ORGANIZATIONAL
THEORY & DESIGN






Why Do We Have Organizations?
1.
To Accomplish Something = Goal
2.
It Takes More Than 1 Person
CEO
Masterbatches
Functional
Chemicals
Fine
Chemicals
Europe
Soaps
Electric
Materials
Asia/
Pacific
Process
Chemicals
Specialty
Organizations
A system of roles and stream of
activities to accomplish shared
purposes
Reason for existence
Produce something
Customers
Organizations
A system of roles and stream of
activities to accomplish shared
purposes
System of roles describes the structure
Stream of activities describes the process
Organizations
•Product of social action
•Goal oriented
•“People” system
•Cultural system (values)
•Information/Message processing
system
•Changing System
PERIODS OF HUMAN CULTURE
Nomadic
-3,000 BC
Energy
Sources
Renewable
People
Animals
Wood
ScienceNone
Technology
Food
Sources
Animals
Wild Grains
Fruit
Organization Nomadic
Culture unstable
Family/Tribal
Barter
Agricultural Industrial “Third Wave”
3,000BC - 1700AD
1700 -present
1960 - ?
Renewable
Mechanical
Non-renewable
Coal, Oil
Electrical
Little
Natural
Scientific Method
Technology
Electrical
Biology
Social Sciences
Genome
Cultivation
Domestication
“Scientific”
Farming
Settlements
Self contained
Centralized Gov’t
Church
Distrib. systems
Large Industry
Specialization
Urban
Societal
Interdependence
+
“Biological
Foods”
?
Work Ind.
World Gov’t
Information
Net
Dr. Lee Jacokes
Aquinas College
MANAGEMENT IDEAS
1961
Burns & Stalker
1965
Woodward
1967
Lawrence & Lorsch
Contingency Theory
Administrative
1900-10
WW II
Taylor,Gilbreth
1938
Barnard’s
Functions of
the Executive
1925
Fayol
1900
1920
1940
1960
1980
2000
Scientific Management
Management Science
Organizational Theory
Organizational Behavior
1927
Hawthorne
Rational
1960
McGregor
March and Simon’s
Organization
Behavioral
Systems
SYSTEMS
A system can be conceived as a collection of
individual parts which collectively relate together
in some manner to accomplish some objective(s)
or tasks(s) which could not be accomplished by
the individual elements working separately
Any Level
Quantum
Atomic
Molecular
Biological
Organic
Social
Cosmological
????
The Basic Elements of a
System
Environment
Inputs
Transformation
Process
Feedback
Outputs
SIMPLE SYSTEM
Closed
System
wires
(communication
network)
Battery
Open
System
BASIC COMPONENTS OF
ANY SYSTEM
System has an objective which can be
accomplished by interaction of the system
sub-units
An energy source to “drive” system
An energy conversion process to “produce”
the objective Transformation
Process
A communication network between system
units
ADDITIONAL
CHARACTERISTICS
•Cycle of Events
•Entropy
Patterns
Loss of
energy
Time
Repeat
Movement toward
disorganization
death
•Information input
Feedback/Inputs
Coding process
ADDITIONAL
CHARACTERISTICS
•The Steady State & Dynamic Homeostasis
Consistent energy exchange
System will attempt to maintain/restore
“steady state”
But constantly changing in reaction to
environment
Driving Forces
Growth - quantitative & qualitative
Adaptation to environment
Acquisition from environment
ADDITIONAL
CHARACTERISTICS
•Differentiation
Movement toward increasing complexity
and specialization
•Integration & coordination
Norms
Differentiation countered by
Values
process to unify system
•Equifinality
Multiple paths
from initial conditions to final objective
That’s it for
today
On to groups
ORGANIZATIONAL
THEORY & DESIGN






The Basic Elements of a
System
Environment
Inputs
Transformation
Process
Feedback
Outputs
Basic Process of
Open Systems
Throughput
Transformation
Process
Subsystems of Organizations
Task accomplishment:
energy transformation with
in the organization
Production
Subsystem
Subsystems of Organizations
Marketing
Major focus:
Public relations
Procurement
Transactional exchanges
Sales
Waste disposal
at system boundaries
Gov’t
Boundary
spanning
Production
Subsystem
Boundary
spanning
Subsystems of Organizations
Adaptive
Subsystems
Monitor
Feedback
Boundary
spanning
Production
Subsystem
Intelligence
R&D
Planning
Boundary
spanning
Subsystems of Organizations
Adaptive
Subsystems
Primary
Systems
Boundary
spanning
Production
Subsystem
Monitor
Feedback
Boundary
spanning
Subsystems of Organizations
Planning
Organizing
Leading
Controlling
Management
Subsystem
Boundary
spanning
Adaptive
Subsystems
Primary
Systems
Production
Subsystem
Monitor
Feedback
Boundary
spanning
Subsystems of Organizations
Mediating demands
to keep structure
Management
operating
Subsystem
Adaptive
Subsystems
Maintenance
Subsystem
Primary
Systems
Boundary
spanning
Production
Subsystem
Monitor
Feedback
Boundary
spanning
Subsystems of Organizations
Management
Subsystem
Adaptive
Subsystems
Maintenance
Subsystem Collateral
Subsystems
Primary
Systems
Boundary
spanning
Production
Subsystem
Monitor
Feedback
Boundary
spanning
Etc.
