OROMIA STATE UNIVERSITY

SHOOL OF LEADERSHIP AND

GOVER
DEPARTMENT OF HUMAN RESOURCE
MANAGEMENT AND LEADERSHIP

PG M.A PROGRAME MANAGEMENT OF CHANGE AND

INNOVATION /COURE LCM 521
Individual Assignment
Title: -Writing term paper on different questions

Submitted by: - Beyene Gizaw Bedane ID.PG /LCM /R/13 /0103

Submitted to: Mesay Gerbi (Assis. Prof.) PhD Fellow

E-mail: [email protected]

[email protected]

Date: October 2021

Batu Ethiopia
 OBJECTIVES
Putting the objectives help me how to prepare or how to search, ordering, organizing and
understanding those the given questions are done on a given instruction by using No of PP ≤ 5

Introduction
Innovation and dynamic capabilities have gained considerable attention in both academia and
practice. While one of the oldest inquiries in economic and strategy literature involves
understanding the features that drive business success and a firm’s perpetuity, the literature
still lacks a comprehensive model of innovation and dynamic capabilities.
An organizational structure is a system for accomplishing and connecting the activities that
occur within a work organization. People rely on structures to know what work they should do,
how their work supports or relies on other employees, and how these work activities fulfill the
purpose of the organization itself. The impact of customers (internal and external) on total
quality management in a service organization.
Merger and acquisition are not the same terminologies but often it is used interchangeably. In
acquisition one organization purchase a part or whole another organization.
1.How innovation help organizations to fit with the dynamic world
The world in which today’s businesses operate has become not only riskier, but also more
volatile, uncertain, complex, and ambiguous. Organizations that hew too closely to traditional
ways of operating will be hampered in their ability to succeed. In contrast, those that focus on
new product and process developments coupled with business model innovation will leverage
their dynamic capabilities. An essential overlay is entrepreneurial leadership from top
management teams. Strong dynamic capabilities are impossible without it. We examine how
business model innovations, dynamic capabilities, and strategic leadership intertwine to help
organizations thrive in volatile, uncertain, complex, and ambiguous worlds.
2.Emergining organizational forms and structures that contribute for value creation to
meet customer needs and expectations
What are the emerging organizational forms?
A definition of organizational form is proposed in terms of labor power, the object, means, and
division of labor, and the control of labor at the organizational and institutional level. A number
of typological approaches are then reviewed, focusing on the delineation of new organizational
forms.

New Organizational Structures and Design

 Network Structure. This modern structure includes the linking of numerous, separate
organizations to optimize their interaction in order to accomplish a common, overall goal.
 Virtual Organization. ...
  Self-Managed Teams. ...
 Learning Organizations. ...
 Self-Organizing Systems.

Five Approaches to Organizational Design (forms)

Managers must make choices about how to group people together to perform their work. Five
common approaches functional, divisional, matrix, team, and networking help managers
determine departmental groupings (grouping of positions into departments). The five structures
are basic organizational structures, which are then adapted to an organization's needs. All five
approaches combine varying elements of mechanistic and organic structures. For example, the
organizational design trend today incorporates a minimum of bureaucratic features and displays
more features of the organic design with a decentralized authority structure, fewer rules and
procedures, and so on.
1.Functional structure
The functional structure groups positions into work units based on similar activities, skills,
expertise, and resources. Production, marketing, finance, and human resources are common
groupings within a functional structure. As the simplest approach, a functional structure features
well‐defined channels of communication and authority/responsibility relationships. Not only can
this structure improve productivity by minimizing duplication of personnel and equipment, but it
also makes employees comfortable and simplifies training as well. But the functional structure
has many downsides that may make it inappropriate for some organizations. Here are a few
examples:

 The functional structure can result in narrowed perspectives because of the separateness
of different department work groups. Managers may have a hard time relating to
marketing, for example, which is often in an entirely different grouping. As a result,
anticipating or reacting to changing consumer needs may be difficult. In addition,
reduced cooperation and communication may occur.

 Decisions and communication are slow to take place because of the many layers of
hierarchy. Authority is more centralized.

 The functional structure gives managers experience in only one field their own. Managers
do not have the opportunity to see how all the firm's departments work together and
understand their interrelationships and interdependence. In the long run, this
specialization results in executives with narrow backgrounds and little training handling
top management duties.

2.Divisional structure
Because managers in large companies may have difficulty keeping track of all their company's
products and activities, specialized departments may develop. These departments are divided
according to their organizational outputs. Examples include departments created to distinguish
among production, customer service, and geographical categories. This grouping of departments
is called divisional structure. These departments allow managers to better focus their resources
and results. Divisional structure also makes performance easier to monitor. As a result, this
structure is flexible and responsive to change. However, divisional structure does have its
drawbacks. Because managers are so specialized, they may waste time duplicating each other's
activities and resources. In addition, competition among divisions may develop due to limited
resources.

