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Mr

Submitted by kedordu on January 6, 2007

Category: Miscellaneous
Words: 1895 | Pages: 8
Views: 142
Popularity Rank: 72,945
Average Member Grade: N/A (Add a Comment / Grade this Paper)


In the forty years after the Second World War, Spain underwent important changes in business, political and social environments. These changes were instrumental in helping both public and private organisations make the transition from the authoritarian/bureaucratic style of organisational control to being dynamic and outward looking. However, this organisational change was not able to keep up with the pace of change in the external environment, and Spain still lagged behind her European partners in many areas, having a negative effect on the competitiveness of Spanish businesses.


Traditionally the culture that has predominated has been characterised by the size and importance of the state sector under the aegis of the Instituto Nacional de Industria (INI), and a rigid monolithic state bureaucracy which offered civil servants at all grades a job for life; a large number of small and medium-sized firms, many with strong family links that led to a static hierarchical organisational structure; a pool of cheap and compliant labour which removed the impetus to invest in and develop new technologies; and an inward-looking productive structure, which was highly protected and therefore denied the challenge of competition. The stability provided by the authoritarian regime of General Franco before 1975, and the cosy relationship between business, banks and government, allowed business organisations and government agencies to forgo long-term planning. Spanish firms thus failed to identify long-term strategic objectives and short-termism, insularity, and quick profit became the norm.

One significant event which helped force organisations in Spain to change in the second half of 20th century was the abandonment of the policy of autarky in the late 1950s, which led to a partial lifting of government controls on the location and expansions of business and fewer restrictions on foreign investment in Spain. The post-war economic...

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