1. Copyright © Houghton Mifflin Company. All rights reserved. 9-1 Chapter 9 Organizations: Structure, Effectiveness, and Cultures

2. Copyright © Houghton Mifflin Company. All rights reserved. 9-2 Chapter Outline What Is an Organization? u Common Characteristics of Organizations u Classifying Organizations

3. Copyright © Houghton Mifflin Company. All rights reserved. 9-3 Chapter Outline (continued) Organization Charts u Vertical and Horizontal Dimensions u A Case Study: The Growth of an Organization

4. Copyright © Houghton Mifflin Company. All rights reserved. 9-4 Chapter Outline (continued) Contrasting Theories of Organizations u The Traditional View u Challenges to the Traditional View of Organizations u Organizations as Open Systems: A Modern View

5. Copyright © Houghton Mifflin Company. All rights reserved. 9-5 Chapter Outline (continued) Organizational Effectiveness u No Silver Bullet u A Time Dimension u Organizational Decline u Characteristics of Organizational Decline u Downsizing: An Ethical Perspective

6. Copyright © Houghton Mifflin Company. All rights reserved. 9-6 Chapter Outline (continued) Organizational Cultures u Characteristics of Organizational Cultures u Forms and Consequences of Organizational Cultures u The Organizational Socialization Process u Strengthening Organizational Cultures

7. Copyright © Houghton Mifflin Company. All rights reserved. 9-7 ORGANIZATIONS Organization: a cooperative social system involving the coordinated efforts of two or more people pursuing a shared purpose.

8. Copyright © Houghton Mifflin Company. All rights reserved. 9-8 ORGANIZATIONS (continued) Common Characteristics of Organizations u Coordination of effort u Common goal or purpose u Division of labor u Hierarchy of authority

9. Copyright © Houghton Mifflin Company. All rights reserved. 9-9 TYPES OF ORGANIZATIONS Table 9.1 u Business organizations (Main problem: Make a profit) u Nonprofit service organizations (Main problem: Selectively screen large numbers of potential clients)

10. Copyright © Houghton Mifflin Company. All rights reserved. 9-10 TYPES OF ORGANIZATIONS (continued) u Mutual-benefit organizations (Main problem: Satisfy members’ needs) u Commonweal organizations (Main problem: provide standardized services to large groups of people with diverse needs)

11. Copyright © Houghton Mifflin Company. All rights reserved. 9-11 TYPES OF ORGANIZATIONS (continued) For Discussion: Which type of organization would be the most difficult to manage today? Why?

12. Copyright © Houghton Mifflin Company. All rights reserved. 9-12 TRADITIONAL PRINCIPLES OF ORGANIZATION 1.A well-defined hierarchy of authority 2.Unity of command 3.Authority equal to responsibility 4.Downward delegation of authority but not of responsibility

13. Copyright © Houghton Mifflin Company. All rights reserved. 9-13 A MODERN VIEW OF ORGANIZATIONS Open-System Characteristics u Interaction with the environment u Synergy u Dynamic equilibrium: the process of maintaining the internal balance necessary for survival by importing needed resources from the environment u Equifinality: reaching the same result by different means

14. Copyright © Houghton Mifflin Company. All rights reserved. 9-14 A MODERN VIEW OF ORGANIZATIONS (continued) Extending the Open-system Model u Learning organization: “an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.”

15. Copyright © Houghton Mifflin Company. All rights reserved. 9-15 A MODERN VIEW OF ORGANIZATIONS (continued) For Discussion: What evidence of learning organizations have you seen lately?

16. Copyright © Houghton Mifflin Company. All rights reserved. 9-16 ORGANIZATIONAL EFFECTIVENESS Organizational effectiveness: meeting organizational objectives and prevailing societal expectations in the near future, adapting and developing in the intermediate future, and surviving in the distant future.

17. Copyright © Houghton Mifflin Company. All rights reserved. 9-17 ORGANIZATIONAL EFFECTIVENESS (continued) Effectiveness Criteria: A Time Dimension Figure 9.4 Near Future (Approximately 1 year) u Effective in accomplishing its purpose(s). u Efficient in the acquisition and use of limited resources. u A source of satisfaction to its owners, employees, customers and clients, and society.

18. Copyright © Houghton Mifflin Company. All rights reserved. 9-18 ORGANIZATIONAL EFFECTIVENESS (continued) Intermediate Future u Adaptive to new opportunities and obstacles. u Capable of developing the ability of its members and of itself. Distant Future (Approximately 5 years) u Capable of survival in a world of uncertainties

19. Copyright © Houghton Mifflin Company. All rights reserved. 9-19 ORGANIZATIONAL DECLINE Organizational decline: a weakened condition resulting from resource or demand restrictions and / or mismanagement. u “Management complacency is largely responsible for turning success into decline.” u “An organization that has entered a period of stability has taken the first step toward decline.”

20. Copyright © Houghton Mifflin Company. All rights reserved. 9-20 1. Centralization 2. No long-term planning 3. Innovation curtailed 4. Scapegoating 5. Resistance to change 6. Turnover 7. Low morale 8. Nonprioritized cuts 9. Conflict ORGANIZATIONAL DECLINE (continued) Characteristics of Organizational Decline Table 9.5

21. Copyright © Houghton Mifflin Company. All rights reserved. 9-21 ORGANIZATIONAL DECLINE (continued) For Discussion: 1.Why is managerial complacency so bad for the organization? 2.What well-known organizations appear to be in decline? How can you tell? What do they need to do to reverse the slide?

22. Copyright © Houghton Mifflin Company. All rights reserved. 9-22 ORGANIZATIONAL CULTURES Organizational culture: the collection of shared (stated or implied) beliefs, values, rituals, stories, myths, and specialized language that foster a feeling of community among organization members.

23. Copyright © Houghton Mifflin Company. All rights reserved. 9-23 ORGANIZATIONAL CULTURES (continued) Characteristics of Organizational Cultures u Collective u Emotionally charged u Historically based u Inherently symbolic u Dynamic u Inherently fuzzy

24. Copyright © Houghton Mifflin Company. All rights reserved. 9-24 ORGANIZATIONAL CULTURES (continued) For Discussion: 1.What characteristics of organizational culture can you detect in your present (or past) work organization? 2.Would you call the organization's culture healthy or unhealthy? Why? 3.What stories have you heard that reveal useful information about a particular organization?