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1
Applied Organizational Theory
Introduction
2
How to Form a Framework for Analyzing Orgs?
Question we will be seeking to answer this semester
3
What Are the Main Org Drivers in the US?
Subsidiary question
4
Five Interrelated Revolutions Five Interrelated Revolutions in the USin the US
GlobalizationGlobalization Technology, especially computersTechnology, especially computers Organizational RestructuringOrganizational Restructuring Empowerment of WorkersEmpowerment of Workers Information EconomyInformation Economy
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Globalization through International Trade
0
10
20
30
'60 '65 '70 '75 '80 '85 '90 '93
EXPORTS PLUS IMPORTS AS A SHARE OF U.S. GROSS DOMESTIC PRODUCT
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Trade Explodes
0
5
10
15
20
25
82 84 86 88 90 92 94 96 98
Exports as a share of GDP for 49 CountriesSource: Business Week, Aug. 31, 1998, p. 66.
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Globalization and OT
Question: How does the global revolution impact
the effectiveness and success of organizations?
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Globalization and OTGlobalization and OT
Answer:Answer: Instead of being insular, organizations Instead of being insular, organizations
are competing globally.are competing globally.Productivity is measured in global, rather Productivity is measured in global, rather
than national, terms.than national, terms.
Complexity of design of Complexity of design of organizationss increases dramatically.organizationss increases dramatically.
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Technology and OTTechnology and OT
Question:Question: How does the technological revolution How does the technological revolution
impact the effectiveness and success impact the effectiveness and success of organizations?of organizations?
10
High-Tech Growth Soars
0
5
10
15
20
91 92 93 94 95 96 97 98
Information
Rest of Econ
Annual Growth Rate over Previous 3 yearsSource: Business Week, Aug. 31, 1998, p. 66.
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Tech Prices Keep Falling
-12
-10
-8
-6
-4
-2
0
2
4
6
91 92 93 94 95 96 97 98
Technology
Rest of Econ
Annual Change in Prices over Previous 3 YearsSource: Business Week, Aug. 31, 1998, p. 67.
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Technology and OTTechnology and OT
Answer:Answer: Increases skill (education, experience, Increases skill (education, experience,
knowledge) requirementsknowledge) requirements Increases organizational complexityIncreases organizational complexity Increases productivityIncreases productivity
13
Organizational Restructuring
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Executives
Upper Managers
Middle Managers
First Line Managers
Workers
Lower-Level Managers Execs and Upper Managers
Middle Managers
Workers
From the Hierarchical to the Flat Org
Restructuring and OT
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Restructuring and OTRestructuring and OT
Question:Question: How does organizational restructuring How does organizational restructuring
impact OT?impact OT?
16
Restructuring and OTRestructuring and OT
Answer:Answer: Restructuring is OT!Restructuring is OT! Increases skill (education, experience, Increases skill (education, experience,
knowledge) requirementsknowledge) requirements Increases responsibilityIncreases responsibility Increases productivityIncreases productivity
17
Empowerment of Workers
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Empowerment and OT
Questions Why empower employees? How are employees being empowered?
19
Empowerment and OT
AnswersWhy empower employees?
Only practical way to implement restructuring
How are employees being empowered?Job enlargementVarious types of teams
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Empowerment and OT
Net Result of EmpowermentIncreases skill (education, experience, Increases skill (education, experience, knowledge) requirementsknowledge) requirementsIncreases responsibilityIncreases responsibilityIncreases productivityIncreases productivity
21
Information Technology
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The Technology Revolution
0
5
10
15
20
25
30
35
40
81
83
85
87
89
91
93
95
97
US Shipments of PC’s in Millions
Source: The Economist, Jun. 13, 1998, p. 20.
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Information Tech and OTInformation Tech and OT
Question:Question: How does information technology How does information technology
impact the org?impact the org?
24
Information Tech and OTInformation Tech and OT
Answer:Answer: Increases skill (education, experience, Increases skill (education, experience,
knowledge) requirementsknowledge) requirements Increases productivityIncreases productivity
25
The Beginning