1. Organizations and Organization Theory
MUH AZIS MUSLIM

2. Organization Theory in Action
Topics
Current Challenges
Global Competition
Ethics and and Social Responsibility
Speed of Responsiveness
The Digital Workplace
Diversity

3. 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 technologies

4. Importance of Organizations
Importance of Organizations (cont’d)
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 employees

5. An Open System and Its Subsystems
Environment
Transformation
Process
Raw Materials
People
Information
resources
Financial
Products
and
Services
Input
Output
Production,
Maintenance,
Adaptation,
Management
Boundary
Spanning
Boundary
Spanning
Subsystems

6. Five Basic Parts of an Organization
Top
Management
Technical
Support
Administrative
Support
Middle
Management
Technical Core
Source: Based on Henry Mintzberg, The Structuring of Organizations (Englewood Cliffs, N. J.: Prentice-Hall, 1979) ; and Henry Mintzberg, “Organization Design: Fashion or Fit?” Harvard Business Review 59 (Jan. – Feb. 1981):

7. The Organization Goals and Strategy Environment Size Culture
Technology
Structure
Formalization
Specialization
Hierarchy of Authority
Centralization
Professionalism
Personnel Ratios

8. Organization Chart Illustrating the Hierarchy of Authority
for a Community Job Training Program
Board of
Directors
Advisory
Committee
Executive
Committee
Level 1
Executive
Director
Level 2
Assistant Executive Director
for Community Service
Assistant Executive Director
for Human Services
Level 3
Director
Economic Dev.
Director
Reg. Planning
Director
Housing
Director
Criminal Justice
Director
Finance
Director
AAA
Director
CETA
Public
Info
Coord.
Asst. Director
Finance
Lead
Counsel
Lead
Counsel
CETA
Intake
&
Orient
CETA
Couns.
Devs.
Title II
ABC
CETA
Couns.
Devs.
Youth IV
CETA
Couns.
Devs.
Title II D
&VI&VII
Program
Spec.
AAA
Contract
Fiscal
Manager
Program
Planner
AAA
Level 4
Housing
Coord.
Alcohol
Coord.
Account.
CETA
Planner
Level 5
Records
Clerk
Secretary
Secretary
Adm. Asst
Payroll Clerk
Secretary
MIS Specialist
Staff Clerk
Adm. Asst.

9. Characteristics of Three Organizations
TECHNOLOGY Manufacturing Retailing Government
Service
SIZE (#employees) , ,

10. Two Organization Design Approaches
Mechanical System Design
Natural System Design
Vertical
Structure
Routine
Tasks
Rigid
Culture
Competitive
Strategy
Formal
Systems
Horizontal
Structure
Adaptive
Culture
Empowered
Roles
Collaborative
Strategy
Shared
Information
Organizational Change
in the Service of
Performance
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)

11. Organizational Dimensions
Workbook
Activity
High Formalization Low Formalization
High Specialization Low Specialization
Tall Hierarchy Flat Hierarchy
Product Technology Service Technology
Stable Environment Unstable Environment
Strong Culture Weak Culture
High Professionalism Low Professionalism
Well-Defined Goals Poorly-Defined Goals
Small Size Large Size
Modern Postmodern

12. Xerox Use for 1959-1990, Use for 1990-present
Workbook
Activity
Use for , Use for 1990-present
High Formalization Low Formalization
High Specialization Low Specialization
Tall Hierarchy Flat Hierarchy
Product Technology Service Technology
Stable Environment Unstable Environment
Strong Culture Weak Culture
High Professionalism Low Professionalism
Well-Defined Goals Goals Not Defined
Small Size Large Size
Modern Postmodern