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Chapter 8: Organizations and Organizational ChangeLearning Objectives

• Explain three theories of organizations.

• Describe the components of social systems: roles, norms, and culture.

• Explain downsizing, outsourcing, offshoring, and mergers and acquisitions.

• Explain the creation of global organizations.

• Discuss the rationale for organizational change.

• Understand why employees resist change.

• Understand the concept of organizational responsibility.

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Chapter Summary

• Organizations are complex social entities designed to achieve work-related objectives.

• Classical organizational theory defined the structure of an organization in terms of four principles: functional, scalar, line/staff , and span of control.

• Neoclassical organizational theory revealed that organizations are more complex than initially proposed by classical theory.

• Mintzberg proposed a theory of organizational structure consisting of seven parts: strategic apex, middle line, support staff , technostructure, operating core, ideology, and politics.

• Organizations are defined by a social system of roles, norms, and culture.

• Downsizing, outsourcing, off shoring, and mergers and acquisitions are contemporary sources of job loss.

• The modern economy has given rise to global organizations that through electronic communication operate across time and space.

• Hofstede provided four classic dimensions useful in differentiating cultures around the world: power distance, individualism–collectivism, masculinity–femininity, and uncertainty avoidance.

• Organizations change continuously to adapt to their environments. Organizations can change suddenly and painfully, with downsizing being a major form of change.

• Organizations often resist change, thus it is important to understand the conditions under which change is likely to occur.

• I/O psychology has recently recognized the need for organizations to contribute to the larger environment of which they are a part, the concept of organizational responsibility.