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Organization and Management Theory: Goals
MOS 4470
Trevor Hunter
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MOS 4470b: Organization and Management Theory Professor: Trevor Hunter Office: FB 303 Office Hours: Wednesdays, 1:30-3:30pm Office Phone: 519-433-0041 ext. 4338 Class Times: Tuesdays,12:30-3:30pm
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Teaching Methodology
Seminar Format Lot’s of student involvement – YOU will be
running the classes Discussion on the readings as opposed to
lectures and cases Required Text: Organization Theory and
Design, Daft & Armstrong, 3rd Canadian edition
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Student Evaluation
Individual work – Organization Analysis Papers (three) – 30%
Group Research Presentation (one) – 30%
Session Leadership (one) – 30% and class contribution (ongoing) – 10%
No mid-term test or final exam – poor way to evaluate performance
Group Research Presentation - a much better way of measuring understanding
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What is an Organization?
Definition: Social entities Goal directed Designed as deliberately structured and
coordinated activity systems Linked to the external environment
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What is an Organization?
Importance of Organizations Bring together resources to achieve desired goals Produce goods and services efficiently Facilitate innovation 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
Analyzing Organizations
Meso-level of analysis: Relationship between the environment, the
organization and groups within the organization – NOT individuals (OB) or what the organization does (Strategic Management)
Likely a different way for you to think – it is tough to develop this skill. You need to make sure you do not get too micro-level in your analysis!
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The Evolution of Organization Theory and Design Historical Perspectives
Mainly focused on achieving efficiency Poor understand of the role of “organization”
Contemporary Organization Design The learning organization Vertical to horizontal, routine to empowerment,
formal control to shared information, rigid to adaptive
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Two Organization Design Approaches
VerticalStructure
RoutineTasks
RigidCulture
CompetitiveStrategy
FormalSystems
HorizontalStructure
AdaptiveCulture
EmpoweredRoles
CollaborativeStrategy
SharedInformation
Organizational Changein the Service of
Performance
Mechanistic System Design
Organic System Design
Stable EnvironmentEfficient Performance
Turbulent EnvironmentLearning Organization
Source: Adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change (Boston, Mass.: Harvard Business School)
EFFICIENCY EFFECTIVENESS
EVOLUTION
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Types of Organizations
Mechanistic Focus on efficiency – formalized procedures Centralization
Clear hierarchy Role/task specialization Knowledge controlled Vertical communication
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Types of Organizations
Learning Focus on effectiveness – doing what needs
to be done Organic structure
Adaptive Free-flowing information and roles Problem-solving Innovation Little hierarchy Participatory decision-making
Types of Organizations
Learning
Google Facebook Twitter Square Gore
Mechanistic
Apple BMO Heinz ImBev LHSC
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Perspectives on Organizations Systems Organizational Configuration –
Organizational Subsystems: Technical Core Technical Support Administrative Support Top Management Middle Management
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Five Basic Parts of an Organization
TopManagement
TechnicalSupport
Technical Core
AdministrativeSupport
MiddleManagement
Source: Based on Henry Mintzberg, The Structuring of Organizations (Englewood Cliffs, N. J.: Prentice-Hall, 1979) 215-297; and Henry Mintzberg, “Organization Design: Fashion or Fit?” Harvard Business Review 59 (Jan. – Feb. 1981): 103-116.
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Transformation
Process
An Open System and Its Subsystems
Environment
Raw MaterialsPeopleInformation resourcesFinancial resources
Input
SubsystemsBoundarySpanning
Production,Maintenance,Adaptation, Management
BoundarySpanning
Products andServices
Output
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Dimensions of Organization Design In order to create an organization/system
that is able to acquire, process inputs and then return the outputs to the environment, it has to be designed appropriately.
To compare organizations to see if one is designed appropriately one should compare them along two dimensions: Contextual and Structural.
