1. What are Organizations?
DEFINED:
1) social entities
2) goal-directed
3) deliberately structured and coordinated activity systems
4) linked to external environment

2. Types of Organizations
Small / Large
Manufacturing / Service
Domestic / Multinational
For-profit / Not-for-profit

3. Dimensions of Organization Design
1) Structural Dimensions – describe the internal characteristics of an organization
2) Contextual Dimensions – everything that shapes the structure of the organization

4. Structural Dimensions
1) Formalization
2) Specialization
3) Hierarchy of Authority
4) Centralization
5) Professionalism
6) Personnel Ratios

5. Structural Dimensions
1) Formalization:
the amount of written documentation in the organization
Include procedures, job descriptions, regulations, and policy manuals

6. Structural Dimensions
2) Specialization:
the degree to which organizational tasks are subdivided into separate jobs
Skilled trades often exhibit a high degree of specialization

7. Structural Dimensions
3) Hierarchy of Authority:
describes who reports to whom and the span of control of each manager
The number of layers of management: tall vs. flat organizations

8. Structural Dimensions
4) Centralization:
refers to the hierarchical level that has authority to make a decision
Centralized decision making (at top) gives little discretion to lower level employees

9. Structural Dimensions
5) Professionalism:
- is the level of formal education and training of employees
- accounting firms have a high level of professionalism

10. Structural Dimensions
6) Personnel Ratios:
refer to the deployment of people to various functions and departments
Measures include various ratios such as administrative ratio

11. Contextual Dimensions
1) Size
2) Organizational Technology
3) Environment
4) Goals & Strategy
5) Culture

12. Contextual Dimensions
1) Size:
is the organization’s magnitude as reflected in the number of people in the organization
organization as a social system

13. Contextual Dimensions
2) Organizational Technology
is the nature of the production subsystem that changes inputs to outputs
Includes assembly lines, classrooms, oil refineries, etc.

14. Contextual Dimensions
3) Environment:
includes all elements outside the boundaries of the organization
Includes customers, suppliers, competitors, government, etc.

15. Contextual Dimensions
4) Goals & Strategy:
define the purpose and competitive techniques that set one organization apart from others
Includes mission statements and plans of action

16. Contextual Dimensions
5) Culture:
is the underlying set of key values, beliefs, understandings, and norms shared by employees
May be observed in stories, symbols, ceremonies, etc.

20. As environments become more turbulent, organizations change…
From vertical to horizontal structures
From routine tasks to empowered tasks
From formal control to shared information
From competitive to collaborative strategy
From rigid to adaptive control