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Discussion Thread: Introduction to Organizations and Organizational Theory
Department School of Business, Liberty University
Discussion Thread: Introduction to Organizations and Organizational Theory Chapter 1:
Why is shared information so important in a learning organization in comparison to an
efficient performance organization? Discuss how an organization’s approach to sharing
information may be related to other elements of organization design such as: structure, tasks,
strategy, and culture.
Greater adaptability to fluidity has contributed to the shift from efficient performance
organizations to learning organizations. Daft (2016) defines a learning organization as facilitating
collaboration and communication, engaging every organizational member in identifying and
resolving problems, allowing organizations to improve, experiment, and increase their capability
constantly. Information sharing is essential for various purposes in a learning organization
compared to an efficient learning organization. Extensive sharing of information enables
learning organizations to function appropriately at all levels. Learning organizations strive to
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create an internal environment related to small, entrepreneurial firms in which all the workforce
has access to information about the company. In learning organizations, information and ideas
are shared across all departments.
Efficient performance organizations have minimal information and formal control
systems. The fact is that senior leaders in efficient performing organizations work directly with
employees in executing organizational functions. Nonetheless, the distance between managers
and employees is extensive in large efficient performance organizations, necessitating the
implementation of formal communication systems. Additionally, open communication channels
with suppliers, customers, and competitors are evident in learning organizations to strengthen
learning capabilities (Daft, 2016).
The approach by organizations to share information relates to other elements as follows.
Information sharing facilitates a collaborative strategy in learning organizations instead of a
competitive strategy. Learning organizations have an empowered and informed workforce
contributing to organizational development. Partnership with customers, suppliers, and other
organizations contributes to developing a collaborative approach (Daft, 2016). Learning
organizations openly share their ideas, collaborate, and compete. Information sharing also
supports an adaptive culture that encourages change, continuous improvement, equality, and
openness. Organizational members have access to knowledge of the whole system, which
reduces boundaries in the firm.
Furthermore, shared information supports a horizontal structure with horizontal
workflows instead of departmental functions. The flat structure supports fundamental work
units, primarily self-directed teams, facilitating engagement, collaboration, and productivity
(Daft, 2016). Finally, shared information promotes empowered roles rather than routine tasks.
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In learning organizations, employees are empowered to collaborate in devising solutions to
existing problems in the working environment.
Chapter 1: What are some differences that one might anticipate among stakeholders’
expectations for a nonprofit organization versus a for-profit business? Do you believe
nonprofit managers have to pay more attention to stakeholders than business managers?
A stakeholder encompasses society, social group, organization, or individual with vested
interests in the organization and can be directly or indirectly affected by business performance
and operations. The type of stakeholders and their expectations differ depending on the type of
business. As a result, stakeholder expectations in nonprofit companies are distinct from those in
for-profit organizations. In nonprofit organizations, managers interact with diverse stakeholders
while focusing on attracting donors and volunteers (Daft, 2016). The government, communities,
members, partners, beneficiaries, board, and employees constitute other stakeholders in
nonprofit organizations. Accountability and responsiveness are one of the stakeholder
expectations in nonprofit organizations. Daft (2016) asserts that nonprofit organizations direct
their operations and efforts towards creating a positive social impact in society. Therefore, such
organizations should be accountable and responsive to the community needs, interest groups,
beneficiaries, and donors (Balser & McClusky, 2005). Since nonprofit organizations depend on
donors and wellwishers for financial support, accountability is imperative to satisfying their
needs. Stakeholders in nonprofits also seek effectiveness in service provision by providing equal
services and opportunities to all groups and beneficiaries to generate a positive change (Balser
& McClusky, 2005).
Managers in for-profit companies direct business operations to generate revenue and
profits for the company and its shareholders (Daft, 2016). In the process, for-profit firms are
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obliged to meet stakeholders’ needs and expectations. On the other hand, stakeholders in
forprofit organizations include customers, employees, investors, suppliers and vendors,
communities, and the government (Darškuvienė & Bendoraitienė, 2014). Customers expect the
business to meet and exceed their needs and expectations while employees seek a supportive
working environment, proper remuneration, and other benefit packages. Significantly, investors
or shareholders anticipate a return on investment in the company (Darškuvienė &
Bendoraitienė, 2014). Suppliers expect direct involvement in business activities, whereas
communities rely on for-profit companies for job creation, economic development, and other
beneficial programs. Lastly, the government expects businesses to adhere to regulations and
pay taxes to avoid legal implications.
