ADMS 3490 Lecture Notes - Lecture 2: Differentiator, Reward System, Organizational Architecture

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The success or failure of any reward system depends on how well it fits the organization"s contact and system as a whole. Organizations are systems that apply procedures to a set of resources in order to transform input materials into outputs that someone values. Organizations typically use 4 types of resources in the transformation processes: human. To take these resources and combine them to achieve the organization goals, some type of strategy is required for achieving organizational goals. Business strategy is the organization"s plan for how it"ll achieve its goals. Organization structure is the vehicle for executing this strategy and has sevel structural dimentions or variables. When you combine both business strategy and organization structure, you need to consider the environment the organization is in, the type of technology is uses, etc and doing that is called the contingency approach to organization design.

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