Social Systems
Human beings tied into roles which lead to
some “defined” objectives or purpose
The structuring of events or happenings
rather than physical parts
Contrived systems of complex social
behaviors (roles)
Held together by Psychological Cement”
attitudes, beliefs, motivations, habits,
expectations.etc.
Chapter Two

Strategy,


Organization Design,


and Effectiveness

STRATEGY
Insight into
how to
create value
STRATEGIC
MANAGEMENT
managerial decisions and
actions that determine the
long-run performance of a
corporation
Emphasizes monitoring and evaluating
environment (external)
STRATEGIC
MANAGEMENT MODEL
Environmental Scanning
Strategy Formulation
Strategy Implementation
Evaluation and Control
Strategic Management Process
Evaluate
Current:
•Mission
•Goals
•Strategies
Scan External
Environment
Evaluate
Current:
•Mission
•Goals
•Strategies
Scan Internal
Environment
Societal Environment
Task/Industry
Environment
The layer of the
Sociocultural
Economic
external
environmentShareholders
Suppliers
The
layer
of the external
that affects the
environment
that directly
Governments
organization
Internal
Employees/
Labor
Unions
influences
the
indirectly.
Environment
Special
Interest
Structureorganization’s operations
Groups
and performance.
Competitors
Culture
Customers
Political-Legal
Resources
Trade Associations
Creditors
Communities
Technological
Scan External
Environment
Identify
Strategic
Factors:
•Opportunities
•Threats
Evaluate
Current:
•Mission
•Goals
•Strategies
Scan Internal
Environment
Identify
Strategic
Factors:
•Strengths
•Weaknesses
SWOT
Analysis
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
are within the organization itself
and not usually within the short run
control of management
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
are within the organization itself
and not usually within the short run
control of management
OPPROTUNITIES
THREATS
are outside the organization,
general factors and trends in the
societal environmental
and specific factors in the
task/industry environment
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
are within the organization itself
and not usually within the short run
control of management
OPPROTUNITIES
THREATS
are outside the organization,
general factors and trends in the
societal environmental
and specific factors in the
task/industry environment
4-6 of
each
Scan External
Environment
Evaluate
Current:
•Mission
•Goals
•Strategies
Scan Internal
Environment
Identify
Strategic
Factors:
•Opportunities
•Threats
Define New:
•Mission
•Goals
Identify
Strategic
Factors:
•Strengths
•Weaknesses
Formulate
Strategy:
•Corporate
•Business
Formulating Corporate
Strategy
What Business Should
We Be IN?
GENERIC CORPORATE
STRATEGIES
GROWTH
STABILITY
RETRENCHMENT
GENERIC CORPORATE
STRATEGIES
GROWTH
(p. 134)
Vertical Integration
Horizontal Integration
Related Diversification (Concentric)
Unrelated Diversification (Conglomerate)
GENERIC CORPORATE
STRATEGIES
STABILITY
(p.143)
Pause/ Proceed with Caution
No Change
RETRENCHMENT
Turnaround
Divestment
Liquidation
(p. 185-188)
Formulating
Business/Competitive
Strategy
How Will We Compete?
Porter's Competitive Strategies
• Differentiation
• Cost Leadership
• Focus.
Porter’s
Competitive
Strategies
Porter’s
Competitive
Strategies
Porter’s
Competitive
Strategies
Broad
Competitive
Scope
Narrow
Competitive advantage
Low Cost
Differentiation
Low-cost
Leadership
GoFly Ltd.