Nonprofit managers have to pay more attention to stakeholders than businesses.
Nonprofit organizations rely on stakeholders for funding and creating a positive social change in
society. Therefore, nonprofit managers must ensure accountability, responsiveness,
effectiveness, compliance to standards, and ethics to maintain a positive image, which is
essential to attracting more donors and interest groups. The reputation of nonprofit
organizations depends on their interaction and capacity to address stakeholder needs.
Chapter 2: How might a company’s goals for employee development be related to its goals for
innovation and change? How might a company’s goals for employee development be related
to its goals for productivity? Explain the ways that these types of goals may conflict in an
organization?
Employee development entails the growth, safety, promotion, and training of employees
(Daft, 2016). Companies that emphasize employee development prioritize the needs,
expectations, and career aspirations of the workforce, positively impacting productivity and
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employee retention—a company’s employee development goals related to innovation and
change goals through a mutually beneficial relationship. The objectives of change in a firm
encompass the readiness and internal flexibility to adapt to abrupt changes in the business
environment. On the other hand, innovation goals pertain to developing new production
processes, products, and services (Daft, 2016). Employees require new skills, expertise, and
experience to constantly innovate new products while supporting change in the business
environment. Employee development promotes personal and professional growth, integral to
improving performance, productivity, innovation, and engagement in the organization (Awasthi
& Kumar, 2016). Companies are constantly changing their business strategies to ensure
performance and competitive advantage. Besides, changes in the business environment, such as
automation of production systems, changing customer preferences, competition, and
technological advancement, affect productivity and performance (Awasthi & Kumar, 2016).
Employee development ensures a proactive approach to change and innovation through
continuous training and development.
According to Daft (2016), productivity goals relate to the magnitude of output attained
from the available resources. Productivity goals describe the level of resource inputs necessary
to achieve the desired result concerning resource cost per employee, units produced per
employee, and cost for a unit of production (Daft, 2016). Employee development goals aim to
enrich the workforce and are essential skills integral to achieving organizational goals. Employee
development strengthens employee competencies, maximizes employee returns, and attracts
and retains talent within the organization, leading to high productivity (Rodriguez & Walters,
2017).
Development goals enable employees to utilize existing resources to achieve high productivity.
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Employee development, change and innovation, and productivity goals may conflict in
the organization if managers fail to align them to the organizational goals. Differences in the
organization’s strategic intent and employee development goals limit the capacity to achieve
organizational strategies, change, innovation, and productivity. Conflict arises when
organizations fail to orient employee development goals to equip the workforce with
competencies necessary to promote change, innovation, and productivity.
Chapter 2: Suppose you have been asked to evaluate the effectiveness of the police
department in a medium-sized community. Where would you begin? How would you
proceed? What effectiveness approach would you prefer?
Instead of adopting the traditional approaches to effectiveness, the balanced scorecard
approach will evaluate the police department’s effectiveness. In this approach, several
effectiveness indicators, mainly customers, internal business processes, financial, and learning
and growth, form a single framework for organization evaluation (Daft, 2016). The evaluation
process would begin with an in-depth interview with the police department chief to attain
extensive information on the four indicators under evaluation. The interview would provide
insights into how well the police department serves community members and how officers in
the department learn, change and improve. The interview would also provide information on
how well the department’s work processes add value to shareholders and customers. Lastly, the
police chief would also inform the department’s action and contribution to better financial
performance (Daft, 2016).
The balanced scorecard approach would be pivotal to assessing the police department’s
effectiveness. The process would provide relevant data and information on the four
performance indicators, providing accurate insights into the effectiveness of the police
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department. The approach would also inform how organizational effectiveness is an outcome of
accomplishing the four indications. Hence, the balanced scorecard approach will yield insights
on how the four interdependent indicators align so that the department works to attain its goals
and accomplish its mission (Daft, 2016).
Chapter 3: What types of organizational activities do you believe are most likely to be
outsourced? What types are least likely?
