BU398 Lecture Notes - Lecture 10: Megacorporation, Walmart, Inferiority Complex
Document Summary
Organizational size is a contextual variable, and it influences design and functioning. Organizations often experience pressures for growth, even at the expense at making the best products and showing the greatest products. Today, the business world has entered an era of the mega-corporation. Large organizations: economies of scale: huge resources and economies are scale are needed, as only large company could build a massive pipeline in. Alaska, for example: global reach: have the resources to be a supportive economic and social force in difficult times. The use of rules, policies, hierarchy of authority, written documents, standardization, and other bureaucratic mechanisms to standardize behaviour and assess performance. Primary purpose is to control employee behaviour. To make it work, managers must have authority to maintain control over the organization. A situation that occurs when price competition is used to evaluate the output and productivity of an organization.
