In terms of embracing change, the best example is probably the constant technological advances and development which any organization must be ready to integrate in its capacity. New technologies will often ease communication within the company and create the premises for better reaction to the market and to increased efficiency and work productivity.
However, bringing about change is often what makes the difference today between leaders and followers. A leader company will be able to create a market, to create a new product and to generally be innovative and bring about a novelty in things which will help it hold a significant competitive advantage. This will bring not only increased profits, but the capacity to develop new markets and create a bigger market share.
On the other hand, going back to the numerous changes that often occur on the market, we need to emphasize the importance of being flexible and being able to adapt and adopt change. Often this can be achieved by decentralization, which means that smaller units from the company will be able to better handle the challenges that arise though a higher capacity for reaction. This higher flexibility is often translated through a larger liberty of making decisions without prior approval from the centre and the fact that these units often act as smaller organizations, with the same objectives as the mother company, but with a liberty in terms of implementation and approach to market challenges.
3. Examines flat/horizontal structures and modular organizations
Flat structures are an excellent way of increasing...
One of the obvious reasons for this comes from the fact that, because of the flatness of the organization, there are fewer levels through which the information will need to pass, which will facilitate better communication between the different levels.
On the other hand, this type of structure will also greatly increase flexibility. Due to the existence of fewer levels of decision, we can also judge that some of the lower levels are more empowered when it comes to some decisions for which they will not need to consult the higher echelons of power. This will mean faster decision making processes, higher flexibility and an increased capacity of responding to the challenges on the market.
A modular organization, based on the different functional components is also an appropriate way by which flexibility can actually be increased within an organization and in which greater focus can be achieved. This degree of modularization also usually implies a certain degree of decentralization which makes the decision making process not only more flexible and quick, but also more inclined towards being concentrated on the problems relevant for the respective division. The challenge is probably that one needs to maintain a certain cohesion and avoid certain departments gaining an independence that would separate it from the main objectives of the mother organization. This usually can be achieved by ensuring that the organization is seen as a unitary body and by making sure that the different functional departments work together in a team.
