BU398 Chapter Notes - Chapter 8: Charismatic Authority, Organizational Culture, Megacorporation
Document Summary
Chapter 8: organization size, life cycle and decline. Organizational size is a contextual variable that influences organizational design and functioning in the same ways as the contextual variables- technology, environment goals. The business world has entered an era of the mega-corporation. Firms must grow to stay economically healthy and to stop growing is to stagnate. Greater size gives companies power in marketplace and therefore, increases revenue. Economies of scale: needed for organizations to complete globally; Global reach: have the resources to be a supportive economic and social force in difficult times. Complex: offer hundreds of functional specialties within the organization to perform multifaceted tasks and to produce varied and complicated products. Stable markets: companies can have a presence that stabilizes a market for years if they"re well established at which managers can work for many years. Responsive, flexible: small scale can provide significant advantages in terms of quick reaction to changing customer needs or shifting environmental and market conditions.
