Lecture 1 Introduction to the modern firm prof.Pontiggia 02/15/2010 Venice 2010 Cà Foscari Student:Esmeralda Poda Defining organizations Should we seek to define what an organization is ,we must take into account different approaches. 1.Firstly ,from a scholar point of view : O.T.D. -organizational theorem and designTheorem Design organizations are designed using rationality . Rationality is based on efforts and it leads to optimize profits and reduce costs. Furthermore it helps in applying resources following designed plans. Structures & processes are the fundamental features of organizations .Structure in this case indicates hierarchy: commonly in all businesses executives run the firm, whereas subordinates fulfill their task. Procedures are routine, habits. 2. Secondly, considering organizational behavior : Individual behavior O.B. Collective behavior(team, groups) in organizations behavior is reckoned mainly in decision making ,integration, communication, negotiation and power relationships. 3.Finally ,looking at H.R.M. –human resource management- Organizations are based on mechanisms of managing people. Issues such career systems ,promotion, capability and skills are concerned with evaluating and controlling people. In addition of people (linked by different relationships) -Organizations are seen working as a NETWORK of skills and competences of tasks or activities Lecture 1 Introduction to the modern firm prof.Pontiggia 02/15/2010 Venice 2010 Cà Foscari Student:Esmeralda Poda Of course the three points are interlinked: as a matter of fact tasks require skills and competence that people are provided with. INGREDIENTS FOR AN ORGANIZATION (looking at this four dimensions is a way to define the features of a company) *Interdependence – Coordination. How strong is interdependence ? Managing problems of interdependence is called Coordination, basically coordination of tasks. *Integration subdivided in Differentiation & Orientation .Differentiation is determined by demand, on the other hand Orientation is defined by supply. Integration deals with differentiating tasks of different people. Creating a company identity with a common culture means integrate people :in order to achieve this a lot of money are purchased ,basically in activities such as training and development policies. *Type of control. How we check ,how we measure performance of people ?There exist three ways: process input output burocratical By the recruitment process By sales, revenues *Knowledge(learning process).Actually knowledge is intended in two different stages: First, knowledge already acquired is exploited by applying it within the processes and systems , second, it is accumulated outside by exploring the exterior environment. This latter process is also known as “ Dynamic activity”. Typical questions connected to each of the four dimensions : -How they try to use these four dimensions? -How can they keep together people with different skills? -How strong are the social controls? -Is the organization innovative?