By Ian Worthington, Chris Britton
By means of encouraging scholars to discover the demanding situations and possibilities managers face within the enterprise atmosphere, this article will offer scholars with an effective beginning from which to construct upon their enterprise wisdom.
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Additional info for The Business Environment, 5th Edition
In short, inputs help to create output and output creates inputs. Moreover, the output of one organisation may represent an input for another, as in the case of the firm producing capital equipment or basic materials or information or ideas. This interrelationship between business organisations is just one example of the complex and integrated nature of business activity and it helps to highlight the fact that the fortunes of any single business organisation are invariably linked with those of another or others – a point clearly illustrated in many of the examples cited in the text.
Systems invariably comprise a number of sub-systems through which the process of conversion or transformation occurs. g. sales, quality control, training) which collectively constitute the whole. Just as the organisation as a system interacts with its environment, so do the sub-systems and their component elements, which also interact with each other. In the case of the latter, the boundary between sub-systems is usually known as an ‘interface’. While the obvious complexities of the systems approach need not be discussed, it is important to emphasise that most modern views of organisations draw heavily on the work in this area, paying particular attention to the interactions between people, technology, structure and environment and to the key role of management in directing the organisation’s activities towards the achievement of its goals.
Project teams Despite its flexibility, the matrix often has a degree of permanence; in contrast, the project team is essentially a temporary structure established as a means of carrying out a particular task, often in a highly unstable environment. Once the task is complete, the team is disbanded and individuals return to their usual departments or are assigned to a new project. Fashioned around technical expertise rather than managerial rank and often operating closely with clients, project teams are increasingly common in high-technology firms, construction companies and in some types of service industry, especially management consultancies and advertising.