Differentiation
Starbucks.
Focused
Low-cost
Leadership
Focused
Differentiation
Enterprise
Rent-a-car
Edward Jones
Investments
Scan External
Environment
Evaluate
Current:
•Mission
•Goals
•Strategies
Scan Internal
Environment
Identify
Strategic
Factors:
•Opportunities
•Threats
Define New:
•Mission
•Goals
Identify
Strategic
Factors:
•Strengths
•Weaknesses
Formulate
Strategy:
•Corporate
•Business
Implement
Strategy via
Changes in:
•Structure
•Culture
•Leadership
•Human
Resources
•Information
and Control
Systems
Top Management Role in Organization
Direction, Design, and Effectiveness
External Environment
Organization
Design
Opportunities
Threats
Uncertainty
Resource Availability
Strategic Management
CEO, Top
Management
Team
Define
mission,
official
goals
Internal Environment
Strengths
Weaknesses
Distinctive competence
Leadership Style
Past Performance
Select
operational
goals,
collaborative
strategies
Structural Form –
learning vs.
efficiency
Information and
control systems
Production
technology
Human resource
policies,
incentives
Organizational
culture
Interorganizational
linkages
Effectiveness
Outcomes
Resources
Efficiency
Goal attainment
Stakeholders
Competing values
Effectiveness Values
for Two Organizations
STRUCTURE
FLEXIBILITY
Human Relations
Model
F
O
C
U
S
INTERNAL
Goal values: human resource
development
ORGANIZATION
Subgoals: cohesion, morale,
A training
Internal Process
Model
ORGANIZATION
B
Goal values: stability, equilibrium
CONTROL
Subgoals: information management,
communication
Goal values: growth,
resource acquisition
Subgoals: flexibility, readiness,
external evaluation
Open Systems
Model
EXTERNAL
Rational Goal
Model
Goal values: productivity, efficiency,
profit
Subgoals: planning, goal setting
Factors
Affecting Organization Design
Organizational Structure and Design
Culture
The pattern of basic assumptions
that a given group has invented,
discovered or developed in learning
to cope with external adaptation or
internal integration
Culture
The pattern of basic assumptions
that a given group has invented,
discovered or developed in learning
to cope with external adaptation or
internal integration
Culture
The pattern of basic assumptions
that a given group has invented,
discovered or developed in learning
to cope with external adaptation or
internal integration
Culture
The pattern of basic assumptions
that a given group has invented,
discovered or developed in learning
to cope with external adaptation or
internal integration
Culture
The pattern of basic assumptions
that a given group has invented,
discovered or developed in learning
to cope with external adaptation or
internal integration
Culture
The pattern of basic assumptions
that a given group has invented,
discovered or developed in learning
to cope with external adaptation or
internal integration
Thought Process
Held deeply, can be hard to determine
Organizational Culture
• Some of the Definitions of Culture:
– Symbols, language, ideologies, rituals, and
myths.
– Organizational scripts derived from the
personal scripts of the organization’s founder(s)
or dominant leader(s).
– Is a product; is historical; is based upon
symbols; and is an abstraction from behavior
and the products of behavior.
Organizational Culture and its
Effects
Since organizational culture involves shared
expectations, values, and attitudes, it exerts
influence on individuals, groups, and
organizational processes.
