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ADMS 1000 Notes Midterm.docx

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York University
Administrative Studies
ADMS 1000
Peter Tsasis

ADMS 1000 Notes Chapter 1 – The Context of Business WHAT IS AN ORGANIZATION?  An organization consists of people with formally assigned roles, who work together to achieve stated goals within an identifiable boundary. What makes an organization an organization?  A social entity – composed of people, interacting with each other to perform essential functions.  Goal directed – exists for a purpose  Deliberately structured – characterized by formally assigned roles deliberately divided into sets of activities  In an identifiable boundary - maintaining itself as an entity distinct from the environment The Internal Context of Business  Strategy – a plan or a course of action leading to the allocation of the organization’s resources in reaching an identifiable goal (s)  Structure – a pattern of relationships that exist between individuals in the organization o It is characterized by the organizational chart (I.e. functional, decentralized etc.) o Reflects the formal hierarchy of authority in the organization  Systems – procedures and routinized processes controlling and coordinating behavior in the organization  Shared Values – significant meanings or guiding principles that the organization instills in the members  Skills – distinctive capabilities of key personnel  Style – characterization of how key managers behave in achieving the organization’s goals ORGANIZATIONS AS OPEN SYSTEMS  A system – interdependent elements working together to achieve a goal(s) o Relation to Organizations: guide our understanding of what organizations are all about and how they function and survive  An open system – declares that organizations are entities that are embedded in and dependent on exchanges with the environment they operate within.  A closed system – fully self –sufficient entities requiring no interaction with the environment The External Context of Business Defined the environment of an organization along two dimensions: 1. Specific or Task Environment o External stakeholders – these are the parties/groups that have direct influence on the organization’s ability to obtain resources and generate outputs. They have some kind of stake or interest in the organization and could include such parties as the organization’s customers, suppliers, labour pool, local public, and the government. 2. General Environment o The forces that make up the general environment ultimately shape the specific environment. o Influence the organization’s ability to obtain resources o Economic Forces o An economic slump can mean downsizing, cuts in training and staff development, end of traditional work practices etc. o An economic boom can mean expansion, extra training, R & D etc. o Competitive Forces o Business must think about who their competitors will be o Competition may be at a local, national or global level. It may be open or restricted o Technological Forces o Technology has an important influence on organizations - accessibility influences market entry and operating costs o Consider how technology has influenced the role of work and how work is done, e.g. teleworkers, flexible work practices o Global Forces o Forces that can be embedded in general economic, political, technological or societal
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