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Transcription of this question: 4.The new organizationFifty years ago William Whyte wrote a book called “The Organization Man”. He thought that”traditional organizations” rewarded long service, obedience and loyalty. Their structure wascharacterized by a head Offlce, which controlled both strategy formulation and its implementation.This system Of control was represented by a tall hierarchy with a long chain Of command.The company that most closely illustrated this traditional organization was IBM. Today, however,50% Of IBMS employees have worked for the company for under five years; 40% Of its 320000employees are “mobile” and spend at least one day a week working away from an IBM site;and about 30% are women. This transformation has been enabled by developments in informationand communications technology, the globalization of production and sales, and the shift Of functionsto subcontracters through outsourcing and joint-ventures. “The Organization Man” has become”The Networked Person”, who is always on the move with a laptop computer and a mobile phone.Many employees no longer have their own personal office space provided by their employer.The workforce is as a result more flexible in terms Of location and working hours.These changes have also allowed businesses to adapt their structures and operations, but havesometimes led to unexpected problems. Twenty years ago, Motorola, a co-inventor Of themobile phone, was a tightly centralized business. Three men in its headquarters were in controlOf almost everything. As the company grew, they decentralized and flattened the hierarchy.However, by the mid-1990s the business was growing so fast it was impossible to control. In 1998the company made 25 000 people redundant and returned control to their headquarters.As Motorola have become more global, they have adapted their traditional structures byappointing local managers to take account Of different national markets and tastes. However,some commentators argue that these structures are more complex and inefficient and have lead to”conflict and confusion”.(a)(b)(c)[Source adapted from rhe Economisl, January 20061Define the term decentralization.Explain how technological change has affected the way that global businessesoperate _Evaluate the suitability Of traditional organizational structures for advanced[2 marks][8 marks]technology firms such as IBM and[l O marks]

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