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This means that organizations must become more agile to act more decisively, cultivating and aligning resources more quickly and creating and transforming as well as sharing knowledge more efficiently (Mccann, 2004). One way that organizations can do this is by eliminating the traditional barriers that exist between management and other levels of the organization. This suggests a greater emphasis on decentralization and more emphasis or streamlining operations through participative management.
Of course this more open organizational structure does not come without risks and costs. A more open organizational style does afford greater adaptability and flexibility but can also create increased costs and inhibit certain controls; organizations may also become in some contexts "overexposed" when an organizations ability or capacity to adapt doesn't match the level of "interdependence and complexity the organization has crated and must manage" (Mccann, 2004: 42). Managing in this environment will likely result in greater costs and risks that may exceed any benefits that result from flexibility. Under management may occur in some situations increasing an organizations susceptibility to failure.
Conclusions
Technological advances in the last few decades have inspired organizations large and small to engage in international commerce. More and more organizations are becoming multinational firms with global influence. While competition is fierce many organizations are working together to share knowledge and expand their horizons.
As changes have occurred in the ways organizations do business, changes have also occurred within the organizational structure of many firms. Some firms have adopted a more centralized organizational structure in response...
While not without its risks and disadvantages, this m ore open and democratic organizational style of leadership promotes adaptability and flexibility within the organization, a critical skill for organizations tapping into the international business environment. This structure is at present more common and growing in larger firms where flexibility and employee empowerment promote better knowledge sharing at all levels of the management chain.
References
Dean, J.W. And D.E. Bowen. 1994. "Management theory and total quality: Improving research and practice through theory improvement." Academy of Management Review 19: 393- 418.
Euske, N. And K. Roberts. 1987. "Evolving Perspectives in Organization Theory:
Communication Implications." In Handbook of Organizational Communication: An Interdisciplinary Perspective. Eds. F. Jablin, L. Putnam, K. Roberts, and L. Porter. Newbury Park, CA: Sage.
Culpan, R. (2002). Global Business Alliances: Theory and Practice. Westport: Quorum
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