Title: 'Hard' vs. 'soft' elements in organization and functioning of the enterprise
Abstract: Classical approach define organization as a complex category based mostly on 'hard' components (structure and its elements). Development of a firm within the context of market economy unveil importance of 'intangible' or 'softy' organizational elements which are behind the structure.'Human relation' approach, established by Elton Mayo in the 30-ties, has been indicated the mutual relation of the employees and their psychological satisfaction as the critical factor of their work motivation. The interest in the subject rose again in the management professional circles especially during 80-ties as result of striking success of the Japanese companies and the findings that it has been based upon the 'soft' elements of their organizations.The 'soft' elements are usually encompassed within the concept of internal culture, defined as the system of firm's specific internal values and norms. Internal culture has been indicated as crucial mechanism of integration of individuals into the teams and of their effectiveness in performing the group goals.Most of the management authors today are advocating 'contingency' approach in organization designing in which balanced attention is paid to 'hard' as well as to 'soft' elements. McKinsey's '7-S' organizational framework is representing one of this type of model. In the second part of the article this framework is used in elaborating some of the most important organizational properties of the Yugoslav firms.
Publication Year: 1996
Publication Date: 1996-01-01
Language: en
Type: article
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