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1 Organizations and Environment

Organizations are deemed as having a social contract with society; they are

approved legitimacy for the purpose of serving the social good. This constructive

function includes the manufacture of products and services as well as their fair

distribution. Organizations function by combining together human skills and knowledge

with technology and material resources to manufacture products and services. However,

organizations may also be the source of negative social outcomes. Such would include

social problems related with monopolies; unsafe merchandise, unfair labor practices, and

also the ecological problems brought about by industrial mishaps and industry-related

pollution. These negative effects of the organization have therefore influenced concepts

of social control, through laws regulations and social customs, offered by political

science, sociology and economics. The effect of incorporating factors within and outside

the organization has led to the expansion and development of various perspectives in

shaping the concept of organizational theory.

Perspectives regarding the management of the organization would involve the

contingency view where environmental changes and uncertainty, technology and size are

considered as environmental factors affecting the effectiveness of an organization. Based

on this perspective, a stable environment would produce mechanistic organizations that

underline centralization, standardization, formalization and specialization to attain

consistency and efficiency. On the other hand, unstable environments would bring about

organic structures that give importance to decentralization to accomplish adaptability and

flexibility. Rules, policies and procedures are used as a guide in decision-making for

regular tasks and problems; and general problem solving systems are required in

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uncertain and unpredictable non-routine problems and tasks. The art perspectives belies

scientific principles and theories and rely on the social and political environment

surrounding a certain management issue, making use of their own knowledge of a

condition rather than general rules, to verify a solution. The scientific perspective

presents the notion that there are principled managerial practices for certain

circumstances based on scientific foundations where a rational and objective method to

determine the correct solution is used; general principles and theories based on

constructing and testing hypotheses are followed. These differences in perspectives

cannot be disregarded because each perspective contributes to great understandings on

how diverse organizations are.

The contingency perspective aptly describes the Food Chain Franchise Business,

particularly Dunkin’ Donuts. It has started from a small food business where the

organizational structure is simple and then grew to a business with several outlets.

Increase in recognition and demand then led to franchising the business. What was once a

simple food chain is now a franchisor that has to control all the other franchisees to

maintain the standard quality of the products. Innovations in organizational structure,

manpower recruitment, and technology have been incorporated to meet the growing

demands as well as maintain production methods, quality, and distribution procedures.

New departments being put up as needed to answer to any requirement that may arise.

Changes therefore are vital so as to cope with the changing needs of the entire business

organization and not just that of the single franchise.

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2 Mechanistic Versus Organic Characteristics

Dunkin Donuts is generally mechanistic in nature. The primary reason would be

that it follows a highly formalized structure where most processes and procedures have

been authorized administratively. The main objective for this is to maximize output and

minimize waste, underlining efficiency. All procedures involved with the production of

donuts and pastries up until the service given at the counter have a standard operating

procedure. Standard Operating Procedures are the bread and butter of this type of

business and thus must be strictly adhered to. This clearly emphasizes the importance of

internal knowledge as opposed to the organic management system. These characteristics

are rather appropriate in the sense that day to day operations are rather the same in nature

and what really differs are the bigger sales targets as chains multiply. As the business has

always believed, it has become this big because it was true to its tried and tested success

formulas called the Fair Franchising Standards.

On the other hand, it is important to note that at the equally tasked support

departments such as production, marketing, sales and distribution, finance and

administration, managers practice the organic management system where solutions are

being formulated for the improvement of the entire organization. Therefore one

organization can still have the characteristics of the other management system although it

may be predominantly the other.

3 Complexities as Driver in Organizational Structure and Technology

Ensign reasonably states that the task being performed by the organization in line

with its technology is a very significant determinant of the organizational structure.

“Over a period of time, organizations tend to move toward greater complexity” (Ensign,

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1998), and such complexities are primarily found in its technology. As technology

changes, so do the organizational structures and procedures to best fit the change being

undergone. Hatch on the other hand, presents technology as imaged in the modernist

perception contained within the organization while the environment is outside. These

technologies are combined with resources to come up with outputs needed by the

organization. As in the symbolic-interpretative perception, it was mentioned that the

organization of the society influences the shape of technology.

Both affects the other and is again dependent on circumstances, situations, culture

and environment. The key to all these complexities is the ability of the organization and

its employees to modify and adapt when the need arises. Given any situation, change is

indeed constant and thus must be given ample open-mindedness and readiness to give up

a theory or a perspective to accommodate a new one for the benefit of the organization as

a whole.

