Organization Theory
Chapter One
Organizations and
Organization Theory
1-1
Organization Theory in Action
• Topics
• Current Challenges
– Global competition
– Organizational turbulence
– E-commerce
– Managing knowledge and information
– Diversity
– Ethics and social responsibility
1-2
What is an Organization?
• Definition
• Importance of Organizations
– Bring together resources to achieve desired goals and outcomes
– Produce goods and services efficiently
– Facilitate innovation
– Use modern manufacturing and computerbased technology
1-3
• Importance of Organizations (cont’d)
– Adapt to and influence a changing environment
– Create value for owners, customers and employees – Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees 1-4
An Open System and Its Subsystems
Environment
Transformation
Raw Materials
People
Information resources Financial resources Input
Subsystems
Boundary
Spanning
Output
Products and Services
Process
Production,
Maintenance,
Adaptation,
Management
Boundary
Spanning
1-5
Five Basic Parts of an Organization
Top
Management
Technical
Support
Middle
Management
Administrative
Support
Technical Core
Source: 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.
1-6
Goals and
Strategy
Environment
Culture
Size
Structure
1.
2.
3.
4.
5.
6.
Technology
Formalization
Specialization
Hierarchy of Authority
Centralization
Professionalism
Personnel Ratios
1-7
Organization Chart Illustrating the Hierarchy of Authority for a Community Job Training Program
Board of
Directors
Advisory
Committee
Executive
Committee
Level 1
Executive
Director
Assistant Executive Director for Community Service
Organizations and
Organization Theory
1-1
Organization Theory in Action
• Topics
• Current Challenges
– Global competition
– Organizational turbulence
– E-commerce
– Managing knowledge and information
– Diversity
– Ethics and social responsibility
1-2
What is an Organization?
• Definition
• Importance of Organizations
– Bring together resources to achieve desired goals and outcomes
– Produce goods and services efficiently
– Facilitate innovation
– Use modern manufacturing and computerbased technology
1-3
• Importance of Organizations (cont’d)
– Adapt to and influence a changing environment
– Create value for owners, customers and employees – Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees 1-4
An Open System and Its Subsystems
Environment
Transformation
Raw Materials
People
Information resources Financial resources Input
Subsystems
Boundary
Spanning
Output
Products and Services
Process
Production,
Maintenance,
Adaptation,
Management
Boundary
Spanning
1-5
Five Basic Parts of an Organization
Top
Management
Technical
Support
Middle
Management
Administrative
Support
Technical Core
Source: 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.
1-6
Goals and
Strategy
Environment
Culture
Size
Structure
1.
2.
3.
4.
5.
6.
Technology
Formalization
Specialization
Hierarchy of Authority
Centralization
Professionalism
Personnel Ratios
1-7
Organization Chart Illustrating the Hierarchy of Authority for a Community Job Training Program
Board of
Directors
Advisory
Committee
Executive
Committee
Level 1
Executive
Director
Assistant Executive Director for Community Service