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Background Briefing Notes 13 Autonomous Business Units, Responsibility Centres and Internal Markets
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209CBS The Management of Organisations Background Briefing Notes 13 Autonomous Business Units, Responsibility Centres and Internal Markets (Please note: there are no textbook - ie Mullins or Robbins - references to this topic. Hence the length of these notes; and see also the other references at the end.) The use of "internal markets" is one of a number of new developments in the way organisations are structured and run. Other associated development include the emphasis on "lean organisations", the "quality movement", and "outsourcing" and the development of the "virtual corporation". These developments, and the problems of managing the changes these involve, are reviewed later in the module. "Internal markets" are systems used inside organisations which wish to combine the advantages of operating through an organisation with the advantages of operating through markets. They are based on the idea that central management cannot mastermind and plan ("micromanage") everything that happens inside the organisation. Essentially the organisation...
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