Organizations

What are Organizations? Organizations are “social entities that are goal-directed, are designed as deliberately structured and coordinated activity systems and are linked to the external environment.” Organizations are “social entities that are goal-directed, are designed as deliberately structured and coordinated activity systems and are linked to the external environment.” Must be flexible! Must be flexible!

“Social Entities” Companies are based on human interaction Companies are based on human interaction Companies are becoming more involved with one another Companies are becoming more involved with one another Companies support social organizations Companies support social organizations

“Goal-directed” Types of Organizations Types of Organizations Large and small Large and small Profit and nonprofit Profit and nonprofit Nonprofit Nonprofit Chief goal: “Social impact” Chief goal: “Social impact” Funded by donors and grants Funded by donors and grants

Goal-setting for Profit Firms Profit Profit Chief goal: To make $$$$ Chief goal: To make $$$$ Efficiency v. Effectiveness Efficiency v. Effectiveness What ARE our goals? What ARE our goals? Stakeholder satisfaction Stakeholder satisfaction

What else do Organizations do? Bring together resources to achieve desired goals and outcomes Bring together resources to achieve desired goals and outcomes Produce goods and services efficiently Produce goods and services efficiently Facilitate innovation Facilitate innovation Use modern manufacturing and information technologies Use modern manufacturing and information technologies

What else do Organizations do? Adapt to and influence a changing environment Adapt to and influence a changing environment Create value for owners, customers, and employees Create value for owners, customers, and employees Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees

Open Systems Approach People Raw Materials Finances Information Technology Inputs People Raw Materials Finances Information Technology Outputs Transformation Transformation Process

Organizational Dimensions Structural Structural “Internal characteristics of the organization” “Internal characteristics of the organization” Components Components Formalization Formalization Specialization Specialization Hierarchy of authority Hierarchy of authority Centralization Centralization Professionalism Professionalism Personnel ratio Personnel ratio

Organizational Dimensions Contextual Dimensions Contextual Dimensions “The whole organization” “The whole organization” Components Components Size Size Organizational technology Organizational technology Environment Environment Goals and strategy Goals and strategy Culture Culture

“Structured and Coordinated Activity Systems” Mechanistic v. Organic Mechanistic v. Organic Which structure is best? Which structure is best?

Mechanistic v. Organic Structure Structure Mechanistic- Vertical Mechanistic- Vertical Organic- Horizontal Organic- Horizontal Employee Roles Employee Roles Mechanistic- Routine tasks Mechanistic- Routine tasks Organic- Empowered tasks Organic- Empowered tasks Communication Communication Mechanistic- Formal channels Mechanistic- Formal channels Organic- Shared information Organic- Shared information

Mechanistic v. Organic Strategic Decisions Strategic Decisions Mechanistic- Top management Mechanistic- Top management Organic- Employees Organic- Employees More communication! More communication! Culture Culture Mechanistic- Rigid (Xerox) Mechanistic- Rigid (Xerox) Organic- Adaptive Organic- Adaptive

Level of Analysis External Environment Organizational Group Individual