ECON 1 Lecture Notes - Lecture 18: Organizational Learning, Bounded Rationality, Knowledge Management
Document Summary
Increases in organisation size affect differentiation at a decreasing rate. Complexity tends to be high and tends to be decentralised. Problems that are common to most large organisations and their solutions: Growth of bureaucracy dividing the organisation into manageable parts (divisionalisation) Need to gather and process information and turn it into knowledge outsourcing. Need to adapt to changing technologies and product life cycles finding a balance between what decisions to centralise and decentralise. Extended time frames for action (stagnation) strucuturing to facilitate change. Knowing where profits are being made and costs incurred ensuring that important tasks have someone responsible for them. Difficulty in managing over a wide geographic area physically seperate those ares of the organisation which undertake different types of work. Realisation that size of itself does not bring advantages. General environment: conditions that potentially have an impact on the organisation. Specific environment: the part of the environment that is directly relevant to the organisation in achieving its goals.
