Richard Sennett describes three factors which impact on the nature of modern work and organizations. How do these factors impact upon Smaller and Medium sized Enterprises (SMEs)?

Small and medium sized businesses are well recognized and hold worldwide as vital and crucial contributors to economic development, transaction creation, and the general health and welfare of economies, both nationally and internationally (Morris and Brennan 2000). The small business sector represents a statistically significant proportion of the world economy.

Richard Sennett considers three occurrenceors that adore the modern forms of organizational flexibility as:

a)         Discontinuous reinvention of institutions

b)          bend adapted specialization of production

c)         Concentration without centralization of power

Discontinuous reinvention of institutions

Modern organizations are moving towards cut back the layers in their management structure with a view to plus the efficiency and flexibility of operations. This is because of the reason that in todays dynamic environment change is what puts an organization in a position of warlike emolument and helps in being cost effective in the global market. This reduction in the layers helps in monitoring and tyrannical the work of employees in an efficient manner and also allows the managers to examine more number of subordinates under them and hence makes space for the consummation of multiple tasks by the managers.



Due to this whole idea of curtailment of organizations, the current organizations which are running on purely laissez-faire(prenominal) lines with pyramidal structures face problem because many employees buzz off to be laid off in order to take advantage of the strategic decision for change. This affects the morale of the employees and actually demotivates them. This is evident from the fact that the percentage of organizations that have downsized themselves with a view to be cost and productivity efficient is very less compared to what has been thought of.

SMEs have been characterized by few employees and almost direct control and post over all activities by the principal owner. This allows the organizations to be able to...

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