Ch01 Organizations and Organization Theory

Chapter 1 presidencys and organisation Theory authentic Ch all in allenges of Organizations globalization o Markets, technologies, and makeups are becoming increasingly interconnected ethics and social responsibility o The list of execs and major corporations involved in financial and ethical scandals continues to grow Speed of responsiveness o Globalization and advancing technology has accelerated the pace at which arrangings in all industries must roll out new products and services to stay agonistical The digital workplace In todays workplace, many employees arrange much of their work on computers and whitethorn work in realistic teams, connected electronically to colleagues around the world Diversity o By 2050, it is estimated that 85% of entrants into the workforce give be women and people of colour What Is an Organization? Organizations social entities that are goal-directed, are designed as deliberately coordinate and coordinated activity system, and are linked to the external environment Types of Organizations international corporations Small, family-owned shops For-profit versus non-profit facesOrganizations exist to do the fol number oneing 1. Bring to arriveher resourcefulnesss to achieve craved goals and outcomes 2. Produce goods and services efficiently 3. Facilitate innovation 4. Use advance(a) manufacturing and teaching technologies 5. Adapt to influence a changing environment 6. become value for owners, customers, and employees 7. Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees Perspectives on Organizations Closed dodge A system that is autonomous, enclosed, and not dependent on its environment put one overt truly exist today Early management concepts such(prenominal) as scientific management, leadership style, and industrial engineering were closed-system approaches Open strategy A system that must interact with the environment to survive It both(prenominal ) consumes resources and exports resources to the environment, and must continually adapt to the environment An Open System and its Subsystems pic Organization Configuration Technical core o Includes people who do the staple fiber work of the transcription o The primary transformation of inputs to outputs occurs here o Includes production department, t individuallyers and classes, medical activities in hospitals, etc. Technical Support o Helps the makeup adapt to the environment o Technical support employees such as engineers and researchers scan the environment for problems, opportunities, and technological developments o Responsible for creating innovations in the technical core Administrative Support o Responsible for the savourless operation and upkeep of the organization, including its physical and human elements o Includes HR activities exchangeable recruiting and hiring, making compensation/benefit plans, employee gentility, etc. instruction A lucid subsystem resp onsible for directing and coordinating other parts of the organization o Top management provides direction, strategy, goals, and policies for the entire organization or major divisions o Middle management is responsible for implementation and coordination at the departmental level pic Dimensions of Organization human body Structural Dimensions 1. Formalization ? Pertains to the measure of written financial backing in the organization, including procedures, job descriptions, regulations, and policy manuals, describing behaviour and activities ?A large extract university would be high on formulization and a small, family-owned business would be low on formulization 2. Specialization ? The degree to which organizational tasks are subdivided into separate jobs 3. power structure of mode ? Describes who reports to whom and the span of control for each manager ? The pecking order is link up to span of control (the number of employees reporting to a supervisor), and when the span i s narrow, the hierarchy is tall, and vice versa 4. Centralization ? Refers to the hierarchical level that has authority to make a decision ?When decision making is kept at the top level, the organization is centralized ? When decisions are delegated to lower organizational levels, it is decentralized 5. Professionalism ? The level of courtly education and training of employees ? Its considered high when employees require long periods of training ? Professionalism is measurable as the average number of years of education of employees 6. strength office ratios ? Refer to the development of people to various functions and departments ?Includes the administrative ratio, the clerical ratio, the master staff ratio, and the ratio of indirect to direct labour employees ? A personnel ratio is measured by dividing the number of employees in a miscellany by the total number of organizational employees pic Contextual Dimensions 1. Size ? The organizations magnitute as reflected in the num ber of people in the organization ? Because organizations are social systems, its typically measured by of employees 2. Organizational technology ? Refers to the tools, techniques, and actions used to transform inputs into outputs ?It concerns how the organization genuinely produces the products and services and intromits things such as flexible manufacturing, advanced info systems, and the profits 3. environs ? Includes all elements outdoors the boundary of the organization ? Key elements include the industry, government, customers, suppliers, and the financial community 4. Goals and Strategies ? Define the purpose and competitive techniques that set it unconnected from other organizations ? Goals are written down as an enduring story of company intent ?A strategy is the plan of action that describes resource allocation and activities for dealing with the environment and for reaching the organizations goals 5. market-gardening ? The underlying set of key values, beliefs, u nderstandings, and norms shared by employees ? These values may pertain to ethical behaviour, commitment to employees, efficiency, or customer service doing and effectivity Outcomes Managers adjust structural and contextual dimensions and organizational subsystems to most efficiently and effectively transform inputs into outputs nd provide value Efficiency refers to the amount of resources used to achieve the organizations goals, and it is found on the measurement of inputs necessary to produce a given level of output Effectiveness is the degree to which an organization achieves its goals Stakeholder is any group within or outside an organization that has a stake in the organizations public presentation Stakeholder approach assesses the satisfaction of stakeholders as an indicator of the organizations writ of execution (also called constituency approach) Major stakeholders and what they expect Owners/stockholders financial return o Employees satisfaction, pay, supervisio n o Customers high-quality goods/services, service, value o Creditors creditworthiness, fiscal responsibility o Management efficiency, metier o Government obedience to laws and regulations, fair competition o conjunction worker pay, benefits Community good corporate citizen, contribution to community personal matters o Suppliers satisfactory transactions, revenue from purchases The Evolution of Organization Theory and human body Historical Perspectives Efficiency is everything o Frederick Winslow Taylor developed scientific management, which claims decisions about organization and job design should be based on precise, scientific procedures How to get organized Administrative principles focuses on the total organization (looks at the organization as a whole) o For example, Henri Fayol proposed 14 principles of management, such as each subordinate receives orders from only one superior and similar activities in an organization should be grouped together under one manager o Thes e gave organizations fundamental new ideas for estabilishing high productivity and increasing prosperity o Administrative principles contributed to the development of bureaucratic organizations, which expressd designing and managing organizations on an impersonal, noetic basis through such elements as clearly defined authority and responsibility, formal recordkeeping, and uniform application of stand rules People o haw Studies are a series of experiments on worker productivity that began in 1924 o It attributed employees affixd output to managers better treatment of them during the study Environment Many problems occur when all organizations are treated similar, which is the case with scientific management o Structures and systems that work in the retail division will not be appropriate for the manufacturing division o Consistency means that one thing depends on other things, and for organizations to be effective, there must be a goodness of fit between their structure and the conditions in their external environment o Some organizations experience a genuine environment, use a routine technology, and desire efficiency, and in this case, bureaucratic controls would be appropriate o But today, almost all organizations operate in a highly uncertain environment Contemporary Organizational Design Todays organizations and managers are shifting from a mindset based on mechanical systems to one based on natural and biological systems Chaos theory suggests that relationships in complex, adaptive systems including organizations are made up of numerous interconnections that create unintended effects and render the environment atypical Many organizations are shifting from strict vertical hierarchies to flexible, decentralized structures that emphasize plane collaboration, widespread info sharing, and adaptability Learning organization is an organization in which everyone is engaged in identifying and solving problems, enabling the organization to continuousl y experiment, improve, and increase its capability Efficient Performance versus the Learning Organization From vertical to horizontal structure From routine tasks to empowered tasks From formal control systems to shared information From competitive to collaborative strategy From rigid to adaptive culture transition Process Environment Raw Materials People Information resources Financial resources insert Subsystems Boundary Spanning Production, Maintenance, Adaptation, Management Boundary Spanning Products and Services Output Top Management