COMMERCE 2KA3 Chapter Notes - Chapter 3: Carriage, Information System, Factors Of Production

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2KA3
• Professor: A L I R M O N T A Z E M I

Document Summary

Organization: is a stable, formal social structure that takes resources from the environment and processes them to produce outputs. The technical definition focuses on 3 elements of an organization. Capital and labour (the production factors provided by environment) the origination (the firm doing the transformations), and the products and services (consumed by environment) Routines: sometimes called standard operating procedures are precise rules, procedures, and practices, that have been developed to cope with virtually all expected situations. Disruptive technologies: are substitute products that perform as well or better than anything currently produced. There are 5 basic kinds of organizational structure. How information systems impact organizations and business firms. Firms thought that by integrating vertically they could reduce transaction costs. Agency theory: the firm is viewed a s a nexus of contracts among self-interested individuals rather than as a unified, profit maximizing entity. A principal owner employs agents (employees) to perform work on his or her behalf.