Page 680 - Business Principles and Management

Chapter 25 • Developing an Effective Organization

The ways businesses organize work and provide resources also affect their
success. Inefficient work processes, delays in receiving needed materials, and
problems within channels of distribution all hinder a business’s ability to meet
customer needs. Because of such problems, companies are now paying a great
deal of attention to the way in which they structure their organization, how
work flows through the business, and how employees work together and with
their managers. Today, businesses are making important changes in their orga-
nizations to make sure they continue to be successful.
Two important ways that businesses are changing are making improvements
in work processes and building effective working relationships. Improving work
processes means improving the way work is accomplished. The goal of work
process improvement is to eliminate errors, improve quality, and reduce costs.
The focus of the second element of organizational development is on the
people who complete the work. Studies have shown that employees who be-
lieve they are an important part of the organization will be committed to its
success and will work to achieve the company’s goals. Several important rela-
tionships contribute to an effective organization: the relationships among a
company’s personnel, including management-employee
relationships, and relationships with people in other orga- business note
nizations with whom the company works as well as with
the company’s customers.

IMPROVING WORK PROCESSES Besides e-mail, two other types of interper-
sonal communication on the Internet are
One of the focuses of organizational development is to newsgroups and blogs. Newsgroups are
improve the way work is accomplished. This includes the online bulletin boards developed around
materials and resources used, the organizational structure a specific subject. People can post current
and relationships among work units, the job duties as- news related to the subject, comments, and
signed to individuals and groups, and work procedures replies to other people’s comments and
and operations. Most of the emphasis on improving work questions. Special programs called newsread-
processes is directed inside the company. But improving ers are used to read newsgroups.
work processes also involves the way businesses work The term blog is a shortened version of
with each other as part of product development, produc- weblog. A blog is usually created by some-
tion, distribution, sales, and customer service. one who offers expertise or opinion on cur-
Improving the way work is accomplished may require rent events or an area of special interest.
using new technologies, rearranging work areas, changing Blogs can be like personal journals or busi-
relationships between departments and work groups, and ness newsletters. Most blogs encourage
modifying procedures for completing tasks. Remember readers to respond.
the concerns James Lane had about the changes Alliance Newsgroups and blogs are useful places to
Industries was planning. The company was changing to find answers to questions or to interact with
new products, equipment, and procedures that would be people with similar interests. These online
quite different from what he and other employees had groups can be formal or informal. Some are
experienced. They had to find ways to reduce costs while created for entertainment; others are devoted
keeping quality high. to career, professional, and business topics.
It is not easy for any company to make these types of Newsgroups and blogs are visited by all
changes when people are reluctant to use new technologies sorts of people. Because postings can be read
or change the way they have been doing things for many by thousands of participants, it is important
years. It may even be difficult to identify new ways to or- to be thoughtful, concise, and considerate.
ganize and accomplish work, because people in the com- Before organizing a blog or participating in a
pany are familiar only with the way things have been done newsgroup, check company policies. Remem-
in the past. Often organizational development programs ber not to give out personal or confidential
bring in experts from outside the company to help identify business information.
and study new work processes and to work with employ-
ees to help them accept and respond positively to the
changes.

667