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Organisational Structure and Processes

In: Trends in Japanese Management

Author

Listed:
  • Toyohiro Kono
  • Stewart Clegg

Abstract

Increasing speed of change and the emergence of mega-competition characterise the present competitive environment, producing new opportunities and threats. In order to cope with such a changing environment, organisations need several attributes (Figure 9.1). First, they need clear vision to direct change, orienting resource allocation to those niches where the company has the best chance of maintaining a competitive edge. Second, the company needs to be agile and flexible. Agile means responding quickly to new opportunities, such as the rapid development of new products. Flexibility requires frequent use of matrix organisations, team systems, small circle activities, good interface between departments and participation in decision-making by members of the lower echelons of the organisation. Third, the organisation needs to have strong core competencies. It is core competence that provides the capability for both producing successful new products and sustaining the competitive edge of existing products, according to researchers such as Penrose (1959), Ansoff (1965), Prahalad and Hamel (1990), and Hall (1993a). Figure. 9.1 Organisational structure that can cope with environmental change

Suggested Citation

  • Toyohiro Kono & Stewart Clegg, 2001. "Organisational Structure and Processes," Palgrave Macmillan Books, in: Trends in Japanese Management, chapter 9, pages 219-250, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-333-99389-7_9
    DOI: 10.1057/9780333993897_9
    as

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