throughout the organisation. Internal challenges associated with group dynamics and individual differences forced the company to adopt appropriate measures in order to address, if not eliminating, such issues. For instance, Intel encourages active worker resources, firm alliances with other organisations, alongside its strategic initiatives in order to ensure optimum diversity. Organisational behaviour theory asserts that diversity not only creates issues, but also offers opportunities such as innovation and improved competitiveness (Miner 2015). Intel sufficiently comprehends this, and aims at establishing a strong company through encouraging diverse in all its activities and practices (Intel Corporation 2015).
The issues facing Intel are not rare in other small, medium, and big organisations. Many organisations attempting to produce different products tend to face issues related to formal structure. For instance, Intel struggles to cope up drastic changes in its attempt to ensure a par between product groups.
Intel is committed to meet situational demands emanating from different stakeholders such as suppliers, customers, and rivals among others. These demands create challenges and pressure on the company on how to meet the demands sufficiently and appropriately. The market environment is rapidly changing, thus forcing the company to adopt potential measures of matching, if not being ahead, of new trends. Other players in the market such as Nokia, Apple, and Microsoft appear as opportunities and threats to Intel. Consequently, designing the organisation in order to address such issues is a core challenge. The company needs to adopt a more flexible and effective structure that can help it to address the challenges adequately and appropriately.
Unlike in few decades ago, corporate social responsibility is a core challenge affecting any organisation in current world. Companies are forced to offer great attention to matters concerning corporate social responsibility as far as welfare of stakeholders is concerned. Intel has not been immune from challenges associated with CSR. As a result, the company has been encouraging effective and mutual communication with its stakeholders. Stakeholder theory recommends organisations to comprehend their stakeholders and their respective needs and interests (Sakhem, Palmer & Stoll 2008). In Intel, the Board instructs the Corporate Secretary to be reporting any crucial matters concerning the company’s stakeholders (Intel 2015).
Issues related to organisational behaviour are common in almost all organisations. In order to address both internal and external challenges, managers and leaders need to have comprehensive understanding of both organisational theory and organisational behaviour (Borkowski 2009). Also, it is imperative to comprehend organisational ecology and demography theory, which encompasses various aspects concerning strategic management such as technology strategy, organisational change, cooperative strategy, and competitive strategy among others (Miner 2011).
In conclusion, contemporary business environment is characterized by numerous trends that trigger both internal and external challenges. It appears that such challenges affect almost all organisations irrespective of their nature and sizes. Even though most organisations, especially multinational companies, have been very keen to address any challenges, the challenges have been too strong to avoid their impacts. Consequently, organisations are undertaking different measures, while ensuring flexibility to new changes in both internal and external environments. Specifically, organisations have been focusing on how such forces impact their operations, especially organisational behaviour. Businesses that pay great attention on OB seem to be more profitable
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