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Organisations Studies

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Open system reflects the willingness of an organization to make adjustment in accordance to the environment evolve. It happened in Nestle as they restructured their organization in a form of decentralization. In the case study by Hill & Jones(2009) Nestle was once in the centralization structure which means the machine likes organization with strong hierarchy while decisions were made by few high power individuals. In consequences, Nestle unable response to the fast changing food industry in a bigger picture as the structure restraint in making instant action. With noticed the issues, decentralization of power is adopted by Nestle to increase the operational efficiencies . In other aspect, Nestle understands every individual in an organization is a living cell and none of them can be work in isolation. Although there are differentiated workloads in varies functional departments, the common goals have driven them as an interrelated whole. Starting from 2000, Nestle re-engineering its information system with the deployment of technology ERP system(Dieringer 2004). It integrates their divisions throughout the value chain from planning, development, manufacturing and sales and marketing which allow Nestle to leveraging its distinctive competencies. Morgan open systems promotes people are not machines where organisation should gives concern on their needs. Nestle fulfil this criteria as people is their priority as believe the most important asset throughout the organization. They initiated a CARE program in Nestle factories and later extended to regional office in Malaysia to ensure that they are doing beyond with just complying the local legislation. The great emphasis is into motivate the employees through higher level of needs in continuous learning and involvement in the company. In results, CSV report(2010) shows Nestle achieved 98% in participation

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