4 Organizational Cultures

Dunkin Donuts is very much modernist in terms of organizational culture. It relies

heavily on traditional structures, standardized operating procedures, standards of quality

measurements, rules, regulations and routine practices. These have been tried and tested

by the founders that have led to the franchise’s current success. This knowledge is etched

in stone, protected by each employee with utmost care as it is his bread and butter. Daily

operations are almost always predictable. New employees seek to be at par with the

pioneer employees in knowing the sacred standards. Walls on employee areas are all

meticulously displayed with Organizational Structures, Standard Product Measurements,

and Standard Procedures on all possible situations such as customer complaints,

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equipment malfunction, and all sorts of troubleshooting. All employees are given a copy

of the company’s Code of Conduct as well as the business standards which are to be

regarded as bibles while employed in the company.

5 Physical Structures and Power

Modernists view organizations as real entities operating in the real world, a

physical structure with formal organizational positions within which power is acquired

and used. Power or success lies on its capability to operate and manage the organization

with the use of its knowledge. Postmodernists on the other hand view organizations as

arenas or sites where power can be manipulated by different subjective perspectives or

points of view. This perspective aims to expose abuses of power claiming that

“everything is text” (Derrida, 1978) using language as a means to observe the

organization.

6 Compare and Contrast

Modernists contain power within the authorized and knowledgeable weighing

heavily on bureaucracy or clan control leaving very little or no power at all to the lower

ranking employees. Control is usually maintained, conflicts addressed through the

rational systems. Critical Studies are heavier on the drama as social, economical and

political structures, as well as ideologies are challenged to be at least more democratic.

Hegemonic practices thrive because however unjust the working arrangements are, the

laborers are at the mercy of the proprietors for many reasons, but mostly because control

is still tied up with the resource – money. Conflict is inevitable when the clanging of the

mass laborers is much too disgruntled. Power lies on who can get more out of the

business deal. Postmodernism on the other hand is more inward in approach in that it

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aims to control the self in conflicts and emerge powerful when the outcome is betterment

of self.

In all these major groupings however, "social order exists only as a product of

human activity” (Berger and Luckmann, 1956.) and whatever varied reasons there are to

why people consent to their own domination still leans heavily on cultural environment.

Still, “while it appears that culture is over and above us, it as also clearly an outcome of

human initiative, interaction, reaction, and resistance.” (Mills, Helms Mills, Orshow,

Bratton, 2007)

7 Organization Advantages and Disadvantages

A small local Accounting Services Firm would very much likely use a simple

organizational structure. The owner managing the firm would supervise and monitor all

accounting jobs of accountant employees for every engagement the firm would have and

would make major decisions for the firm. The advantages would be that there is control

on all business operations as communication is open and frequent thus decisions are

made rapidly. The set-up is simple and informal making it open and flexible to

innovation or change. However, such a set-up is very demanding on the owner. There is

also limited specialization thus complex tasks may be given to employees. This structure

would best fit in conditions where there is a single product or service offered.

The Food Chain Franchise Business uses a functional structure. Departments are

set-up according to functions and managers have the advantage of supervising similar

tasks related to their roles. Production, marketing, sales and distribution, accounting and

finance, human resources, administration, and others are managed by department heads

thus overall supervision is high and coordination can be easily achieved. Employees in

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the same department also develop higher skill learning due to this coordination. However

the disadvantage is that there is lesser interaction between departments and between

people belonging to other departments. There is even a danger of department competition

as to which department is more efficient losing focus on the organization as a whole. A

functional structure would work best with less complex organizations dealing with one or

a few products or services and where environment is relatively stable allowing the

organization to pursue objectives through consistent strategies.

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REFERENCES

Berger, Peter and Luckmann, Thomas. The Social Construction of Reality: A


Treatise on the Sociology of Knowledge. New York: Anchor Books, 1966.

Derrida, J. Writing and difference. London: Routledge & Kegan Paul, 1978.

Ensign, Prescott. Interdependence, coordination, and structure in complex


organizations: implications for organization design. Canada: Richaed Ivey
School of Business, 1998.

Hatch, Mary Jo with Cunliffe, Ann. Organization Theory: modern, symbolic, and
postmodern perspectives. New York: Oxford University Press, 2006.

Mills, A., Helms Mills, J., Orshaw C., and Bratton J., Organizational Behavior in a
global context. Canada: Broadview Press, 2007.

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