Organization and
Management Theory: Goals
MOS 4470
Trevor Hunter
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MOS 4470b: Organization and
Management Theory
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Professor: Trevor Hunter
Office: FB 303
Office Hours: Wednesdays, 1:30-3:30pm
Office Phone: 519-433-0041 ext. 4338
Class Times: Tuesdays,12:30-3:30pm
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Teaching Methodology
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Seminar Format
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Lot’s of student involvement – YOU will be
running the classes
Discussion on the readings as opposed to
lectures and cases
Required Text: Organization Theory and
Design, Daft & Armstrong, 3rd Canadian
edition
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Student Evaluation
Individual work – Organization Analysis Papers (three)
– 30%
Group Research Presentation (one) – 30%
Session Leadership (one) – 30% and class
contribution (ongoing) – 10%
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No mid-term test or final exam – poor way to
evaluate performance
Group Research Presentation - a much better way
of measuring understanding
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What is an Organization?
Definition:
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Social entities
Goal directed
Designed as deliberately structured and
coordinated activity systems
Linked to the external environment
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What is an Organization?
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Importance of Organizations
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Bring together resources to achieve desired goals
Produce goods and services efficiently
Facilitate innovation
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
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Analyzing Organizations
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Meso-level of analysis:
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Relationship between the environment, the
organization and groups within the organization –
NOT individuals (OB) or what the organization
does (Strategic Management)
Likely a different way for you to think – it is
tough to develop this skill. You need to make
sure you do not get too micro-level in your
analysis!
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The Evolution of Organization Theory
and Design
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Historical Perspectives
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Mainly focused on achieving efficiency
Poor understand of the role of “organization”
Contemporary Organization Design
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The learning organization
Vertical to horizontal, routine to empowerment,
formal control to shared information, rigid to
adaptive
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Two Organization Design Approaches
EVOLUTION
EFFICIENCY
EFFECTIVENESS
Organic System Design
Mechanistic System Design
Vertical
Structure
Routine
Tasks
Formal
Systems
Horizontal
Structure
Rigid
Culture
Competitive
Strategy
Organizational Change
in the Service of
Performance
Empowered
Roles
Shared
Information
Adaptive
Culture
Collaborative
Strategy
Stable Environment
Turbulent Environment
Efficient Performance
Learning Organization
Source: Adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change (Boston, Mass.: Harvard Business School)
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Types of Organizations
Mechanistic
 Focus on efficiency – formalized procedures
 Centralization
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Clear hierarchy
Role/task specialization
Knowledge controlled
Vertical communication
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Types of Organizations
Learning
 Focus on effectiveness – doing what needs
to be done
 Organic structure
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Adaptive
Free-flowing information and roles
Problem-solving
Innovation
Little hierarchy
Participatory decision-making
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Types of Organizations
Learning
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Google
Facebook
Twitter
Square
Gore
Mechanistic
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Apple
BMO
Heinz
ImBev
LHSC
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Perspectives on Organizations
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Systems
Organizational Configuration – Organizational
Subsystems:
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Technical Core
Technical Support
Administrative Support
Top Management
Middle Management
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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.
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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
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Dimensions of Organization Design
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In order to create an organization/system
that is able to acquire, process inputs and
then return the outputs to the environment,
it has to be designed appropriately.
To compare organizations to see if one is
designed appropriately one should
compare them along two dimensions:
Contextual and Structural.
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Dimensions of Organization Design
Contextual Dimensions
1. Size
2. Organizational technology
3. Environment
4. Goals
5. Organizational culture
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Dimensions of Organization Design
Structural Dimensions
1. Amount of Formalization
2. Specialization
3. Hierarchy of authority
4. Centralization
5. Professionalism
6. Personnel ratios
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Dimensions of Organization Design
Context influences structure
 What is “right” mix for an organization’s
structure depends upon:
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What the environment is saying the organization
should do
Why the organization was created (Mission/Goals)
What is the most important outcome –
effectiveness or efficiency
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Goals and
Strategy
Environment
Culture
Size
Structure
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4.
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6.
