Importance of Organization Research and Theory for running a successful company

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Table of Contents

Introduction
Background
Objectives
Findings and Analysis
Conclusions and Recommendations
Reference List

Introduction

An organisation entails a group of people who work together with the intention of achieving a common goal through specialization and division of labor (Hillstrom & Hillstrom, 2002). People in an organisation normally have limited abilities and an organisation helps them by providing a means that puts together the strengths of different people to achieve more than what could have been achieved through personal efforts.

Organisation theory involves the study of organisations so as to identify common themes to aid in problem solving, maximization of productivity, efficiency and meeting the expectations of shareholders. Organization theory concerns itself with the organization, environment, design, structure, innovation, change, decision making, strategy, effectiveness, and goals of an organization (Rainey, 2009).

Generally, organisational theory involves processes study at individual, group, and organisation levels. On the other hand, organisational research involves the study of organisations structures with the aim of determining the attitudes, perceptions and beliefs of people in that organisation.

Organisation research and theory are important as they give a focus on the effects of social organisations impact on the attitudes and behaviors of the people involved in them (Hillstrom & Hillstrom, 2002). Particularly, organization theory looks at organisations performances, their success, and how the organisations survive.

Lastly, it focuses on the mutually exhibited effects of the cultural, political, task, and resource in the various organizations. The organisation research is concerned with conducting research based on these aspects to make the organization theory goals achievable.

Organisation theory is needed in the running of companies as they assist in solving problems that may arise in an organisation. It also helps in maximizing efficiency and productivity in the organisation with the aim of meeting the organisational goals and objectives (Barzilai, n.d). The research paper explores the importance of organization research and theory for running a successful company.

Background

The basic model of the organisation theory is the open system approach which was founded on the belief that organisations are different because of the unique environment they operate from (Hillstrom &Hillstrom, 2002). The major focus of the open systems approach is on the transformation process that takes place in an organization (Sisaye, 2000).

The transformation process allows the organization to be in a position of adapting to the changes brought about by the environment. This ensures its survival as well as an improved performance that has the capability of maintaining a balance between the environment and the organisation (Sisaye, 2000).

The open system approach allows an organisation to develop a design that can effectively manage the exchange of raw materials, products, and people (Murphy & Willmott). For their survival, organisations use this approach due to its capability to survive and prosper.

In order to survive and prosper and gain competitive advantage, organisations are compelled to adapt to the environment they are operating from or attempt to seek control of their operational environment with the changes being exhibited (Daft, Murphy & Willmott, 2010 ).

Through organisation research, open systems approach allows to find and acquire the necessary “resources, interpret and act on environmental change, dispose of outputs and control and coordinate internal activities in the face of environmental disturbances and uncertainty” (Daft, Murphy & Willmott, 2010, p.14).

This implies that through an open system approach, an organisation is able to monitor the changes that are brought about by the environment and act to them. For prosperity and survival, they have to develop strategies that comply with the changes and meet the demands of consumers and suppliers with the aim of gaining a competitive advantage.

For instance, if a competitor launches a competitive product or service in the market, the organization which keeps attention to environmental changes, comes up with an alternative or a stronger responsive product or service.

This ensures that an organization remain relevant in the market and competes favorably. The open systems approach operates with the aid of subsystems which have special function to the organisation (Daft, Murphy & Willmott, 2010).

Organisations do not operate in a vacuum and the environment they operate in is prone to environmental changes. In organisations, change based on the open system model is the ability to adapt to the shifting environmental circumstances (Gartenstein, 2011). In order to survive in the environment, the open system approach offers a business with the appropriate tools that can act on the change.

Some of these tools are description of the general operating patterns, explanation of the trends and patterns as well as foreseen obstacles in the market. This allows the management to look and keep attention on the feedbacks derived and integrate it into the system. For instance, a company can shift the production line by producing a different product that meets the shifting demand or preferences in the economy.

This way, the company would be in a proper position to respond to the demand prevailing in the market. The productivity of an organization is typically based on open system model. Dunham-Taylor and Pinczuk (2004) note that open systems involves inputs and through outs which lead to output which is production.

According to the stipulations of the open system theory/model, the way an organisation functions corresponds to the environmental conditions in which it operates from. Its ability to allow the organisation adapts and incorporates the environmental changes; make it beneficial to the company.

The open system understands the supply functions (Hammond, 2011). Through collaborative process, the model brings together the different subsystems to mutually function towards mutual benefits. For example, the transformation processes in the open system allow inputs to change to valuable products that are released back to the environment (Daft, Murphy & Willmott, 2010).

Also, each subsystem acts upon towards the goals of the organisation or company. Predictions and forecast are part of daily activities of a company as they help in understanding of the changes occurring in the environment. Through the open system model it is possible to examine the environmental forces and be able to predict and respond to problems brought about by the changes (Hammond, 2011).

For example a company should be able to study the cultural elements as well as the preferences so as to be able to understand the market better before the launch of a product. This also helps understand the expectation of the customers and prepare for any changes that may be forthcoming. Open systems are able to accommodate changes being experienced by an organization.

