Final Project Part I
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Organiza(ons and Organiza(on Theory
Organiza(on Theory and Design Twel%h Edi+on Richard L. Da%
Organiza+on Design in Ac+on • Current Challenges
– Globaliza+on – Intense Compe++on – Ethics and the Green Movement – Speed and Responsiveness – Social Business and Big Data
• Organiza+on design helps us explain what happened in the past, as well as what may happen in the future, so that we can manage organiza5ons more effec5vely
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What is an Organiza+on?
ü Social en++es that are goal-directed
ü Designed as deliberately structured and coordinated ac+vity systems
ü Linked to the external environment
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The Organiza+on is an Open System
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Importance of Organiza+ons
• Organiza+ons are a means to an end • The corpora+on has played a significant role in the last 100
years
• Produce goods and services efficiently • Facilitate innova+on • Adapt to and influence a changing environment • Create value for owners, customers, and employees • Accommodate ongoing challenges of diversity, ethics, and the
mo+va+on and coordina+on of employees
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The Importance of Organiza+ons
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Dimensions of Organiza+on Design
Structural Dimensions – Formaliza+on – Specializa+on – Hierarchy of Authority – Complexity – Centraliza+on
Con(ngency Factors – Size – Organiza+onal technology – Environment – Goals and strategy – Culture
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Interac+ng Structural Dimensions of Design and Con+ngency Factors
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Organiza+on Chart
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Differing Characteris+cs of Three Organiza+ons
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Performance and Effec+veness Outcomes
• Efficiency – amount of resources used to achieve the organiza+on’s goals
• Effec(veness – the degree to which an organiza+on achieves its goals
• Stakeholder Approach – balancing the needs of groups in and outside of the organiza+on that has a stake in the organiza+on’s performance
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Major Stakeholder Groups and What They Expect
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The Evolu+on of Organiza+on Theory and Design
Historical perspec(ves provide insight into how organiza(on design and management prac(ces have varied over (me in response
to changes in society.
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Historical Perspec+ves • Efficiency is Everything
– Scien+fic Management: Pioneered by Frederick Winslow Taylor • How to Get Organized
– Administra+ve Principles • Contributed to Bureaucra+c Organiza+ons
• What about People? – Hawthorne Studies
• Can Bureaucracies Be Flexible? – Flexible and lean; focused on service, quality, and engaged employees
(1980s) • It All Depends: Key Con(ngencies
– Con+ngency: there is no “one best way”
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Organic vs. Mechanis+c • Mechanis5c – characterized by machine-like standard rules and procedures with clear authority
• Organic – design of organiza+on is looser, free-flowing, and adap+ve
Depends upon: – Structure – Tasks/Roles – System Formality – Communica+on – Hierarchy versus Collabora+on
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Organic and Mechanis+c Designs
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Contemporary Ideas
• Today’s organiza+ons are s+ll imprinted with hierarchical, formalized mechanis+c approach
• A few organiza+ons have shi%ed to an organic “bossless” design
• Open Systems are adap+ve and interact with the environment
• Culture has to engage employees to support a non- hierarchical environment
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Framework for the Book
• Four levels of analysis characterize organiza+ons
• Organiza+onal behavior is the micro approach
• Organiza+on theory and design is the macro examina+on
• Organiza5on design is concerned with the big picture of the
organiza5on and its major departments
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Levels of Analysis in Organiza+ons
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Framework for the Book
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Design Essen+als vOrganiza+on design provides tools for a changing environment. v Managers face new challenges including globaliza+on and ethical scru+ny. v Organiza+ons are open systems that obtain inputs from the environment, add value, and discharge products and services. v Managers shape organiza+ons to perform well for society
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Design Essen+als
v Organiza+on design perspec+ves have varied over +me. v Organiza+on designs range from mechanis+c to organic. v Most concepts pertain to the top- and middle management levels of the organiza+on.
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