24 January, 2011. What core competencies give an organization competitive advantage? What are examples of an organization's functional-level strategies? The core competencies that give an organization competitive advantage are the skills displayed in the value creation activities…
Functional level strategies are plans made to enhance the organizational and functional resources of an organization. The plan also strengthens the coordination within the organization. All of these factors mutually function to generate core competencies in the organization. In order for an organization to develop a functional level strategy, it should either lower the cost of functional activities as compared to that of the competitors, or else, make its service and/or goods different from others’. Examples of an organization’s functional level strategies can be increase in the quality of products in which the value creating function is “manufacturing”, and hiring talented workforce and improving their skills through on-the-job training in which the value creating function is the “human resource management”. Likewise, improving the quality of existing products or developing new ones pertains to the value creating function of “research and development.” Similarly, an organization can improve services in other value creating functions. These examples explain the skills that are displayed in the value creating functions. The very skills are fundamentally the core competencies of an organization and give it competitive advantage. ...
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(Organizational Theory Design and Change Essay Example | Topics and Well Written Essays - 250 Words - 2)
“Organizational Theory Design and Change Essay Example | Topics and Well Written Essays - 250 Words - 2”, n.d. https://studentshare.net/other/16400-organizational-theory-design-and-change.
These include most importantly the employees and the customers. Companies and various organizations are therefore forced to embark on strategies which will ensure the ultimate satisfaction of these classes of people. The methods used by the companies are either of immediate economic significance or social significance regardless of whether the organization is non-profit making or for profit.
My workplace gives great importance to collaborative team work in which people communicate with each other without hesitation. Supervisors care for their sub-ordinates and there is a proper reward and bonus system for employees who work hard in achieving the organizational goals.
A functional structure is very simple and is commonly employed in businesses. Functional structure has significantly developed functional departments having specific functions and well defined role in the overall work. Departments in a functional structure include but are not limited to accounting, administration, operations, HR, marketing, design and engineering (Jones).
These competitive advantages can be acquired through division of labor in the growth stage. Organizations need their entrepreneurs to develop the skills to create and introduce new products, and to enhance organizational learning. To achieve this, organizations need to put in efforts to grow in different stages which include growth through creativity (stage 1), growth through direction (stage 2), growth through delegation (stage 3), growth through coordination (stage 4), and growth through collaboration (stage 5).
Innovation within an organization sees quantum technological change and incremental technological change. Since innovation is expensive, it needs to be protected through copyrights, patents and trademarks. Intrapreneurship is the innovation and new product development by entrepreneurs within established organizations.
The organization’s structure decides role of subunits as per the requirements of its strategic goals that it maintains in order to get competitive advantaged. The level of interdependence of subunits varies from one organization’s structure to another.
The main reason for maintaining the balance of power is that it improves the quality of decision making. That is, when there is equal distribution or balance of power among the stakeholders there is bargaining from all stakeholders before agreeing on a decision.
Some of the factors leading to organizational decline are:
Too much bureaucracy in the culture of an organization may easily lead it to decline. In many big organizations, rights of property become very well-built and strong. Their strength often causes