Organisations grow and change overtime. They are not static; they grow, shrink and change overtime. They begin small, then they begin to prosper and grow, leading to hiring, training, specialisation and delegation. In order for organisations to grow in today's world, they must not fail. Organisations change as they grow and decline and they have to keep up with changes or they may fail. They have to change in response to various internal and external forces. They must overcome the organisational inertia that continuously threatens its ability to adapt to environmental changes. There are many challenges facing organisations such as competitiveness in the industry with regards to speed, reliability, quality, flexibility etc. Empowerment would be another challenge - you have to put power on your staff so that they will make the right decisions without having to go to their manager or supervisor. Global marketing and manufacturing would also be a big challenge for organisations as they would need to make sure that it is worthwhile and they would not end up failing. An organisation must make changes to its structure and culture at critical points in its life cycle. If effectively managed, an organisation continues to grow and differentiate.
Organisations are social entities, that are goal directed, deliberately structured activity systems, with a boundary. They can also be defined as a collection of individuals working within a structure to achieve the business objectives. Organisations search for ways to change themselves so as to achieve control over limited resources and to reduce uncertainty. They can increase their control over resources by growing and becoming larger.  ...