chapter3 twara ocis
TRANSCRIPT
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Interorganisational
Relationships
PRESENTED BY: TWARA DESAI
ROLL NO: 23
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Interorganisational Relationships
Organisational Ecosystems
Resource Dependence
Collaborative Networks
Population Ecology
Institutionalism
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Interorganisational Relationships
Increasing dense web of relationships among organisations
Companies have always been dependent on other organizations
for suppliers, materials and information
How these relationships are managed is vitally important to the
organization affects:
- Structure- Management of the environment
Organizations can choose to build relationships in many ways,
such as appointing preferred suppliers, establishing agreements,
business partnering, joint ventures or mergers and acquisitions
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Organisational ecosystems
Organisational ecosystem is a system formed by the interaction of acommunity of organisations and their environment
A ecosystem cuts across traditional industry lines
A company can create its own ecosystem it can be a retailer, awholesaler, a logistics company and an information services company
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The Changing Role of Management
Managers think about horizontal processes rather than vertical structures.
The old way of managing relied almost exclusively on operations roles,
defending the organizations boundaries and maintaining direct control
over resources.
Today, collaborative roles are becoming more important for success.
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Changing Characteristics of Interorganizational
Relationships
Traditional Orientation:
Adversarial
New Orientation:Partnership
Suspicion, competition, arms length
Price, efficiency, own profits
Limited information and feedback
Legal resolution of conflict
Minimal involvement and up-frontinvestment, separate resources
Short-term contracts
Contract limiting the relationship
Trust, addition of value to both sides, high
commitment
Equity, fair dealing, both profit
Electronic linkages to share key
information, problem feedback and
discussion
Mechanisms for close coordination,people on-site
Involvement in partners product design
and production, shared resources
Long-term contracts
Business assistance beyond the contract
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Interorganizational framework
The models and perspectives for understanding interorganisationalrelationships help managers change their role from top-down
management to horizontal management. Relationships among
organizations can be characterized by whether the organizations
are similar or dissimilar, and whether the relationships are
competitive or cooperative.
By understanding these perspectives, managers can assess their
environment and adopt strategies to suit their needs
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A Framework of Interorganizational Relationships*
Resource
Dependence
Collaborative
Network Institutionalism
Population
Ecology
Organization Type
Organization
Relationship
Dissimilar Similar
Cooperative
Competitive
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Interorganisational Frameworks
Resource dependence rational ways organisations deal
with each other to reduce dependence on the environment
Collaborative networks where organisations allow
themselves to become dependent on other organisations toincrease value and productivity
Population ecology examines how new organisations fill
niches left open by established organisations and how a rich
variety of new organisational forms benefit society
Institutionalism explains why and how organisations
legitimate themselves in the larger environment and design
structures by borrowing ideas from each other
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Collaborative Networks
Collaborative-network theory Companies join together to become more competitive
Why collaboration?
Major reasons are
- sharing risks when entering new markets,
- mounting expensive new programs and reducing costs,- enhancing organizational profile in selected industries or
technologies.
Cooperation is a prerequisite for greater innovation, problem solving,and performance.
Partnerships are a major avenue for entering foreign markets.
Provide a safety net that encourages long-term investment and risktaking.
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Population ecology
Population ecology focuses on organisational diversity and adaptation
within a population of organisations
Population is a set of organisations engaged in similar activities with
similar patterns of resource utilisation and outcomes Organisations within a population compete for similar resources or similar
customers, such as insurance companies in the United Kingdom
Innovation and change in a population of organisations take place
throughout the birth of new forms and kinds of organisation more so than
by the reform and change of existing organisations New organisations meet the new needs of society more so than
established organisations that are slow to change
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Process of Ecological Change
The population ecology model assumes that new organisations are always
appearing in the population
The process of change in the population is defined by the principles that occurin stages: variation, selection and retention
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Process of Ecological Change
Variation
occurs when new organizational forms appear in the population oforganizations. Also, any single organization may try new variationsfor its own form.
- Axiom Global Inc.
Selection Refers to whether a new organizational form is suited to the
environment and can survive. Only a few variations will suit theenvironment and survive over the long term.
Retention
The preservation and institutionalization of selected organizationalforms. Certain technologies, products, and services are highly
valued by the environment.
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Elements in the Population-Ecology Model ofOrganizations
Variation
Large number
of variations
appear in the
population oforganisations
Selection
Some
organisations
find a niche
and survive
Retention
A few organisations
grow large and
become
institutionalised inthe environment
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Strategies ofSurvival
In population ecology, strategies distinguish organizational forms in the
struggle for survival
- Generalists
A company that offers a broad range of products or services orthat serves a broad market.
- Specialist
A company that provides a narrow range of goods or services orthat serves a narrower market.
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Institutionalism
Institutionalism perspective describes how organisations survive and
succeed through congruence between an organisation and the
expectations from its environment
Institutional environment is composed of norms and values from
stakeholders
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Institutionalism
Legitimacy is defined as the general perspective that an organisations
actions are desirable, proper and appropriate within the environments
systems of norms, values and beliefs
Institutional theory concerned with the set of intangible norms and
values that shape behaviour, as opposed to the tangible elements of
technology and structure. Organisations must fit within the cognitive and
emotional expectations of their audience
The institutional view also sees organisations as having two essentialdimensions technical and institutional. The technical dimension is the
day-to-day work technology and operating requirements. The institutional
structure is that part of the organisation most visible to the outside public
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Three Mechanisms for Institutional Adaptation
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Institutionalization:
Coercive ForcesExternal pressures exerted
upon organizations to adopt
structures, techniques, or
behaviors similar to other
organizations
Government, regulatory
agencies and/or powerful
firms
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Institutionalization:
Normative Forces
Pressures to achieve
professional standards
Preferred techniques
versus required
regulations (coercive)
Legitimacy seeking
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