Levels of Corporate Culture
Observable Symbols
Ceremonies, Stories, Slogans,
Behaviors, Dress,
Physical Settings
Underlying
Values,
Assumptions,
Beliefs, Attitudes,
Feelings
Levels of Corporate Culture
Visible but
Artifacts - Observables
often
not
Surface
architecture, behavior, decipherable
slogans, logos Rites, Stories
Greater level
Values Loyalty
of awareness
Subsurface shared by members,
reflected symbol-language
Deep Basic Assumptions
below hard even for members to
surface detect without focus inquiry
Taken for
granted
invisible
preconscious
Schein’s Three-Layer Organizational
Model
Surface
Examples of Cultural
Attributes
- Documents
- Physical layouts
- Furnishings
- Language
- Jargon
- Work ethic and practice
- Loyalty
- Commitment
- Helping others
I
Artifacts and
Creations
Subsurface
II
Values
- Technology
- Art
- Visible and audible
behavior patterns
- Testable in the physical
environment
- Testable by social
consensus
Deep below surface
III
Basic
Assumptions
- Relationship to
environment
- Nature of reality, time,
and space
- Nature of human
nature, activity, relations
Visible Manifestations
•
•
•
•
•
Symbols
Stories
Heroes
Slogans
Ceremonies
Heroes, Rituals & Stories: Examples, purpose
1. Brainstorm the heroes (past 18 months):
acknowledged, celebrated (5 min)
2. Brainstorm "rituals" (past 18 months) (5 min)
3. Reflection: In your groups, how does or doesn’t it reflect
the attitudes and behaviors your org. is trying to
promulgate (15 min)
That’s it for
today
On to groups
Fundamentals of
Organization Structure
What a Difference a Century Can Make
Contrasting views of the corporation:
CHARACTERISTIC
20TH CENTURY
21ST CENTURY
ORGANIZATION
FOCUS
STYLE
SOURCE OF STRENGHT
STRUCTURE
RESOUCES
OPERATIONS
PRODUCTS
REACH
The Pyramid
Internal
Structured
Stability
Self-sufficiency
Atoms-physical assets
Vertical integration
Mass production
Domestic
The Web / Network
External
Flexible
Change
Interdependencies
Bits-information
Virtual integration
Mass customization
Global
DATA: BUSINESS WEEK
What a Difference a Century Can Make
Contrasting views of the corporation:
CHARACTERISTIC
20TH CENTURY
FINANCIALS
INVENTORIES
STRATEGY
LEADERSHIP
WORKERS
JOB EXPECTIONS
MOTIVATION
IMPROVEMENTS
QUALITY
Quarterly
Months
Top-down
Dogmatic
Employees
Security
To compete
Incremental
Affordable best
DATA: BUSINESS WEEK
21ST CENTURY
Real time
Hours
Bottom-up
Inspirational
Employees/free agents
Personal growth
To build
Revolutionary
No compromise
Approaches to Organizational
Design Process
Emergent process
Partial control, Multiple Catching the Jellyfish
participants, Dynamic
Timing critical
Proactive, Rational
Control, Reengineering
Reactive, Constrained
Do it as we planned
When forced to
Organizational and Environmental
constraints determine design
Organizational Departments Differentiate to
Meet Needs of Sub-environments
President
R&D
Division
Manufacturing
Division
Sales
Division
Scientific
Sub-environment
Manufacturing
Sub-environment
Market
Sub-environment
Scientific
Research
journals
centers
Professional
associations
Labor
Raw Suppliers
materials
Production
equipment
Customers Advertising
Competitors agencies
Distribution
system
Differences in Goals and Orientations
Among Organizational Departments
Characteristic
R&D
Department
Manufacturing
Department
Sales
Department
New
developments,
quality
Efficient
production
Customer
satisfaction
Time
Horizon
Long
Short
Short
Interpersonal
Orientation
Mostly task
Task
Social
Formality of
Structure
Low
High
High
Goals
Source: Based on Paul R. Lawrence and Jay W. Lorsch,
Organization and Environment
(Homewood, Ill.: Irwin, 1969), pp. 23-29.
The External Environment
All elements existing outside the
organization’s boundaries that
have potential to affect the
organization
Societal Environment
Task/Industry
Environment
Sociocultural
Shareholders
Governments
Special
Interest
Groups
Suppliers
Internal
Environment
Employees/
Labor Unions
Structure
Culture
Customers
Political-Legal
Economic
Competitors
Resources
Trade Associations
Creditors
Communities
Technological
An Organization’s Environment
(a) Competitors, industry size and
competitiveness, related issues
(b) Suppliers,
manufacturers, real
estate, services
(i)
Socio-cultural
(c) Labor market,
Sector
employment agencies,
universities, training
schools, employees
(h)
Government
in other companies,
Sector
unions
(d) Stock markets,
banks, savings and
(g)
loans, private
Economic
Conditions
investors
Sector
(e) Customers, clients,
potential users of products
and services
(f) Techniques of production, science,
research centers, automation new
materials
(j)
International
Sector
(a)
Industry
Sector
DOMAIN
ORGANIZATION
(f)
Technology
Sector
(e)
Market
Sector
(g) Recession, unemployment rate,
inflation rate, rate of investment,
economics, growth
(h) City, state, federal laws
and regulations, taxes,
(b)
Raw Materials
services, court system,
Sector
political processes
(i) Age, values, beliefs,
education, religion,
(c)
Human Resources
work ethic, consumer
Sector
and green
movements
(j) Competition from
(d)
and acquisition by
Financial
Resources
foreign firms,
Sector
entry into overseas
markets, foreign
customs, regulations,
exchange rates
The environment
creates uncertainty
for organizational
managers
Two Strategies for Coping with
High Uncertainty
1. Adapt the organization to the
changes in the environment
2. Influence the environment to make
it more compatible with
organizational needs.
