• Committee organization

When a group of people is formally appointed to consider or decide certain matters, this type of structure is a committee. Committees can be permanent (standing) or temporary and usually supplement line and staff functions. Sometimes ad hoc or temporary committees are set up to deal with a specific problem. Once this committee makes its recommendations, it is dissolved. On the other hand, permanent committees usually act in an advisory capacity to certain organizational units or managers. For example, committees are used to a large extent in universities. They may report to a dean or depart­ment chair. Certain committees, called plural committees, have the authority to order, not just to recommend. These committees are usually reserved for a very high level, such as the board of directors. An example is an executive committee of the board for compensation or for succession planning.

Although committees have a number of advantages, they also have a num­ber of disadvantages, particularly being excessively time consuming. Hence they should be managed effectively.

ORGANIZATIONAL STRUCTURE AND ENVIRONMENT AND TECHNOLOGY

Most studies that have been conducted on the relationship between organi­zational structure and the environment have concluded that the best organizational structure is contingent to some degree on the conditions in the environment. Several studies have also shown a relationship between technology and structure. In fact, these researchers even suggest that tech­nology itself determines structure. These studies and others have lead to a Contingency Approach to organizational structure.

CONTINGENCY APPROACH

This approach indicates that the most appropriate organizational structure depends not only on the organizational objectives but also on the situation, which includes the environment, the technology employed, the rate and pace of change, the managerial style, the size of the organization, and other dynamic forces.

By the year 2000 and later, the period of change resulted in organizational change, with many of the old hierarchies being replaced with flat structures, cross-functional teams, and empowered and highly skilled employees mak­ing their own decisions, all made possible by developments in information technology and communications.

Communications within organizations will continue to evolve utilizing information technology-based office automation, as well as the latest tech­nology offered by the Internet and video conferencing. The increasing use of this technology will make where managers are based less important, and the emphasis in the management of human resources will be switched to measurement by performance and away from the traditional need to be in the office from 9 am to 5 pm each day Management information systems will enable managers and other staff to view high-level information in multiple dimensions for faster decision-making.³

Investigating competitive advantage: the value chain

Few strategists and organizational planners have the ability to view the organ­ization as a whole and recognize opportunities for creating competitive advantage. That is why the traditional method of surveying strengths and weaknesses divides the organization into smaller, more manageable subsys­tems and why the resource-based view looks for competitive opportunities in light of the firm’s unique competencies and resources. Once potential strengths and opportunities have been translated in terms of resources and competencies, it is important to investigate deeper relationships and deter­mine how and where these factors actually add value. An interesting illustra­tion is reported in Exhibit 1 relating to the value of academic medical centers as engines for economic development within the community.