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What is organization? Explain the changing perspective of organization.

What is organization? Explain the changing perspective of organization.

Solution

An organization is a formal association of two or more people who come together to achieve a common goal through coordinated effort, and it exists only when people are willing to contribute toward something they cannot achieve alone. According to W.G. Scott, a formal organization is a system of coordinated activities of a group of people working cooperatively toward a common goal under authority or leadership. Organizations do not stay the same over time; they keep changing due to rapid technological development, shifting social expectations, political influence, and economic change, which push them to operate in new ways and keep up with customer demands. The main changing perspectives of organization are explained below.

  1. Open system: Organizations now interact regularly with their environment rather than working in isolation. They take feedback from competition, technological change, and shifting government rules, and then adjust their dealings to match customer demands.
  2. Organizations as culture: Every organization develops its own culture, made up of its values, norms, traditions, and beliefs. A strong and positive culture helps the organization maintain its social prestige and status.
  3. Globalization: Globalization has tied the world's people together and brought global competition right to the doorstep. As a result, managers must now think with a global perspective even while running a local business.
  4. Learning orientation: Organizations must continuously gather knowledge from their employees and from outside sources. This helps them meet the rising customer expectations for new ideas, creativity, and innovation.
  5. Workforce diversity: Modern organizations increasingly involve employees of diverse backgrounds. This builds understanding, empathy, and tolerance, but it also requires good policies, training, and a supportive culture to manage well.
  6. Team empowerment: Teams are now formed to handle varied jobs and are given real authority. They are allowed to plan, allocate resources, coordinate, and control their own activities independently.
  7. Work-time flexibility: Competition has pushed many organizations toward round-the-clock (24-hour) operation. This helps maximize productivity and make the optimum use of available resources.
  8. Technological change: Ever-growing technology keeps raising the aspirations and expectations of customers, investors, competitors, and employees. This makes technology a constant force that every organization must keep managing.

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