Organizations

What are Organizations?
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Organizations are “social entities that are goal-directed, are designed as deliberately structured and coordinated activity systems and are linked to the external environment.”
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Must be flexible!

“Social Entities”
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Companies are based on human interaction
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Companies are becoming more involved with one another
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Companies support social organizations

“Goal-directed”
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Types of Organizations
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Large and small
Profit and nonprofit
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Nonprofit
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Chief goal: “Social impact”
Funded by donors and grants

Goal-setting for Profit Firms
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Profit
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Chief goal: To make $$$$
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Efficiency v. Effectiveness
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What ARE our goals?
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Stakeholder satisfaction

What else do Organizations do?
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Bring together resources to achieve desired goals and outcomes
Produce goods and services efficiently
Facilitate innovation
Use modern manufacturing and information technologies

What else do Organizations do?
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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

Open Systems Approach
People
People Transformation
Raw Materials
Finances
Information
Technology
Raw Materials
Finances
Information
Technology
Transformation
Process
Inputs Outputs

Organizational Dimensions
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Structural
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“Internal characteristics of the organization”
Components
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Formalization
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Specialization
Hierarchy of authority
Centralization
Professionalism
Personnel ratio

Organizational Dimensions
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Contextual Dimensions
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“The whole organization”
Components
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Size
Organizational technology
Environment
Goals and strategy
Culture

“Structured and Coordinated
Activity Systems”
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Mechanistic v. Organic
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Which structure is best?

Mechanistic v. Organic
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Structure
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Mechanistic- Vertical
Organic- Horizontal
Employee Roles
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Mechanistic- Routine tasks
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Organic- Empowered tasks
Communication
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Mechanistic- Formal channels
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Organic- Shared information

Mechanistic v. Organic
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Strategic Decisions
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Mechanistic- Top management
Organic- Employees
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More communication!
Culture
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Mechanistic- Rigid (Xerox)
Organic- Adaptive

Level of Analysis
Individual
Group
Organizational
External Environment