The Inevitable Trade-Off Between Designing and Managing an Organization

The inevitable trade-off between designing and managing an organization that can be innovative and designing and managing an organization that is efficient from negative and positive standpoints
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The inevitable trade-off between designing and managing an organization that can be innovative and designing and managing an organization that is efficient from negative and positive standpoints
Tradeoffs are inevitable when an organization deploys innovative and efficient management. These trade efforts emerge due to benefits and downsides derived from innovative and efficient approaches in an organization. Managing working teams comes with many benefits. Knowledge creation geared towards innovations is not entirely an individual effort; rather, it is more of teamwork; teamwork is a source of efficiency and innovation as evidenced by what is called intellectual capital. There are potential positives and negatives when managing teams who are responsible for implementing innovative and efficient activities in any organization. Nahapiet and Ghoshal dissected three components while developing collective knowledge, including social capital, the combination and exchange of intellectual capital, and new collective knowledge (Claridge, 2018). Social capital comprises three dimensions, i.e., structural, cognitive, and relational dimensions. These three dimensions contribute to intellectual capital, interpersonal linkages and connections, knowledge sharing, and creating, which are essential assets for progressive organizations in terms of innovation and efficiency. These three dimensions work synergistically in labor-intensive firms where the majority workforce consists of knowledge workers. Knowledge workers enjoy choice and latitude regarding their place of work. Thus, firms have to put extra effort into managing their expectations. Managing teams can involve a better search for innovative ideas. Searching for trigger ideas, scanning an environment, and management implementation is made more accessible by teamwork.
Success has been witnessed when teamwork is deployed in innovation. In organizing for technological innovation and efficiency, an enterprise software vendor can pick to “open” its technology and allow third parties to engage in the technology's development and commercialization; these partnerships, which are in the form of teams have led to many biggest vendors of enterprise software (Adner, & Kapoor,2010). According to Foerderer et al. (2020), Platform strategies are risky. If successful, because the teams do not carry such risks.
Information system development reflects a collaboration between users and developers, but the inability to leverage the localized knowledge entrenched between two stakeholders can impede software development work to achieve high performance (Hsu et al.,2014). While enjoying such a pool of human knowledge resources with expertise, knowledge, and skills, firms have to trade such input with extra costs and management efforts. The team's social capital, intellectual capital, and relational information require managerial input to maintain innovation and efficiency. The management needs to identify approaches to attracting and retai...