Organization Theory
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Transcript of Organization Theory
Chapter OneOrganizations and Organization Theory
Thomson Learning 2004
1-1
Organization Theory in Action
Topics Current Challenges
Global Competition Ethics and and Social Responsibility Speed of Responsiveness The Digital Workplace DiversityThomson Learning 2004 1-2
What is an Organization?
Definition Importance of Organizations
Bring together resources to achieve desired goals and outcomes Produce goods and services efficiently Facilitate innovation Use modern manufacturing and information technologiesThomson Learning 2004 1-3
Importance of Organizations
Importance of Organizations (contd)
Adapt to and influence a changing environment Create value for owners, customers and employees Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employeesThomson Learning 2004 1-4
An Open System and Its SubsystemsEnvironmentRaw Materials People Information resources Financial resources Transformation Input ProcessBoundary Spanning Production, Maintenance, Adaptation, ManagementThomson Learning 2004
Output
Products and Services
Subsystems
Boundary Spanning
1-5
Five Basic Parts of an OrganizationTop Management
Technical Support
Middle Management
Administrative Support
Technical CoreSource: Based on Henry Mintzberg, The Structuring of Organizations (Englewood Cliffs, N. J.: Prentice-Hall, 1979) 215-297; and Henry Mintzberg, Organization Design: Fashion or Fit? Harvard Business Review 59 (Jan. Feb. 1981): 103-116.
Thomson Learning 2004
1-6
Environment
Goals and Strategy
Size
Culture1. 2. 3. 4. 5. 6.
Structure Formalization Specialization Hierarchy of Authority Centralization Professionalism Personnel Ratios
Technology
Thomson Learning 2004
1-7
Organization Chart Illustrating the Hierarchy of Authority for a Community Job Training Program
Board of Directors Advisory Committee Executive Committee Executive Director Assistant Executive Director for Community Service DirectorEconomic Dev.
Level 1 Level 2 Level 3
Assistant Executive Director for Human Services DirectorCriminal Justice
DirectorReg. Planning
DirectorHousing
DirectorFinance
DirectorAAA
DirectorCETA
Public Info Coord.
Asst. Director Finance
Lead Counsel CETA Couns. Devs. Title II ABC CETA Couns. Devs. Youth IV
Lead Counsel CETA Couns. Devs. Title II D CETA &VI&VII Planner
Level 4 Level 5
Housing Coord. Records Clerk
Alcohol Account. Coord.
Program Contract Spec. Fiscal AAA Manager
Program Planner AAA
CETA Intake & Orient
Secretary
Secretary
Adm. Asst
Payroll Clerk
Secretary
MIS Specialist
Staff Clerk
Adm. Asst.
Thomson Learning 2004
1-8
Characteristics of Three OrganizationsForma lization Specialization 50 Centralization Configuration (%nonworkflow personnel) 100
0
W. L. Gore & Associates
Wa l-Mart
State Arts Agency
TECHNOLOGY SIZE (#employees)
Manufacturing 6,000Thomson Learning 2004
Retailing 250,000
Government Service 351-9
Two Organization Design ApproachesMechanical System DesignVertical Structure
Natural System DesignHorizontal Structure
Routine Tasks
Rigid Culture
Organizational Change in the Service of Performance
Empowered Roles
Adaptive Culture
Formal Systems
Competitive Strategy
Shared Information
Collaborative Strategy
Stable Environment Efficient Performance
Turbulent Environment Learning Organization
Source: Adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change (Boston, Mass.: Harvard Business School)
Thomson Learning 2004
1-10
Workbook Activity
Organizational DimensionsHigh Formalization High Specialization Tall Hierarchy Product Technology Stable Environment Strong Culture High Professionalism Well-Defined Goals Small Size Modern 1-4 1-4 1-4 1-4 1-4 1-4 1-4 1-4 1-4 1-4 5-6 5-6 5-6 5-6 5-6 5-6 5-6 5-6 5-6 5-6 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 Low Formalization Low Specialization Flat Hierarchy Service Technology Unstable Environment Weak Culture Low Professionalism Poorly-Defined Goals Large Size Postmodern1-11
Thomson Learning 2004
Workbook Activity
XeroxUse for 1959-1990, Use1-4 1-4 1-4 1-4 1-4 1-4 1-4 1-4 1-4 1-4 5-6 5-6 5-6 5-6 5-6 5-6 5-6 5-6 5-6 5-6
for 1990-present7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 7 - 10 Low Formalization Low Specialization Flat Hierarchy Service Technology Unstable Environment Weak Culture Low Professionalism Goals Not Defined Large Size Postmodern1-12
High Formalization High Specialization Tall Hierarchy Product Technology Stable Environment Strong Culture High Professionalism Well-Defined Goals Small Size Modern
Thomson Learning 2004