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    Relationships Between Organizations: Understanding The Theory & Design of Organizations

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    Relationships Between Organizations: Understanding The Theory & Design of Organizations

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    Baaska Bsk
    114 views17 pages

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    Ch04 Relationships Between Organizations.pptx

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    Copyright:

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    Download as pptx, pdf, or txt
    114 views17 pages

    Relationships Between Organizations: Understanding The Theory & Design of Organizations

    Uploaded by

    Baaska Bsk

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    Relationships

    Between
    Organizations
    Chapter

    Understanding the Theory &


    Design of Organizations
    Eleventh Edition
    Richard L. Daft

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Organizational Ecosystems
    Interorganizational
    relationships resource
    transactions, flows, and linkages
    that occur among two
    organizations
    Organizational ecosystem a
    system formed by the interaction
    of a community of organizations
    and their environment
    2

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Is Competition Dead?
    Changing technology and new
    regulations present organizations with
    international competition
    Organizations are involved in complex
    networks; the number of corporate
    alliances are increasing
    Traditional competition no longer
    exists
    3

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Organizational Ecosystem

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    The Changing Role of Competition


    In ecosystems, managers move
    beyond traditional responsibilities
    Managers must think about
    horizontal processes
    The old role of management relied
    on operation roles and boundaries
    Collaborative roles are becoming
    more important for success
    5

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    A Framework for
    Interorganizational
    Relationships

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Resource Dependence
    Locking in resources through longterm supplier relationships is a
    common resource-dependence
    theory
    Supply chain management refers
    to managing the sequence of
    suppliers and purchasers
    Large independent companies can
    have power over small suppliers
    7

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    A Basic Supply Chain Model

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Collaborative Networks
    Emerging alternative to resource dependency
    Companies join together to become more
    competitive and to share scarce resources
    Alliances require managers who are good at
    building networks
    Companies can share risk and cooperation is
    a prerequisite for greater innovation, problem
    solving, and performance

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Changing Characteristics of
    Interorganizational
    Relationships

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Population Ecology
    Organizational diversity and adaptation within a
    population of organizations
    Population is a set of organizations engaged in similar
    activities
    The theory notes that large, established organizations
    often become dinosaurs
    They have difficulty adapting
    The changing environment determines survival or failure

    Heavy investments can limit organizational


    adaptation
    Model looks at organizational form
    Organizational niche can help aid in the survival of
    an organization
    11

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Elements in the PopulationEcology Model of


    Organizations

    12

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Strategies for Survival


    Organizations struggle for
    existence (competition)
    Generalist strategies wide niche
    or domain, broad range of products
    or services to a broad market
    Specialist strategies narrow
    range of goods or services that serve
    a narrow market
    13

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Institutionalism
    Institutional perspective:
    Manage survival
    Balance expectations of environment

    Institutional Environment
    Norms and values of stakeholders
    Adopt structures and processes to
    please outsiders

    Legitimacy - an organizations
    actions are desirable, proper, and
    appropriate
    14

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Institutional View and


    Organizational Design
    Institutional
    Structure
    Visible to the
    public

    Technical
    Structure
    Day-to-day work
    Technology
    Operating
    requirements
    Governed by
    norms
    and rationality of
    efficiency

    Governed by
    expectations of
    the public

    15

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Three Mechanisms for


    Institutional Adaptation

    16

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

    Design Essentials
    There has been an evolution in interorganizational
    relationships
    Organizations operate within an ecosystem
    Four perspectives have been developed to explain
    relationships among organizations
    Collaboration is an emerging alternative to
    resource dependence
    New organizations fill niches left open by
    established companies
    The institutional perspective notes that
    interorganizational relationships are shaped by
    legitimacy as well as products/services
    17

    2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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