Organization Theory and Design

Ch -1Organizations and Organization Theory

By Kaleem A.Barlas

A look in side

Xerox CorporationIBM Corporation

MicrosoftApple Computers

Organization Theory in action •Response to control;•Competitors•Creditors•External environment•Ability to implement strategic and structural changes Attain effectiveness •Ethical Lapses •Coping with size and bureaucracy•Power and politics•Innovation and change

Current Challenges•Globalization •Ethics and responsibility•Enron inflated earnings and hid debts•Executives profited handsomely co collapsed

•Speed of Responsiveness •To environmental changes•Organizational crises•Shifting customers expectations •Crisis management consequent upon terrorism•Tough economy

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The Digital Workplace •ICT•E-commerce•M-Commerce •Virtual Net-works•B2B•B2C•Dell customized services and products Mercedes personalized sales •Harvard University says business either “ Dell or Be Delled”

Diversity •Global playing-field•Work-force and customer base changing drastically•Organizations have international face•Today's average work-force is older with more women•People of different color, creed, religion n culture•Immigrants population increasing in developed countries•By 2050 85% of work-force will be women and people of color•Managing diversity , conflict, will be a challenge

What is an organization •Organizations are ;1 social entities that 2 Are goal oriented3 Designed, structured and coordinated activity systems 4 Are linked to the external environment

The key element of org. is not Building PoliciesProcedures but people and their relationships n interaction

Types of organizations •Large •Small •Medium•Manufacturing products like computers automobiles •Providing services such as legal, banking, insurance •Profit business direct efforts towards money making•Non-profit business direct efforts towards social impact

Importance of organizations •Bring together resources to achieve desired goals and outcomes•Produce goods and services efficiently•Facilitate innovation•Use modern manufacturing n information technology•Adapt to and influence a changing environment•Create value for owners, customers and employees•Accommodate on going challenges of diversity, ethics, and the motivation n coordination of employees •

Open systems n closed system orgs. Open system •Interact with environment •Consumes resources and export resources to the environment •It is complex proactive

•Closed system •Does not depend on environment •It is re-active•It is enclosed •Sealed off from the out side world•It focuses on internal systems, scientific management, leadership style, and internal design

Organizational configuration •Technical Core; people who do the basic work of the organization•Technical support; engineers, researchers, for innovation, for change and adaptation •Administrative support; includes HRM n HRD•Managerial support; for organizing, implementing, controlling, evaluating , rewarding and punishing

Dimensions of org. design•Formulation ; •Specialization ;•Hierarchy ;•Centralization ; •Professionalization ;•Personalization•Personnel

Contextual Dimensions •Size •Organizational technology•The environment•Goals and strategy•Culture

Performance n effectiveness outcomes •Designed to achieve high performance •Processes n standards•Transform input to output n provide value•Efficiency refers to amount of resources used to achieve org. goals•Effectiveness is the degree to which an organizations achieves goals •Ultimate performance depends on customer satisfaction and cost of operations

The evaluation of OT n D•Historical perspective •Efficiency is every thing•How to get organized•What about people

Contemporary org design•Hierarchical approach•Globalization approach•Diversity •Ethical concerns•Rapid advances in technology•E-business •Knowledge management•ICT management•Brain HQ to Heart Centre

Efficient perfm. Vs learning orgs.•From vertical to horizontal structure •From routine tasks to empowered roles •From controlled systems to shared information •From competitive to collaborative strategy•From rigid to adaptive culture

Assignment No -1

Discuss Structural Dimensions of Organization Design

Due Date Third Week