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Chapter 3

COMMERCE 2BC3 Chapter 3: Chapter 3 notes HR.docx

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Chapter 3- Organizations and Information Systems
- Organization: stable, formal, social structure that takes resources from the
environment and processes them to product outputs
oCapital and labour are primary production factors
- A technical view of organizations encourages us to focus on how inputs are
combined to create outputs when technology changes are introduced in the
- A firm is seen as infinitely malleable, with capital and labour substituting for each
other quite easily
- Technical definition of organizations tells us how thousands of firms in
competitive markets combine capital, labour, and information technology while
the behavioral model takes us inside the individual firm to see how that
technology affects the organization’s inner workings
Features of organizations
- routines and business processes: firms develop routines for producing goods and
services (precise riles, procedures and practices that have been developed to deal
with situations)
oas employees learn routines, they become highly productive and efficient,
allowing the firm to reduce cost over time as efficiency increases
- organizational politics: people occupy different positions and concerns,
perspectives in the organization and so they have divergent view points about how
resources, rewards, and punishments should be distributed. This differences
matter and they result in political struggle for resource, competition, and conflict
within org.
- organizational culture: encompass this set of assumptions about what products the
organization should produce, how it should produce them, where and for whom
- organizational environments: org. reside in environments from which they draw
resources and to which they supply goods and services; they have reciprocal
oDisruptive Technologies: Riding the Wave
a technology and resulting business innovation come along to
radically change the business landscape and environment
disruptive technologies: substitute products that perform as well as
or better than anything currently produced
- organizational structure: organizations have a structure or shape
- other organizational features: organizations have goals. Coercive goals (prisons),
utilitarian goals (businesses), normative goals (university).
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