Daft (2016) describes outsourcing as contracting specific functions or tasks, including
credit processing, human resources, and manufacturing to other firms. The customer support
function is an organizational activity that firms are most likely to outsource. In this process, the
firm would contract a third party to manage verbal and non-verbal communication with
customers and outbound and inbound calls. The customer support function is critical to
developing lasting relationships with consumers essential to organizational productivity and
performance. Third-party companies have the expertise and knowledge to interact with
consumers and address their concerns, needs, and queries. Customer-oriented businesses rely
on practical customer service functions to attract consumers and broaden the customer base.
Outsourcing the customer support function is cost-effective, ensures round-the-clock support,
increases efficiency, and improves customer retention loyalty (Whitaker et al., 2019). Companies
are also likely to outsource logistics and distribution systems. The objective is to ensure
efficiency by outsourcing experienced specialized companies that provide logistics and
distribution services. Outsourcing provides access to current technology and infrastructure,
continuous improvement, economies of scale, and flexibility (Arif & Jawab, 2017). Significantly,
outsourcing logistics and distribution services reduces overall costs, leading to high returns on
investment. Finally, companies also outsource marketing and public relations firms to minimize
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resources incurred in conducting time-consuming market research and building relationships
with customers and other stakeholders. Outsourcing this function provides access to leading
influencers, analysts, reports, and publications in the industry, fostering positive organizational
outcomes (Hajduk, 2016).
Biblical Worldview
The bible says that “but all things should be done decently and in order” (The ESV Study
Bible, 2008, 1 Corinthians 14:40). Christian managers have to develop effective strategies that
align with organizational goals to ensure effectiveness, focusing on organization design. Proper
decision-making is critical to aligning all business components to the firm’s vision and mission.
Irrelevant, inaccurate, incorrect, and insufficient information about the business and its
circumstances affects decision-making, leading to failure. Salgado (2011) argues that failure
informs managers of how planning and decision-making fail to consider long-term implications
and other organizational factors that contribute to business failure. As a result, managers should
be decent and follow an approved approach to planning and decision-making for business
success. The bible also states, “Write the vision; make it plain on tablets, so he may run who
reads it” (The ESV Study Bible, 2008, Habakkuk 2:2). Based on this verse, managers should
develop a vision that informs on the direction of the business. Success depends on the capacity
to utilize evidence and data to make informed decisions that enhance business outcomes.
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References
Arif, J., & Jawab, F. (2018, April). Outsourcing of logistics’ activities: Impact analysis on logistics
service performance. In 2018 International Colloquium on Logistics and Supply
Chain Management (LOGISTIQUA) (pp. 88-92). IEEE.
http://dx.doi.org/10.1109/LOGISTIQUA.2018.8428272
Awasthi, S., & Kumar, S. (2016). Need for Employee Development in Employee Performance: A
Present Scenario. International Journal in Management & Social Science, 4(6), 66-73.
Balser, D., & McClusky, J. (2005). Managing stakeholder relationships and nonprofit organization
effectiveness. Nonprofit Management and Leadership, 15(3), 295-315.
Daft, R. L. (2016). Organization theory & design (12th ed.). Boston, MA: Cengage Learning.
ISBN: 9781285866345.
Darškuvienė, V., & Bendoraitienė, E. (2014). Stakeholder expectations and influence on company
decisions. Applied economics: systematic research, 8(2), 83-96.
http://dx.doi.org/10.7220/AESR.2335.8742.2014.8.2.5
Hajduk, G. (2016). Specifics and Features of Outsourcing Marketing Communications
Activity. Central European Business Review, 5(3), 78-87.
http://dx.doi.org/10.18267/j.cebr.160
Rodriguez, J., & Walters, K. (2017). The importance of training and development in employee
performance and evaluation. World Wide Journal of Multidisciplinary Research and
Development, 3(10), 206-212.
Salgado, L. (2011). How a Christian worldview defines strategy. Journal of Biblical Integration in
Business, 14(1).
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The ESV Study Bible (2008). Wheaton, IL: Crossway Bibles.
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Whitaker, J., Krishnan, M. S., Fornell, C., & Morgeson, F. (2019). How does customer service
offshoring impact customer satisfaction? Journal of Computer Information Systems.