Unlike the other models, the open system model accepts that there exists no room for perfection in an organization (Anderson, Carter & Lowe, 2007). This gives a company the capacity of operating to its means and capability.

Through the open system theory, an organization has the capacity of realizing its goals as it offers a platform for decision making by taking into account the environmental influences that may affect the operative way of an organization.

Through the acceptance of the existence of conflict between different subsystems in an organization, open system model gives the best opportunity for conflict resolution and management in an organization (Anderson, Carter & Lowe, 2007). This is important as it allows the well functioning of the subsystems.

Objectives

The objective of the research is to define the correlation that exists between running a good business and the effectiveness of organisational research and theory.

The research examines the role played by organization research and theory in running a business enterprise. There is a positive correlation between the aspect of running a good business and the application of effective organisation research and theory. The success of a business depends on the effectiveness of the organization research and theory. A poorly incorporated organization theory leads to bad business.

Findings and Analysis

The organisation theory is crucial in the running of an effective business. The very essence of a business is to make profits in both short and long terms as well as satisfying the demands of its consumers. Organisational theory can be applied in the finance and the strategy departments of a company.

For a company to improve its performance, it has to learn how to well organize its resources so as to realize its organizational goals (Hatch, 2006).

For example, a company that needs to launch a product in the market has to organize its resources and be able to monitor the progress as well as controlling the performance with the aim of achieving the organizational goals. Through the structuring of the organisation it is possible to design the subsystems that exist in an organization.

Marketing forms an important part of an organisation. Through the understanding of the organization theory, marketers are able to design a corporate brand which can be successful.

Through the understanding of the organization theory and how it works, it is possible to make the endeavors that align with the organizational goals. This would enable them come up with a strategy that is viable and productive. For example, before the marketing department launches a product it has to align its goals with that of the organization.

The flow of information for communication purposes within an organization influences the outcomes and the work processes. An understanding of the organization theory by the information technology specialists helps in identifying, understanding, and serving the needs of the organization (Hatch, 2006).

At the same time, it helps in designing and promoting the application of the IT system by the specialists in the organization. Not interlinking and understanding the connection that exists would lead to failure in the company.

The organizations processes are interconnected through the value chain management. The operations that co-exist in the supply chain need interconnection. For example, a company needs to be interconnected with its suppliers, customers or even distributors for the success of an organization. The organization theory explains the socio-cultural aspects of either the suppliers or consumers integrating it with the technical aspects.

The human resource department in an organization has to use the knowledge given by the organization theory. For example, during the selection and the recruitment processes, it has to consider the goals and the objectives of the organization.

By understanding how an organization operates, it is possible to understand the changes and the developments that the organizations are going through for proper planning and adjustments (Hatch, 2006). For example, organization theory can outlay the requirements required in executive programs for training purposes.

The communication process between different people in an organization is crucial to an organization. Through the organizational theory, communication specialists are meant to understand the processes involved in relaying information to different parties.

This helps in the conservation of the existing systems value that aligns with the organizational goals. If organization theory and research is not incorporated in an organization it is deemed to fail as a successful business depends on effective organization theory.

Conclusions and Recommendations

Organization research and theory plays an important role in the running of a successful organization. Through the organization theory a company is able to display the effect brought about by social organizations on the attitude and behaviour of different people in an organization.

It also displays the effects an individual does to an organization. This is important to an organization in knowing the success contributing factors in an organization. It enables an organization relate well and be able to survive among its competitors in the open market. The success, survival and performance of an organization are based on the understanding of the organization research and theory.

It is recommended that all the organizations should consider applying organization theory effectively for a successful business. Based on the analysis, open system approach is one of the models based on organization theory that should be adopted for its numerous benefits explained.

Lastly, the different departments in an organization should incorporate organization theory as it assists in understanding and connecting the departments together,

Reference List

Anderson, R. E., Carter, I. E., & Lowe, G. (2007). Human behavior in the social environment: A social systems approach. New Brunswick, N.J: Aldine Transaction.

Barzilai, K. Organisational theory. Web.

Daft, R. L., Murphy, J., & Willmott, H. (2010). Organization theory and design. Mason, Ohio: South-Western Cengage Learning.

Dunham-Taylor, J., & Pinczuk, J. (2004). Health care financial management for nurse managers: Merging the heart with the dollar. Sudbury, Mass: Jones and Bartlett Publishers

Gartenstein, D. (2011). Open Systems Theory in Business. Web.

Hatch. (2006). What is organization theory. Web.

Hammond, K. (2011). The advantages of open systems theory. Web.

Hillstrom, K., & Hillstrom, L. C. (2006). Organization theory. Web.

Rainey, H. G. (2009). Understanding and managing public organizations. San Francisco, CA: Jossey-Bass.

Sayeshi, S. (2000). Organization change and development in management control systems: Process innovation for internal auditing and management accounting. Greenwich, Conn: JAI.

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