Business in context (Chapter 6) ~ Discussion questions.

How are goals formed and what are the major difficulties encountered in goal formulation and implementation?
Goals are formed to give direction to the activities of its members. The formation of goals can be a highly political process; this can cause conflict, but the goals of most businesses are generally accepted as being these of the senior management team. Goals are developed much through the work of Cyert and March (1963). They see organizations in terms of individuals and groups who combine to pursue mutual interests; this is the most effective way of achieving their goals. Goals are more specific statements of intent than a mission statement, but are still broad and generalised.

What are the major causes of goal conflict and how might they be resolved?
The main causes of goal conflict are that they can be highly political. Conflict is mainly through four main factors which are:
1. Goals formulated by senior management as a means of achieving their own goals; this is a result of bargaining and negotiating process between interest groups.
2. Organization members would appear to accept the goals from top management with little question; this may seem to be an implied element of the employment contract.
3. The dominant coalition is normally put in place to achieve their goals; such controls have been alluded to earlier and include selection procedures, to ensure all rules are followed. In addition technology can replace job allocation, and financial controls in the form of budgets and reward systems, managers ensure a minimum level of compliance with their chosen goals.
4. Management have different goals to many of the groups; they have to acknowledge this.

Assess the relative importance of the various strategic, organizational and environmental factors, which influence organizational structure.
An organizational structure is a grouping of activities and people to achieve the goals of

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