ORGANIZATIONS AND
ORGANIZATION THEORY
Chapter 1
ORGANIZATION DESIGN IN ACTION
Current Challenges:
• Globalization
• Intense Competition
• Sustainability, the Green Movement, & Ethics
• Speed & Responsiveness
• Digital Organizations & Big Data Analytics
WHAT IS AN ORGANIZATION?
ü Social Entities
üGoal-Directed
ü Activity Systems
üExternal Environment
THE ORGANIZATION
IS AN OPEN SYSTEM
INPUT
Transformation
Process
OUTPUT
IMPORTANCE OF ORGANIZATIONS
• Achievement
• Technology
• Production
• Innovation
• Environment
• Value
• Accommodation
DIMENSIONS OF
ORGANIZATION DESIGN
Structural Dimensions
• Formalization
• Specialization
• Hierarchy of Authority
• Complexity
• Centralization
Contingency Factors
• Size
• Technology
• Environment
• Goals & Strategy
• Culture
ORGANIZATION CHART
PERFORMANCE &
EFFECTIVENESS OUTCOMES
Effectiveness
vs
Efficiency
STAKEHOLDER
APPROACH
balancing the needs of groups in and
outside of the organization
THE EVOLUTION OF ORGANIZATION
THEORY & DESIGN
historical perspectives provide insight on
organizational design and management
HISTORICAL PERSPECTIVES
• Efficiency is Everything
• How to Get Organized
• What about People?
• Can Bureaucracies Be Flexible?
IT ALL DEPENDS: KEY CONTINGENCIES
for organizations to be effective there must be
a good fit between organization design and
contingency factors
ORGANIC VS MECHANISTIC
• Centralized vs Decentralized Structure
• Specialized Tasks vs Empowered Roles
• Formal vs Informal Systems
• Vertical vs Horizontal Communication
• Hierarchy of Authority vs Collaborative Teamwork
THE EMERGING BOSSLESS DESIGN TREND
no job titles, no seniority, and no managers
Levels of
Analysis
FRAMEWORK
FOR THE
BOOK
Organizational
Behavior
Organization
Theory
Organization
Design
FOUR LEVELS
External
Environment
Organization
Level
Department A
Department B
Department C
Group
Level
Individual
Level
ORGANIZATIONAL BEHAVIOR
human behavior in organizational settings
ORGANIZATION THEORY & DESIGN
a macro examination of organizations because it
analyzes the whole organization as a unit