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competitive business climate

A carefully designed organizational structure is essential for success in a competitive business climate. However, without a practical management system that can establish companywide information dissemination, structure loses its full effectiveness. Equally influential are the players within the management system, who must be able to address all cultural factors that may affect the operation of a company. These factors include organizational characteristics, relationships, competition, and performance. All elements combine to form an integrated business process.

A carefully designed organizational structure is a logical prerequisite for success in the 21st-century business climate. Good structure is inadequate, however, without a well-designed management system that can serve as a solid foundation for running the company and maintaining improvements. To be effectively designed, a management system must address all contextual and cultural factors that may affect the operation of a company. These factors include company organizational characteristics, internal and external relationships, competition, strategic challenges, and business performance. Management system designers must also give full consideration to serving all the stakeholders. Stakeholders are usually an eclectic group of players and can include customers, employees, investors, suppliers, top management, and even community members. The needs of all these groups have to be met without sacrificing operational efficiency, so the management system must be designed to promote synergy between cultural and stakeholder influences.Organizational Structure

The starting point for any organizational design is a realistic company structure that is based on a well-thought-out strategy. If the management team develops a clearly understood strategy and a company structure to accommodate it, the management system has a better chance of being effective. Crossan and colleagues provided an in-depth discussion of structure and its role in helping meet an organization’s strategy. Mintzberg (2003) also stressed the criticality of having a sound strategy before developing a workable management system. Mintzberg examined a number of different options for organizational structures based on varying strategies, confirming the need to consider structure as being just as important as strategy, both forming the core of a company’s ability to function.Effective Management System Design

A vital characteristic requisite for success is an efficient management system. A company must plan, discuss, and assign roles to provide fluid leadership, embodied in the management system, during the course of doing business. The operation and use of the management system also have to be documented and broadcast throughout the company so that all employees know what part they have in its implementation (Crossan et al. 2005). Typical management systems that accommodate these characteristics involve computerized, networked systems with central databases. These types of systems allow each member of the company to access and use information from various sources that may be required to help develop plans, control hierarchies, and execute strategies.