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Dimensions of Organization DesignContextual Dimensions
1. Size
2. Organizational technology
3. Environment
4. Goals
5. Organizational culture
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Dimensions of Organization DesignStructural Dimensions
1. Amount of Formalization
2. Specialization
3. Hierarchy of authority
4. Centralization
5. Professionalism
6. Personnel ratios
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Dimensions of Organization DesignContext influences structure What is “right” mix for an organization’s
structure depends upon: What the environment is saying the organization
should do Why the organization was created
(Mission/Goals) What is the most important outcome –
effectiveness or efficiency
Goals and Strategy
Environment Size
Culture TechnologyStructure
1. Formalization2. Specialization3. Hierarchy of Authority4. Centralization5. Professionalism6. Personnel Ratios
Organizational and Management Theory Relates to understanding the influences of:
The context The goals The strategy The culture
on organizational structure Your job is to ask: “Given the above, is this
organizational structure the ‘right’ one to make it achieve its goals, or is there a better one? If so, what is it?”
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Top Management Responsibilities Determine the organization’s purpose Determine the organization’s goals in order to
enact and fulfill the purpose Develop strategy to achieve the goals Design the organization to enact the strategy
given the demands of: Changing and uncertain stakeholders Changing and uncertain environment
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Course Theme – Alignment of GSS
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GOALS STRATEGY STRUCTURE
•What are the organization’s goals?
•Are the goals appropriate given the context?
•Implications/ Recommendation
•What is the organization’s strategy?
•Is the strategy appropriate given the organization’s goals?
•Will the strategy achieve the goals?
•Implications/ Recommendation
•What is the organization’s structure?•Will the structure allow the strategy to be undertaken appropriately?•Implications/ Recommendation
OK? – next level OK? – next level
Analyze Analyze AnalyzeOK?
Environment/Goals/Strategy/Structure Analysis Process
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ExternalEnvironmentalAssessment
InternalEnvironmentalAssessment
2. Goals 3. Strategy 4. Structure
6. Outcome Assessment – have you been successful?
Learning orEfficiency
Learning orEfficiency
1. Tells you what you should do
5. Outcome
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Selecting Strategy and Structure to Achieve Organizational Goals1. Goals Where you want to go
2. Strategy How you are going to get there. A plan for interacting with the competitive environment to achieve organizational goals.
3. Structure How you can do what you need to do to implement strategy and achieve goals
Environment Goals Strategy Structure
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Analyzing Environment, Goals, Strategy and Structure1. The type of environment determines the right type of goals
2. The type of goals determine the right type of strategy
3. The type of strategy determines the type of organizational structure
Your job is to identify each of the right type and why, to get alignment
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Organizational Purpose - Goals Mission
Organization’s reason for existence Describes the vision, shared values and beliefs Sometimes referred to as Official Goals or
Mission Statement – formally stated definition of business scope and outcomes the organization is trying to achieve
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Organizational Purpose - Goals Mission
Communicates to current and prospective stakeholders what the organization stands for and what it is trying to achieve.
Communicates legitimacy to society – organizations are social entities which need to be deemed legitimate
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Organizational Purpose -Goals Mission
King’s Mission Statement:
King's is a Catholic University College committed to the ongoing creation of a vital academic community animated by a Christian love of learning and the pursuit of truth. The College strives to foster an environment based on open inquiry, Christian values and service to the larger community.
Organizational Purpose - Goals Mission
King’s MOS Mission: It is the King’s University College MOS group’s
mission to develop globally minded graduates who are good at business and do good, through business.
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Organizational Purpose - Goals Operative Goals
Designate the ends sought through operating procedures and explain what it is the organization actually does – subsystem activities
Specific and measurable – need to be achieved in order for organization to survive
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Organizational Purpose - Goals Operative Goals - Types Overall Performance:
For-profit: Profits, sales, growth, output etc. Not-for-profit: fulfillment of services, cost control etc.
Resource Aquisition: Acquisition of needed material and finances from the
environment Market:
Market share or growth – responsibility of marketing department
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Organizational Purpose - Goals Operative Goals - Types Innovation and Change:
Ability to be internally flexible and adaptable with respect to the external environment
Productivity: Concerns about the amount of output achieved from
available resources (i.e. cost/unit) Employee Development:
Training, promotion, safety etc. of employees – development of internal resources
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Organizational Purpose - Goals The Importance of Goals
Official Goals: Describe the value system for the organization and
should guide all strategies and operations Legitimize the organization
Operative Goals: Represent the primary tasks (rather than objectives) of
the organization More explicit and well defined
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Goal Type and Purpose
Type of Goals Purpose of Goals
Official Goals, mission: Legitimacy
Operative goals: Employee direction and motivationDecision guidelinesStandard of performance