Formalization
Specialization
Hierarchy of Authority
Centralization
Professionalism
Personnel Ratios
Technology
Organizational and Management
Theory
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Relates to understanding the influences of:
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The context
The goals
The strategy
The culture
on organizational structure
Your job is to ask: “Given the above, is this
organizational structure the ‘right’ one to make it
achieve its goals, or is there a better one? If so,
what is it?”
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Top Management Responsibilities
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Determine the organization’s purpose
Determine the organization’s goals in order to
enact and fulfill the purpose
Develop strategy to achieve the goals
Design the organization to enact the strategy
given the demands of:
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Changing and uncertain stakeholders
Changing and uncertain environment
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Course Theme – Alignment of GSS
OK? – next level
Analyze
GOALS
•What are the
organization’s
goals?
•Are the goals
appropriate given
the context?
•Implications/
Recommendation
OK? – next level
Analyze
STRATEGY
•What is the organization’s
strategy?
•Is the strategy appropriate
given the organization’s
goals?
•Will the strategy achieve
the goals?
•Implications/
Recommendation
OK?
Analyze
STRUCTURE
•What is the
organization’s
structure?
•Will the structure
allow the strategy
to be undertaken
appropriately?
•Implications/
Recommendation
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Environment/Goals/Strategy/Structure Analysis
Process
1. Tells you what you should do
External
Environmental
Assessment
Learning or
Efficiency
2. Goals
3. Strategy
Learning or
Efficiency
4. Structure
5. Outcome
Internal
Environmental
Assessment
6. Outcome Assessment – have you been successful?
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Selecting Strategy and Structure to
Achieve Organizational Goals
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3.
Goals  Where you want to go
Strategy  How you are going to get there.
A plan for interacting with the competitive
environment to achieve organizational goals.
Structure  How you can do what you need
to do to implement strategy and achieve
goals
Environment
Goals
Strategy
Structure
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Analyzing Environment, Goals, Strategy
and Structure
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The type of environment determines the right
type of goals
The type of goals determine the right type of
strategy
The type of strategy determines the type of
organizational structure
Your job is to identify each of the right type
and why, to get alignment
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Organizational Purpose - Goals
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Mission
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Organization’s reason for existence
Describes the vision, shared values and beliefs
Sometimes referred to as Official Goals or
Mission Statement – formally stated definition of
business scope and outcomes the organization is
trying to achieve
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Organizational Purpose - Goals
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Mission
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Communicates to current and prospective
stakeholders what the organization stands for and
what it is trying to achieve.
Communicates legitimacy to society –
organizations are social entities which need to be
deemed legitimate
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Organizational Purpose -Goals
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Mission
King’s Mission Statement:
King's is a Catholic University College committed to
the ongoing creation of a vital academic community
animated by a Christian love of learning and the
pursuit of truth. The College strives to foster an
environment based on open inquiry, Christian
values and service to the larger community.
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Organizational Purpose - Goals
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Mission
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King’s MOS Mission:
It is the King’s University College MOS group’s
mission to develop globally minded graduates
who are good at business and do good, through
business.
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Organizational Purpose - Goals
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Operative Goals
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Designate the ends sought through operating
procedures and explain what it is the organization
actually does – subsystem activities
Specific and measurable – need to be achieved in
order for organization to survive
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Organizational Purpose - Goals
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Operative Goals - Types
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Overall Performance:
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Resource Aquisition:
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For-profit: Profits, sales, growth, output etc.
Not-for-profit: fulfillment of services, cost control etc.
Acquisition of needed material and finances from the
environment
Market:
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Market share or growth – responsibility of marketing
department
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Organizational Purpose - Goals
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Operative Goals - Types
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Innovation and Change:
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Productivity:
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Ability to be internally flexible and adaptable with respect to
the external environment
Concerns about the amount of output achieved from
available resources (i.e. cost/unit)
Employee Development:
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Training, promotion, safety etc. of employees –
development of internal resources
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Organizational Purpose - Goals
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The Importance of Goals
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Official Goals:
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Describe the value system for the organization and
should guide all strategies and operations
Legitimize the organization
Operative Goals:
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Represent the primary tasks (rather than objectives) of
the organization
More explicit and well defined
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Goal Type and Purpose
Type of Goals
Purpose of Goals
Official Goals, mission: Legitimacy
Operative goals:
Employee direction and motivation
Decision guidelines
Standard of performance
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