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Chapter 1

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Steve Risavy

Monday, January 21, 2013 Chapter 1: Organizations and Organizational Theory Current Challenges  Globalization  Ethics and social responsibility  Speed of responsiveness  The digital workplace  diversity What is Organization?  Organizations: social entities that are goal directed, designed as deliberately structured and coordinated activity systems, and linked to the external environment Organizations exist to so the following: 1. bring together resources to achieve desires goals and outcomes 2. produce goods and services efficiently 3. facilitate innovation 4. use modern manufacturing and information technologies 5. adapt to and influence a changing environment 6. create value for owners, customers, and employees 7. accommodate outgoing challenges of diversity, ethics, and the motivation and coordination of employees Perspectives on Organizations Open Systems  closed system: autonomous, does not depend on the environment, sealed off from the outside  not possible to have a fully closed system, that is completely stable and predictable with no problems caused by the outside  open system: one that interacts with the outside world to survive, consumes resources and exports resources to the environment  can not seal itself off, continuously adapting, uncertain, always anticipating changes and finding ways to stay competitive by dealing with them  system: set of interacting elements that acquires inputs from the environment, transforms them, and discharges outputs to the external environment  changes outputs into things of value  subsystems: parts of the organization that perform the specific functions required for organizational survival Organizational Configuration  an organization with 5 parts, that needs all of these in order to survive  these parts are interrelated and work together, each part needs the other to strive  Five parts: Monday, January 21, 2013 1. Technical core  The people who do basic work of the organization  The primary transformation from inputs to outputs 2. Management  Responsible for directing and coordinating other parts of the organization  Implement and coordinate departments 3. Technical Support  Helps the organization adapt to the environment  Scan the environment for problems, opportunities, and technical development  Responsible for innovation, changing and adapting 4. Administrative Support  Responsible for smooth operation and upkeep of the organization, physical and human  Human resources, recruiting, hiring, compensation, benefits, training, development 5. Top Management Dimensions of Organizational Design Structural Dimensions 1. Formalization: amount of written documentation in the organization 2. Specialization: degree to which organizational tasks are subdivided into separate jobs 3. Hierarchy of authority: describes who reports to who, span of control, depicted by vertical lines on the organizational chart 4. Centralization: hierarchical level that has the authority to make a decision 5. Professionalism: level of formal education and training of employees 6. Personnel ratios: development of people to various functions and departments Contextual Dimensions 1. Goals and Strategy: purpose and competitive techniques that set it apart, written enduring statements and plan of action 2. Environment: elements outside boundary of organization-industry, government, customers, suppliers, financial community, competitors 3. Size: umber of people in the organization 4. Culture: underlying set of key variables, beliefs, norms, etc that can be observed in stories, slogans, ceremonies, etc 5. Techno
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