Friday, December 19, 2008

Innovations in the organisation of firms..

Globalisation, coupled with advances in information  technology  and  more 
demanding capital markets, has set in train “innovations in the organisation of 
the firm that may ultimately be as momentous as the invention of the multi-
the 20th century”  (Roberts,  The divisional form in the first two decades of the 20
Modern Firm, p2) 

In this paper, I will try to assess the organisation of a company from an evolutionary perspective. I am going to show that changes that took place in the previous years are as well as important as those changes  that took off in 1920s. There are significant similarities between the recent evolution of organisation of a company and the invention of the multi-divisional form in the first two decades of the 20th century. The conclusion is that innovations in the 
organisation of the firm may be as momentous as the invention of the multi-divisional 
form. In order to satisfy my research aims, I will firstly describe recent development; 
present some theoretical arguments of organisation,  and  an  insight  into  the  link 
between performance and strategy. Then I am going to describe the multi-dimensional 
organisation that took off in 1920s with a specific reference to the Czech entrepreneur 
Tomas Bata. Lastly we will discuss whether the changes are as momentous as those in 
1920s and what will be the impact of current economic crisis on company’s 
organisation. 

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