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Thomson Learning 20041-*Chapter OneOrganizations andOrganization
Theory
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Thomson Learning 20041-*Organization Theory in
ActionTopicsCurrent ChallengesGlobal CompetitionEthics and and
Social Responsibility Speed of ResponsivenessThe Digital
WorkplaceDiversity
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Thomson Learning 20041-*What is an Organization?DefinitionSocial
entities; Goal oriented; Structured and coordinated activity;
linked to external environment
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Importance of OrganizationsBring together resources to achieve
desired goals and outcomesProduce goods and services
efficientlyFacilitate innovationUse modern manufacturing and
information technologies
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Thomson Learning 20041-*Importance of OrganizationsImportance of
Organizations (contd)Adapt to and influence a changing
environmentCreate value for owners, customers and
employeesAccommodate ongoing challenges of diversity, ethics, and
the motivation and coordination of employees
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Thomson Learning 20041-*Transformation
ProcessAn Open System and Its SubsystemsEnvironment
Raw MaterialsPeopleInformation resourcesFinancial
resourcesInputSubsystemsBoundarySpanningProduction,Maintenance,Adaptation,
ManagementBoundarySpanningProducts andServicesOutput
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Thomson Learning 20041-*
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Major Stakeholder and What They ExpectThomson Learning
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Historical Perspectives of Organization theory and
DesignEfficiency is everything (1898)Scientific management,
pioneered by Frederick Winslow TaylorHow to get organized
Administrative principles bureaucratic organization, by Henry
FayolWhat about people? Hawthorn Studies: Positive treatment on
employees improved their motivation and productivity
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Can bureaucracies be flexible? (1980s)Lean staff, flexibility,
and learningDont forget the environmentContingency approachThomson
Learning 20041-*
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Thomson Learning 20041-*Five Basic Parts of an
OrganizationTopManagementTechnicalSupportTechnical
CoreAdministrativeSupportMiddleManagementSource: 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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Five type of organization (by Mintzberg)Thomson Learning
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Two Organization Design ApproachesThomson Learning 20041-*
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Measuring Dimension of OrganizationThomson Learning 20041-*
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Formalization: the amount of written documentation in the
organization, such as procedures, job desc, regulation, and policy
manuals.Specialization: The degree to which organizational tasks
are subdivided in to separated jobs.Hierarcy of the authority
describes who reports to whom and the span id control for each
manager.Centralization refers to the hierarchical level that has
authority to make a decision.Profesionalism is the level of formal
education and training of employees.Personnel ratios refers to the
development of people to various functions and departements.
Organizations culture is the underlying set of key values,
beliefs, understandings, and norm shared by employees.*These are
stakeholder that need to be satisfied by the managers.*Scientific
management : workers should be rooted like machines.Administrative
principles:*Technical core: who do basic workTechnical support:
engineers, researchers, ITAdministrative support: responsible for
smooth operation. HR deptManagement, responsible for directing,
planning, strategy, goals, policy*