3.Matrix structure

The matrix structure combines functional specialization with the focus of divisional structure.
This structure uses permanent cross‐functional teams to integrate functional expertise with a
divisional focus. Employees in a matrix structure belong to at least two formal groups at the
same time a functional group and a product, program, or project team. They also report to two
bosses one within the functional group and the other within the team. This structure not only
increases employee motivation, but it also allows technical and general management training
across functional areas as well. Potential advantages include

 Better cooperation and problem solving.

 Increased flexibility.

 Better customer service.

 Better performance accountability.

 Improved strategic management. Predictably, the matrix structure also has potential
disadvantages.

4.Team structure

Team structure organizes separate functions into a group based on one overall objective. These
cross‐functional teams are composed of members from different departments who work
together as needed to solve problems and explore opportunities. The intent is to break down
functional barriers among departments and create a more effective relationship for solving
ongoing problems. The team structure has many potential advantages, including the following:

 Intradepartmental barriers break down.

  Decision‐making and response times speed up.

 Employees are motivated.

 Levels of managers are eliminated.

 Administrative costs are lowered. And also, it has its disadvantages

Conflicting loyalties among team members and increased time spent in meetings.

5.Network structure
The network structure relies on other organizations to perform critical functions on a contractual
basis. In other words, managers can contract out specific work to specialists. This approach
provides flexibility and reduces overhead because the size of staff and operations can be
reduced. On the other hand, the network structure may result in unpredictability of supply and
lack of control because managers are relying on contractual workers to perform important work.

An organizational structure is a system that outlines how certain activities are directed in order to
achieve the goals of an organization. These activities can include rules, roles, and
responsibilities. Having an organizational structure in place allows companies to remain
efficient and focused. Traditional forms of organizational structure are known as functional,
divisional and matrix. These structures are hierarchical and, in most cases, centralized. This
allows for clear lines of authority and efficient dissemination of information and directive
Organizational structure is the means by which a business or corporation defines roles,
responsibilities and levels of authority within the company. The structure shows how
information flows from top to bottom and vice versa.

Customer expectations are formulated from the needs, ideas and feelings of customers towards
a brand's products or services. These expectations represent their desires from the products or
services they pay for

How do you set customer expectations?

strategies for managing customer expectations

1. Openly discuss solutions. ...

2. Provide clear timelines. ...
3. Be transparent and honest. ...
4. Remain optimistic, but realistic. ...
5. Follow up regularly
3. The concept of acquisition and merger and their alternatives.
The words and Mergers and Acquisitions are quite often used interchangeably in the current
corporate world and hence can be seen in the project as well. Here is an attempt to list out some
salient features which differentiate between the terms Acquisitions and Mergers.

Acquisition

An acquisition is the act of buying another company or part of company and the company has
said it will now exploring other opportunities for expansion. Acquisitions or takeover are
different from Mergers. In the case of an acquisition a company unilaterally relinquishes its
independence and adopts to the acquiring firms plans. As a legal point of view the target
company ceases to exist as the buyer “swallows” the business.

Acquisitions have the following characteristics

 They are a part of a well-considered company development plan

 It is a unilateral process
 Top management structure will have fewer problems
 Contractual regulations are simpler
 Time taken for an acquisition is normally shorter than a merger.

However, it is essential to mention here that whether a purchase is to be considered as merger or

an acquisition actually depends on the whether the purchase is friendly or hostile or in the
manner it is announced. The real difference hence lies in the way it is communicated and the way
it is received by the shareholders, directors and employees of the target company.

Merger

A Merger can be descried as a combination of two companies into one larger company; such
activities are normally voluntary in nature and involve a stock swap or cash payment to the target
organization. Stock swaps allow the shareholders of both companies to share the risk involved in
the deal. A merger normally results in a new company with a new brand and a new company
name being created. Oxford Dictionary of Business defines mergers as “A combination of two or
more businesses on an equal footing that results in the creation of a new reporting entity formed
from the combining businesses. The shareholders of the combining entities mutually share the
risks and rewards of the new entity and no one party to the merger obtains control over another.”

Reference

For an in-depth exploration of the field of organizational development and change, see
Cummings, Thomas G. and Worley, Christopher G., Organization Development and Change,
11th edition, Cengage Learning, 2019.

Project Paths of Innovation in Brazilian Manufacturing Industries

Faculty of Management, Universiti Teknologi Malaysia, 81310, Skudia, Johor, Malaysia