Superior Organization

The word “organization” can be really ambiguous. It may mean different things to different individuals. According to Macmillan English dictionary for advanced learners, organization has two meanings; a group of people who have a particular shared purpose or interest or the way in which different parts of something are combined or arranged in structural terms. When the dimension of business is introduced, business organization may refer to the physical aspects such as resources both human and material or it may refer to its core purpose and business activity. It may be argued that a definition of business organization that incorporates these two definitions is more holistic. Professor Child states that a superior organization is one of the last sustainable source of competitive advantage (Child, 2005, p.23).
Globalization seems to have changed the basic rules of business organization due to high paced technological innovations and advancement. Global trends have become critical for businesses to survive, hence the need to re-organize their way of doing business to be able to respond competitively to rapid changing global circumstances. Professor Child argues for business organization that moves away from the traditional vertical, usually centralised organisation, to the horizontal organization structure with a skilled, motivated and coordinated workforce and business processes. He also underscores the importance of removing communication barriers within and with other organizations, ensuring efficient flow of information. The other aspect that Professor Child addresses is organisation reducing transaction costs through efficient allocation of resources thus serving as an alternative to market. Such superior organization is also to put in place a mechanism of setting goals and mechanisms of monitoring and evaluating them as the minimum of administrative control (Child, 2005, p8). In view of the many changes globalization has brought about, it may be argued that