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Chapter OneChapter One
Organizations andOrganizations and
Organization TheoryOrganization Theory
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Organization Theory in ActionOrganization Theory in Action
TopicsTopics
Current ChallengesCurrent Challenges– GlobalizationGlobalization– Ethics and Social Responsibility Ethics and Social Responsibility – Speed of ResponsivenessSpeed of Responsiveness– The Digital WorkplaceThe Digital Workplace– DiversityDiversity
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What is an Organization?What is an Organization?
DefinitionDefinitionTypes of OrganizationsTypes of OrganizationsImportance of OrganizationsImportance of Organizations– Bring together resources to achieve desired Bring together resources to achieve desired
goals and outcomesgoals and outcomes– Produce goods and services efficientlyProduce goods and services efficiently– Facilitate innovationFacilitate innovation– Use modern manufacturing and information Use modern manufacturing and information
technologiestechnologies
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Importance of OrganizationsImportance of Organizations
Importance of Organizations (cont’d)Importance of Organizations (cont’d)– Adapt to and influence a changing Adapt to and influence a changing
environmentenvironment– Create value for owners, customers and Create value for owners, customers and
employeesemployees– Accommodate ongoing challenges of Accommodate ongoing challenges of
diversity, ethics, and the motivation and diversity, ethics, and the motivation and coordination of employeescoordination of employees
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Perspectives on OrganizationsPerspectives on Organizations
Open SystemsOpen SystemsOrganizational ConfigurationOrganizational Configuration– Technical CoreTechnical Core– Technical SupportTechnical Support– Administrative SupportAdministrative Support– Top ManagementTop Management– Middle ManagementMiddle Management
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Transformation
Process
An Open SystemAn Open System and Its Subsystems and Its Subsystems
Environment
Raw MaterialsPeopleInformation resourcesFinancial resources
Input
SubsystemsBoundarySpanning
Production,Maintenance,Adaptation, Management
BoundarySpanning
Products andServices
Output
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Dimensions of Organization DesignDimensions of Organization Design
Structural DimensionsStructural Dimensions
Contextual DimensionsContextual Dimensions
Performance and Effectiveness OutcomesPerformance and Effectiveness Outcomes
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Five Basic Parts of an Five Basic Parts of an OrganizationOrganization
TopManagement
TechnicalSupport
Technical Core
AdministrativeSupport
MiddleManagement
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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Organization Chart Illustrating the Hierarchy of Authorityfor a Community Job Training Program
Board of Directors
Assistant Executive Directorfor Human Services
ExecutiveCommittee
ExecutiveDirector
AdvisoryCommittee
DirectorEconomic Dev.
Assistant Executive Directorfor Community Service
DirectorReg. Planning
DirectorHousing
DirectorCriminal Justice
DirectorFinance
DirectorAAA
DirectorCETA
Secretary
LeadCounsel
LeadCounsel
Asst. DirectorFinance
RecordsClerk Secretary Adm. Asst Payroll Clerk Secretary MIS Specialist Staff Clerk Adm. Asst.
AlcoholCoord.
PublicInfo
Coord.
Account.
ContractFiscal
Manager
CETACouns.Devs.
Title II D&VI&VII
CETAPlanner
HousingCoord.
CETACouns.Devs.
Title IIABC
CETAIntake
&Orient
CETACouns.Devs.Youth
IV
ProgramSpec.AAA
ProgramPlannerAAA
Level 1
Level 2
Level 3
Level 4
Level 5
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Goals and Strategy
Environment Size
Culture TechnologyStructure
1. Formalization2. Specialization3. Hierarchy of Authority4. Centralization5. Professionalism6. Personnel Ratios
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Characteristics of Three Characteristics of Three OrganizationsOrganizations
0
50
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W.L. Gore &Associates
Wal-Mart State ArtsAgency
Formalization
Specialization
Centralization
Configuration(%nonworkflowpersonnel)
TECHNOLOGY Manufacturing Retailing Government Service
SIZE (#employees) 6,000 250,000 35
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The Evolution of Organization The Evolution of Organization Theory and DesignTheory and Design
Historical PerspectivesHistorical Perspectives
Contemporary Organization DesignContemporary Organization Design
Effective Performance versus the Learning Effective Performance versus the Learning OrganizationOrganization
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Two Organization Design Two Organization Design ApproachesApproaches
VerticalStructure
RoutineTasks
RigidCulture
CompetitiveStrategy
FormalSystems
HorizontalStructure
AdaptiveCulture
EmpoweredRoles
CollaborativeStrategy
SharedInformation
Organizational Changein the Service of
Performance
Mechanical System Design
Natural System Design
Stable EnvironmentEfficient Performance
Turbulent EnvironmentLearning 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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Organizational DimensionsOrganizational Dimensions
High Formalization 1 - 4 5 - 6 7 - 10 Low Formalization
High Specialization 1 - 4 5 - 6 7 - 10 Low Specialization
Tall Hierarchy 1 - 4 5 - 6 7 - 10 Flat Hierarchy
Product Technology 1 - 4 5 - 6 7 - 10 Service Technology
Stable Environment 1 - 4 5 - 6 7 - 10 Unstable Environment
Strong Culture 1 - 4 5 - 6 7 - 10 Weak Culture
High Professionalism 1 - 4 5 - 6 7 - 10 Low Professionalism
Well-Defined Goals 1 - 4 5 - 6 7 - 10 Poorly-Defined Goals
Small Size 1 - 4 5 - 6 7 - 10 Large Size
Modern 1 - 4 5 - 6 7 - 10 Postmodern
WorkbookActivity
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XeroxXerox
High Formalization 1 - 4 5 - 6 7 - 10 Low Formalization
High Specialization 1 - 4 5 - 6 7 - 10 Low Specialization
Tall Hierarchy 1 - 4 5 - 6 7 - 10 Flat Hierarchy
Product Technology 1 - 4 5 - 6 7 - 10 Service Technology
Stable Environment 1 - 4 5 - 6 7 - 10 Unstable Environment
Strong Culture 1 - 4 5 - 6 7 - 10 Weak Culture
High Professionalism 1 - 4 5 - 6 7 - 10 Low Professionalism
Well-Defined Goals 1 - 4 5 - 6 7 - 10 Goals Not Defined
Small Size 1 - 4 5 - 6 7 - 10 Large Size
Modern 1 - 4 5 - 6 7 - 10 Postmodern
Use for 1959-1990, Use for 1990-present
Workbook
Activity
