Bus 374 notes

Topics: Organizational structure, Organizational studies and human resource management, Organizational studies Pages: 38 (9860 words) Published: February 28, 2014
Organization Theory & Design
Part 1: Introduction to Organizations
Chapter 1: Organizations and Organizational Theory
Organizations continuously adapt to shift in the external environment Markets, technologies, and organizations are increasingly interconnected Intel’s new circuits are designed in India and China for 50 to 60 percent less than in North America Globalization is leading to increased competition and complexity in business environment Speed of Responsiveness to environmental changes, organizational crises, and shifting customer expectations is also a significant challenge Customers want products for their exact needs

The financial basis of today’s economy is increasingly information, not machines and factories. Employees, not machinery, have the power & knowledge needed to keep company competitive Organizational leaders need to build E-links (web based) for main stakeholders Organization – are (1) social entities that are (2) goal directed, (3) designed as deliberately structured and coordinated activity systems, and (4) linked to the external environment. Exists when people interact with one another to perform essential functions that help attain goals Today, some companies cooperate with competitors by sharing info for mutual advantage Organizations exist to do the following:

1. Bring together resources to accomplish specific goals
2. Produce goods and services that customers want at competitive prices 3. Facilitate innovation in ways to produce and distribute more efficiently 4. Use modern manufacturing and information technologies

5. Adapt to and influence a changing environment (many big companies are involved in strategic alliances with companies around the globalized world to influence the environment and compete on a global scale) 6. Create Value for owners, customers, and employees; a company can be profitable only when the value it creates is greater than the cost of resources. 7. Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees Two ways to look at and think about organizations and how they function: 1) Open Systems Approach

Closed System- Would not depend on organizations environment, sealed off from outside world. Primary management issue would be to run things efficiently Open System- Must interact with the environment to survive; it both consumes resources and exports resources to the environment. They are enormously complex. System- A way to understand the whole organization. A set of interacting elements that acquires inputs from the environment, transforms them, and discharges outputs to the external environment. Outputs may also include employee satisfaction, pollution, and other byproducts of the transformation process Subsystem- Perform specific functions required for organizational survival, such as boundary spanning, production, maintenance, adaptation, and management 2) Organizational Configuration Approach

Every organization has Five Parts: Technical Core, Middle Management, Top Management, Technical Support, and Administrative Support Technical Core-Basic work of organization. Transformation takes place here. Management- Responsible for directing and coordinating other parts of the organization Technical Support- Helps organization adapt to the environment by scanning environment for problems, opportunities, and technological developments. Create innovations in the technical core Administrative Support- Responsible for the smooth operation and upkeep of the organization, including physical and human elements Dimensions of Organizational Design:

Structural Dimensions: Provide labels to describe the internal characteristics of an organization. They provide a basis for measuring and comparing organizations. 1. Formalization- Pertains to the amount of written documentation in the organization, including procedures, job descriptions, regulations, and policy manuals. These written documents describe behavior and activities. 2....
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