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

5 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part

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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