Classical Principles 0f Organizational Structure
FIGURE 4-3
1. Division of Labor. Classical theory prescribed narrowly specialized jobs to increase economic efficiency.
Narrow specialization enables persons performing a task to become experts in a relatively short time, thus
reducing training and recruiting costs.
2. Standardization of Tasks. Defining task methods standardizes performance, thereby improving
coordination and making the flow of work between specialized tasks more predictable.
3. Hierarchy of Authority. In classical theory, exceptional cases that are not covered by standardized rules are
handled by a hierarchy of authority. A pyramid of supervisory positions, with each higher level becoming
responsible for coordinating the activities beneath it, is created to resolve conflicts, reallocate work, and
discipline uncooperative workers.
4. Equal Authority and Responsibility. Classical theory states that no manager should be held responsible for
accomplishing a task unless he or she is given the authority to see that it gets done. Granting managers the
authority to make decisions on certain matters justifies holding them responsible for achieving results in those
areas.
5. Unity of Command. No employee shall report to more than one supervisor. Adherence to this design
principle assures unbroken lines of authority and a pyramidal shape to organization charts. Unity of command
eliminates the possibility of conflicting orders from different supervisors.
6. Limited Span of Control. In a hierarchical organization, the number of persons reporting to a supervisor is
called the span of control. By limiting the span of control to relatively small numbers, usually not exceeding
seven, the classical school prescribed close supervision and tight coordination of lower-level activities.
7. Separation of Line and Staff. Classical theory recognized that supervisors do not always have the
information needed to resolve exceptional cases coming to their attention. To deal with this problem, classical
theory prescribed making expert "staff advice available to the manager. A staff position in classical theory is
defined as one that can only give advice to a "line" manager. The line manager retains the formal authority to
decide what to do with staffs advice.
8. Decentralization. The principle of decentralization is to locate decision authority at as low a level as possible
without losing control. In practice this means delegation of routine matters and the centralization of more
important decisions.
Mechanistic Structure
• Tasks are broken down into specialized,
separate parts.
• Tasks are rigidly defined.
• There is a strict hierarchy of authority and
control, and there are many rules.
• Knowledge and control of tasks are
centralized at the top of the organization.
President
• Communication is vertical.
VP Finance
VP Production
VP Marketing
Organic Structure
• Employees contribute to the common task
of the department.
• Tasks are adjusted and redefined through
teamwork.
• There is less hierarchy of authority and
control, and there are few rules.
• Knowledge and control of tasks are located
anywhere in the organization.


• Communication is horizontal.




Environmental Uncertainty and
Organizational Responses
UNSTABLE
ENVIRONMENTAL
CHANGE
High-Moderate Uncertainty
High Uncertainty
1. Organic structure, teamwork;
participative, decentralized
2. Few departments, much boundary
spanning
3. Few integrating roles
1. Organic structure, teamwork;
participative, decentralized
2. Many departments differentiated,
extensive boundary spanning
3. Many integrating roles
4. Planning orientation
4. Extensive planning, forecasting
Low Uncertainty
1. Mechanistic structure; formal,
centralized
2. Few departments
STABLE
Low-Moderate Uncertainty
3. No integrating roles
1. Mechanistic structure; formal,
centralized
2. Many departments, some boundary
spanning
3. Few integrating roles
4. Current operations orientation
4. Some Planning
SIMPLE
ENVIRONMENTAL COMPLEXITY
COMPLEX
Governing Principles
W.L. Gore & Associates
Everyone will:
1. Try to be fair .Sincerely strive to be fair with each
other, our suppliers, our customers, and all persons
with whom we carry out transactions.
2. Allow, help and encourage his associates to grow
in knowledge, skill, scope of responsibility, and range
of activities.
3. Make his own commitments -and keep them.
4. Consult with his Associates before taking actions
that might be below the waterline" and cause serious
damage to the Enterprise.
