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Organizations and Organization Theory
Chapter One Organizations and Organization Theory Thomson Learning © 2004
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Organization Theory in Action
Topics Current Challenges Global Competition Ethics and and Social Responsibility Speed of Responsiveness The Digital Workplace Diversity Thomson Learning © 2004
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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 Thomson Learning © 2004
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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 Thomson Learning © 2004
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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 Thomson Learning © 2004
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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): Thomson Learning © 2004
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The Organization Goals and Strategy Environment Size Culture
Technology Structure Formalization Specialization Hierarchy of Authority Centralization Professionalism Personnel Ratios Thomson Learning © 2004
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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. Thomson Learning © 2004
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Characteristics of Three Organizations
TECHNOLOGY Manufacturing Retailing Government Service SIZE (#employees) , , Thomson Learning © 2004
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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) Thomson Learning © 2004
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Organizational Dimensions
Workbook Activity Organizational Dimensions 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 Thomson Learning © 2004
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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 Thomson Learning © 2004
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