2. Organization as a System - Final

7/30/2019 2. Organization as a System - Final

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ORGANIZATIONSYSTEM

Provides a general analytical framework (perspective)for viewing an organization.


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ORGANIZATION

Organizations are social entities that are goaldirected are designed as deliberately structuredand coordinated activity systems and are linkedto the external environment.


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IMPORTANCE OF AN ORGANIZATION

Bring together resources to achieve desired goals and outcomes.

Produce goods and services efficiently. Facilitate innovation Used modern manufacturing and computer based technology. 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.


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ORGANIZATIONAL STRUCTURE

The way in which job task are formally

divided, grouped and coordinated. Elements of structure.

Work Specialization. Departmentalization.

Chain of Command. Span of Control. Centralization and Decentralization. Formalization.


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WORK SPECIALIZATION : The degree to

which task in an organization are subdividedinto separate jobs.


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DEPARTMENTALIZATION: The basis by

which jobs in an organization are groupedtogether .


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CHAIN OF COMMAND : That extends from

the top of organization : The unbroken line ofauthority to the lowest echelon and clarifieswho reports to whom.


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SPAN OF CONTROL : The number of

subordinates a manager can effectively andefficiently direct.


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CENTRALIZATION AND DECENTRALIZATION: The

degree to which decision making isconcentrated at a single point in anorganization.


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FORMALIZATION : The degree to which job

in an organization are standardized.


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BOUNDARYLESS ORGANIZATION

An organization that seeks to eliminate the

chain of command have limitless span ofcontrol, and replace departments withempowered teams.


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SYSTEMS THEORY

Synergy. Interdependence.

Interconnections . within the organization

between the organization andthe environment

A set of elements standingin inter-relations


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VIEWING ORGANIZATION AS A SYSTEM

System is a set of interacting elements that acquires inputsfrom the environment, transforms them, and discharges

outputs to the external environment.

Interacting elements means that people and departmentdepend on one another and must work together.

Inputs to an organization system include employee, raw

materials and other physical resources, information andfinancial resource.

Transformation process changes these inputs intosomething of value that can be exported back to theenvironment.

Output include specific products and services forcustomers and clients and it may also include employeesatisfaction, pollution and other by product oftransformation process


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CLOSED SYSTEM a system that is not influenced by and does not interact

with its environment Autonomous, enclosed and sealed off from the outside. Although a true closed system cannot exist.. Ex Government organizations.

OPEN SYSTEM a system that dynamically interacts with its environment. Consumes resources and export resources from the

environment. Complex system. Ex. MNCs


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ORGANIZATION AS A OPEN SYSTEM


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STRENGTHS Recognizes . . .

interdependence of personnel.

impact of environment on organizational structure andfunction.

affect of outside stakeholders on the organization.

Focuses on environment and how changes can impactthe organization

Seeks to explain synergy & interdependence

Broadens the theoretical lens for viewingorganizational behavior.


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IMPLICATIONS OF THE SYSTEMS APPROACH

Coordination of the organizations parts isessential for proper functioning of the entireorganization.

Decisions and actions taken in one area of the

organization will have an effect in other areas ofthe organization.

Organizations are not self-contained and,therefore, must adapt to changes in their external

environment.


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The systems view suggests that, in order to survive,organizations need to be

Adaptive: the capacity to evolve and develop to make themost of a changing environment

Interdependent: organisations interact with theenvironment in complex ways, influenced by it but alsoshaping it

Dynamic: constantly balancing the need for order andcoherence with that for flexibility.

CONCLUSION

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2. Organization as a System - Final