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Why study organizations?

Updated: 9/18/2023
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12y ago

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Organizations are complex systems made out of people. The people construct that organization depending upon their values, culture, identity, behaviours and beliefs, so every single one is different and they often change over time as they mature, change (expand or contract), react to market conditions and cope with other external factors. The polices and procedures as well as the way their Executives behave has bearing on how that organization will perform. This is of interest to people/shareholders trading on the stock markets around the world, as it may give an insight into how an organization may perform in the future and whether the shareholder will make any profit from his investment. Organizations often study themselves and their people in order to look at performing better or beating the competition, by identifying capability gaps/benchmarking themselves in that sector that they then address through systems such as re-organisations, training or employing new people.

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