Old MathJax webview

How does the organisational structure influence a work environment for innovation? Today's dynamic business environment is changing rapidly. Technology, consumer tastes, laws and regulations, political leaders, and international conditions are all changing rapidly and dramatically. To operate within complex markets, organisations require flexibility and innovative strategies to maintain competitiveness. Among other factors, organisational structure may affect a company's capability to innovate. Unfortunately, most of the organisations are currently facing a key challenge in creating an organisational design that promotes and encourages employee's innovative behaviour. It is crucial for organisations to recognise the needs of promoting an environment that is favourable for innovation. Various research findings confirmed that employees are more likely to interact with each other in the innovative working environment for better creation of new knowledge and find optimal solutions to business problems. Moreover, the managers also need to be aware of the various factors that drive the need for change. Managers need to adapt to the organisation so that it is ideally situated to accomplish current organisational goals. Thus, effective managers need to know how to plan and implement change to achieve organisational success. Managers must react quickly, and organisations must be flexible to respond. Failure to monitor and respond to changing conditions often results in a company's demise. Source: Adapted and modified from Gaspary, E, Moura, GLD, & Wegner, D. (2020), How does the organisational structure influence a work environment for innovation?, International Journal of Entrepreneurship and Innovation Management, vol. 24, no. 3, pp. 132-153. (c) Based on the answer in part (b), select and discuss ONE (1) form of organisational structure which would be appropriate for sustaining the organisational survival in times of uncertainty. Support your answers with relevant examples. (10 marks) [Total: 50 marks]