Approaches To Structural Design
Functional
Departments based
on similar skills
and resource use.
President
CEO
Human Resources
Manufacturing
Lack of
communication
Deep expertise
Efficiency
Accounting
Lack of
innovation
Divisional
Encourages
decentralization
Division 1
HR
Man
Acct
President
CEO
Product
Program
Geography
Redundancy
Self
contained
Focus
Division 2
HR
Man
Acct
Flexibility changes
rapidly
Requires changes in
culture
A Horizontal Structure
Directs the attention
Limits in-depth skill
Promotes a focus
Determining core
Top
Management
Team
processes
Process
Owner
Team
1
Market
Analysis
Team
2
Research
Product
Planning
Team
3
Testing
New Product Development Process
Process
Owner
Team
1
Analysis
Purchasing
Team
2
Material
Flow
Procurement and Logistics Process
Team
3
Distrib.
Customer
Reengineering
Process
Customer
Teams Used for Horizontal
Coordination at Rodney Hunt
Company
President
Marketing Vice Pres.
Water Control Equip.
Sales Manager
Engineering Vice Pres
Water Control Equip.
Chief Engineer
Textile Machinery
Export Manager
Advertising Manager
Foundry General Supervisor
Machine Shop
General Supervisor
Water Control Product Team
Textile Machinery
Domestic Sales Manager
Manufacturing Vice Pres
Textile Machinery
Chief Engineer
Stainless Steel
General Supervisor
Textile Product Team
Customer Service,
Purchasing,
Production Manager
Shipping and Yard
Supervisor
Matrix
Cross functional
Teams
Human Resources
Product 1
Product 2
Time
One employee
reports to 2 bosses
at same time
President
CEO
Manufacturing
Innovative
Creative
Accounting
Employee caugh
in Middle
Conflicting demands
Matrix Structure for
Worldwide Steel Company
President
Horizontal Functions
Mfg.
Vice
President
Open Die
Business Mgr.
Ring Products
Business Mgr.
Wheels & Axles
Business Mgr.
Steel making
Business Mgr.
Marketing
Vice
President
Finance
Vice
President
Mfg.
Services
Vice
President
Vertical Functions
Metallurgy
Vice
President
Field Sales
Vice
President
Industrial
Relations
Vice
President
Team
interacting closely
shared commitment
Cross
functional
Creativity
True team = mutual
accountability
Faster
response to
change
High Maintenance
Time
Network
Designer
Best of the
Breed
Human
Resources
Subcontracts
many functions to
other companies
Virtual
organization
Hub
Give up
control
Manufacturing
Changed
quickly
Marketing
Ladder of Mechanisms for
Horizontal Linkage and
Coordination
Teams
Amount of Horizontal
Coordination Required
H IGH
Full-time Integrators
Task Forces
Direct Contact
LOW
Information Systems
LOW
HIGH
Cost of Coordination in
Time and Human Resources
Organization Contextual Variables
that Influence Structure
Culture
Size
Chapter 9
Chapter 8
Strategy,
Goals
Structure
(learning vs.
efficiency)
Chapter 2
Environment
Chapters 4, 5
Technology
Chapters 6,7
Chapter Five





Interorganizational
Relationships

Organizational Ecosystem
Changing Characteristics of
Interorganizational Relationships
Transparency
Traditional Orientation:
Adversarial
New Orientation:
Partnership
Suspicion, competition, arm’s length
Trust, addition of value to both sides, high
commitment
Price, efficiency, own profits
Equity, fair dealing, all profit
Limited information and feedback
Minimal involvement and up-front
investment
Short-term contracts
Electronic linkages to share key
information, problem feedback and
discussion
Mechanisms for close coordination,
people on-site
Involvement in partner’s product design
and production
Long-term contracts
Contract limiting the relationship
Business assistance beyond the contract
Legal resolution of conflict
Interorganizational Relationships
Organization Type
Competitive
Organization
Relationship
Dissimilar
Similar
Minimize
dependence
Find Niche
Resource
Dependence
Traditional
Sharing risks
Cooperative
Population
Ecology
Collaborative
Network
Institutionalism
Legitimacy from
New Alternative environment
Elements in the Population
Ecology Model of Organizations
Variation
Large number
of variations
Selection
Retention
Some
organizations
find a niche
and survive
A few
grow large
become
institutionalized
GOOD LUCK
WITH
THE TEST
That’s it for
today
On to groups