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University of Toronto St. George
Don Waterfall

January 13, 2011 PHL295 Organization Theory Audi pages 90-92 about business organization Organization: A collective body work to a common purposes but problems with this definition, Most organizations, Common purposes; two problems goals tend to change, different members of organization goals and objectives from others and even the boss interested in salary. Objectives of organization can be changed purposely Organizations are or can be organized around continues operation through coordination of support Organizations have boundaries, inclusion, membership isn't something that you can do, you have to be admitted, join organization with approval. The second thing besides the boundary of organization there is internal structure, internal component might have mini boundaries, it has a hierarchy. Division of labour in organization writer is Adam smith, in the wealth of nations famous example the pin industry, contrasts how pins are made in a hierarchical organization, Page 110 wealth of organization 18 distinct operations in production. What this have to do with hierarchy? When you divide a process up into parts, each part must have coordination, Bureaucracies also have distinct parts Ford standard farm of assembly time manufacturing, Problems with hierarchical organizations, one critique is that it reduces someone to do something boring, the boss might usually have an interesting job and not other workers so it is very dehumanizing, The second thing is that the efficiency is limited by the fact that if one of the members of the chair is not then the whole process is broken down until another is found as a substitute Managerial coordinating a process but also slows down process, all sorts of delay Third is that hierarchical structures are rigid hard time adapting new ideas it is like a battle ship, The final thing is issue of power, generally falls under concept of political, if you get people within organization that have more power and seek to have more power is good but it can sabotage an organization. Organic structures: Hierarchical team driven and leader is a member, in order to have one organization is to break up the small boxes and make one big organization, instead of breaking work rigidly, when someone is sick another can step in to take his place, duties dont attach rigidly the process is to achieve the goals the team leader is set by a contract negotiated, governed by contracts between the leader and the workers, address two problems with hierarchical organizations Hierarchy is so resilient, flexible way of doing business can be risky, if something works well then it can also be worse, hierarchy more satisfactory, satisfices small risk of failure, organization consisting of these kinds of hierarchy. Form a team and get it done, mixed hierarchical is called matrix, why is it called matrix organization? It is a graph or a grid, X and Y axis, how much is hierarchical and how much is process Ethics and ethical concepts A norm, what is a norm, it has two meanings, the first is rule enforced by a convention or a standard, and the other is an average What a norm does is sets standard for good and bad, correct or incorrect the two main normative concepts are good/bad and right/wrong. Good and values: the term good as understood, something is good for somebody if its valued by them, there is justification when using normative concepts, intrinsic goods (Happiness, good in itself and not as a means to something else) and instrumental goods (good as means to something else) Success as an organization, the success is not an intrinsic good, but good for its members, instrumental goods producing those intrinsic goods that we choose, policies and strategies are instrumental Justify X as good by showing if a) X is a means to Y and b0 Y is intrinsically good Duties: a duty is something like piece of guidance as an action, formulated as a rule that is universal and applies within a domain, applying equality and fairness to the application of duty, a duty applies to a person, Prima facie duties: duties of justice: non-injury, fidelity, duty not to lie, reparation, beneficence, self-improvement, and gratitude and Audi adds liberty and respectfulness Prima facie duties are absolute: universal without exception and Prima facie means the look of surface that you first have at a first glance, what establishes right or wrong at first consideration, contrasts to all duties considered, common duties and not one can be taking as absolute in its own right, they may sometimes apply and sometimes not apply. Serial ordering: duties will weigh differently depending on the circumstance, deciding what is right or wrong basing it on what is good, How do we justify duties? We usually be dealing with duty in a restricter sense, justify a duty by the good it achieves, how well it brings about companies goals, two ways of justifying are general way and how it brings about the greatest happiness Third way of justifying duty, a contract is a promise, a pair of mutual promise, promises generate obligations Domain: a domain might be quite limited it would include family, political community and an organization, this applies to special duties, conventional organizations because flows from a contract, domain of family it cant be called conventional and instead called natural, how moral duties apply to domain duties? A moral consideration might be trivial following process of hiring, what matters here is how serious the violation is, The value of an organization can be measured in terms of the benefit it gives its members This is normative individualism or liberalism Could be in the good of the whole organization: normative holist. Or its contribution to the society Something can be judged objectively January 20, 2011 CBA proceeds by measuring the value for outcome for various options and advises to select the best option with value Setting perimeters and the activity we are doing has to be determined, not lie about product X to the public, once you said what it is you are trying to achieve you follow the following steps, set out all the options and figure out the consequences of the options, all of these are causal, once you figure out the outcome you need to decide the value and decide value by summing the cost and harms of each of them When you get the overall value for each outcome and you pick the one with the highest lowest net cost, this is the scheme to be followed Talk about domain how wide the cost and benefit be, you can have a narrow domain and it would internal cost only and can have broad domain which is the internal and external costs, it is always legitimate to adopt the narrower domain only if the cost are negligible, if you are trying to decide the total of the option is you have yo consider all of the cost and benefit that External, All of the values you use are cost and benefit, good s and bad are morally neutral, they are values to be sure but are moral values, l It is quite important that in the cost and benefit to be neutral, you cant have any moral judgement, or else it would be circular, If bad is what is right then you buy the case, you base it entirely on harm, theses values need to be impartial, a company cannot weight its interest more than the interests of those outside, it has to weight to the standard, Market value is the same to us all, if you put a right or wrong in your decision then it is biased and circular Ethical value can include duty and a good, Lets suppose a company sells T.V sets and there is 50% chance that the TV will malfunction, either they can recall or leave it, How would they decide? to recall or let them go, the cost of the recall is that there would be a fair cost to the company and if not then they can lose customers and loss of business, lets say the cost is 5 million, if you do not do a recall your reputation will suffer, 25% of customers will never buy again, you might have distrust in the company and that you will lose money on another product, and these numbers would add up to more than the recall so therefore do recall and get them fixed What kinds of values do you use in CBA? Monetary values are used, commodified values, these use market values and relative easy to find out however many critics of CBA say that CBA have to use market values, The first concept is an economic one marginal utility, this is a concept that used to be used it generally means the additional sample of product to the customer, according to marginal utility the value of the product cannot be presented at the market value it has to do with the product purchaser Milow Marko with a thousand shoes who has a thousand shoes, the value to them may not be that much abut a person with shoes would have a lot more value The second is present and future value which is evaluating future goods, discounting, if you put off the consumption of some product the current value decreases, Stevenson has an example like this the interest is 3% and a product worth 6000$ and consume for 6 years it is really worth 837$ now, the higher the discount rate the lower the value, re-estimate its current value so that it is worth 6000 after 6 years causing the value of it now to be less, How much the idea which he will rational view, first philosopher to view this Plato, its value now and in the future will be the same, pleasure of chocolate bar will be the same now and later in the future, common sense reason argues against devoting to early consumption, this could put satisfaction of future Not only early consumption damages the well being of future generations, suppose our binge robs our grandchildren of reasonable livelihood, Plato used an analogy it comes from visual perception, he said an object looks far from far than it is closer, but does not mean it is really small, when it is distant we are likely not to care about it, CBA critici
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