BU398 Study Guide - Midterm Guide: Interlocking Directorate, Balanced Scorecard, Management Control System
Document Summary
Organizations are: social entities, goal driven, deliberately structured and coordinated, linked to the external environment. Organizations exist to bring together resources in order to achieve desired goals, facilitate innovation, produce goods/services efficiently, create value for owners, customers, employees, accommodate challenges of ethnics, diversity, and coordination, etc. An open system must interact with the environment to survive. It consumes resources and also exports resources to the environment, and it must continually adapt. A closed system doesn"t depend on the environment and it is sealed off from the outside world. They create a basis for measuring and comparing organizations. They are formalization, specialization, hierarchy of authority, centralization, professionalism, and personnel ratios. They characterize the whole organization and elements of the environment. They are culture, environment, goals/strategy, size, and technology. Efficiency refers to the amount of resources needed to achieve its org"s goals doing things right . Effectiveness is the degree to which an organization achieves its goals doing the right thing.
