BU398 Chapter Notes - Chapter 1: Western Electric, Hawthorne Effect, Systems Management
BU398 – CHAPTER 1
THE EVOLUTION OF ORGANIZATION THEORY AND DESIGN
• SCIENTIFIC MANAGEMENT: Decisions about organizations and job design should be
based on precise, scientific study of individual situations
• ADMINISTRATIVE PRINCIPLES: A losed syste’s management perspective that focuses
on the total organization and grows from the insights of practitioners
• BUREAUCRATIC ORGANIZATIONS: An organization design that emphasizes management
on an impersonal, rational basis through elements such as clearly defined authority and
responsibility, formal record keeping, and uniform application of standard rules
• HAWTHORNE STUDIES: A series of experiments on worker productivity that begun in
1924 at the Hawthorne plant of Western Electric Company in Illinois; attributed
eployees’ irease output to aagers’ etter treatet of the durig the study
CURRENT CHALLENGES
• GLOBALIZATION: A result of globalization is that the environment for companies is
becoming very complex and competitive, organizations need to learn to cross lines of
time, culture, and geography in order to survive.
• ETHICS AND SOCIAL RESPONSIBILITY: The government and the public hold organizations
and employees to high professional and ethical standards, a result of the long list of
executives and major corporations involved in financial and ethical scandals.
• THE DIGITAL WORKPLACE: Some traditional managers feel particularly awkward in
today’s tehology-driven workplace, as the shit towards computers continues to grow
• DIVERSITY: it is important to manage diversity as companies expand into larger markets,
and the shift towards a diverse workplace continues to grow
WHAT IS AN ORGANIZATION?
• ORGANIZATIONS: Social entities that are goal directed, designed as deliberately
structured and coordinated activity systems, and linked to the external environment
1. Social entities
2. Goal directed
3. Deliberately structured and coordinated
4. External environment
• SOCIAL ENTERPRISE: A form of community economic development in which an
organization exchanges services and goods in the market as a means to realizing its
social objective or mission
• 7 REASONS ORGANIZATIONS ARE IMPORTANT TO SOCIETY
1. Bring together resources to achieve desired goals
2. Produce goods and services efficiently
3. Facilitate innovation
4. Use modern manufacturing and information technologies
5. Adapt to and influence a rapidly changing environment
6. Accommodate challenges of diversity, ethics, and coordination
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